Monthly Archives: May 2026

Exemption under Section 54B requires proof of active agricultural use, not just revenue record classification. Issue Whether an assessee is entitled to a capital gains exemption under Section 54B when the revenue records (7/12 extracts) classify the property as agricultural land, but the assessee fails to provide independent corroborative evidence showing active agricultural operations on… Read More »

Provisions of Section 50C apply to the transfer of leasehold rights in land and building. Issue Whether the deeming provisions of Section 50C of the Income-tax Act, 1961, which substitute the stamp duty value for the full value of consideration, apply to the transfer of long-term leasehold rights in land and buildings. Whether the reassessment… Read More »

Bad debts actually written off are deductible in the year of write-off, regardless of old NPA classifications. Issue Whether loans classified as Non-Performing Assets (NPAs) prior to 01.04.2006, but explicitly written off in the books during Financial Years 2016-17 and 2017-18, can be disallowed as “prior period expenditure” under Section 36(1)(vii). Whether an automatic addition… Read More »

Assessing Officer must quantify research deductions under Section 35(2AB) based on available Form 3CL. Issue Whether the Assessing Officer is legally mandated to entertain a rectification application under Section 154 to quantify and allow a scientific research expenditure deduction under Section 35(2AB) once the Department of Scientific and Industrial Research (DSIR) issues Form 3CL, or… Read More »

Business expenses for mall and CAM operations cannot be ad-hoc apportioned to rental income. Issue Whether the Assessing Officer is justified in applying an ad-hoc percentage ratio to apportion and disallow operational expenses (such as repairs, security, employee remuneration, and professional fees) under the head ‘Income from House Property’ when the assessee runs a commercial… Read More »

Reassessment orders are null and void due to failure to provide reasons and applying unamended provisions. Issue Whether the reassessment orders passed under the Income-tax Act are legally sustainable when the Assessing Officer (AO) failed to provide the recorded reasons for reopening the assessment despite repeated requests, and issued Section 148 notices on 01.04.2021 following… Read More »

High Court erred in restoring a suit barred by the Benami Act and illegal objects. Issue Whether a plaint seeking a declaration of title over agricultural properties is liable to be rejected under Order VII Rule 11 of the CPC when the underlying transactions are admittedly benami, designed to bypass land reform laws, and the… Read More »

High Court erred in restoring a suit barred by the Benami Act and illegal objects. Issue Whether a plaint is liable to be rejected under Order VII Rule 11 of the CPC when the plaintiff sues for title based on transactions that are admittedly benami, designed to circumvent agrarian land laws, and where the plaintiff… Read More »