AI-curated court updates, legal developments, and practice-area insights for Indian legal professionals.
The Kerala High Court ruled that a partner cannot claim deductions under section 36(1)(iii) for loans invested as capital in a firm if they do not run an independent business. The decision clarifies the parameters for claiming deductions related to partner loans.
The ITAT determined that capital gains should be taxed in the year of property transfer, not the year of registration of the sale deed.
The ITAT ruled that merely not appearing of directors cannot negate the documentary evidence supporting transactions in unexplained income cases.
The ITAT has partially allowed an appeal clarifying that agricultural land retains its classification even when sold to a non-agriculturist.
The ITAT has deleted a tax addition due to a clerical error in the audit report, asserting that such minor errors do not warrant income tax assessments.
The ITAT has ruled that additions made under Section 56 without determining transfer details are unsustainable, highlighting issues of misclassification.
The ITAT has ruled that for deductions of foreign travel and hotel expenses against capital gains under Section 48, there must be direct evidence linking the expenses to the transfer of property.
The ITAT has ruled that clerical errors in tax audit reports do not constitute taxable income, reaffirming that such mistakes cannot justify tax additions or disallowances.
The ITAT has ruled that a delay in filing an appeal by an NRI will be condoned if the individual pursued remedy before the incorrect forum under a bona fide belief.
The ITAT ruled that Section 2(22)(e) of the Income Tax Act cannot apply where cash shortages pertain to proprietary concerns rather than corporate entities.
The ITAT mandated the application of the LIBOR rate for associated enterprises’ loans in USD, moving away from the State Bank of India’s PLR.
The ITAT enforces the principle that income cannot be taxed without actual accrual, thus removing unjustified notional interest additions on advances.
The ITAT has directed the adoption of the LIBOR rate for loans reducible in USD and deleted notional interest adjustments on business advances.