Tag Archives: IN THE ITAT PUNE BENCH

Ex-Gratia Amount Received On Voluntary Retirement Under Employer Scheme Is Non-Taxable Capital Receipt

By | July 22, 2026
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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.

By | July 17, 2026
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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 »

Income from Joint Development Agreement Treated as Stock-In-Trade Remanded for Factual Re-Adjudication

By | July 11, 2026
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Income from Joint Development Agreement Treated as Stock-In-Trade Remanded for Factual Re-Adjudication Issue Whether the revenue authorities were justified in taxing Rs. 14.33 crores as accrued business income based on a JDA and a Form 26AS entry, and whether capital gains provisions under Section 45(5A) apply when the underlying immovable property is admittedly held as… Read More »

Reassessment under Section 147 is valid if third-party seized material does not directly belong to assessee.

By | July 7, 2026
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Reassessment under Section 147 is valid if third-party seized material does not directly belong to assessee. Issue Whether the Assessing Officer can validly initiate reassessment proceedings under Section 147 based on independent investigation of third-party search data, where the seized material does not directly belong, pertain, or relate to the assessee, thereby rendering the special… Read More »

Inter-trust transfers out of accumulated funds are strictly taxable as deemed income regardless of project nomenclature.

By | July 6, 2026
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Inter-trust transfers out of accumulated funds are strictly taxable as deemed income regardless of project nomenclature. Issue Whether payments made out of accumulated income under Section 11(2) by a charitable trust to other Section 12AA-registered institutions for project implementation are hit by the restriction in Section 11(3)(d) and taxable as deemed income. Facts Income Accumulation:… Read More »

BSNL VRS 2019 payments constitute retrenchment compensation exempt under Section 10(10B), not Section 10(10C).

By | June 30, 2026
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BSNL VRS 2019 payments constitute retrenchment compensation exempt under Section 10(10B), not Section 10(10C). Issue Whether the compensation received by BSNL employees under the BSNL Voluntary Retirement Scheme, 2019 is in the nature of retrenchment compensation (capital receipt) exempt under Section 10(10B), or a voluntary retirement payment governed by Section 10(10C). Facts The assessees were… Read More »

Lump-sum receipt for extinguishing development rights across entire land parcel is fully deductible against capital gains.

By | June 30, 2026
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Lump-sum receipt for extinguishing development rights across entire land parcel is fully deductible against capital gains. Issue Whether the sum of Rs. 33 crores received by the assessee was a global settlement for extinguishing his entire bundle of rights across the whole 35,600 sq. mtrs. of land—constituting a “transfer” under Section 2(47)—entitling him to claim… Read More »

Assessing Officer directed to exclude Mutual Funds and Tax Free Bonds from Section 14A calculations.

By | June 24, 2026
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Assessing Officer directed to exclude Mutual Funds and Tax Free Bonds from Section 14A calculations. Issue Whether the Assessing Officer, while computing the indirect expense disallowance under Section 14A read with Rule 8D(2)(ii), must exclude investments made in Mutual Funds and Tax Free Bonds from the average value of investments. Whether any further disallowance can… Read More »

Tribunal rules primarily for assessee on onsite profits, exempt income disallowance, goodwill depreciation, and FTC, but mandates allocation of interest expenditure.

By | June 19, 2026
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Tribunal rules primarily for assessee on onsite profits, exempt income disallowance, goodwill depreciation, and FTC, but mandates allocation of interest expenditure. Tribunal rules primarily for assessee on onsite profits, exempt income disallowance, goodwill depreciation, and FTC, but mandates allocation of interest expenditure. Issue Whether the various additions and disallowances made by the Assessing Officer concerning… Read More »