Income Tax : The article explains remedies available after adverse tax orders under scrutiny and reassessment. The key takeaway is that choosin...
Income Tax : The Court clarified that mere pendency of information exchange requests under DTAA cannot justify continuing a Look Out Circular. ...
Income Tax : A surge in Section 143(2) notices was triggered by the June 2025 limitation deadline. This explains why cases were picked and how ...
Income Tax : The Tribunal ruled that penalty under Section 271A cannot be levied merely because books were rejected and income was estimated. S...
Income Tax : The ITAT held that an assessment completed before receiving the DVO report under section 50C(2) is invalid. All additions and disa...
Income Tax : Delhi ITAT allows Sanco Holding, a Norwegian company, to compute income from bareboat charter of seismic vessels under Article 21(...
Income Tax : It has been observed that in many cases an assessee may wish to make a claim which was not made in the return of income filed unde...
Income Tax : We have attached a file in excel format. The file contains the format of various details which normally assessing officer asks As...
Income Tax : Tribunal observed that the Assessing Officer failed to establish any mismatch in stock, sales, or accounting records before making...
Income Tax : ITAT Hyderabad held that constituent members of a JV or Consortium can claim deduction under Section 80IA(4) when they actually ex...
Income Tax : The Tribunal found that full payment, TDS deduction, and transfer of possession established completion of the transaction for capi...
Income Tax : ITAT Rajkot held that cash deposits made during demonetization were fully supported by audited books of account, cash books, and b...
Income Tax : The Hyderabad ITAT held that purchases cannot be treated as bogus merely because the supplier failed to respond to a notice under ...
Income Tax : Instruction No.1/2015 Clarification regarding applicability of section 143(1D) of the Income-tax Act, 1961- Vide Finance Act, 2012...
Delhi ITAT held that delayed employees’ PF/ESI contributions are disallowable even under section 143(1), citing Supreme Court in Checkmate Services. However, ICDS-based depreciation adjustments exceed CPC powers and were deleted.
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.
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.
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.
Delhi ITAT ruled that a negative lien is not a corporate guarantee, quashing the Rs.16.48 Cr transfer pricing adjustment under Section 92B. Negative lien imposes no repayment liability.
ITAT Chennai held that revisional powers under Section 263 cannot be used to substitute the Assessing Officer’s view when proper enquiry was conducted. The AO’s acceptance of business loss and PF/ESI deductions was valid.
The ITAT held a reassessment under sections 144/147 void due to the absence of a mandatory 143(2) notice. Revenue’s claim that participation cures defects under 292BB was rejected, emphasizing strict compliance with statutory notice requirements.
The ITAT quashed an assessment where the taxpayer’s declared income exceeded the Rs.30 Lakh limit for an ITO in a metro city. Relying on CBDT Instruction No. 1/2011 and Calcutta High Court precedent, the Tribunal ruled that the assessment suffered from a lack of inherent jurisdiction and was void ab initio.
The ITAT quashed a scrutiny assessment because the Rs.143(2) notice was issued by the ITO, a junior officer, despite the declared corporate income exceeding the Rs. 30 Lakh metro city limit. Jurisdiction for issuing the notice and conducting the assessment belonged solely to the DCIT, making the entire proceeding illegal.
Summary of statutory deadlines for issuing income tax notices (Sec 143, 147) and completing assessments, reassessments, and appeal effect orders.
