The issue was whether compensation paid to flat buyers was capital or revenue expenditure. The Court held it to be revenue expenditure as it was incurred for business purposes and commercial expediency.
The Court held that compensation paid to buyers for surrendering rights was incurred for business purposes and not capital in nature. It emphasized commercial expediency as a key factor. The ruling clarifies treatment of such payments in real estate business.
The court set aside a GST demand order citing violation of natural justice as no hearing opportunity was given. However, relief was conditional on full deposit due to delay in approaching the court.
The High Court held that once the assessee failed to explain the source, addition was justified only to the extent of cash actually seized. It ruled that the AO cannot arbitrarily add a higher amount than the proven seized sum.
The court examined whether buy-back of shares below fair market value attracts Section 56(2)(x). It held that buy-back leads to extinguishment of shares, not acquisition of property, making the provision inapplicable.
The Court held that the notice issued after six years from the relevant assessment year was barred by limitation. The reassessment proceedings were set aside.
The Court held that an SCN uploaded in the Additional Notices Tab without effective visibility denied the assessee a fair hearing, leading to the quashing of the demand order.
The case examined whether interest earned on temporarily parked funds is taxable. The court held that funds earmarked for asset acquisition are not surplus, and interest must be treated as capital receipt.
The court examined whether interest on FDRs could be taxed as other income. It held that where funds are linked to a project, the interest retains its project nexus and is not separately taxable.
The court examined whether interest on share capital parked temporarily could be taxed. It held that where funds are directly linked to project setup, the interest is a capital receipt and not taxable as other income.
