ITAT ruled that payments made to Hemali Resorts by the buyer do ...

Capital Gains Dispute: Payments to Third Party Not Considered Direct Income Under Section 48 Tax Provisions

June 6, 2025

Case Laws Income Tax AT

ITAT ruled that payments made to Hemali Resorts by the buyer do not constitute consideration accruing to the assessee under Section 48. The tribunal found no evidence that the amounts were received by or legally accrued to the assessee. The payments were made directly to Hemali Resorts for pre-existing contractual obligations, and the transaction was conducted through banking channels with appropriate TDS. The PCIT's second invocation of Section 263 was deemed impermissible as it amounted to a mere change of opinion without presenting new material evidence. The assessee's appeal was consequently allowed, affirming that no tax leakage or prejudice to revenue existed.

View Source

← Previous Next →

ITAT ruled that payments made to Hemali Resorts by the buyer do ...

Capital Gains Dispute: Payments to Third Party Not Considered Direct Income Under Section 48 Tax Provisions

June 6, 2025

Case Laws Income Tax AT

You may also like:

Taxability of capital gain - person who sold property as attorney of the owner - It is the owner of capital asset who would be liable for capital gain. In case the sale...

ITAT adjudicated a dispute regarding capital gains taxation, specifically addressing the set-off of non-grandfathered short-term and long-term capital losses against...

The ITAT Mumbai addressed errors in capital gain computation. The Assessee's claim of ₹ 859,680 was accepted over the AO's ₹ 791,221. An application u/s 154...

The ITAT adjudicated on long-term capital gains (LTCG) computation for immovable property sale, ruling in favor of the assessee. The tribunal held that the cost of...

ITAT adjudicated two key tax matters involving a taxpayer's ULIP policy and residential property capital gains. The tribunal held that the LIC Market Plus-1 Policy...

The Income Tax Appellate Tribunal (ITAT) ruled that when an assessee promptly computed and paid advance tax u/ss 234A, 234B, and 234C of the Income Tax Act, and an...

Capital Gain - Receipt of consolidated amount - where a gain from one of capital assets was a short-term capital gain while from other it was a long term capital gain,...

ITAT adjudicated a dispute concerning capital gains taxation on rights entitlement under India-Saudi Arabia DTAA. The tribunal determined that rights entitlement...

Rate of tax - 20% or 30% - share of depreciable assets - In the present case, it is not the plea of the Revenue that the property from which the capital gains arose was...

Capital gain tax u/s 45 - shares distributed in family settlement - this Tribunal is of the considered opinion that there is no transfer of capital asset, hence, it is...

Stay of recovery - recovery of tax from its debtors - Tribunal could not have directed recovery of tax from its debtor, who was not a party to the proceedings before the...

Long-term capital gain - cost of acquisition - capital gain worked out by the DVO - They have calculated the long-term capital gain simply by taking into consideration...

The Direct Tax Vivad Se Vishwas Act, 2020 aims to settle tax disputes. The term "appeal" under the Act includes writ petitions challenging tax orders, as per Supreme...

Advance tax payment obligation does not apply when assessee claims agricultural land sale proceeds are exempt u/s 2(14). CIT(Appeals) should admit appeal for...

Capital gain from sale of commercial property - intra-head adjustment of loss - Benefit of carry forward of long term capital loss on the sale of shares for the current...

Quick Updates: