11 IMPORTANT INCOME TAX CASE LAWS 27.01.2025 Sr No Case Law Title Brief Summary Citation Relevant Act 1 Patna Bakhtiyarpur Tollway Ltd. v. ACIT Assessee denied depreciation as it was not the owner of the asset. Disallowance of Depreciation on Toll Road Constructed on NHAI Land Click here Section 32 Income Tax Act, 1961 2… Read More »
Revision Order for Penalty under Section 270A Set Aside for Lack of Intimation under Section 143(1)(a) Summary in Key Points: Issue: Whether the Principal Commissioner of Income-tax (PCIT) can revise an order and direct the Assessing Officer (AO) to invoke penalty provisions under Section 270A(9)(e) of the Income-tax Act, 1961, when there has been no… Read More »
Principal Commissioner could not initiate Section 263 proceedings as the issue was pending before CIT (A). Summary in Key Points: Issue: Whether the Principal Commissioner of Income-tax (PCIT) was justified in initiating revision proceedings under Section 263 of the Income-tax Act, 1961, when the Assessing Officer (AO) had already passed an order under Section 201/201(1A)… Read More »
Deletion of Addition under Section 68 Due to Clerical Error occurred while consolidating the annual accounts Summary in Key Points: Issue: Whether an addition made under Section 68 of the Income-tax Act, 1961 for an unexplained cash credit is valid when the increase in capital balance is due to a clerical error in the assessee’s accounts… Read More »
Reopening of Assessment for Alleged Bogus Purchases – Addition Deleted Due to Lack of Evidence Summary in Key Points: Issue: Whether the Assessing Officer (AO) was justified in adding the entire purchase amount to the assessee’s income under Section 68 of the Income-tax Act, 1961, by treating the purchases as bogus, based on information from… Read More »
Section 56(2)(vii)(b)(ii) not applicable to transactions before 1-4-2014. , No addition for Agricultural land purchased less than FMV Title: Non-Applicability of Section 56(2)(vii)(b)(ii) for Transactions Prior to its Effective Date Summary in Key Points: Issue: Whether Section 56(2)(vii)(b)(ii) of the Income-tax Act, 1961, which deals with the taxation of certain transactions as income from other… Read More »
Section 50C Income Tax not applicable to transfer of development rights. Summary in Key Points: Issue: Whether Section 50C of the Income-tax Act, 1961, which deals with the computation of full value consideration for capital gains purposes, applies to the transfer of development rights in land. Facts: The assessee and another co-owner entered into a… Read More »
Allowability of CSR Expenditure, Determination of Indexed Cost of Acquisition, and Disallowance of Penalty CSR expenditure allowed as business expenditure. Penalty paid for VAT violation not allowed as deduction. FMV of land at the time of acquisition considered for capital gains calculation. Summary in Key Points: Issue 1 (CSR Expenditure): Whether Corporate Social Responsibility (CSR)… Read More »
Disallowance of Depreciation on Toll Road Constructed on NHAI Land Summary in Key Points: Issue: Whether a company that constructed a toll road on land owned by the National Highways Authority of India (NHAI) is entitled to claim depreciation on the toll road as an intangible asset. Facts: The assessee-company constructed a toll road on… Read More »
Revocation of GST Registration Cancellation Allowed Upon Payment of Dues Summary in Key Points: Issue: Whether the cancellation of an assessee’s GST registration can be revoked when the assessee has not filed returns for a continuous period but is willing to comply by filing returns and paying outstanding dues. Facts: The assessee’s registration was cancelled… Read More »