S.54F : Capital gains-Investment in a residential house-Agricultural land-Capital asset-Even if claim was not made in return-The Assessing Officer cannot reject the claim on technical ground-Matter remanded-Assessee had not adduced any evidence to prove agricultural activity and documents of Sub-Registrar’s office where sale deed was registered did not contain any endorsement as regards nature of property to be agricultural-Denial of exemption affirmed. [S. 2(14), 10 (37), 45, 260A]

S. 45 : Capital gains-Capital asset—Personal effects-Vintage car— Failed to provide evidence proving personal use of vintage car-Gain taxable as capital gains.[S. 2(14)]

S. 44AB : Audit of accounts-Business-Profession-Digital marketing—Digital marketing cannot be treated as profession-It should be treated as business—Turnover below 5 crores-Assessee was not therefore liable to file audit report in terms of proviso to s. 44AB(a).[S.28(i), Art. 226]

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Dead horses-Capital assets-Insurance claim-Capital receipts cannot be assessed under section 41(1) of the Act.[S.45]

S.14A : Disallowance of expenditure-Exempt income-Investments made and liquidated within year resulting in no opening or closing balances-Order of Tribunal deleting the ad hoc disallowance under section 14A at 10 percent of exempt income was affirmed. [S. 260A, R.8D]

S. 10(26AAA): Income of Sikkimese-Individual-Constitutional validity-—Expression “Sikkimese” has been defined only for the purpose of the Explanation to S. 10(26AAA)-Order of High Court dismissing the petition affirmed. [Art. 136, 271F(k)]

S. 4 : Charge of income-tax-Sales tax exemption from State Government-Subsidy held to be capital receipt, and High Court order on that issue affirmed-Income accrual-Duty drawback-Income does not accrue merely on export; Tribunal was justified in remanding matter for limited verification whether claim was accepted by authorities in relevant year-High Court erred in interfering with remand-Tribunal’s order restored.[S. 5, Art. 136]

Prohibition of Benami Property Transactions Act, 1988
S. 2(8) : Benami property-Authorities concerned could not initiate or continue criminal prosecution or confiscation proceedings for transactions entered into prior to coming into force of 2016 Act viz. 25-10-2016-SLP dismissed-Review petition is also dismissed. [S. 3, 5, Art. 136]

S. 268A : Appeal-Instructions-Circulars-Monetary limits-Unexplained expenditure-Accommodation entries-Tax effect was below ₹2 crores threshold as stipulated in CBDT Circular No. 9/2024 dated 17-09-2024-Appeal dismissed. [S. 69C, 260A]

S. 292BB : Notice of demand to be valid in certain circumstances-Notice under section 142(1) at its email ID-notices were sent to assessee at email address as available at website of MCA-Participated in inquiry relating to assessment-Precluded from raising any objection that notice was not served or was served in an improper manner-The provisions of section 292BB would be applicable-Petition was dismissed. [S. 142(1), 143(3), 282(2), ITATRules,127, Art. 226]