13 entries · updated 2026-07-07
Beyond reopenings and unexplained-credit additions sits the steady substantive docket: is a receipt capital or revenue, which head does income fall under, what enters a deduction computation, and what the appellate forums will condone or withdraw. These questions decide more tax than the headline provisions, and the case law moves constantly.
The rulings here span that docket: severance on acquisition held a capital receipt outside section 17(3), a government market-exploration incentive held capital, mall rentals taxed as business income where letting is the business, construction on leasehold land allowed as revenue expenditure, section 50C confined to capital assets and kept off leasehold rights, interior-decoration spend counted into a section 54 claim, estimation of commission income disciplined by the assessee's own consistent rate, GST and service tax kept out of section 44BB presumptive turnover, a 145-day delay condoned where emailed orders sat in spam, and the CBDT's revised monetary limits that will see sub-threshold departmental appeals withdrawn.
Each note ends with the practitioner takeaway: what to draft, document or check differently on the next comparable file.
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No. GST and service tax, collected on behalf of the government, are excluded from sales turnover for §44BB computation.
Notification 34/2024 (19-03-2024) adds §43B(h) disallowance to Clause 22 of Form 3CD; businesses paying micro and small enterprises must reflect it in Clauses 22 and 26.
The new tax regime becomes the default, with fresh disclosures for online-game winnings, political-party donations, disability-related expenses and Agniveer Corpus contributions.
The Court held 45 days reasonable and directed the authority to grant that period for producing the closed account's statements.
Yes. A 145-day delay was condoned where the assessee did not receive orders sent through email, many of which go to spam folders.
Rs. 60 lakh before ITAT, Rs. 2 crore before High Courts, Rs. 5 crore before the Supreme Court; pending appeals below these limits will be withdrawn.
Business income. Where the company's primary objects are building, running and letting malls, rental income from mall properties is business income.
Yes. Where the payment is documented and uncontested by the revenue, interior-decoration cost on the new house is eligible under §54.
No. §50C applies only to transfer of a capital asset being land or building, not to assignment of leasehold rights.
No. An incentive from the Government of India for exploring new markets across the globe is capital in nature and not taxable.
Revenue. Construction cost on leasehold land was allowable as revenue expenditure; Explanation 1 to §32(1) was not attracted.
The AO's flat 1% estimate was unsustainable against the assessee's stated 0.15–0.20%; the Tribunal adopted 0.50%.
No. Compensation paid for loss of employment, not for past services, is a capital receipt outside §17(3) and not taxable.