Redevelopment Compensation for Hardship and Displacement Is a Capital Receipt: ITAT Mumbai     Compensation received by flat owners under redevelopment agreements may retain its capital character irrespective of how the money is ultimately spent Redevelopment of old residential buildings is often accompanied by hardship. Flat owners may have to vacate their homes, arrange temporary…

Bombay High Court Grants Unconditional Stay of ₹15.96 Crore Income-Tax Demand     Sur Gems v. Principal Commissioner of Income Tax – High-pitched assessment, prima facie limitation issue and a non-speaking stay order justify complete protection against recovery Can the Income Tax Department insist on a 20% payment as a precondition for granting a stay…

Supreme Court on CBDT Circulars: Can an Assessment Order Be Revised Under Section 263 Despite Following a CBDT Circular?     Orient Crafts Ltd. v. CIT – A significant ruling on the binding nature of CBDT circulars, export incentives and the revisional powers of the Commissioner Can an Assessing Officer’s order be treated as erroneous…

Same Income, Different Tax! How Classification Can Change Your Tax Liability     Imagine Mr. Ram and Mr. Shyam purchased 100 shares of Reliance Industries Ltd. on the same day, at the same price. Both sold their shares on the same day, at the same price, earning exactly the same profit. Yet, their tax liabilities…

Unsold Flats Cannot Be Taxed on Notional Rent Before They Become Legally Occupiable     Bombay High Court upholds relief to a builder: No annual letting value can be assessed for a period when the property lacked an occupancy certificate Can a builder be asked to pay income tax on notional rent from unsold flats…