Taxability of land consideration received under Memorandum of Understanding - Unexplained bank credits - Double addition of cash receipt Taxability of land consideration received under Memorandum of Understanding - Taxability of consideration received under a Memorandum of Understanding for ancestral land, claimed to be an advance received on behalf of other successors - HELD THAT: - The assessee produced no evidence of the asserted other successors or of any agreement with them, and had not ... ... ...

Unexplained Cash credits - share capital, share premium and composite receipts - Non-retrospective application of share-premium taxation and shareholder source-of-funds requirement Non-retrospective application of share-premium taxation and shareholder source-of-funds requirement - Applicability of the subsequently introduced share-premium taxation provision and the proviso requiring explanation of a resident shareholder's source of funds to the share receipt. - HELD THAT: - The share-pre... ... ...

Book profit for partners' remuneration - Limited scope of deeming fiction for depreciable assets - Section 50 deeming fiction - Inclusion of profit on sale of depreciable business shop premises in book profit for determining the ceiling on working partners' remuneration HELD THAT: - Explanation 3 to section 40(b) adopts the net profit shown in the Profit and Loss Account as the starting point, subject to the adjustments contemplated under Chapter IV-D and addition back of partners'... ... ...

Rectification of mistake - Refusal of an adjournment for oral arguments - Natural justice denied - written representation in lieu of oral hearing - mistake apparent from record Whether refusal of an adjournment for oral arguments, despite consideration of the Revenue's written submissions, constituted a violation of principles of natural justice warranting recall or rectification under Section 254(2)? - HELD THAT: - Consideration of written submissions containing the material arguments of... ... ...

Rejection of books of account on suspicion - Unexplained money where cash is recorded in books - Taxation of recorded business receipts as unexplained income Rejection of books of account on suspicion - Validity of rejection of the books of account where the disclosed turnover and trading results were accepted and the computerised books and supporting records were offered for physical verification - HELD THAT: - Rejection of books under section 145(3) requires specific defects rendering the a... ... ...

Rebate u/s 87A on short-term capital gains taxable at special rate - Prospective operation of restriction on rebate for special-rate income Availability of rebate u/s 87A against tax on short-term capital gains taxable under section 111A where total income was within the prescribed threshold and tax was computed under section 115BAC(1A) - HELD THAT: - For AY 2025-26, the first proviso to section 87A granted rebate to a resident individual taxable under section 115BAC(1A) whose total income di... ... ...

Deduction u/s 54F - Capital gains exemption for construction of residential house Entitlement to exemption of capital gains for construction of a residential house after transfer of agricultural land, including the allowable extent of construction expenditure - HELD THAT: - The certificate of the local authority and the registered valuer's report established that the residential house had been constructed within three years of the transfer. The statutory conditions for the claimed exempti... ... ...

Validity of Reassessment - addition beyond recorded reasons - Disallowance of deduction claimed by a co-operative credit society in reassessment, where no addition was made on the cash deposits and time deposits forming the recorded reasons for reopening HELD THAT: - The Assessing Officer made no addition on either of the issues for which the assessment had been reopened. It has been held in the case of Commissioner of Income Tax v. Mohmed Juned Dadani [2013 (2) TMI 292 - GUJARAT HIGH COUR... ... ...

Treatment to Survey surrender income - taxable at the enhanced rate u/s 115BBE or at the normal rate applicable to business income - Prospective operation of enhanced tax rate u/s 115BBE - Beneficial construction of ambiguous taxing provisions HELD THAT: - The surrendered amount, disclosed in the profit and loss account as business income, related to discrepancies in cash and stock at the business premises; in the absence of an independent undisclosed asset or nexus with any source other than... ... ...

Valuation of obsolete inventory at lower of cost or net realisable value - Substitution of inventory valuation without evidentiary basis Allowability of the write-down of obsolete telecom-related inventory valued at nil under the consistently followed method of lower of cost or net realisable value - HELD THAT: - Inventory cannot be carried above the amount expected to be realised on sale or use. The assessee had consistently applied the recognised accounting method, physically verified the i... ... ...

