Tag Archives: Income tax Officer

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 »

Notice Under Section 148 Issued After Limitation Expiry Is Valid If Delay Occurred Due To Assessee Adjournment Requests

By | June 27, 2026
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Notice Under Section 148 Issued After Limitation Expiry Is Valid If Delay Occurred Due To Assessee Adjournment Requests Issue Whether a reassessment notice issued under Section 148 after the normal limitation date is time-barred, or if the time consumed by granting extensions requested by the assessee during pre-notice proceedings can be excluded under the fifth… Read More »

Order and Notice Under Section 148A Passed Ignoring Recorded Adjournment Request Are Legally Void

By | June 27, 2026
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Order and Notice Under Section 148A Passed Ignoring Recorded Adjournment Request Are Legally Void Order and Notice Under Section 148A Passed Ignoring Recorded Adjournment Request Are Legally Void Issue Whether an order passed under Section 148A(d) and a consequential notice issued under Section 148 of the Income-tax Act, 1961, are legally sustainable when the Assessing… Read More »

Reopening Assessment Based Solely on Illegible Third-Party Loose Papers Lacking Nexus is Wholly Unsustainable

By | June 27, 2026
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Reopening Assessment Based Solely on Illegible Third-Party Loose Papers Lacking Nexus is Wholly Unsustainable Issue Whether the revenue is legally justified in reopening an assessment under Section 147 and issuing a notice under Section 148 based entirely on an illegible loose paper seized from an unrelated third party, where the satisfaction note fails to establish… Read More »

Subsequent Capital Gains Utilized for Improving an Existing Exempt Residential Property Qualify under Section 54F

By | June 27, 2026
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Subsequent Capital Gains Utilized for Improving an Existing Exempt Residential Property Qualify under Section 54F Issue Whether an assessee is entitled to claim an exemption under Section 54F of the Income-tax Act, 1961, for long-term capital gains utilized toward the further construction and structural improvement of an existing residential property, when the initial purchase of… Read More »

Deemed Application of Income Spent on Immovable Property Does Not Require Schedule-I Disclosure under Form I-TR7

By | June 27, 2026
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Deemed Application of Income Spent on Immovable Property Does Not Require Schedule-I Disclosure under Form I-TR7 Issue Whether the addition of approximately ₹4.00 crores was sustainable under Section 11 of the Income-tax Act, 1961, when the assessing authorities disallowed a valid utilization of “deemed application” of income from the preceding year solely due to its… Read More »

Deduction under Section 80P cannot be denied in full over nominal membership limits.

By | June 26, 2026
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Deduction under Section 80P cannot be denied in full over nominal membership limits. Issue Whether a co-operative society can be denied its deduction under Section 80P(2)(a)(i) in full on the grounds that it admitted nominal or associate members beyond the statutory 15% limit prescribed under State law, and whether the disallowance of an interest provision… Read More »

Unexplained trade credits are taxable under Section 68 as income from other sources and ineligible for Section 80-IA business deductions.

By | June 26, 2026
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Unexplained trade credits are taxable under Section 68 as income from other sources and ineligible for Section 80-IA business deductions. Issue Whether undisclosed trade credits can be treated as business profits eligible for deductions under Section 80-IA, or if they must be assessed as deemed income from other sources under Section 68 when the assessee… Read More »

DVO valuation replaces stamp duty valuation, making safe harbor limits applicable to the revised value.

By | June 26, 2026
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DVO valuation replaces stamp duty valuation, making safe harbor limits applicable to the revised value. Issue Whether the safe harbor rule applies to the revised value determined by the Departmental Valuation Officer (DVO) once an assessee disputes the stamp duty valuation under Section 56(2)(x). Facts The assessee purchased a residential flat for a consideration of… Read More »

Rural agricultural land is not a capital asset, and hereditary ancestral land incurs no unexplained investment cost.

By | June 26, 2026
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Rural agricultural land is not a capital asset, and hereditary ancestral land incurs no unexplained investment cost. Issue Whether the Assessing Officer was justified in taxing capital gains on the sale of rural agricultural land and making an addition for unexplained investment under Section 69B on hereditary ancestral land. Facts The assessee, an individual, did… Read More »