Bombay HC Quashes IT Assessment for Breach of Natural Justice, Orders Fresh Hearing

Income tax assessment passed without an effective personal hearing violates principles of natural justice and is liable to be quashed.

Realty Company's Sale of Long-Held Freehold Land Is Capital Gains Not Business Income: Madras Court

The Madras High Court has held that profits earned from the sale of decades-old freehold land must be taxed as capital gains and not as business income, rejecting the income tax department's attempt to treat the transaction as part of a real estate business. A division bench of Justices Anita Sumanth and Mummineni Sudheer Kumar said the record clearly showed that the land was held as a long-term asset and was sold without any development or trading activity. "The accounts reveal that the...

Large Cash Claims In Civil Suits Can Be Flagged To Income Tax Department: Madras High Court

This can be done even if the transaction took place before the 2017 restrictions on cash transactions came into force.

Charitable Trust Cannot Lose Tax Exemption For Late Filing Of Form Declaring Future Use of Income: Madras HC

The High Court condoned a 530-Day delay in filing form 10 under the Income Tax Act

Auction Under Income Tax Act Cannot Be Confirmed Without Addressing Objections: Madras High Court

The court held that Rules 62 & 63 of the Second Schedule to the Income Tax Act must be read together.

Income Tax Recovery Without Supplying Assessment Order Is Illegal: Delhi High Court

The Court, holding so, ordered the refund of ₹11.14 Lakh recovered from a taxpayer

Delhi High Court Quashes Rejection of Nil Withholding Certificate For UK Education Firm, Says Ignored Rule 28AA

The Delhi High Court has quashed the rejection of a Nil Withholding Certificate sought by a UK-based education company after noting that the Assessing Officer (AO) failed to comply with the mandatory requirements under Rule 28AA of the Income Tax Rules, 1962.A Division Bench comprising Justices V. Kameswar Rao and Vinod Kumar set aside the certificate dated July 30, 2025, by which the Revenue had directed deduction of tax at source (TDS) at 15% under Section 197 of the Income Tax Act, 1961. For...

ITAT Delhi Sets Aside ₹4 Crore Additions Based on WhatsApp Evidence From Third-Party Broker

According to the tribunal, non-compliance with Section 65B of the Evidence Act and CBDT Digital Evidence rules vitiated WhatsApp evidence.

ITAT Raipur Sets Aside Deletion Of Bogus Purchase Addition For Want of Remand Report From AO

The tribunal remanded the matter back to the CIT(A), NFAC, for fresh consideration

Reassessment Unsustainable Where Income Was Declared And Tax Paid At Highest Rate: Delhi High Court

Noting so, the court rejected the Revenue's appeal seeking to reopen a taxpayer's income tax assessment over alleged trading gains.

Delhi High Court Allows Income Tax Assessment Despite Notice Under Unused PAN, Orders Its Cancellation

The Delhi High Court recently (January 13) allowed income tax assessment proceedings to continue against a taxpayer despite him holding more than one Permanent Account Number (PAN) and directed that the unused PAN be cancelled. A Division Bench of Justices Dinesh Mehta and Vinod Kumar was dealing with a writ petition wherein the taxpayer challenged the continuation of assessment proceedings on the ground that notices had been issued under a PAN different from the one currently claimed by...

ITAT Mumbai Quashes Tax Reopening Over Political Donation, Allows Section 80GGC Deduction

A reassessment founded on a Section 148A notice issued on incorrect facts and without supplying relied-upon material is void ab initio; mere suspicion cannot defeat a statutory deduction under Section 80GGC.