Delhi HC: 6% Disallowances Sufficient for Unexplained Purchases

The Delhi High Court has ruled that disallowances at 6% of unexplained purchases are sufficient to meet the possibility of revenue leakage. The court held that the assessing officer (AO) is not required to make a detailed inquiry into the nature of each unexplained purchase in order to make a disallowance. This ruling is significant […]

Tax Demands for Pre-RP Period Only as per RP

The Income Tax Appellate Tribunal (ITAT) has ruled that tax demands for the period preceding the date of the resolution plan (RP) can only be paid as per the terms of the RP. The ITAT held that the Assessing Officer (AO) cannot make any additional tax demands for the pre-RP period, even if the AO […]

No TP Adjustments for Royalty if Approved by Govt/RBI

Transfer pricing (TP) is a complex area of tax law that deals with the pricing of transactions between associated enterprises (AEs). TP is important because it ensures that AEs do not shift profits to low-tax jurisdictions. The Income Tax Appellate Tribunal (ITAT) has recently ruled that no TP adjustments can be made if the royalty […]

Faceless Assessment under section 144b of Income Tax Act

Introduction Introduction to Faceless Assessment under Section 144B of Income Tax Act introduces a transformative approach to tax assessment, leveraging digital infrastructure and the National Faceless Assessment Centre (NFAC). The implementation of Section 144B of Income Tax Act streamlines the evaluation process, ensuring equitable treatment and greater efficiency in addressing taxpayer queries and concerns. Section […]