Penalty for estimation of income and disallowances for tax non-deduction clarified: estimation-based penalties not sustainable; additions without conc...
Managerial remuneration disallowance under s.40A(2)(b) challenged over alleged tax-avoidance; appellate decision restored deletion of addition for dir...
Classification of imported goods as electronic cigarette versus tobacco product reversed for lack of proof; order set aside for jurisdictional overrea...
Exemption under section 54 was denied by the Revenue by treating the capital gains as taxable in the relevant year on the premise that the new residential house was not constructed. The appellate authority held that the statute allows a three-year period from transfer for construction, which had not expired in the year under appeal, and the assessee's purchase of land and ongoing construction/investment in the new residential house was undisputed, with completion evidenced subsequently. Accordingly, no addition to capital gains could be made in the year under appeal and the denial of section 54 relief was rejected; the Revenue's appeal was dismissed. - ITAT
Exemption under section 54 was denied by the Revenue by treating the capital gains as taxable in the relevant year on the premise that the new residential house was not constructed. The appellate authority held that the statute allows a three-year period from transfer for construction, which had not expired in the year under appeal, and the assessee's purchase of land and ongoing construction/investment in the new residential house was undisputed, with completion evidenced subsequently. Accordingly, no addition to capital gains could be made in the year under appeal and the denial of section 54 relief was rejected; the Revenue's appeal was dismissed. - ITAT
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