Reopening Notice beyond 3 years quashed; Approval from Pr. CIT invalid under New Regime (Finance Act, 2021) Issue Whether a reopening notice under Section 148 issued beyond a period of three years from the end of the relevant assessment year is valid if the sanction (approval) was obtained from the Principal Commissioner (Pr. CIT), instead… Read More »
Buy-back via High Court Scheme under Section 115QA Remanded; NAV and Funds Source to be Re-examined Issue Section 115QA Applicability: Whether the buy-back of shares conducted through a High Court approved Scheme of Arrangement (under Companies Act, 1956/2013) attracts the levy of additional tax on distributed income under Section 115QA, akin to a buy-back under… Read More »
Interest from Co-operative Bank eligible for Sec 80P(2)(d) Deduction; Co-op Bank is a Co-op Society Issue Whether a co-operative society is eligible for deduction under Section 80P(2)(d) on interest and dividend income earned from investments made with a Co-operative Bank, or if such deduction is barred by the provisions of Section 80P(4). Facts Assessee: A… Read More »
Consequential Assessment fails if Section 263 Revision order is quashed; Section 80P deduction restored Issue Whether an assessment order passed to give effect to a Revision order under Section 263 can survive if the Tribunal (and subsequently the High Court) quashes the underlying Revision order itself. Facts The Claim: The assessee claimed deduction under Section… Read More »
Reopening based on Third-Party Search Presumptions Quashed; Purchase from RCL held Genuine Issue Whether a reassessment notice under Section 148 (read with Section 69C) is valid when it is based solely on presumptions arising from a search conducted on a third party (‘I’), alleging “dubious purchases,” despite the fact that the assessee had fully disclosed… Read More »
Cash deposits covered by Presumptive Income (Sec 44AD) cannot be taxed as Unexplained Money (Sec 69A) Issue Whether cash deposits in bank accounts can be treated as unexplained money under Section 69A when the assessee has declared business income on a presumptive basis under Section 44AD, and has provided details of contract receipts and wedding… Read More »
Section 153C Proceedings quashed; Seized MoU must name Assessee to establish Nexus Issue Whether proceedings under Section 153C (assessment of income of any other person) can be validly initiated against an assessee based on an MoU found in the mobile phone of a searched person (‘DT’), when the MoU does not bear the assessee’s name,… Read More »
Marriage Gifts Exempt even if Cheques cleared later; “On the occasion” is not limited to the wedding day Issue Whether gifts received by an individual on the occasion of their marriage are exempt under Section 56(2)(vii) (now Section 56(2)(x)) even if the cheques are deposited or credited to the bank account after the date of… Read More »
Joint ownership does not bar Section 54F deduction; 50% share is not “exclusive ownership” Issue Whether an assessee is disqualified from claiming the exemption under Section 54F for owning “more than one residential house” on the date of transfer, if she holds only a 50% joint share in another property along with her husband. Facts… Read More »
Holding period of Previous Owner included for Gifted Shares; 54F Deduction allowed Issue Whether an assessee who receives shares as a gift (from a relative who also received them as a gift) can include the holding period of the previous owners to treat the shares as Long Term Capital Assets and claim deduction under Section… Read More »