India’s Budget 2026 introduces long-term tax holidays, safe-harbour reforms, and semiconductor incentives to transform the country into a global digital infrastructure hub. The case highlights how fiscal policy is being redesigned to support AI growth while balancing tax certainty, sovereignty, and global investment risks.
The Tribunal observed that the AO disallowed 50% of warranty provisions and 25% of liabilities without justification. It held that in absence of specific defects in remand proceedings, such ad hoc disallowances cannot survive.
The Budget proposes removing buy-back from the definition of dividend and taxing it under capital gains. This aims to rationalise shareholder taxation and align treatment under the new Act.
ITAT held that the Assessing Officer failed to record proper satisfaction linking seized material to the assessee’s income. Consequently, proceedings under Section 153C were quashed.
Section 115BBH imposes a 30% tax on gains from virtual digital assets, with no set-off of losses. Investors must compute and report VDA income carefully.
The ITAT ruled that dismissing an appeal solely for non-compliance is contrary to law. The appellate authority is obligated to frame issues and pass a reasoned order on each ground raised.
Only specified professionals can opt for presumptive taxation under Section 44ADA. Declaring less than 50% profit may trigger mandatory tax audit under Section 44AB(d).
The AO compared per-location payments to different vendors to allege excessiveness. The Tribunal held that such comparisons lack statutory backing when parties are unrelated and services differ in nature and complexity.
Clarifies when transport services qualify as GTA and how GST applies. The key takeaway is that issuing a consignment note determines tax treatment.
ITAT held that cash deposits during demonetization were explained as business sales declared under Section 44AD. Without disproving turnover, addition under Section 69A was unsustainable.
