Analysis of depreciation rates under the Income-tax Act (WDV method) from AY 2003-04 onwards and the useful lives specified under Schedule II of the Companies Act, 2013 (SLM/WDV).
The ITAT Chennai Bench dismissed an appeal because the Assessing Officer (AO) was located in Hyderabad, violating Rule 4 which dictates ITAT jurisdiction is based on the AO’s office. The ruling affirmed the principle from the Supreme Court that appeals must be filed before the correct jurisdictional ITAT Bench, though it granted the taxpayer liberty to refile properly.
The ITAT ruled on a Transfer Pricing adjustment, holding that companies failing the 75% export filter (MAA Business Solutions) and the Related Party Transaction (RPT) filter (WNS Global) must be excluded from the comparable set for ITES providers. The Tribunal directed a fresh re-computation of the arm’s length price (ALP) after applying correct filters, providing relief to the assessee.
The ITAT ruled that a claimed business loss on the sale of a scrip, allegedly part of a penny stock syndicate, was genuine and allowable. The ruling emphasized that transactions supported by complete documentation (contract notes, demat, bank statements) and where no tax-exempt capital gain was claimed cannot be disallowed merely based on a general modus operandi or third-party information.
Summary of key income tax benefits for salaried individuals for AY 2026-27, covering a range of exempt allowances like HRA, Children Education Allowance, and Transport Allowance, along with taxable perquisites, retirement benefits (Gratuity, NPS, Leave Encashment), and standard deductions.
ITAT directed the AO/TPO to accept the corrected operating margins for comparables in the Business Support Services segment, specifically for Forbes Facility Services Pvt. Ltd. The Tribunal’s order rectifies computational errors and ensures that the benchmarking is based on correct financial data, allowing for proper recomputation of the ALP.
ITAT annulled an assessment and addition of $\text{Rs. }31.80$ crore of share capital made under Section 153C, ruling that the jurisdiction was invalid for an unabated assessment year. The key takeaway is that for an already completed assessment, the AO must rely on incriminating material found during the search, not mere statutory documents already in the books.
The ITAT ruled that Compulsorily Convertible Debentures (CCDs) legally remain debt until conversion, rejecting the Transfer Pricing Officers (TPO) re-characterization of them as equity. The Tribunal quashed the Nil Arm’s Length Price (ALP) for associated interest and remanded the matter for fresh benchmarking.
A summary of the critical provisions of the Income-tax Act governing non-residents setting up business in India and residents dealing with them. It covers tax chargeability (Sections 4, 5, 9), specific business taxation (Sections 44B to 44BBD), Transfer Pricing (Sections 92 to 92F), GAAR (Sections 95 to 102), and TDS/MAT/AMT compliance.
ROC Goa imposes a 3.5 lakh penalty on SHREEPATI BUILD INFRA INVESTMENT and its CFO for violating Section 134(3)(h) by failing to file Form AOC-2 with the Board’s Report, omitting mandatory related party transaction disclosures for FY 2021-22.
