Tribunal held that charitable or religious trusts that have surrendered their registration and do not claim benefits under Section 11 are to be taxed at normal slab rates applicable to AOPs, not at the maximum marginal rate. The ruling relied on CBDT Circular No. 320 of 1982.
ITAT Delhi held that the ₹33.12 crore received by a co-founder to settle disputes and relinquish the right to sue for promised equity is a non-taxable capital receipt. The court ruled the payment wasn’t salary, business income, or capital gains, as the ‘right to sue’ isn’t a transferable capital asset.
SC set aside a HC conviction in a corruption trap case, reinstating acquittal of a Labour Officer. SC ruled that recovery of cash alone is insufficient for conviction under PC Act unless prosecution first proves accused demanded and accepted bribe.
ITAT Mumbai quashed search assessments under Section 153C, ruling that a single, non-speaking, and mechanical approval granted under Section 153D for multiple assessment years is invalid.
SC ruled that holders of Cumulative Redeemable Preference Shares (CRPS) are investors, not creditors, affirming debt-equity distinction. Since CRPS is equity and redemption is conditional on profits, no ‘financial debt’ or ‘default’ under IBC exists, barring them from invoking Section 7.
ITAT upheld CIT(A)’s order deleting additions for AY 2013–14, ruling that year fell outside six-year block under Section 153C based on satisfaction date in FY 2021–22.
The High Court issued an interim direction against the CIT (Exemptions) orders that rejected the condonation of significant delays in a charitable trust’s Form 10B filing. The ruling provides interim protection, ensuring the trust’s substantive exemption claim isn’t defeated by technical filing delays while the CBDT’s new restrictive guidelines are under judicial scrutiny.
The ITAT Pune set aside a best judgment assessment (u/s 144) that arbitrarily estimated an 8% net profit for a poultry farm and disallowed interest expense. The Tribunal ruled that substantive justice requires a fresh adjudication, remanding the case to the AO to allow the assessee a fair chance to present audited books and evidence.
ITAT Agra deleted additions on gifts received from real sisters, holding that when identity, genuineness, and creditworthiness are proven, Section 68 cannot apply to family gifts made out of natural affection.
The Tribunal sustained the addition due to the AO’s rejection of the books under s.145, which was warranted by the assessee’s non-submission of separate purchase/sale and MRP details for country liquor and IMFL. The ITAT found the 10 estimated GP rate reasonable, falling within the normal range for the liquor trade, and confirmed the addition.
