Delhi High Court Refuses To Quash Reassessment Against Homebuyer Over Alleged Cash Payment To Builder

The Delhi High Court has refused to interfere with reassessment proceedings initiated against a taxpayer after documents seized from real estate group Bhutani Infra allegedly reflected a cash transaction linked to a flat purchase.A Division Bench of Justices Dinesh Mehta and Vinod Kumar observed that the notice issued under Section 148 of the Income Tax Act cannot be termed as without jurisdiction at the threshold.The petitioner/taxpayer had argued that the sole basis for reopening the...

Use of Tissue Culture Technology Does Not Bar Tax Exemption On Agricultural Income: Telangana High Court

The Telangana High Court has held that income earned from the sale of tissue-cultured plants qualifies as agricultural income and is therefore exempt from income tax, though advanced scientific techniques are used in their cultivation. The Bench of Justices P Sam Koshy and Narsing Rao Nandikonda heard a case where the assessee (appellant), who was engaged in the business of micropropagation of plants through tissue culture technology, claimed that the income from the same was exempt from tax as...

Income Declared Under VDIS Can Still Be Scrutinised If Higher Income Is Found: Madhya Pradesh High Court

The High Court of Madhya Pradesh at Jabalpur recently held that declaring income under the Voluntary Disclosure of Income Scheme, 1997 does not stop the income tax department from checking whether the correct income was disclosed, even though the scheme protects the assessee from being questioned about the source of that income. A Division Bench of Justice Vivek Rusia and Justice Pradeep Mittal said that VDIS gives only limited immunity. “The assessee is only protected from disclosing the...

Amendments To Income Tax Appellate Tribunal Rules Mandate Digital Signatures For Filing Appeals

The Ministry of Law and Justice has recently notified changes to the Income-tax (Appellate Tribunal) Rules, 1963, making the use of digital signatures compulsory for filing appeals before the Income Tax Appellate Tribunal (ITAT). The changes have been brought in through the Income-tax (Appellate Tribunal) Amendment Rules, 2025. Under the amended rules, appeals must now be filed electronically. Rule 6 has been substituted to state that a memorandum of appeal shall be filed by the appellant or...

ITAT Mumbai Sets Aside ₹2.28-Crore Capital Gains Tax on Housing Society For Developer Payments To Members

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has quashed a Rs 2.28 crore capital gains tax addition against Colombia Co-operative Housing Society, holding that redevelopment compensation paid directly to individual members cannot be taxed as the society's income.The ITAT held that amount paid by a developer directly to individual members of a co-operative housing society pursuant to redevelopment cannot be taxed as capital gains in the hands of the society, particularly when the...

Income Tax Act | HP High Court Stays Reassessment Proceedings U/S 148 As Validity Of Notices Were Pending Before SC

The Himachal Pradesh High Court has stayed reassessment proceedings initiated against an assessee under Section 148 of the Income Tax Act, 1961, noting that the validity of such notices is already under consideration before the Supreme Court. A Division Bench comprising Justice Vivek Singh Thakur and Justice Romesh Verma passed the order while hearing a writ petition which had challenged a reassessment notice issued for Assessment Year 2017-18, on the ground that it was without...

Patna High Court Confirms Conviction Of Tax Assistant For Accepting ₹600 Bribe To Process Income Tax Refund

The Patna High Court has upheld the conviction of a Tax Assistant for demanding and accepting a bribe of ₹600 for processing an income tax refund, confirming the sentence imposed under the Prevention of Corruption Act, 1988. The single bench of Justice Alok Kumar Pandey noted that it is crystal clear that the place of occurrence is the Income Tax Office, Sasaram, where the complainant has alleged that demand was being made and on the point of demand, the occurrence is corroborated by...

Income Tax | Delay in Filing Form 10-B Due To COVID Cannot Deny S.11 Exemption: Andhra Pradesh High Court

The Andhra Pradesh High Court held that the exemption under Section 11 of the Income Tax Act cannot be denied merely on account of delay in filing the Form 10-B Audit Report when such delay was caused by the COVID-19 Pandemic. Justices Battu Devanand and A. Hari Haranadha Sarma observed that the assessee is a religious and charitable society and has to comply with the instructions issued by the Income Tax Department through their letter. Due to the Covid-19 Pandemic, the assessee could...

S.148A Income Tax Act | Gujarat High Court Quashes Reopening Of Assessment, Says AO Conducted Roving Inquiry Despite Being Given All Details

The Gujarat High Court quashed proceedings reopening the assessment of a man whose income had allegedly escaped assessment, after noting that despite the assessee explaining all banking transaction details, the assessing officer had travelled beyond the law and conducted a roving inquiry. For context, Section 148A of the Income Tax Act pertains to conducting of inquiry by assessing officer before he issues notice to assesee in cases where income has escaped assessment. The petitioner...

Income Tax Act | Gujarat High Court Quashes S.153C Assessment As Time-Barred, Rejects Revenue's Reliance On S.153(6)(i)

The Gujarat High Court quashed assessment order as well as a demand notice issued to an entity under Section 153C Income Tax Act after noting that the assessment order was issued invoking Section 153(6)(i) was beyond the limitation period. The petitioner had moved the high court for quashing Assessment Order dated 30.04.2024 as well as the demand Notice dated 30.04.2024 for the Assessment Year 2011-12. It was contended that the assessment order passed by the respondent was clearly barred by...

Income Tax Act | Long Term Capital Gains Exemption Available Even If Residential House Was Demolished Before Sale: Madras High Court

The Madras High Court held that the Long-Term Capital Gains exemption under Section 54 of the Income Tax Act cannot be denied merely because the residential house was demolished before its sale. The bench stated that since the sale took place later and the assessee reinvested the capital gains in another house within the prescribed time, the exemption is allowable. Section 54 of the Income Tax Act, 1961, provides a Long-Term Capital Gains (LTCG) exemption when an individual or HUF...

ITAT Delhi Approved Amalgamation And Consistent Expense Allocation Cannot Be Used To Deny Section 80-IC Deduction

The Delhi Bench of Income Tax Appellate Tribunal has upheld substantial tax relief granted to Mahle Filters Systems (India) Ltd. for Assessment Year 2010–11, rejecting the Revenue's challenge to the company's deduction claimed under Section 80-IC of the Income Tax Act. A Bench comprising Vice President Mahavir Singh and Accountant Member Krinwant Sahay, while deciding cross-appeals filed by the assessee and the Revenue, held that the tax department was not justified in treating the...