Revenue directed to refund excess recovery (beyond 20%) with interest, as stay application was pending and 20% of demand was already deposited. Issue: Whether revenue authorities can adjust an additional sum from an assessee when the assessee has already deposited 20 percent of the total demand, has filed an appeal before the Commissioner (Appeals), and… Read More »
Income Tax recovery notices for pre-resolution plan dues, including penalties, are quashed if not part of the NCLT-approved resolution plan, as such dues stand extinguished. Issue: Whether demands raised by the Income Tax Department (including penalties under Sections 270A and 271AAC of the Income-tax Act, 1961) for a period prior to the date on which… Read More »
Application for 80G approval (Form 10AB) rejection reversed and remanded; Commissioner to process under correct clause as assessee made a bona fide error in section selection. Issue: Whether the Commissioner (Exemptions) is justified in rejecting an assessee-trust’s application for approval under Section 80G(5) on the ground that the specific sub-clause chosen (Section 80G(5)(iv)(B)) requires activities… Read More »
Application for 80G approval (Form 10AB) rejection reversed and remanded; Commissioner to process under correct clause as assessee made a bona fide error in section selection. Issue: Whether the Commissioner (Exemption) is justified in rejecting an assessee-trust’s application for approval under Section 80G(5) on the ground that the specific sub-clause chosen (Section 80G(5)(iv)(B)) requires activities… Read More »
Section 80G approval application rejection remanded for fresh consideration as Commissioner failed to provide adequate opportunity to the assessee to explain discrepancies. Issue: Whether the Commissioner (Exemption) is justified in rejecting an assessee’s application for approval under Section 80G of the Income-tax Act, 1961, solely due to non-response to a notice pointing out discrepancies, particularly… Read More »
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 »