Unexplained Investment Additions Based on Dumb Search Documents and Insight Portal Summaries Are Invalid Issue Whether an addition under Section 69 for alleged cash “on-money” payment is sustainable when based on a dumb document from a third-party search that mentions neither the assessee’s name nor any explicit cash receipt. Whether a reassessment notice issued under… Read More »
Capital gains do not accrue under JDA until encumbrances are cleared and possession is handed over. Issue Whether entering into a registered Joint Development Agreement (JDA) constitutes a “transfer” under Section 2(47) read with Section 45 in Assessment Year 2016-17, when the agreement explicitly conditions the transfer of possession on the removal of encumbrances which… Read More »
Development agreement without transfer of possession does not trigger capital gains tax. Issue Whether entering into a Development Agreement without handing over possession under Section 53A of the Transfer of Property Act or evidencing a transfer under Section 2(47)(vi) constitutes a “transfer” under Section 2(47) read with Section 45, attracting long-term capital gains tax in… Read More »
Interest under Section 28 of Land Acquisition Act Forms Part of Compensation, Not Taxable under Income from Other Sources Issue Whether interest received on enhanced compensation under Section 28 of the Land Acquisition Act, 1894 is taxable as ‘Income from Other Sources’ under Section 56(2)(viii) or forms part of the compensation itself. Facts Compulsory Acquisition:… Read More »
Cancellation Agreement and Fresh Additional Evidence Warrant Re-evaluation of Section 54F Capital Gain Exemption Issue Whether an order denying exemption under section 54F based on a development agreement should be set aside and remanded to the Assessing Officer when crucial additional evidence—including a cancellation agreement—was admitted under Rule 29 of the ITAT Rules. Facts Return… Read More »
Registration under Section 12AB cannot be cancelled retroactively, for procedural lapses, or Section 13 violations. Issue Jurisdiction under Section 12AA Post-April 1, 2021: Whether the Pr.CIT(C) had the legal power to cancel registration under Sections 12AA(3) and 12AA(4) after Section 12AA(5) rendered the section inapplicable on or after April 1, 2021. Retrospective Application of Specified… Read More »
Ex-Gratia Exemption Under Section 10(10B) Is Allowed as Capital Receipt for BSNL VRS-2019 Employees Issue Whether ex-gratia compensation received by BSNL employees under the BSNL Voluntary Retirement Scheme, 2019 (BSNL VRS-2019) constitutes capital receipt in the nature of ‘Retrenchment Compensation’ fully exempt under Section 10(10B) of the Income-tax Act, 1961, rather than being restricted to… Read More »
Typographical Error in ITR Regarding First Opted Year Cannot Deny Section 115BAC New Tax Regime Benefit Issue Whether an individual assessee who opted for the new tax regime under Section 115BAC in Assessment Year 2021-22 by filing Form 10-IE can be denied the Section 115BAC tax benefit for Assessment Year 2023-24 solely due to an… Read More »
Ex-Gratia Amount Received On Voluntary Retirement Under Employer Scheme Is Non-Taxable Capital Receipt Issue Whether ex-gratia/settlement amounts received by an employee upon opting for voluntary retirement under an employer’s financial scheme constitute a non-taxable capital receipt or taxable income under Section 56(2)(xi) / Section 17 of the Income-tax Act, 1961. Facts Background & Receipt: The… Read More »
No penalty for under-reporting is leviable on retrospective disallowance of a bona fide education cess claim. Issue Whether a penalty for under-reporting income under Section 270A can be legally sustained when the deduction claimed (Education Cess) was based on prevalent judicial precedents but was subsequently disallowed by a retrospective amendment under the Finance Act, 2022.… Read More »