Full cost of property acquisition corroborated by loan records must be allowed for computing capital gains. Issue Capital Gains Computation (Cost of Acquisition): Whether construction and land acquisition costs supported by an agreement to sell and corroborated by housing loan disbursement documents can be included in the “cost of acquisition” under Section 48, even if… Read More »
Business commission received in cash and capital introduced from business cash flows cannot be taxed as unexplained cash credits under Section 68 Issue Whether business commission income received in cash, once accepted and identified as business receipts, can be simultaneously characterized and taxed as an unexplained cash credit under Section 68 read with Section 115BBE.… Read More »
No Transfer Pricing Adjustments Permissible for Non-Existent Real Income from Bankrupt AEs or Inapplicable Valuation Mandates Issue Notional Interest on Quasi-Equity OFCDs: Whether transfer pricing provisions permit imputing notional interest on quasi-equity OFCDs where realization is uncertain and unrecognized under accounting principles. Interest Imputation on Invoked Corporate Guarantee Payments: Whether paying an invoked guarantee for… Read More »
Cash deposits during demonetisation cannot be treated as unexplained money under section 69A when supported by regular books and business receipts. Cash deposits during demonetisation cannot be treated as unexplained money under section 69A when supported by regular books and business receipts. Issue Whether cash deposits made during the demonetisation period can be treated as… Read More »
Reassessment Proceedings Initiated Against Deceased Assessee Without Serving Notice on Legal Representatives Are Void Issue Whether reassessment proceedings initiated under Section 148 against a deceased assessee—and completed ex parte without issuing notice to the legal representatives under Section 159—are bad in law and liable to be quashed. Facts Assessment Year: 2011-12. Property Sale: The deceased… Read More »
Fresh Disallowance Under Section 14A Involving Debatable Exercise Cannot Be Made Under Rectification Proceedings Issue Whether the Assessing Officer was justified in invoking Section 154 to make a fresh disallowance of ₹35.37 lakh under Section 14A read with Rule 8D, when such disallowance requires an adjudicatory exercise and satisfaction under Section 14A(2) rather than correcting… Read More »
No Section 43CA addition applies to reciprocal exchange of equivalent land for ownership rearrangement. No Section 43CA addition applies to reciprocal exchange of equivalent land for ownership rearrangement. Issue Whether the deeming fiction under Section 43CA of the Income-tax Act, 1961 (Section 53 of the Income-tax Act, 2025) can be invoked for executed sale deeds… Read More »
Rejection of Transitional Form 10A Does Not Invalidate Pre-Existing Registration Under Section 12AA Issue Whether the rejection of a transitional Form 10A application filed by an educational trust automatically cancels or invalidates its pre-existing registration under Section 12AA, thereby disentitling the trust from claiming income tax exemptions under Sections 11 and 12 for Assessment Year… Read More »
Section 50C stamp valuation on agreement date applies when property consideration is fixed and advance paid earlier. Issue Whether the stamp duty value on the date when property consideration was fixed and advance paid through banking channels should be adopted under Section 50C, rather than the enhanced stamp value on the sale deed registration date.… Read More »
Propagating Vedic knowledge is charitable, not religious, entitling the trust to Section 80G tax approval. Issue Whether an assessee-trust engaged in the propagation of Sanatana Dharma, Vedas, Bhagavad Gita, and related works can be classified as a “religious cum charitable trust” without any specific reasons assigned by the CIT(Exemptions). Whether the classification as a “religious… Read More »