NEW INCOME TAX CASE LAWS 20.05.2025 Relevant Act Section Case Law Title Citation Brief Summary PBPT Act, 1988 Section 2(9) Smt. Santosh Miglani v. Initiating Officer Click Here Handing over demonetized cash for bank deposit and subsequent retransfer through banking channels constitutes a benami transaction; cash is considered ‘property’ under the Act. PBPT Act, 1988… Read More »
Constituent member executing infrastructure project via JV is developer entitled to Section 80IA deduction. Issue Whether a constituent company of a Joint Venture (JV) or Consortium is eligible for infrastructure deductions under Section 80IA when the primary government agreement is signed by the JV, and whether such comprehensive engineering and maintenance projects are disqualified under… Read More »
Reopening assessment based on unverified, third-party digital data without direct link to assessee is unsustainable. Issue Whether the Revenue can validly initiate reassessment proceedings under Section 148 based on a draft complaint and a handwritten paper image recovered from an unrelated third party’s mobile phone, without establishing any direct link or connection between that material… Read More »
Unexplained investment addition cannot be sustained solely on a DVO valuation report without independent evidence of on-money payment. Issue Whether an addition under Section 69 for unexplained property investment can be sustained based solely on an Insight portal alert or a Departmental Valuation Officer (DVO) report, when the registered sale deed reflects a lower purchase… Read More »
Reopening based on a vague loose paper chit lacking a live link to the assessee is invalid. Issue Whether the Revenue can validly initiate reassessment proceedings under Section 148 based on a vague loose paper chit seized from a third party that lacks identifiable names or figures, without establishing a direct, live link between the… Read More »
Reopening notice based on unverified, third-party digital material without a direct link to the assessee is invalid. Issue Whether a reassessment notice issued under Section 148, based entirely on an uninvestigated draft PDF complaint and a cash receipt image found on a third-party’s mobile phone during a survey, is legally sustainable when no direct link… Read More »
Tribunal rightly remanded share premium dispute for factual verification rather than using human probabilities. Issue Whether the High Court should interfere with the Tribunal’s procedural order remanding a share premium addition under Section 68 back to the Assessing Officer for a strictly fact-based verification of cash flows, rather than relying on the “test of human… Read More »
Property holding period runs from possession date, and maintenance security is excluded from acquisition cost. Issue Whether the period of holding for a capital asset should be calculated from the physical possession and full payment date (2013) rather than the official registration date (2016), and whether registration charges and interest-bearing maintenance security deposits can be… Read More »
The choice to claim bad debt deductions under Section 36(1)(viia) rests exclusively with the assessee-bank. Issue Whether the phrase “at its option” in the proviso to Section 36(1)(viia) grants an exclusive right to the assessee-bank to choose between the main clause and the proviso for bad debt provisions, and whether the Assessing Officer has the… Read More »
Exempt income expenses must be strictly carved out from book profits to compute minimum alternate tax Issue Whether expenses incurred in relation to earning tax-exempt income, which are disallowed under Section 14A of the Income-tax Act, can be automatically added back to compute the “book profit” for Minimum Alternate Tax (MAT) under Section 115JB, and… Read More »