High Court Must Re-examine Charitable Status of Authority Based on New Supreme Court Tests. Issue Whether a High Court’s order, which summarily dismisses a revenue appeal regarding the “charitable purpose” of a Development Authority by merely relying on past precedents, is sustainable when a subsequent landmark Supreme Court judgment has laid down new, comprehensive tests… Read More »
Reassessment Notice Quashed for Being Issued Beyond the Statutory Time Limit. Issue Is a reassessment notice issued under Section 148 legally valid if it is served on the assessee after the expiry of the limitation period prescribed under Section 149 of the Income-tax Act, 1961? Facts The assessee’s original assessment for the Assessment Year 2017-18… Read More »
Unawareness of TDS is a Valid Reason to Condone ITR Filing Delay. Issue Can an application for condonation of delay in filing an income tax return be rejected when the taxpayer was genuinely unaware of the Tax Deducted at Source (TDS) on an award for land acquisition, especially when the tax authority decides the application… Read More »
HC Remands 80P Claim, Directs Condonation of ITR Filing Delay Due to Glitches. Issue Whether a delay in filing an income tax return, caused by verifiable technical glitches on the official tax portal, constitutes a valid reason for condonation under Section 119(2)(b), thereby allowing a co-operative society to claim its statutory deduction under Section 80P.… Read More »
80G Registration Timelines are Directory; Delayed Application Valid Under New Law. Issue Are the time limits for filing an application for final registration under Section 80G(5) of the Income-tax Act mandatory, or are they directory in nature? Can an application filed after the prescribed due date be accepted and adjudicated on its merits, especially in… Read More »
Subsequent Legal Amendment Revives a Time-Barred 80G Approval Application. Issue Can an application for final approval under Section 80G(5), rejected by the tax authority for being filed after a deadline set by a CBDT circular, be considered valid and maintainable in light of a subsequent amendment to the Income-tax Act that removes such strict filing… Read More »
Loss from Hedging Export Receivables is a Business Loss, Not Speculative. Issue Whether a loss arising from the settlement of forward contracts, which were entered into to safeguard against foreign exchange fluctuation risks on export sales, should be treated as a speculative loss under Section 43(5) or as an allowable business loss. Facts The assessee,… Read More »
Depreciation on Goodwill Arising from Amalgamation is a Valid Claim. Issue Can a company claim depreciation under Section 32 of the Income-tax Act on goodwill that was recognized in its books as a result of a High Court-sanctioned amalgamation, where such goodwill represents the excess of the consideration paid over the fair value of the… Read More »
Clerical Error in ITR Cannot Defeat Trust’s Right to Exemption. Issue Can a charitable trust, duly registered under Section 12A, be denied its substantive tax exemption under Section 11 due to an inadvertent clerical error in its income tax return form, even when it has fulfilled all the necessary statutory requirements, including filing the correct… Read More »
APMC’s Exemption Claim Remanded for Fresh Adjudication to Allow Filing of Form 10B. Issue Can an Agricultural Produce Market Committee (APMC) be denied its statutory tax exemption under Section 10(26AAB) due to the procedural lapse of not filing the mandatory audit report in Form 10B, especially when the claim has been consistently allowed in previous… Read More »