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Supreme Court Upholds Constitutional Validity of Section 43B(f) of Income Tax Act — Leave Encashment Deduction Allowed Only on Actual Payment. Clause (f) is not arbitrary or violative of Article 14 as it serves a legitimate purpose of preventing abuse and ensuring employee welfare.

The Supreme Court in this appeal considered the constitutional validity of clause (f) of Section 43B of the Income Tax Act, 1961, which was inserted b...

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Bombay High Court Allows State of Goa's Claim for Port Services as Admiralty Claim Against Vessel Sale Proceeds. Port Authority's Services to Vessel in Distress Constitute Maritime Claim with Priority Over Other Claims.

The plaintiff, State of Goa through Captain of Ports, filed an admiralty suit claiming recovery of Rs. 1,31,60,000/- for services rendered to the vess...

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Bombay High Court Quashes Reopening Notice Under Section 148 of Income Tax Act for Lack of Fresh Material. Assessment Reopened Beyond Four Years Without Allegation of Failure to Disclose Material Facts Held Invalid.

The petitioner, Talati & Panthaky Associated Pvt. Ltd., filed a writ petition under Article 226 of the Constitution of India challenging a notice date...

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Bombay High Court Upholds Capital Gains Treatment for Land Sale by Estate Administrator — Assessee Not a Trader in Land. Surplus from sale of inherited land held as capital gain, not business income, under Income Tax Act, 1961.

The case involved a reference under Section 256(1) of the Income Tax Act, 1961, at the instance of the Revenue, challenging the Tribunal's decision th...

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Bombay High Court Quashes Section 179 Order Against Former Director for Tax Dues of Company — No Evidence of Neglect or Misfeasance. Director Who Resigned Before Relevant Assessment Year Cannot Be Held Liable for Company's Tax Default Under Section 179 of Income Tax Act, 1961.

The petitioner, Dinesh T. Tailor, was appointed as an Additional director of Yazad Investment & Finance Private Limited on 2 January 1987. He signed a...

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Bombay High Court Quashes Revisional Notice Under Section 263 of Income Tax Act for Lack of Jurisdiction — Limitation Period Expired for Original Assessment Order. Reassessment Order Does Not Extend Limitation for Revising Original Assessment Under Section 263 of Income Tax Act, 1961.

The petitioner, Ashoka Buildcon Ltd., challenged a notice dated 30 April 2009 issued by the Commissioner of Income Tax-I, Nashik under Section 263 of ...

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Bombay High Court Dismisses Revenue's Appeal in Capital Gains Indexation Case. Assessee Allowed Indexation on Sale of Shares Other Than Bonus Shares Under Section 112(1) of Income Tax Act, 1961.

The Revenue appealed against the order of the Income Tax Appellate Tribunal which allowed the assessee's claim of indexation on long term capital gain...

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Bombay High Court Quashes Reopening of Assessment Under Section 148 of Income Tax Act, 1961 for Lack of Fresh Material. Reassessment Based on Mere Change of Opinion on Allowability of Deduction and Depreciation Rate is Invalid.

The petitioner, Aventis Pharma Ltd., challenged a notice dated 16th March 2009 issued under Section 148 of the Income Tax Act, 1961, seeking to reopen...

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Bombay High Court Allows Assessee's Reference on Hotel Receipt Tax Treatment. Holds that HRT collected is trading receipt but deductible as business expenditure under Income Tax Act, 1961.

This reference under section 256(1) of the Income Tax Act, 1961, arises from an order of the Income Tax Appellate Tribunal, Bombay Bench, dated 6.2.19...