Waiver of loan amount by bank (principal or interest) not taxable under section 41(1).

By | May 19, 2025

I. Cost of Acquisition Based on Books Post-Amalgamation to Be Considered for Capital Gains. Issue: Whether the cost of acquisition of land and building for computing capital gains should be the value recorded in the books of the assessee-company after amalgamation, or the significantly lower value recorded by the transferor company before a slump sale,… Read More »

Section 54F Exemption Allowed on Purchase Agreement with Possession even if a registered sale deed is not executed.

By | May 19, 2025

Section 54F Exemption Allowed on Purchase Agreement with Possession. Issue: Whether the exemption under Section 54F of the Income-tax Act, 1961, for investment in a residential house is available to an assessee who has entered into a purchase agreement with possession within the stipulated time, even if a registered sale deed is not executed. Facts:… Read More »

Addition under Section 56(2)(x) Deleted Due to Immaterial Difference in Value.

By | May 19, 2025

Addition under Section 56(2)(x) Deleted Due to Immaterial Difference in Value. Issue: Whether an addition under Section 56(2)(x) of the Income-tax Act, 1961, is sustainable when the difference between the stamp duty value and the purchase consideration of land is approximately 10% of the purchase consideration. Facts: The assessee purchased a parcel of land along… Read More »

Income Tax Addition on Share Premium Deleted as Assessee Provided Necessary Documents.

By | May 19, 2025

I. Addition on Share Premium Deleted as Assessee Provided Necessary Documents. Issue: Whether an addition under Section 68 on account of share premium is justified when the assessee has furnished all relevant documents, including a valuation certificate as per Rule 11UA(2)(b), to prove the identity and creditworthiness of investors and the genuineness of the transaction,… Read More »

Reopening Notice Invalid Due to Change of Opinion and Revenue’s Appeal Dismissed for Delay and Lack of Merit.

By | May 19, 2025

Reopening Notice Invalid Due to Change of Opinion and Revenue’s Appeal Dismissed for Delay and Lack of Merit. Issue: Whether the reopening of an assessment under Section 148 is valid when it is based on a change of opinion regarding facts already considered during a scrutiny assessment under Section 143(3). Facts: The assessee filed its… Read More »

Reassessment Notices Quashed Due to Incorrect Assumptions Regarding Unexplained Investments.

By | May 19, 2025

Reassessment Notices Quashed Due to Incorrect Assumptions Regarding Unexplained Investments. Issue: Whether the reopening of an assessment under Section 148 is valid when it is based on incorrect assumptions and there is no discernible link between the assessee’s disclosed transactions and the alleged sham transactions that triggered the reopening. Facts: The assessee filed a return… Read More »

Reopening Beyond Four Years Invalid Without Failure to Disclose Material Facts in Original Scrutiny Assessment.

By | May 19, 2025

Reopening Beyond Four Years Invalid Without Failure to Disclose Material Facts in Original Scrutiny Assessment. Issue: Can a reassessment under Section 148 of the Income-tax Act, 1961, be initiated beyond four years from the end of the relevant assessment year based on information regarding significant bank deposits and cash withdrawals, when the original assessment was… Read More »

Commission on Sugarcane Marketing by Cooperative Society Constitutes Business Income Eligible for Section 80P Deduction.

By | May 19, 2025

Commission on Sugarcane Marketing by Cooperative Society Constitutes Business Income Eligible for Section 80P Deduction. Issue: Is the commission income received by a cooperative society, engaged in marketing sugarcane produced by its members, from sugar mills on the supply of sugarcane, to be considered as income from business operations and thus eligible for deduction under… Read More »