Income Tax Act, 2025 Replaces “May” with “Shall”: Has the Assessing Officer Lost His Discretion? A Three-Letter Change That Could Transform Tax Assessments The Income-tax Act, 2025 has brought numerous structural and drafting changes. While many of them are visible and widely discussed, one seemingly insignificant amendment may have far-reaching consequences for taxpayers, tax professionals,…

Has the Income-tax Act, 2025 Changed the Law on Capital Gains Exemption for Depreciable Assets?   One of the most settled principles under the Income-tax Act, 1961 was that a deeming fiction created for computation purposes could not be extended to deny a tax exemption unless the statute expressly so provided. This principle was authoritatively…

Appeal Is Not a Mere Formality: ITAT Mumbai Reminds Authorities to Determine the Correct Tax Liability     Technical Rejection Cannot Override a Genuine Claim Many taxpayers treat an assessment order as the final word from the Income Tax Department. Likewise, many tax disputes reach appellate forums only because valid claims were either overlooked, ignored,…

Can the Income Tax Department Tax You for a Transaction That Never Happened? ITAT Says No   Assessee Cannot Be Asked to Prove a Negative; Burden Shifts to Revenue Once Transaction Is Denied In today’s era of data-driven tax administration, information available on various government portals often forms the basis for assessments, reassessments, and tax…

The New Capital Gain Formula: More Choice, More Confusion   [Query 1] I have read in your earlier column regarding the computation of capital gains where an old property (acquired before 23rd July 2024) is sold. In such a case, the capital gain tax cannot exceed the lower of tax computed at 12.50% without indexation &…