Important Income Tax Case Laws 30.04.2026 Relevant Act Section Case Law Title Citation Brief Summary Income Tax Sec 2(14) Rashmi Niranjan Mehta v. ITO Click Here Sale of gold/silver received as Streedhan is treatable as Capital Gains (eligible for Sec 54F) if item-wise acquisition and vouchers are substantiated on remand. Income Tax Sec 10(10AA) Gyanendra… Read More »
SBI Form A 2 – Application for Remittance Abroad (Import of services) SBI Form A 2 – Application for Remittance Abroad (Import of services) Form A2 is a standard application and declaration form used for requesting the remittance of foreign exchange abroad for purposes other than the import of goods or intermediary trade. 1.… Read More »
Territorial Restriction of Charitable Expenditure: Denial of Registration for Trusts Benefitting Persons Outside India Facts The Application: The assessee-trust filed an application for regular registration under Section 12A(1)(ac)(iii) (read with Section 12AB) for the Assessment Year 2022-23. The Objection: Upon reviewing the trust deed, the CIT (Exemptions) observed that the objects of the trust were… Read More »
Tax Rates on Capital Gains Introduction Tax rates on capital gains depend on the type of capital asset, holding period, and assessee’s status. Short-term capital gains (STCG) are generally taxed at higher rates compared to long-term capital gains (LTCG). Short-Term Capital Gains General Rule: Taxed at normal slab rates applicable to the assessee. Specified Listed… Read More »
Admissibility of Foreign Documents: Right to Inspect Originals During Cross-Examination Facts The Allegation: The accused was prosecuted under Sections 276C and 277 of the Income-tax Act (and Section 191 of the IPC) for the alleged non-disclosure of foreign assets. The Evidence: During the pre-charge evidence stage, the prosecution introduced foreign documents (Ex. CW-1/6 and Ex.… Read More »
Tax on Long-Term Capital Gain from Sale of Securities Chargeable to STT Introduction Long-term capital gains (LTCG) from the sale of specified securities are exempt from tax if the aggregate gain during the year does not exceed Rs. 1,25,000. Gains above this threshold are taxable at a concessional rate of 12.5% or 10%. Key Provisions… Read More »
Tax on Short-Term Capital Gain from Sale of Securities Chargeable to STT Introduction Short-term capital gains (STCG) from the sale of specified securities are taxable at a concessional rate of 20% or 15%, provided the Securities Transaction Tax (STT) is paid at the time of sale. Deductions under Chapter VI-A are not permitted against such… Read More »
Inapplicability of Section 69A When Transactions Are Recorded in Books of Account Facts The Dispute: The Department made an addition of ₹1.53 crores to the assessee’s income, treating cash deposits in the bank account as “unexplained money.” Assessee’s Defense: The assessee argued that the deposits represented sales and receipts already recorded in its books of… Read More »
Computation of Capital Gains in Case of Immovable Property Introduction Capital gains from transferring immovable property (land, building, or both) are subject to special rules regarding computation, exemptions, and tax rates. Key Provision Capital Gains Computation: Particulars Amount Full value of consideration (Higher of actual consideration and stamp duty value) xxx Less: (a) Cost of… Read More »
Interplay Between Section 54F and Section 70: Exemption Prevails Over Set-off Facts The Transactions: During the assessment year 2022-23, the assessee realized a Long-Term Capital Gain (LTCG) of ₹69.84 lakhs from the sale of equity shares and a Long-Term Capital Loss (LTCL) of ₹37.72 lakhs from the sale of other equity shares. The Claim: The… Read More »