Interest Under Section 28 of Land Acquisition Act Held as Capital Receipt, Not Taxable as Income from Other Sources 1. The Core Dispute: Capital Receipt vs. Revenue Receipt The assessee received “interest” on enhanced compensation for land acquired by the government. The Assessing Officer (AO) classified this interest as Income from Other Sources (IFOS) under… Read More »
Substitution of SDV under Section 50C Invalidated by Rectified Deed; Section 54F Exemption Upheld Based on Possession Date Rather than Booking Date 1. Stamp Duty Valuation & Section 50C Deeming Provision The Assessing Officer (AO) substituted the declared sale consideration of a plot (₹1.19 crores) with the Stamp Duty Value (SDV) of ₹1.88 crores under… Read More »
Reassessment Quashed: NRI’s Property Purchase Proved via Bank Loans; Income Escaping Assessment Below ₹50 Lakh Threshold for Extended Limitation 1. The Core Dispute: Property Investment vs. Source of Funds The assessee, a Non-Resident Indian (NRI), purchased a residential house. The Revenue department, acting on information from the Sub-Registrar regarding the high-value transaction, initiated reassessment proceedings… Read More »
Business Commencement, Audit Fees, and Loan Waivers 1. Commencement of Business for Tax Deductions The Assessing Officer (AO) disallowed business expenses, arguing the assessee had not “commenced” business. The Court examined the distinction between setting up a business and full-scale operations. The Ruling: The Court held that for claiming deductions like audit fees, a time-bound… Read More »
Full Interest Deduction for Let-Out Property Upheld; No Lender Certificate Required Under Section 24(b) Provisos 1. The Core Dispute: Interest Limits & The Certificate Requirement The assessee claimed a deduction for interest on a housing loan under Section 24(b) against rental income from a let-out property. The original assessment was completed under Section 143(3). Later,… Read More »
Bombay High Court Quashes Reassessment for AY 2016-17 Holding Audit Objections on Disclosed Material Amount to a Change of Opinion 1. The Core Dispute: Audit Objections vs. Change of Opinion The assessee filed a return showing a loss, which was scrutinized under Section 143(3). During the original assessment, the Assessing Officer (AO) specifically examined details… Read More »
Supreme Court Disposes of Revenue’s SLP, Permitting High Court Review in Light of Retrospective Clarifications on JAO Jurisdiction 1. The Core Dispute: JAO vs. FAO (Faceless Reassessment) The primary legal conflict involves whether a Jurisdictional Assessing Officer (JAO) has the authority to issue a reassessment notice under Section 148 after the introduction of the Faceless… Read More »
Jurisdictional Invalidity of Rejecting Project Completion Method Without Satisfaction of Section 145(3) Conditions 1. Rejection of Accounting Method (Section 145) The assessee, a real estate developer, followed the Project Completion Method (PCM), recognizing revenue only when the construction of “Milan Mall” was finished (AY 2017-18). The Assessing Officer (AO) rejected this, attempting to tax receipts… Read More »
IMPORTANT GST CASE LAWS 20.02.2026 Relevant Section Case Law Title Core Ruling & Strategic Summary Citation Section 50 Oam Industries India v. MADC Ltd. [Interest Liability Shift] If a lessor (landlord) fails to raise a tax invoice within the statutory time limit, the resulting interest burden for delayed GST payment cannot be shifted to the… Read More »
Mandatory Refund of Recovered Tax Dues Beyond Pre-Deposit Where GST Tribunal Is Not Operational 1. The Core Dispute: Recovery vs. Right to Appeal The petitioner’s tax dues were recovered by the Revenue department following a “Summary of Demand” (Annexure-C). The petitioner intended to challenge this order before the GST Appellate Tribunal (GSTAT) under Section 112,… Read More »