A practical guide for salaried taxpayers to save capital gains tax through home reinvestment, 54EC bonds, tax-loss harvesting, and LTCG exemptions.
The Tribunal held that reliance on third-party statements without granting effective cross-examination amounted to a violation of natural justice. Consequently, the addition based on such statements could not survive.
The ITAT held that a transfer of jurisdiction under Section 127(2) is invalid if the assessee is not given a reasonable opportunity of being heard. As a result, notices issued by the transferee officers lacked legal validity and the assessment was quashed.
ITAT Surat held that the entire investment amount could not be treated as unexplained when the assessee had furnished supporting records relating to agricultural income and other sources. The Tribunal restricted the addition to 5% of the disputed amount and granted substantial relief.
The Tribunal accepted the assessee’s contention that the property could not have been transferred without compensating the occupants. The related payments were therefore held deductible from the sale consideration for capital gains purposes.
The ITAT held that penalty for misreporting of income cannot be levied when the underlying addition is based merely on estimation of profit. Estimated additions do not establish deliberate concealment or misreporting.
The ITAT held that mere working sheets showing interest calculations do not establish taxable income. The Revenue must prove actual accrual or receipt of interest before making an addition.
The CBDT has identified specific categories of taxpayers whose returns will be compulsorily selected for complete scrutiny during FY 2026-27. The guidelines cover survey, search, reassessment, tax-evasion, exemption, and recurring addition cases.
The Allahabad High Court held that allegations arising from private land transactions and cheating claims did not satisfy the requirements of organized gang activity under the Gangsters Act. The Court quashed the proceedings and stressed that criminal law cannot be invoked without statutory ingredients being established.
This analysis explains how charitable and religious trusts qualify for exemption under Sections 11 to 13 of the Income-tax Act. It highlights application of income, accumulation rules, anti-abuse provisions, and a detailed computation model for exempt and taxable income.
