Investment in residential house abroad eligible for Section 54 exemption prior to AY 2015-16 Issue Whether the exemption under Section 54 of the Income Tax Act is allowable for a residential property purchased outside India (Australia) for the Assessment Year 2014-15, prior to the amendment explicitly restricting the benefit to properties “in India.” Facts Transaction:… Read More »
Leasehold rights outside Section 50C ambit; Allotment date valid for Section 54G exemption Issue Section 50C Applicability: Whether the provisions of Section 50C (adopting stamp duty value) apply to the transfer of leasehold rights in land, as opposed to the land itself. Section 54G Timelines: Whether the date of allotment of a new industrial plot… Read More »
Customer acquisition costs including handset subsidies are revenue expenditure; Disallowance by AO contradictory to revenue recognition Issue Whether “Customer Acquisition Costs” (CAC) comprising porting charges, data entry charges, and handset subsidies incurred by a telecom service provider are allowable as revenue expenditure under Section 37(1) of the Income-tax Act, 1961, or if they constitute… Read More »
Own funds presumption covers subsidiary investment; Share premium addition remanded for revised valuation Case I: Interest on Borrowed Capital (Section 36(1)(iii)) Issue Whether proportionate interest expenditure on borrowed capital can be disallowed by the Assessing Officer (AO) on the ground that funds were diverted to a subsidiary, when the assessee’s own funds (Share Capital +… Read More »
Compulsory levy linked to milk supply is not corpus donation; exemption u/s 11(1)(d) denied Issue Whether contributions received by a charitable trust from milk supplying societies, which are compulsorily collected based on the quantity of milk fat supplied, can be treated as “corpus donations” eligible for exemption under Section 11(1)(d), or if they constitute revenue… Read More »
Concurrent findings based on seized diary at husband’s premises justify Section 158BD assessment against wife Issue Whether block assessment proceedings under Section 158BD against the assessee are valid when based on incriminating material found during a search at her husband’s premises. Facts A search and seizure operation was conducted at the premises of the… Read More »
Incriminating material found at husband’s premises justifies Section 158BD assessment against wife Issue Whether block assessment proceedings under Section 158BD against the assessee (wife) are valid based on incriminating material found during a search at her husband’s premises, specifically regarding undisclosed investments in a family-run society. Facts Search Operation: A search and seizure operation under… Read More »
Employees transferred from PSEB to PSPCL entitled to Section 10(10AA) exemption for government service period Issue Whether an employee, compulsorily transferred from a State Electricity Board (PSEB) to a newly formed Corporation (PSPCL) due to restructuring, is entitled to the full tax exemption on leave encashment under Section 10(10AA) applicable to “State Government employees,”… Read More »
I. Residential Status & Foreign Income: Employment Abroad Exception (Section 6) Issue Whether an Indian citizen who leaves India for the purpose of employment abroad is to be treated as a Non-Resident if their stay in India is less than 182 days, and consequently, whether their foreign-sourced income is exempt from tax in India. Facts… Read More »
Section 153C inapplicable where seized material handover occurred after April 1, 2021 Issue Whether proceedings under Section 153C of the Income Tax Act are legally sustainable when the seized material was handed over to the assessee’s Assessing Officer (AO) after April 1, 2021, given the statutory amendment that discontinued Section 153C for searches initiated on… Read More »