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 »
Withdrawals by a partner from a partnership firm, where the company holds an investment, cannot be deemed a dividend under Section 2(22)(e). Issue: Whether an amount withdrawn by an assessee (who is a partner in a partnership firm) from that partnership firm can be treated as a “loan or advance” from a company and consequently… Read More »
IMPORTANT INCOME TAX CASE LAW 30.05.25 Section Case Law Title Brief Summary Citation Relevant Act 2(14) Dharampal Saghera v. Income-tax Officer Compensation received in family settlement for relinquishing possession and claim of property is capital gain, not income from other sources. Click Here Income-tax Act, 1961 10(23C) Institute Management Committee ITI Jhalawar v. Income-tax Officer… Read More »
I. Section 50C Inapplicable if Actual Sale Price Exceeds Stamp Duty Value. Issue: Whether Section 50C of the Income-tax Act, 1961, applies to make an addition based on a Valuation Officer’s determination, when the actual sale consideration declared by the assessee for a residential flat already exceeds the stamp duty value. Facts: For Assessment Year… Read More »
Section 43CA’s 10% tolerance band applies retrospectively, being a beneficial and curative amendment, thus no addition warranted if the difference between DVO and sale consideration is within 10%. Issue: Whether the proviso to Section 43CA of the Income-tax Act, 1961, which introduces a tolerance band (initially 5%, later 10%) for the difference between the sale… Read More »
Donation for scientific research auditorium is deductible under Section 35(1)(ii), even if capital in nature or named after a director’s father. Issue: Whether a donation made by an assessee-company to an approved scientific research association (Indian Institute of Science) for the construction of a state-of-the-art auditorium can be denied deduction under Section 35(1)(ii) of the… Read More »