Gujarat High Court: ITC Not Blocked Under Section 17(5)(d) for Land Sub-Plotting Without Construction Activity. The Dispute: Sub-Plotting vs. Construction (Section 17) ITC on goods and services used for sub-plotting land cannot be blocked under Section 17(5)(d) if no “construction” of an immovable property is undertaken. Facts of the Case The Business: The Petitioner (an… Read More »
Supreme Court: TCS Under Section 206C(1C) Not Applicable on Compounding Fees from Illegal Mining. Facts of the Case The Audit: During a TDS survey at the office of a District Mining Officer (DMO), the Income Tax Department observed that the officer had collected compounding fees and fines from individuals caught in illegal mining or illegal… Read More »
Search Assessments Quashed: Defective Section 65B Certificates and Mechanical Section 153D Approvals Vitiate Tax Additions. I. Admissibility of Digital Evidence (Section 153A & 65B) Crux: Digital snapshots (WhatsApp/SMS) are “Secondary Evidence” and are inadmissible without a valid Section 65B certificate and a clear Chain of Custody. The Evidence: The Assessing Officer (AO) based massive tax… Read More »
Supreme Court Rejects Revenue’s SLP; Cooperative Societies Eligible for Section 80P(2)(d) Deduction on Bank Interest. Facts of the Case The Income: The assessee, a cooperative society, earned interest income on fixed deposits (FDs) kept with a Cooperative Bank. The Claim: The society claimed a 100% deduction on this interest under Section 80P(2)(d). The Revenue’s Objection:… Read More »
The Stamp Duty Value (SDV) as of the agreement date (2005) should be used, not the SDV on the registration date (2011). The Conflict: The assessee signed an MOU in 2005 for ₹1.60 Cr. By the time the deed was registered in 2011 (due to government hurdles), the Stamp Authority valued it at ₹2.38 Cr.… Read More »
Supreme Court Rejects Bad Debt and Guarantee Claims; Affirms Interest Taxation on Accrual Basis. I. Bad Debts vs. Capital Advances (Section 36(1)(vii)) Advances made for future share allotment or “helping” associates are capital in nature, not deductible bad debts. The Facts: The assessee advanced money to a business associate. Later, claiming the amount was irrecoverable,… Read More »
Gujarat High Court: Limitation for GST Appeal Commences from Date of Rectification Order Rejection. The Chronology of the Case 12.08.2024: Original Adjudication Order (Order-in-Original) was passed. 05.11.2024: Within the three-month window for appeal, the Petitioner filed a Rectification Application under Section 161 to correct errors apparent on the face of the record. 19.03.2025: The Rectification… Read More »
Section 132 Income Tax Act 2025 Deduction in respect of purchase of electric vehicle. 132. (1) An assessee, being an individual, shall be allowed a deduction of interest payable on loan taken by him from any financial institution for the purpose of purchase of an electric vehicle, as per the provisions of this section. (2) The… Read More »
Rajasthan High Court Quashes GST Appeal; Search Authorizing Officer Cannot Act as Appellate Authority. The Legal Maxim: “No One Shall Be a Judge in His Own Cause” The Rajasthan High Court, in the case of M/s Ramjilal Mohanlal v. Union of India (2026), recently addressed a fundamental breach of natural justice where a senior officer… Read More »
Section 131 Income Tax Act 2025 Deduction in respect of interest on loan taken for certain house property. 131. (1) An assessee, being an individual not eligible to claim deduction under section 130, shall be allowed a deduction of interest payable on loan taken by him from any financial institution for the purpose of acquisition of a… Read More »