Tag Archives: Income tax Officer

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

By | July 6, 2026
0 Comment

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 »

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

By | July 6, 2026
0 Comment

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 »

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

By | July 6, 2026
0 Comment

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 »

Ex-parte assessment order set aside and remanded for fresh hearing after condoning a 1439-day delay.

By | July 2, 2026
0 Comment

Ex-parte assessment order set aside and remanded for fresh hearing after condoning a 1439-day delay. Ex-parte assessment order set aside and remanded for fresh hearing after condoning a 1439-day delay. Issue Whether a substantial delay of 1,439 days in filing an appeal before the CIT(A) should be condoned, and the matter remanded for fresh assessment,… Read More »

Interest from investing retained members’ sale proceeds is taxable under section 56, not section 80P(2)(a)(i).

By | July 2, 2026
0 Comment

Interest from investing retained members’ sale proceeds is taxable under section 56, not section 80P(2)(a)(i). Issue Whether interest income earned by a co-operative credit society from investing retained, temporarily idle sale proceeds of its members’ agricultural produce qualifies for a deduction as business income under Section 80P(2)(a)(i), or if it must be classified and taxed… Read More »

Entire Bogus Purchase Value Cannot Be Taxed When Corresponding Sales Are Undisputed

By | July 2, 2026
0 Comment

Entire Bogus Purchase Value Cannot Be Taxed When Corresponding Sales Are Undisputed Issue Whether the Assessing Officer is justified in adding the entire value of alleged bogus purchases to the assessee’s taxable income under Section 69C when the corresponding sales are accepted, no stock discrepancies exist, and only the profit element embedded in those purchases… Read More »

Reassessment Notice Based on Loose Seized Notings Lacking Direct Link to Assessee Is Quashed

By | July 2, 2026
0 Comment

Reassessment Notice Based on Loose Seized Notings Lacking Direct Link to Assessee Is Quashed Issue Whether the Assessing Officer (AO) can validly issue a reassessment notice under Section 148 on the presumption of “on-money” payment, based solely on an entry in a third-party seized register that was recorded 23 months prior to the actual land… Read More »

Statutorily mandated deposits qualify for section 80P deduction, but surplus fund interest is taxed under section 56.

By | July 2, 2026
0 Comment

Statutorily mandated deposits qualify for section 80P deduction, but surplus fund interest is taxed under section 56. Issue Whether interest income earned on deposits maintained by a co-operative society under statutory compulsion (such as SLR/reserve fund requirements) qualifies as business income eligible for deduction under Section 80P(2)(a)(i). Whether interest or dividend income earned from investing… Read More »

Exemption withdrawal under Section 154 without prior statutory notice violates natural justice and is invalid.

By | June 30, 2026
0 Comment

Exemption withdrawal under Section 154 without prior statutory notice violates natural justice and is invalid. Issue Whether a rectification order passed under Section 154 that withdraws a trust’s tax exemption and converts a granted refund into a tax demand is legally valid if it is issued without the mandatory prior notice and opportunity of being… Read More »

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

By | June 30, 2026
0 Comment

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 »