Tag Archives: IN THE ITAT MUMBAI BENCH

Recharacterization of Capital Gains as Dividend With Reduced Tax Liability Does Not Warrant Penalty Under Section 270A

By | August 11, 2026
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Recharacterization of Capital Gains as Dividend With Reduced Tax Liability Does Not Warrant Penalty Under Section 270A Issue Whether initiation of penalty proceedings under Section 270A for under-reporting or misreporting of income is legally sustainable when the recharacterization of capital gains into dividend income by the Assessing Officer results in no increase in total assessed… Read More »

Sole Executor Administering Deceased Estate Must Be Assessed as an Individual at Normal Slab Rates

By | August 11, 2026
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Sole Executor Administering Deceased Estate Must Be Assessed as an Individual at Normal Slab Rates Issue Whether the income of a deceased person’s estate administered by a sole executor should be assessed in the hands of the executor as an individual at normal slab rates under Section 168, rather than as an Artificial Juridical Person… Read More »

Invocation of Section 153A Beyond Six Years Is Void Without Identifiable Asset Under Explanation 2

By | August 11, 2026
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Invocation of Section 153A Beyond Six Years Is Void Without Identifiable Asset Under Explanation 2 Invocation of Section 153A Beyond Six Years Is Void Without Identifiable Asset Under Explanation 2 Issue Whether the assumption of jurisdiction under Section 153A beyond the ordinary six-year block is legally sustainable when the seized material fails to establish that… Read More »

LTCG Exemption and Commission Additions for Penny Stocks Cannot Stand Without Direct Evidence Against Assessee

By | August 11, 2026
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LTCG Exemption and Commission Additions for Penny Stocks Cannot Stand Without Direct Evidence Against Assessee Issue Whether the Assessing Officer is justified in treating long-term capital gains (LTCG) from share sales as unexplained cash credit under Section 68 and adding 3% estimated commission under Section 69C based solely on generic Investigation Wing reports regarding penny… Read More »

Irrecoverable VAT/CST Refunds and Valid Debt Write-Offs Are Allowable Deductions Under Income-Tax Act

By | August 11, 2026
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Irrecoverable VAT/CST Refunds and Valid Debt Write-Offs Are Allowable Deductions Under Income-Tax Act Issue Whether write-offs of irrecoverable VAT/CST refunds and trade debts with proper accounting entries constitute allowable deductions under Sections 28/37(1) or 36(1)(vii), and whether Section 14A interest disallowance applies when own interest-free funds exceed investments. Facts Issue I (Write-off of VAT/CST Refund):… Read More »

Absence of Express Irrevocability Clause Cannot Justify Rejection of Section 80G Approval

By | August 11, 2026
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Absence of Express Irrevocability Clause Cannot Justify Rejection of Section 80G Approval Issue Whether the CIT(E) can reject an application for regular approval under Section 80G/12AB on the ground that the trust deed lacks an express irrevocability or dissolution clause, and whether selecting “Yes” to the irrevocability question in Form 10AB constitutes furnishing false or… Read More »

Revaluation of existing leasehold rights without cash inflow or new asset acquisition cannot be taxed under Section 69.

By | August 10, 2026
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Revaluation of existing leasehold rights without cash inflow or new asset acquisition cannot be taxed under Section 69. Issue Whether the revaluation of an existing tenancy/leasehold right by a firm, without acquiring any new asset, paying consideration, or introducing funds, can be treated as an unexplained investment under Section 69 of the Income-tax Act, 1961… Read More »

An allotment letter constitutes an agreement under Section 56(2)(x) proviso if consideration was fixed and paid via banking channels.

By | August 10, 2026
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An allotment letter constitutes an agreement under Section 56(2)(x) proviso if consideration was fixed and paid via banking channels. Issue Whether an unregistered allotment letter can constitute an “agreement fixing the amount of consideration” under the first proviso to Section 56(2)(x) of the Income-tax Act, 1961 / Section 92 of the Income-tax Act, 2025, thereby… Read More »

Section 80GGC Deduction Disallowed as Political Donation Was a Non-Genuine Accommodation Entry Scheme

By | August 7, 2026
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Section 80GGC Deduction Disallowed as Political Donation Was a Non-Genuine Accommodation Entry Scheme Issue Whether a salaried employee is entitled to a deduction under Section 80GGC for a donation made to a political party when independent search findings establish that the donee entity operated as a conduit for providing bogus accommodation entries. Facts Deduction Claimed:… Read More »

Surplus from transfer of restored development rights is taxable as capital gains, not business income.

By | August 7, 2026
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Surplus from transfer of restored development rights is taxable as capital gains, not business income. Issue Whether gains from the transfer of restored development rights following JDA termination are taxable as capital gains or business income, whether such receipts are exempt capital receipts, and whether connected disallowances under Section 40(a)(ia) and claims for encroachment settlement… Read More »