54B Exemption Remanded as Assessee Failed to Prove Land’s Agricultural Use. Issue Whether a taxpayer is entitled to claim the capital gains exemption under Section 54B for the sale of agricultural land if they fail to provide any cogent documentary evidence to prove that the land was actually used for agricultural purposes for the two… Read More »
The Bombay High Court delivered its order for Writ Petition (L) No. 24366 of 2025 on October 6, 2025, in the case of KMG Wires Private Limited versus The National Faceless Assessment Centre, Delhi & Others. Key Details of the Order Case Title: KMG Wires Private Limited vs. The National Faceless Assessment Centre, Delhi & Others. Bench: Justices B.P. Colabawalla and… Read More »
IMPORTANT INCOME TAX UPDATE 03.11.2025 Section Case Law Title Brief Summary Citation Relevant Act Section 2(15) Marwadi Navyuvak Vachanalaya v. Commissioner of Income-tax (Exemption) Rental income from letting out shop spaces by an assessee-trust engaged in educational/philanthropic activities, used to fund charitable objects, will not attract the proviso to section 2(15), and registration under… Read More »
HC Disposes of Writ as Infructuous After Tribunal President Assigns Case to New Bench. Issue Whether a High Court writ petition, filed to restrain a specific judicial member of the Income Tax Appellate Tribunal (ITAT) from re-hearing a matter, becomes infructuous and can be disposed of once the President of the ITAT re-assigns the case… Read More »
Settlement Applications Filed Before Finance Act 2021 are “Pending” and Must Be Heard. Issue Whether an application filed with the Income Tax Settlement Commission (ITSC) after the introduction of the Finance Bill, 2021 (on Feb 1, 2021), but before the promulgation of the Finance Act, 2021 (on April 1, 2021), qualifies as a “pending application”… Read More »
Interest on Floating Funds from Bank Deposits is Eligible for 80P Deduction Issue Whether interest earned by a co-operative credit society from investing its temporary “floating funds” (working capital) in short-term bank deposits is “attributable to” its business of providing credit facilities and thus eligible for deduction under Section 80P(2)(a)(i). Facts The assessee, a co-operative… Read More »
Delay in Loss Return Condoned as CA’s Confusion on Complex TDR Issue is “Sufficient Cause”. Issue Whether a delay in filing a loss return under Section 139, caused by a Chartered Accountant’s bona fide confusion over a complex and unsettled legal issue (the tax treatment of TDR), constitutes “sufficient cause” for condonation under Section 119(2)(b),… Read More »
Reassessment Based Solely on DVO Report Without AO’s Independent Inquiry is Invalid. Issue Whether an Assessing Officer (AO) can validly assume jurisdiction to reopen an assessment under Section 147/148, based solely on a Departmental Valuation Officer’s (DVO) report, without conducting any independent inquiry or recording their own satisfaction with that report? Facts The assessee-firm filed… Read More »
Bogus LTCG Addition Quashed as Assessee’s Documentary Evidence Was Unrebutted. Issue Can an Assessing Officer (AO) make an addition under Section 68 for alleged bogus long-term capital gains (LTCG), when the assessee has provided a complete documentary trail (contract notes, demat statements, bank statements, STT proof) to substantiate the transactions, and the AO has failed… Read More »
Revision Invalid as AO’s View on Retrospective 10% Tolerance Limit Was Plausible. Issue Whether a Principal Commissioner (PCIT) can invoke revisionary jurisdiction under Section 263 to set aside an assessment order as “erroneous,” merely because the Assessing Officer (AO) took a plausible (but debatable) legal view by applying the 10% “safe harbour” tolerance limit for… Read More »