E-Invoicing from 1 January 2027: Reverse Charge Purchases and Import of Services Now Covered     E-invoicing is set to enter a new territory from 1 January 2027. Businesses already covered by the e-invoicing system will now have to generate an Invoice Reference Number (IRN) for certain inward transactions covered by the Reverse Charge Mechanism…

Interest on Delayed TDS Payment Is Allowable as Business Expenditure: ITAT Mumbai     Interest paid for delayed deposit of TDS is compensatory in nature and cannot be disallowed under Section 37(1) merely by treating it as an expenditure for violation of law, ITAT Mumbai has held. The Mumbai Bench of the Income Tax Appellate…

Notional Interest Is Not Taxable: ITAT Reinforces the Real Income Principle     Only Real Income Can Be Taxed – ITAT Deletes Notional Interest Addition on Interest-Free Advances Can the Income Tax Department tax interest that a taxpayer never actually received or earned? The answer, in appropriate circumstances, is no. The Income Tax Appellate Tribunal…

Leave Encashment After Absorption in PSU: ITAT Allows Full Section 10(10AA) Exemption     Nature of Benefit, Not Status of Employer at Retirement, Determines Section 10(10AA) Exemption What happens when a government employee is absorbed into a Public Sector Undertaking and later retires? Does the employee lose the tax exemption available on leave encashment merely…

LTCG Cannot Be Treated as Bogus Merely Because Share Prices Rose Sharply: ITAT Ahmedabad     LTCG supported by broker, bank and demat records cannot be treated as an accommodation entry merely on the basis of an Investigation Wing report and an abnormal rise in share price, without a money trail or a direct link…