Vehicle Possession And Document Transfer Concludes A Sale For Capital Gains Tax: Madras High Court

The Madras High Court has held that delivery of a vehicle along with its original documents may constitute a completed sale for income-tax purposes, even if the registration certificate is not formally transferred in the buyer's name. A Bench comprising Justice C. Saravanan dismissed the writ petition filed by Dr. Arvind Kumar R. Shaw (the petitioner), upholding the assessment order passed by the Income Tax Department treating the sale of his Rolls‑Royce as a short-term capital gains...

Reassessment Notice Not Time-Barred In Case Where Delay Caused By Taxpayer's Adjournment Requests: Delhi High Court

The Delhi High Court has held that a reassessment notice issued under Section 148 of the Income Tax Act cannot be treated as time-barred when the delay occurred due to adjournments sought by the taxpayer during proceedings under Section 148A.A Division Bench of Justices Dinesh Mehta and Vinod Kumar dismissed writ petitions filed by two private companies challenging notices issued for Assessment Year (AY) 2017–18 on the ground that they were issued after the limitation period had expired.The...

Partial Use Of Director's Farmhouse For Business Does Not Bar Depreciation Claim: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 11 March 2026 upheld the deletion of disallowances relating to repair expenses and depreciation claimed on a farmhouse owned by Jagadish Chander Malhotra, Director of Malhotra Cables Pvt. Ltd, after finding that part of the premises was used for business purposes. A Bench comprising Judicial Member Challa Nagendra Prasad and Accountant Member M. Balaganesh affirmed the findings of the Commissioner of Income Tax (Appeals) [CIT(A)],...

Penalty Order Is In Limitation If Issued Within Six Months Of Appellate Order: Madras High Court

The Madras High Court on 6 February held that when penalty proceedings arise from assessment orders and the assessment is challenged on appeal, the limitation period for issuing a penalty can be computed from the appellate order. A penalty issued within the prescribed period after the appellate decision is therefore not time-barred. Justice Senthilkumar Ramamoorthy upheld a penalty imposed on actor Joseph Vijay under the Income Tax Act, 1961, observing that the penalty order dated 30 June 2022...

No Penalty For Erroneous Claim Based On Bona Fide Interpretation Of Tax Treaty: Madras High Court

The Madras High Court on 5 February held that an erroneous claim of double taxation relief by itself cannot lead to a penalty under Section 271(1)(c) of the Income Tax Act, 1961 when the taxpayer has fully disclosed the relevant income and the claim arises from a bona fide interpretation of law. A Division Bench of Dr. Justice Anita Sumanth and Justice Mummineini Sudheer Kumar heard appeals filed by the Commissioner of Income Tax against Indian Overseas Bank challenging an order of the Income...

J&K&L High Court Upholds Income Tax Addition After Taxpayer Gave Inflated Stock Statement To Bank

The Jammu & Kashmir and Ladakh High Court on Wednesday upheld an addition to taxable income made on the basis of a stock statement furnished by a taxpayer to a bank while availing a cash credit facility, holding that the tax authorities were justified in relying on the declaration where discrepancies with the books of account remained unexplained. A Division Bench of Chief Justice Arun Palli and Justice Rajnesh Oswal dismissed an appeal filed by Ajay Food Products challenging an...

AO Cannot Reopen Assessment On Same Material To Cure Lapse In Original Proceedings: Gujarat High Court

The Gujarat High Court on 24 February ruled that the Revenue cannot initiate reassessment proceedings under Section 148 of the Income Tax Act based on the same material that was already scrutinised in the original proceedings, which later lapsed due to the Assessing Officer's failure to meet the statutory deadlines. The Division Bench of Justice A.S. Supehia and Justice Pranav Trivedi held that reopening an assessment in such circumstances is an impermissible attempt to “camouflage”...

DTVSV Scheme 2024 Inapplicable To Reassessments Arising From Search Proceedings: Gujarat High Court

The Gujarat High Court on 18 February held that taxpayers whose reassessment proceedings arise from incriminating material discovered during search operations under Sections 132 or 132A of the Income Tax Act are not eligible to avail the benefit of the Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024. A Division Bench of Justice A.S. Supehia and Justice Pranav Trivedi dismissed a batch of writ petitions led by Radha Madhav Eco-Industrial Park, which challenged the rejection of their...

ITAT Mumbai Deletes Additions On Individual Taxpayer, Rules Cash Redeposits Not “Unexplained”

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 25 February deleted additions made on cash deposits in the bank account of an individual taxpayer, holding that redeposits of earlier withdrawals cannot be treated as unexplained money in the absence of evidence that the cash was used elsewhere. A Bench comprising Accountant Member Om Prakash Kant and Judicial Member Kavitha Rajagopal allowed the appeals of the taxpayer, Nitinkumar Pravinchandra Kacharia, for Assessment Years...

Supreme Court Refuses To Entertain Plea Challenging Search Powers Over Digital Devices Under Income Tax Act, 1961, And 2025 Act

The Supreme Court on Monday declined to entertain a petition challenging the constitutional validity of the search and seizure powers over digital devices under Section 132 of the Income Tax Act, 1961, and its corresponding provision, Section 247 of the Income Tax Act, 2025, which is set to come into force from April 1, 2026.A bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi, however, permitted the petitioner to submit a representation to the Government of India seeking...

Builder Incentives For Timely Payment Cannot Be Taxed As 'Income from Other Sources': ITAT Delhi

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 26 February held that rebates or concessions provided by a builder under an apartment buyer's agreement cannot be treated as taxable income under Section 56 of the Income Tax Act, 1961. A Bench comprising Judicial Member Anubhav Sharma and Accountant Member Manish Agarwal was hearing the appeal filed by Satya Prasan Rajguru against the order of the National Faceless Appeal Centre, which had confirmed the additions made by the...

ITAT Delhi Upholds Tax Incentive For Big Babol, Mentos Maker Perfetti's Uttarakhand Unit

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the order allowing confectionery manufacturer Perfetti Van Melle India Pvt. Ltd. to claim tax deduction under Section 80-IC of the Income Tax Act on profits from its Rudrapur manufacturing unit in Uttarakhand. Section 80-IC grants profit-linked tax incentives to manufacturing units located in notified industrial areas of certain states, including Uttarakhand, subject to specified conditions. A bench of Judicial Member...