Short-term capital loss from any asset can be set off against short-term capital gain from any other asset under the same head, regardless of different tax rates or STT payment. Issue: Whether, under the provisions of Section 70(2) of the Income-tax Act, 1961, a Short-Term Capital Loss (STCL) arising from any asset can be set… Read More »
Reopening assessment under Section 153C is invalid if the incriminating material from a search pertains to an earlier financial year and not the relevant assessment year. Issue: Whether an assessment for a particular year (Assessment Year 2021-22) can be reopened under Section 153C of the Income-tax Act, 1961, based on a satisfaction note recorded during… Read More »
Reopening of assessment under Section 147 for cash credit from a shell company providing bogus LTCG/STCG is valid, as the assessee failed to prove transaction genuineness or creditworthiness. Issue: Whether the reopening of an assessment under Section 147 of the Income-tax Act, 1961, based on information from the Investigation Wing that the assessee’s bank account… Read More »
Section 54F exemption allowed as assessee purchased a single duplex unit, not two separate properties, which was evident from the deed and municipal records. Issue: Whether an assessee is eligible for exemption under Section 54F of the Income-tax Act, 1961, when they purchase a residential home described as a duplex (interconnected by a staircase and… Read More »
Section 54F exemption allowed as assessee met substantive conditions, with house transfers to daughter and under-construction house not counting as “more than one house,” and deposit made within extended due date. Issue: Whether an individual assessee can be denied exemption under Section 54F of the Income-tax Act, 1961, on the sale of unquoted equity shares,… Read More »
Appeals challenging disallowance of coronary surgery expenses as business or plant repair deductions are dismissed as infructuous due to the assessee’s demise. I. Appeal Regarding Coronary Surgery as “Repairs of Plant” Dismissed as Infructuous. Issue: Whether expenses incurred by a lawyer on coronary surgery could be claimed as a deduction under Section 31 of the… Read More »
Trust registration denial under Section 12AB remanded for fresh adjudication, contingent on assessee obtaining Rajasthan Public Trust Act registration. Issue: When an assessee-trust’s application for registration under Section 12AB of the Income-tax Act, 1961, is rejected by the Commissioner (Exemptions) due to an incomplete Form 10AB, lack of registration under the Rajasthan Public Trust Act,… Read More »
Ex-parte orders rejecting 12A and 80G registration are set aside and remanded for fresh consideration, as the assessee was denied a proper opportunity to be heard due to non-receipt of hearing notices. Issue: Whether ex-parte orders passed by the Commissioner (Exemption) rejecting applications for registration under Section 12A and Section 80G of the Income-tax Act,… Read More »
Trust’s Section 11 exemption cannot be denied solely for belated Form 10B filing, as it is a directory provision, even if filed during appellate proceedings. Issue: Whether an Assessing Officer (AO) can deny exemption under Section 11 of the Income-tax Act, 1961, to a charitable trust solely on the ground that the prescribed tax audit… Read More »
Supply Affording Charges and Electrification Charges recovered by an electricity distribution company are capital receipts, as they contribute to creating enduring infrastructure, and should reduce the cost of relevant assets. Issue: Whether “Supply Affording Charges” and “Electrification Charges” recovered by an electricity distribution company from consumers, intended to cover the cost of laying power lines… Read More »