From Published Accounts

Interpreting Guarantees Under Ind As: Determining The Correct Standard By Contract Term

Income-Tax Act 2025: Changes in International Tax and Transfer Pricing Provisions

An In-Depth Look at Supplier Finance Arrangements

Transfer Pricing For Captive Service Providers in India: Disputes, Resolution and Policy Considerations

Trust & FEMA Who Owns Trust Property – Trustee Or Beneficiary?

Accounting Treatment of Foreign Exchange Gain/Loss on a Disputed Foreign Creditor Balance under Indian Accounting Standards

Allied Laws

Company Law

Can You Be A Coparcener In Your Maternal Grandfather’s HUF?

Governance Framework Of Alternative Investment Funds (AIFs) In Gift City

Mechanical Approval by the Sanctioning Authority under Section 151

Glimpses of Supreme Court Rulings

Application for condonation of delay — S. 119(2)(b) — Delay due to the time taken in obtaining legal advice by the Chartered Accountant — Not due to negligence on the part of assessee but due to the CA in obtaining legal advice — Non-condonation would result in lapsing of brought forward loss to be set-off — Genuine hardship to the assessee — Delay in filing return was to be condoned.

Income — Capital or revenue receipt — One-time compensation received for surrendering of stock received under stock option scheme of employer :— (a) TDS — Rejection of application u/s. 197 for NIL deduction of tax — Stock option not perquisite amenable to tax — Order rejection application quashed and set aside; (b) Applicability of section 45 — Cost of acquisition of stock option cannot be determined — Capital receipt not chargeable u/s. 45 not chargeable under any other head — Charging section and computation section constituted an integrated code.

Re-assessment — Information available on Insight Portal — Incorrect information — Mechanism u/s. 148A — Requirement to verify information u/s. 148A(a) prior to 01/09/2024 — After the amendment, 148(1) is similar to 148A(b) — Despite the amendment, it is the responsibility of the AO to verify information available on insight portal — AO must conduct enquiry, if necessary 148A(1) to be invoked only after verification of the information made available to the AO.

Refund — First appellate order in favour of the assessee —However, directions given in the order to make enquiry and verify in respect of other years by resorting to S. 148 — Refund cannot be held merely because enquiry and verification is pending — Once the assessee succeeds in appeal consequence of order giving effect and grant of refund should follow — Directions issued to the AO to pass order giving effect to the order of the CIT(A) and grant refund along with interest u/s. 244A of the Act.

Refund — Rejection of application on the ground that request can be made only through TRACES portal and further there is no provision to adjust outstanding demand against refund on TRACES portal — Unjustified — Income-tax authorities bound to refund the amount without any formalities to be completed by the assessee — Non-functionality of portal cannot be the ground for denying the refund statutorily allowed to the assessee — AO directed to either grant refund or set-off the demand payable against the refund.

Reassessment – period of limitation – “surviving period” – Effect of UOI vs. Ashish Agarwal [444 ITR 1 (SC)] & UOI vs. Rajeev Bansal [ 469 ITR 46 (SC):

Refund of excess amount deposited in the Government Treasury in the form of tax deducted at source :

Assessee is entitled to credit for entire tax deducted at source by the buyer and which is reflected in his Form No. 26AS, though assessee was only a joint owner of property and received only 50% of the consideration.

Expansion of the municipal limits after date of issuance of notification is irrelevant. Unless there is a subsequent notification, it is the distance of the land sold from the municipal limits which is relevant.

In view of proviso to section 251(1)(a), w.e.f. 1.10.2024, in a case where the order appealed against in first appeal is passed otherwise than under section 144 of the Act, any action / direction of remand for fresh verification by the first appellate authority is barred by jurisdiction.

Mere existence of religiously worded objects in the trust deed cannot be a ground to deny approval under section 80G unless there is a finding that the actual expenses on religious activities exceed the permissible limit of 5% of total income as per section 80G(5B).

Mere existence of an object permitting application of income outside India cannot be a ground to deny registration under section 12AB.

Claim of deduction under section 54 cannot be denied merely on the ground that the new residential property was purchased in the name of the assessee’s wife, although the entire investment was made from assessee’s own funds.

Charitable Trust – Disallowance of exemption under section 11 on ground of non-filing of Form 10B – Held, defect is procedural and curable; exemption allowable

Non-issuance of notice under section 143(2) after filing of return in response to notice under section 148 – Reassessment proceedings held invalid

Article 22 of India-Korea DTAA – As taxing rights were allocated only to resident country, fee received for providing guarantee in respect of loan obtained by Indian subsidiary of Korean company was taxable only in Korea.

Article 12 of India-Ireland DTAA – Consideration received for distribution of software on a standalone basis, or embedded with hardware, could not be characterised as Royalty, and replacement of hardware could not be regarded as Fees for Technical Services (“FTS”) but as business profits; and in the absence of PE, income was not taxable in India.

Crippling Terror Financing – India’s Strategic Imperative

From The President

Classification Of Goods

Goods And Services Tax

Recent Developments in GST

God Does Not Punish Us, Action Does!

Address Verification

ICAI and Its Members

Miscellanea

Regulatory Referencer

Learning Events at BCAS

Statistically Speaking