Category Archives: Income Tax

Section 54 Exemption Applies to Multiple Residential Properties Transferred When Capital Gains Reinvested in Equal or Fewer Houses

By | July 24, 2026
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Section 54 Exemption Applies to Multiple Residential Properties Transferred When Capital Gains Reinvested in Equal or Fewer Houses Issue Whether an assessee who transfers multiple residential houses and incurs long-term capital gains is entitled to claim exemption under Section 54 for investing in a corresponding number of new residential houses (not exceeding the number of… Read More »

Lump-sum addition replaces full cash credit, while creditor proofs and input VAT are allowed.

By | July 24, 2026
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Lump-sum addition replaces full cash credit, while creditor proofs and input VAT are allowed. Lump-sum addition replaces full cash credit, while creditor proofs and input VAT are allowed. Issue Whether an addition under Section 68 read with Section 115BBE for cash deposits made during the demonetization period is justified when cash sales are recorded in… Read More »

Multiple floors form one residential house under Section 54 and ad-hoc valuation rejection is invalid.

By | July 24, 2026
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Multiple floors form one residential house under Section 54 and ad-hoc valuation rejection is invalid. Issue Whether multiple reconstructed floors (basement, ground, and third floor) acquired by an assessee under a property redevelopment collaboration agreement qualify together as “one residential house” for Section 54 capital gains exemption. Whether the Assessing Officer (AO) can reject a… Read More »

TPO cannot apply domestic CUP for benchmarking export sales without geographic market adjustments.

By | July 24, 2026
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TPO cannot apply domestic CUP for benchmarking export sales without geographic market adjustments. Issue Whether domestic sales prices can be adopted as CUP to benchmark export sales without making suitable adjustments for differences in geographic locations and market conditions under Transfer Pricing provisions. What is the appropriate interest rate for benchmarking delayed realization of export… Read More »

Subsisting Section 12AB registration cannot be treated as invalid for non-production of earlier registration certificate.

By | July 24, 2026
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Subsisting Section 12AB registration cannot be treated as invalid for non-production of earlier registration certificate. Issue Whether the Principal Commissioner / Commissioner of Income Tax (Exemption) [CIT(E)] is justified in treating a subsisting provisional/five-year registration granted under Section 12AB (in Form 10AC) as invalid merely due to the non-production of an earlier Section 12A/12AA registration… Read More »

Rejection of an earlier Section 12AB application does not bar a trust from filing subsequent registration applications.Rejection of an earlier Section 12AB application does not bar a trust from filing subsequent registration applications.

By | July 24, 2026
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Rejection of an earlier Section 12AB application does not bar a trust from filing subsequent registration applications. Issue Whether the rejection or dismissiveness of an earlier registration application under Section 12AB debars a charitable trust from subsequently applying afresh under Form 10AB before the same authority, and what is the effective date of registration if… Read More »

Section 12AB registration cannot be denied on unverified statutory breaches, requiring fresh adjudication.

By | July 24, 2026
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Section 12AB registration cannot be denied on unverified statutory breaches, requiring fresh adjudication. Issue Whether registration under Section 12AB can be denied to a university based on alleged contraventions of non-tax laws (Haryana Private Universities Act and FCRA) and accounting discrepancies without any adverse finding by the competent regulatory authorities. Whether the CIT(E) can declare… Read More »

Excess application of earlier years can be adjusted under Section 11 despite no explicit return claim.

By | July 24, 2026
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Excess application of earlier years can be adjusted under Section 11 despite no explicit return claim. Issue Whether a charitable trust is entitled to adjust excess application of income/capital expenditure incurred in earlier years against the income of the current assessment year, even if such excess was not explicitly claimed for carry-forward in the income… Read More »

BCCI is not taxable on foreign match income from PILCOM as it only received Indian match revenue.

By | July 24, 2026
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BCCI is not taxable on foreign match income from PILCOM as it only received Indian match revenue. Issue Whether the Income Tax Department was justified in protective inclusion of overseas match revenues co-hosted by PILCOM (Pakistan and Sri Lanka matches) into the assessee BCCI’s taxable income under Section 10(23) read with Section 5 of the… Read More »

A trust with main objects benefiting the general public qualifies as charitable under Section 12AB.

By | July 24, 2026
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A trust with main objects benefiting the general public qualifies as charitable under Section 12AB. Issue Whether a Section 8 company whose main objects benefit the public at large qualifies for registration under Section 12AB, even if certain incidental or ancillary objects involve welfare activities for its members. Facts The respondent-trust, incorporated as a Section… Read More »