I. Compulsory Purchase Order Abrogation: Suit for Declaration of Abrogation Maintainable Issue: Whether a civil suit seeking a declaration that a compulsory purchase order stands abrogated and the suit property re-vests in the transferor (due to non-payment of consideration within the stipulated time under Section 269UG) is maintainable, and whether such a suit is barred… Read More »
Condonation of Delay: Assessee’s Lack of Diligence, Not Counsel’s Mistake, Justifies Refusal Issue: Whether a delay of six to seven years in filing an appeal before the Income Tax Appellate Tribunal (Tribunal) should be condoned on the ground of counsel’s alleged failure to take action, when the assessee was aware of the lower appellate orders… Read More »
Settlement Commission: Dismissal for Missing Records Invalid if Assessee Not Involved in Reconstruction Issue: Whether the Settlement Commission can dismiss an assessee’s application solely because original case files are missing and the assessee allegedly failed to reconstruct records, when no communication was sent to the assessee for record reconstruction or for supplying copies of their… Read More »
Reassessment Notice to Dissolved Firm with Deceased Partners: Invalid Without Proper Legal Heir Notice and Order Issue: Whether a reassessment notice issued under Section 148 in the name of a dissolved partnership firm, after all its partners have expired, is valid when no speaking order is passed to determine the legal representatives of the deceased… Read More »
Faceless Assessment: Order Quashed for Non-Compliance with High Court Directions on Cross-Examination Issue: Whether an assessment order passed in a faceless assessment regime, in “utter disregard” of explicit High Court directions to provide relied-upon documents, grant opportunity for cross-examination, and provide a fresh hearing, should be quashed solely on the ground of non-compliance with these… Read More »
I. Overseas Company Shares: Assessee Not Beneficial Owner of Company’s Assets; Income Not Taxable in Shareholder’s Hands. Issue: Whether shareholders of an overseas investment holding company (CCL), including the assessee and his family members, can be considered “beneficial owners” of the company’s underlying assets (flats in London) for the purpose of Explanation 4 to Section… Read More »
I. Section 45(4) Inapplicable to Capital Contribution by Incoming Partner. Issue: Whether Section 45(4) of the Income-tax Act, 1961, which deals with capital gains on distribution of assets by a firm, is applicable when a new partner introduces capital into the firm, and no assets are transferred from the firm to the individual partners. Facts:… Read More »
I. Liquidated Damages as Business Expenditure: TATA Claim Allowed, BSNL Claim Remanded. Issue: Whether liquidated damages payable by an assessee for failing to meet contract delivery deadlines with BSNL and TATA become a real liability and are deductible under Section 37(1) of the Income-tax Act, 1961, in the year the delay occurs, even if actual… Read More »
I. Loss from NSEL Transactions for Availing Finance Not Speculative Loss. Issue: Whether a loss incurred by an assessee from transactions of cotton wash oil on the NSEL platform, where settlement occurred without actual delivery of goods, should be treated as a speculative loss under Section 43(5) read with Section 73 of the Income-tax Act,… Read More »
Charitable Trust (Cow Care) Registration Application Remanded for Fresh Adjudication Due to Summary Rejection and Portal Issues. Issue: Whether a Commissioner (Exemption) can summarily reject an application for registration under Section 12A of the Income-tax Act, 1961, from a trust engaged in cow care, merely because the assessee claimed not to have filed a formal… Read More »