Validity of section 143(1) intimation after commencement of scrutiny assessment - intimation u/s 143(1) issued after scrutiny proceedings had commenced upon notice u/s 143(2) HELD THAT: - A summary processing under section 143(1) may be followed by regular assessment proceedings, but the converse is impermissible: once regular assessment proceedings have commenced under section 143(2), no summary proceeding is required. Applying CIT vs. Gujarat Electricity Board [2002 (10) TMI 5 - SUPREME COU... ... ...

Unexplained money - cash deposits sourced from recorded business receipts - Demonetisation-period cash deposits - Recorded cash sales in paddy trading business Whether Cash deposits made during the demonetisation period out of recorded cash sales of paddy were liable to be treated as unexplained money? - HELD THAT: - Concentration of cash sales immediately before demonetisation could not, by itself, establish that the sales were fictitious or that the cash was unexplained. The explanation had... ... ...

Validity of Reassessment - addition on issue other than recorded reason - Sustainability of an addition relating to short-term capital gains on sale of shops, where the addition on the issue for which assessment was reopened had been deleted HELD THAT: - It is a settled position of law that once the addition on the basis of which the case was reopened is not sustained, no addition or disallowance on any other ground can be sustained. The Hon'ble Gujarat High Court has held in the case of Comm... ... ...

Revision for failure to initiate penalty proceedings - Jurisdiction to initiate penalty for contravention of cash loan or deposit restrictions Whether the failure of the AO to initiate penalty proceedings u/s 271D of the Act will make the order liable for revision u/s 263? - HELD THAT: - Before 1 April 2025, the Assessing Officer lacked jurisdiction to impose penalty under section 271D and, consequently, could not initiate proceedings for that penalty. Therefore, in respect of an assessment o... ... ...

Reassessment notice beyond three years- sanction of specified authority Validity of a reassessment notice issued beyond three years where approval under section 151 was accorded by the PCIT instead of the PCCIT - HELD THAT: - Sanction of the specified authority is a precondition to assumption of jurisdiction for issuing a reassessment notice. Under the new regime, where more than three years have elapsed from the end of the relevant assessment year, approval must be obtained from the higher a... ... ...

Waiver of interest under clause 2(c) of the waiver scheme - Payment of principal tax as condition for interest waiver - Entitlement to waiver of interest under clause 2(c) of the 2006 waiver/reduction order where the deduction claimed under section 80HHC was subsequently disallowed Entitlement to waiver of interest under clause 2(c) of the 2006 waiver/reduction order where the deduction claimed under section 80HHC was subsequently disallowed - HELD THAT: - Clause 2(c) requires that non-paymen... ... ...

Survival of income-tax arrears before the committee of creditors after approval of a resolution plan - scope of Approved resolution plan - extinguishment of unclaimed statutory dues HELD THAT: - The Hon'ble Supreme Court, in the case of Ghanshyam Mishra and Sons Private Limited Vs Edelweiss Asset Reconstruction Company Limited [2021 (4) TMI 613 - SUPREME COURT] had considered the impact of a resolution plan once duly approved by the adjudicating authority in terms of Section 31(1) of the ... ... ...

Reassessment notice against amalgamated non-existing entity -entity that had ceased to exist upon merger with the petitioner - HELD THAT: - The merger had been sanctioned with effect from 01.04.2019, and the revenue authorities had been informed that the erstwhile entity had ceased to exist and that its business was thereafter carried on by the petitioner. The replies in the proceedings were also signed by officers of the petitioner. A notice issued under Section 148 in the name of the non-exist... ... ...

Access to justice obstructed occasioned by technicalities - entire amount of disputed tax may have been pre-deposited, the petitioner is not able to file his appeal against the order giving rise to the disputed demand. HELD THAT:- Prima facie, statutory right of appeal may not be obstructed and thereby access to justice may not delayed or declined. Ld' Additional Chief Standing Counsel and Ld' counsel for the GSTN pray for and are granted ten days' time to obtain instructions a... ... ...

Constitutional validity of input tax credit conditional on supplier tax payment - Read-down of input tax credit conditions - Jurisdictional foundation for fraud-based input tax credit proceedings - Natural justice in GST adjudication - Alternative statutory remedy Input tax credit conditional on supplier tax payment - Read-down of input tax credit conditions - Constitutional validity and proposed read-down of the condition requiring actual payment of tax by the supplier for availment of input... ... ...