Commercial Property Disqualification and Urban Location Do Not Bar Exemptions Under Sections 54F and 54B Issue Eligibility under Section 54F: Whether the ownership of a commercial property (SCO-7, Dhakoli, Zirakpur) disqualifies an assessee from claiming capital gains exemption under Section 54F on the ground of owning more than one residential house on the date of… Read More »
Reassessment Based on Mechanical “Fit Case” Approval Under Section 151 and Uncorroborated Statement for Bogus Purchases Is Invalid and Ineffective Issue Whether approval granted under Section 151 of the Income-tax Act by writing merely “fit case” without independent application of mind or examination of material constitutes valid statutory sanction for issuing notice under Section 148.… Read More »
Exemption under Section 11 cannot be claimed for the first time in Section 148 returns. Issue Whether a charitable trust that failed to file returns under Section 139 within the prescribed time can validly claim exemption under Sections 11 and 12 for the first time in a return filed in response to a reassessment notice… Read More »
Registration under Section 12AB cannot be cancelled absent proof of non-genuine activities or statutory violations. Issue Whether CIT(E) can cancel an educational trust’s Section 12AB registration over bank cash deposits, high surplus ratios, or unrecorded leases without proving non-genuine activities or fund diversion. Facts Registration Granted: The assessee-society, running educational institutions, was granted registration under… Read More »
Reassessment Notice Issued Beyond Three Years Under Section 148 Without Section 151(ii) Approval Lacks Valid Jurisdiction Reassessment Notice Issued Beyond Three Years Under Section 148 Without Section 151(ii) Approval Lacks Valid Jurisdiction Issue Whether a consequential reassessment notice issued under Section 148 after the expiry of three years from the end of the relevant assessment… Read More »
Addition for Alleged Understated Export Sales Deleted as Net Realizations and Prior-Year Invoices Fully Reconciled Addition for Alleged Understated Export Sales Deleted as Net Realizations and Prior-Year Invoices Fully Reconciled Issue Whether the CIT(A) was justified in deleting the addition of ₹4.59 crores made by the Assessing Officer on account of alleged undisclosed or understated… Read More »
Interest Disallowance Remanded for Verification While Section 40(a)(ia) and Land Conversion Charge Disallowances are Upheld Issue Whether interest on borrowed capital for work-in-progress requires verification, whether section 40(a)(ia) applies to paid amounts, and whether land conversion charges/interest qualify for business expenditure or capital allowances. Facts Interest on Borrowed Capital: For AYs 2009-10 to 2010-11, the… Read More »
In incidental religious activities, CIT(E) must examine dominant objects and 5% expenditure cap before denying 80G approval. In incidental religious activities, CIT(E) must examine dominant objects and 5% expenditure cap before denying 80G approval. Issue Whether CIT(E) can deny approval under Section 80G solely because a charitable trust engages in incidental religious activities, without… Read More »
A trust predominantly engaged in cow protection cannot be classified as a religious entity or denied Section 80G approval based on dormant temple clauses or Gita discourses. Issue Whether a trust with dominant objects of cow protection, animal welfare, and ethical value education can be categorized as a “Religious Entity” under Section 12AB due to… Read More »
Providing transportation services on commercial lines to school students does not constitute charitable purpose under section 2(15). Issue Whether an institution providing student transport services on commercial lines against a fee, generating recurring surpluses, is entitled to regular registration under Section 12AB as a charitable entity under Section 2(15) of the Income-tax Act, 1961 /… Read More »