Income Tax : Explore recent Supreme Court rulings (2023) on income tax issues. Highlights of key cases, analysis, and implications....
Income Tax : Section 36 – Other Deductions Section 36 of the Indian Income Tax Act, 1961, provides a list of explicit deductions for computin...
Income Tax : The Delhi High Court, has held in CIT vs. Samara India(P) Ltd. (2013) 216 Taxman 93 , following the decision of Supreme Court in T...
Income Tax : In this discussion, we would take up Section 36(1)(iii) of the Income Tax Act, 1961 and analyse the provision therein from all fa...
Income Tax : ection 55 (2)(b) of the Income Tax Act, 1961 provides the option to the assesse to consider the fair market value of capital asset...
Income Tax : ITAT held that Accounting Standard-19 governs accounting treatment but does not determine tax treatment under the Income-tax Act. ...
Income Tax : The Bombay High Court held that bad debt deduction cannot be denied where the debt was effectively written off through accounting ...
Income Tax : ITAT Bangalore held that an assessment order passed in the name of an amalgamated bank after it had ceased to exist is void ab ini...
Income Tax : The ITAT held that reassessment initiated beyond four years cannot survive unless the Assessing Officer records that the assessee ...
Income Tax : The Bangalore ITAT held that an assessee need not prove that a debt has actually become irrecoverable to claim a bad debt deductio...
ITAT held that Accounting Standard-19 governs accounting treatment but does not determine tax treatment under the Income-tax Act. It ruled that depreciation belongs to the legal owner while lease rentals remain deductible for the lessee.
The Bombay High Court held that bad debt deduction cannot be denied where the debt was effectively written off through accounting entries despite the debtor’s account remaining open due to pending litigation. The ruling emphasizes substance over accounting form.
ITAT Bangalore held that an assessment order passed in the name of an amalgamated bank after it had ceased to exist is void ab initio. The Tribunal ruled that once the Assessing Officer was informed of the amalgamation, the defect could not be cured under Section 292B.
The ITAT held that reassessment initiated beyond four years cannot survive unless the Assessing Officer records that the assessee failed to fully and truly disclose material facts. Since the recorded reasons contained no such allegation, the notice under Section 148 was declared invalid. The consequential reassessment order was quashed.
The Bangalore ITAT held that an assessee need not prove that a debt has actually become irrecoverable to claim a bad debt deduction. The Tribunal ruled that a proper write-off in the books of account is enough to qualify for the deduction.
State Bank of India Vs ACIT (ITAT Mumbai) The Mumbai Bench of the Income Tax Appellate Tribunal decided cross-appeals filed by a public sector bank and the Revenue for Assessment Year 2010-11. The case involved a large number of recurring banking-taxation issues including pension provisions, depreciation on securities, bad debts, section 14A disallowance, taxation of […]
Tribunal held that deduction for bad debts is allowable in the year in which the debts are actually written off in the books of account. It rejected the Revenue’s view that NPAs classified earlier must necessarily be written off in those earlier years.
Delhi ITAT held that revision under Section 263 cannot be invoked merely because the PCIT desires deeper investigation after detailed assessment scrutiny. The Tribunal found that the AO had examined all major issues through extensive enquiries and documentation.
Consistency over technicalities: ITAT Mumbai allowed actuarial pension provision as an ascertained liability, rejected mechanical disallowances, and held CBDT instructions cannot override the Income-tax Act.
ITAT ruled that interest disallowance cannot be made when sufficient interest-free funds are available. The key takeaway is that availability of own funds overrides assumptions of borrowed fund usage.
