Daily Archives: September 7, 2026

Section 56(2)(vii)(b) Cannot Apply Retrospectively To Property Allotted and Partially Paid Prior To October 1, 2009

By | September 7, 2026
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Section 56(2)(vii)(b) Cannot Apply Retrospectively To Property Allotted and Partially Paid Prior To October 1, 2009 Issue Whether Section 56(2)(vii)(b) can be invoked retrospectively using the 2013 registration stamp duty value when immovable property was allotted and partially paid for in April 2007. Facts Property Acquisition & Stamp Value: For AY 2014-15, the assessee purchased… Read More »

Transfer of inherited tenancy rights attracts capital gains tax with cost of acquisition determined using 01.04.2001 valuation.

By | September 7, 2026
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Transfer of inherited tenancy rights attracts capital gains tax with cost of acquisition determined using 01.04.2001 valuation. Issue Whether the transfer of inherited tenancy rights is exempt from capital gains due to failure of computation provisions, and whether the fair market value (FMV) as of 01.04.2001 can be adopted as the cost of acquisition. Facts… Read More »

Sale of TDRs received against land surrender generates taxable capital gains using surrendered land’s cost as acquisition cost.

By | September 7, 2026
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Sale of TDRs received against land surrender generates taxable capital gains using surrendered land’s cost as acquisition cost. Issue Whether sale of Transferable Development Rights (TDRs) received in exchange for surrendering land and building gives rise to taxable capital gains, and how its cost of acquisition should be computed under Section 48. Facts Surrender of… Read More »

Addition for suppressed sales is restricted to profit element, and cash disallowances require verification.

By | September 7, 2026
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Addition for suppressed sales is restricted to profit element, and cash disallowances require verification. Issue Whether the entire alleged suppressed sales turnover can be taxed as income instead of restricting it to the profit element, and whether disallowance under Section 40A(3) requires payment-wise verification. Facts Assessee’s Business & Return: The assessee-firm, engaged in the production,… Read More »

Procedural Invalidity of Search Assessments under Section 143(3) and Key Substantive Reliefs Granted to Assessee

By | September 7, 2026
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Procedural Invalidity of Search Assessments under Section 143(3) and Key Substantive Reliefs Granted to Assessee Issue Whether post-search assessments completed under Section 143(3) instead of Section 148 are valid, and whether additions regarding unexplained money, unsecured loans, transfer pricing adjustments, section 14A disallowance, rent, and section 80-IB deductions are legally sustainable. Facts Search Assessment Procedure:… Read More »

Assessee-trust entitled to exemption under Section 11 as loan interest and donations constituted valid application.

By | September 7, 2026
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Assessee-trust entitled to exemption under Section 11 as loan interest and donations constituted valid application. Issue Whether invocation of Section 40A(2)(a) disallowance and denial of Section 11 exemption are justified when advances were for construction or to registered charitable trusts, and donations were made with supporting Section 80G/12A documentation. Facts Borrowings and Advances: Assessee-trust raised… Read More »