Whether Proper Notice Was Served Is a Disputed Fact, Cannot Be Challenged Under Article 226: Kerala High Court

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The Bench reiterated that the issue of proper notice is a factual matter requiring examination of evidence, which is beyond the scope of a writ petition under Article 226. The Kerala High Court has ruled that the question of ‘whether …

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Section 87A Rebate Confusion: Capital Gains Taxpayers Might Face Notices – What You Need to Know

87a rebate

Some CIT(A) rulings have supported the taxpayer’s interpretation that the 87A rebate should apply to total income, including capital gains. However, until a clear judicial or legislative resolution is established, the issue remains contentious. A major controversy has emerged surrounding …

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Delhi High Court Rules Against Indefinite Property Attachment by Income Tax Department without Steps to Resolve the Matter

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The Delhi High Court ruled that the dues of a secured creditor take precedence over the tax dues owed to the Income Tax Department. In a significant ruling, the Delhi High Court has held that the Income Tax Department cannot …

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Why the Income Tax Department May Ask for Your Grocery and Restaurant Bills: Experts Explain

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Income tax officials may analyze an individual’s declared expenses in comparison to their bank records, which include credit/debit card transactions and cash withdrawals. The middle class has been facing increasing scrutiny regarding income tax compliance, with discussions intensifying before the …

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Section 54F benefits apply to only one residential house unless two properties can be structurally and legally integrated: Delhi HC

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CBDT circular dated January 21, 2015 clarifies that the benefit under Section 54F and Section 54 is limited to one residential house. A recent Delhi High Court ruling denied capital gains tax exemption under Section 54F of the Income Tax …

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Summons Under Section 131(1A) of the Income Tax Act, 1961

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Summons under Section 131(1A) typically issued when the I-T Department suspects concealment of income or requires further inquiry before proceeding with search and seizure. Section 131(1A) of the Income Tax Act, 1961 empowers assessing officers with specific authority to issue …

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Delhi High Court Rules on Fee for Technical Services (FTS) Under Section 9(1)(vii) of Income Tax Act

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Dismissing the Income Tax Department’s appeal, the Delhi High Court ruled in favor of the taxpayer, reaffirming that routine support services cannot be classified as FTS. In a significant ruling, the Delhi High Court has clarified that Fee for Technical …

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Supreme Court: No Penalty Exception Under Section 271AAA(2) for Undisclosed Income Declared Only During Assessment

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This Supreme Court judgment reaffirms the strict interpretation of Section 271AAA(2), making it clear that merely paying taxes voluntarily does not exempt an assessee from penalties if undisclosed income is admitted only at the assessment stage. The Supreme Court of …

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New Income Tax Bill 2025: Key Details on Features and Changes in Provisions Impacting the Taxpayers

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Key Takeaways from New Income Tax Bill 2025 to be Introduced in Parliament on 13 February 2025 The government has introduced the new Income Tax Bill 2025, which will be tabled in Parliament on February 13, 2025. After parliamentary committee …

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Section 269SS Not Applicable to Brokers Acting as Agents or Facilitators: ITAT Chennai

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This landmark ruling reinforces the principle that intermediaries operating in a fiduciary capacity are distinct from the principal parties in transactions. It sets a strong precedent for brokers, real estate facilitators, and agents, protecting them from undue penalties under Section …

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Marginal Relief vs. Rebate Under Section 87A of the Income Tax Act, 1961

marginal relief

The Rebate u/s. 87A reduces tax burden for low-income taxpayers, whereas marginal relief ensures that the tax does not exceed the excess taxable income over the rebate threshold. With the Budget 2025 announcements, significant changes have been introduced to tax …

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Delhi High Court: Tax on House Property Income to be Levied on Beneficiary, Not Just Legal Owner

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The court also highlighted the distinction in the Income Tax Act between income derived from house property and an interest in property. The Delhi High Court has ruled that tax liability on income from house property should be imposed on …

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