IMPORTANT INCOME TAX CASE LAWS 25.11.25 Section Case Law Title Brief Summary Citation Relevant Act Section 2(14) Mrs. Snehlata Goel v. Deputy Commissioner of Income-tax Where the AO rejected a claim that land was agricultural and treated it as a capital asset without examining all statutory conditions under Section 2(14)(iii), the matter must be remanded… Read More »
Penalty u/s 271(1)(c) Deleted; Voluntary Disclosure in Return Filed Post-Search/Notice Accepted by AO. Issue Whether a penalty for concealment of income under Section 271(1)(c) can be levied when the assessee, following a search or notice under Section 148, voluntarily includes the unrecorded cash income in their return of income, and the Assessing Officer (AO) accepts… Read More »
Revision Application u/s 264 Cannot be Rejected on Technical Grounds for 82-Year-Old Alzheimer’s Patient Who Paid Tax Issue Whether the Principal Commissioner of Income Tax (PCIT) is justified in rejecting a revision application under Section 264 on technical grounds (failure to file a return under Section 139), when the assessee is an 82-year-old woman suffering… Read More »
Seizure of Gold Jewellery Stock-in-Trade at Airport Quashed Due to Procedural Delays and Statutory Bar Issue Legality of Seizure: Whether the Income Tax Department has the authority to seize gold jewellery that constitutes stock-in-trade of a business, given the specific prohibition under the proviso to Section 132(1)(iii) of the Income-tax Act, 1961. Procedural Validity: Whether… Read More »
HC Condones Delay for 80P Deduction; Late Audit by State Appointee is “Genuine Predicament” Issue Whether the delay in filing the Income Tax Return (ITR) by a co-operative society, which resulted in the denial of the Section 80P deduction, should be condoned under Section 119(2)(b) when the delay was caused by the late appointment of… Read More »
MAT Computation: Unabsorbed Depreciation/Loss Deductible Even If Adjusted in Prior Years Issue Whether an assessee can claim a deduction for the “lower of brought forward loss or unabsorbed depreciation” (as per books) while computing Book Profit under Section 115JB, even if these losses/depreciation were already set off or adjusted against profits in earlier assessment years.… Read More »
Loss on Sale of Shares Acquired via Conversion of Debentures is Not Speculation Loss Issue Whether the loss incurred on the sale of shares, which were acquired by the assessee-company through the conversion of partly convertible debentures, falls under the deeming fiction of the Explanation to Section 73 (treating share trading losses as speculative), or… Read More »
12A Registration Cannot Be Denied for Procedural Lapses under State Acts Issue Whether the Commissioner (Exemption) can deny registration under Section 12AB read with Section 12A solely on the ground that the trust accepted loans/advances from trustees without obtaining prior permission from the Charity Commissioner as required under Section 36A of the Maharashtra Public… Read More »
Agricultural Land Exemption Claim Remanded for Factual Verification of Usage and Distance Issue Whether a plot of land sold by the assessee qualifies as “agricultural land” (exempt from Capital Gains Tax) under Section 2(14)(iii), despite being located in a notified Industrial Zone and lacking recent agricultural activity due to illegal occupation, or if it constitutes… Read More »
Reopening Quashed: Incorrect Reason of “Non-Filing” Renders Section 148 Notice Void Issue Whether the reopening of an assessment under Section 147 is valid when the recorded reason for forming the belief of income escapement—specifically that the assessee was a “non-filer” of an Income Tax Return (ITR)—is factually incorrect, as the assessee had indeed filed the… Read More »