Advances for Property Sales Aren’t Taxable Income Unless Formally Forfeited Under Specific Legal Provisions. The Dispute: Advance Receipt vs. Taxable Income The Conflict: The assessee received ₹94.76 lakhs as an advance for a property deal with an educational society. The total deal was worth ₹3.80 crores. The Revenue’s Stand: The Assessing Officer (AO) reopened the… Read More »
Trust Registration Cannot Be Denied Based on Vague Documentation Gaps or Allegations of Religious Bias. The Dispute: Documentation vs. Religious “Benefit” The Conflict: The assessee-trust applied for registration under Section 12AB (tax-exempt status) and approval under Section 80G (tax-deductibility for donors). The CIT(E)’s Rejection: The Commissioner rejected the applications on two grounds: Documentation Gap: The… Read More »
Important Income Tax Case Laws 24.04.2026 Relevant Act Section / Authority Case Law Title Citation Brief Summary Income-tax Act, 1961 Sec 2(14) Pallava Resorts (P.) Ltd. v. DCIT Click Here Agricultural Land: Revenue records (Patta/Adangal) prevail over guideline values. If land is classified as agricultural and used for farming, it is excluded from “capital assets.”… Read More »
High Court Stays Reassessment Notice; Attorney General to Defend Validity of “Deemed Information” Rules. The Dispute: Challenging the “Deemed Information” Trap The Conflict: The petitioner was hit with a reassessment notice on March 30, 2025, just before the final transition to the new Act’s full enforcement. The Revenue’s Basis: The notice relied on Explanation 2… Read More »
Assessment Orders Are Void If Notices Are Sent To The Wrong Email Address. I. Foundational Requirement of Notice Service The Crux: An adjudicatory process is invalid if the “jurisdictional notice” is not served to the correct address/email recorded in the taxpayer’s profile. The Dispute The assessee was hit with a high-pitched assessment order and multiple… Read More »
Assessment Orders in the Name of a Merged Entity are Void; IT Portal Glitches Cannot Cure It. I. The Dispute: The “Non-Existent Entity” Assessment The Conflict: A classic case of procedural oversight by the Revenue following a corporate merger. The Amalgamation: The amalgamating company (Entity A) merged into the assessee (Entity B) via a court-approved… Read More »
Religious Objects Don’t Block 80G Approval If Expenditure Is Under 5% and Benefits Are Universal. I. The “Religious vs. Charitable” Conflict The Crux: Secular charitable activities (education, health, relief) take precedence over incidental religious rituals in the eyes of tax law. The Dispute The assessee, a society running schools and welfare programs, was already registered… Read More »
Bogus Purchase Additions Are Void If Based on Incorrect Data and Denied Cross-Examination. I. The Dispute: Alleged Bogus Purchases from Keshav Impex The Conflict: After a regular scrutiny was completed, the Investigation Wing, Mumbai, flagged the assessee for conducting suspicious transactions with an entity named Keshav Impex. The Reassessment: The AO reopened the case under… Read More »
VRS-Linked Gratuity is Fully Deductible; Pre-2002 Self-Generated Trademarks Escape Capital Gains. The Dispute The company paid employees VRS compensation along with their accrued gratuity and leave encashment. Assessing Officer (AO): Argued that because these were paid at the time of voluntary retirement, they were part of the “VRS outgo.” Therefore, the entire sum should be… Read More »
Reassessment Is Illegal If Based on a “Change of Opinion” Already Discussed During Scrutiny. The Dispute: Capital Gains vs. Business Income The Conflict: The assessee declared an income of ₹27.26 crores, treating the profit from a share sale as Capital Gains and claiming a deduction under Section 54F. The Scrutiny: The case was originally selected… Read More »