S. 45: Capital gains – Income from other sources – Transfer of Development Rights — Compensation received under a redevelopment agreement is assessable as Capital Gains and not as Income from Other Sources. Exemption under section 54EC is allowable. [ S. 2(14), 2(47), 54EC, 56, 50C & 147)
S. 80IB: Industrial undertakings – Special category States –
– Research & Development (R&D) expenditure – Allocation of R&D expenses to eligible manufacturing units – No allocation permissible in the absence of direct nexus between R&D activity and eligible units – Revenue’s appeal dismissed. [S. 35(2AB), 80IC , 260A)
S.147: Reassessment – After the expiry of four years – Reference to DVO – Fair Market Value as on 1-4-1981 – Amendment to section 55A(a) prospective – Reassessment invalid- The Court left open the question regarding the validity of a notice issued in the name of a deceased person. [S. 45, 48, 55A, 148, Art . 226 ]
S. 263: Commissioner-Revision of orders prejudicial to revenue-Lack of proper enquiry-Short-term capital loss on sale of shares-FIFO method-The issue was examined by the AO during the assessment proceedings, who had taken a correct view –CRS expenditure-Revision order was quashed-Exempt income-Revision order was affirmed.[S. 14A, 80G]
S. 263: Commissioner-Revision of orders prejudicial to revenue-Lack of proper enquiry-Assessment order passed by the AO without examining the claim by conducting relevant enquiries which ought to have been carried out-Revision order was affirmed. [S.54]
S. 250: Appeal-Commissioner (Appeals)-Procedure-Notices sent to the wrong e-mail address-Failure to intimate change of email-Ex parte order was set aside-Cost of Rs 2500 was imposed on each appeal. [S. 254(1)]
S. 194J: Deduction at source-Fees for professional or technical services-Clearing charges or professional charges paid to CCIL-The AO is directed to delete the addition.[S.201(1), Form No.26A]
S. 194A: Deduction at source-Interest other than interest on securities-Payment of interest by co-operative bank to other cooperative societies-the exemption for deducting tax at source from the payment of interest is only up to Rs. 10,000-The assessee was liable to deduct TDS from payment of interest above this threshold. [S.194A(3)(v), 201(1)]
S. 153D: Assessment-Search-Approval-The approval should not be rubber-stamping and a mere factual formality-Assessment was quashed. [S. 132, 153A, 153B]
S. 153D: Assessment-Search-Approval-Manual of Office Procedure issued by the CBDT in February 2023 was not followed-Separate approval for each assessment year was not obtained-Approval granted is mechanical in manner and without application of mind by the approving authority-Order was quashed.[S. 119, 153C]