Tag Archives: IN THE ITAT MUMBAI BENCH

Supreme Court stays order holding physical service dates override electronic portal service dates for GST appeal limitations.

By | July 7, 2026
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Supreme Court stays order holding physical service dates override electronic portal service dates for GST appeal limitations. Supreme Court stays order holding physical service dates override electronic portal service dates for GST appeal limitations. Issue Whether the date of physical/offline communication of a GST notice or order prevails over the date of electronic service on… Read More »

Failure to issue Section 143(2) notice and issuing demand with draft order invalidates reassessment.

By | July 6, 2026
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Failure to issue Section 143(2) notice and issuing demand with draft order invalidates reassessment. Issue Whether the failure to issue a mandatory notice under Section 143(2) during reassessment proceedings, and the simultaneous issuance of a demand notice and penalty initiation along with a draft assessment order under Section 144C, renders the entire assessment exercise void… Read More »

Foreign remittances with a verified banking trail cannot be taxed as unexplained investments.

By | July 6, 2026
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Foreign remittances with a verified banking trail cannot be taxed as unexplained investments. Issue Whether the Assessing Officer was legally justified in treating the investment in a residential property as an unexplained investment under Section 69 of the Income-tax Act, 1961, when the assessee established a clear banking trail of foreign inward remittances from her… Read More »

Trust payment from accumulated income to another registered trust is taxable as deemed income.

By | July 6, 2026
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Trust payment from accumulated income to another registered trust is taxable as deemed income. Issue Whether the payment of funds out of accumulated income under Section 11(2) by a charitable trust to other institutions registered under Section 12AA—under the nomenclature of project implementation and services—violates Section 11(3)(d) and must be treated as the taxable deemed… Read More »

Non-resident bank wins on inter-branch transactions, interest, exemptions, and key business expense deductions.

By | July 6, 2026
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Non-resident bank wins on inter-branch transactions, interest, exemptions, and key business expense deductions. Issue Whether various additions and disallowances made by the Assessing Officer concerning inter-branch transactions, overseas third-party bank interest, expense allocations ($§14\text{A}$), write-backs, broken period interest, club fees, interest on processing refunds ($§234\text{B}$), year-end forex revaluations, and CRR/SLR shortfalls are legally sustainable under… Read More »

Consideration received for transferring property development rights is taxable exclusively under Capital Gains.

By | July 6, 2026
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Consideration received for transferring property development rights is taxable exclusively under Capital Gains. Issue Whether development rights in an immovable property constitute a “capital asset” under Section 2(14) of the Income-tax Act, making the contractual consideration received for their transfer taxable under the head “Capital Gains” rather than “Income from Other Sources.” Facts The Agreement:… Read More »

Consideration received for transferring development rights is taxable as capital gains, not other sources.

By | July 6, 2026
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Consideration received for transferring development rights is taxable as capital gains, not other sources. Issue Whether development rights in an immovable property constitute a “capital asset” under Section 2(14), making the contractual consideration received for their transfer taxable under the head “Capital Gains” rather than “Income from Other Sources.” Facts Agreement: The assessee, along with… Read More »

Long-term capital losses can be set off against capital gains arising from depreciable assets.

By | July 4, 2026
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Long-term capital losses can be set off against capital gains arising from depreciable assets. Issue Whether the deeming fiction under section 50, which treats gains from depreciable assets as short-term capital gains, converts the underlying long-term asset into a short-term asset, thereby barring the set-off of current year and brought forward long-term capital losses under… Read More »

CIT(E) cannot reject a trust’s renewal application over a technical selection mistake in Form 10AB

By | July 4, 2026
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CIT(E) cannot reject a trust’s renewal application over a technical selection mistake in Form 10AB Issue Whether the CIT(E) is legally justified in rejecting a charitable trust’s renewal application under Section 12AB simply because the trust inadvertently selected the incorrect statutory clause on the electronic form. Facts The Assessee: A charitable institution that already held… Read More »

Disallowances under Section 14A, 37, and 115JA are deleted for foreign banks on multiple issues

By | July 4, 2026
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Disallowances under Section 14A, 37, and 115JA are deleted for foreign banks on multiple issues Issue Whether the various additions and disallowances made by the Assessing Officer concerning Section 14A exempt income expenses, broken period interest on stock-in-trade, MAT applicability to banking companies, gross taxation of foreign currency loans, intra-entity transactions with the Head Office,… Read More »