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Tax Tribunal Deletes Addition Over Rs 3.69 Crore Bangle Business Cash Deposits

Income tax authorities faced a setback when the tribunal removed an addition of Rs 3.69 crore made for bank deposits. The taxpayer acted merely as a commission agent handling cash for bangle traders. The tribunal ruled that deposits linked to a commission business cannot be treated as unexplained income without proof of ownership.

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For professionals: Advise clients who manage cash for others to maintain meticulous records and ledgers. · Note that the tribunal established the funds belonged to the traders rather than the taxpayer, as deposits were directly connected to a commission-based business operation. · Recognize that the tax authorities had treated the Rs 3.69 crore bank deposits as unexplained income under Section 69A of the Income Tax Act.

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Fresh Settlement Rules Enforced By Capital Market Regulator

Market watchdog Securities and Exchange Board of India has implemented revised rules governing dispute settlements for market participants. The updated framework alters how entities resolve pending regulatory proceedings and administrative actions. Practitioners must review these fresh compliance procedures carefully.

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For professionals: Practitioners should immediately examine the published framework to identify procedural shifts impacting pending client disputes, settlement calculations, and application filings. · Advisory professionals must update their comp

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ITAT rules capital gains relief stands when reinvestment limits are met during reassessment

An Non-Resident Indian (NRI) woman who sold a residential flat for Rs 16.5 lakh and purchased a new house for Rs 62.27 lakh faced a tax notice. The Income Tax Appellate Tribunal ruled that Section 54 relief cannot be denied just because the original return was unfiled.

Effective Not specified in the update

For professionals: Advisors must ensure non-resident clients retain complete purchase and sale deeds, bank statements, and payment trails for property transactions. · Section 54 capital gains exemptions cannot be refused solely due to the absence of an original return when substantive reinvestment criteria are fulfilled during reassessment.

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Tax tribunal dismisses revenue appeal over retirement fund contributions

The Income Tax Appellate Tribunal rejected a tax department appeal involving a Rs 2.80 crore demand. The dispute centered on employer payments made directly to retirement funds and insurance schemes. The tribunal held that tax recovery on such contributions fails without proof of direct employee payments or threshold breaches.

Effective Not specified in the update

For professionals: Maintain clear ledgers reconciling payroll allocations with direct remittances made to statutory funds like PF and LIC. · Tax auditors should verify fund approvals to substantiate contribution exemptions during scrutiny assessments.

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Himachal Pradesh High Court Sets Aside Show Cause Notices Issued Under Omitted GST Rule

The Himachal Pradesh High Court has invalidated tax notices issued using an omitted provision of the central tax rules. This judgment provides relief to taxpayers facing proceedings under a legal clause that no longer exists in the statute book. Finance professionals and auditors should review existing client notices for similar jurisdictional flaws.

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Edelweiss chief Rashesh Shah urges scrapping equity capital gains tax for foreign investors

Edelweiss Financial Services Ltd. Chairman and Managing Director Rashesh Shah suggested eliminating capital gains tax for foreign investors to revitalize the domestic stock market. This proposal adds to rising demands for the exemption to attract greater capital inflows and strengthen the local currency.

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Latest Compliance Timeline Updates Released for Annual Goods and Services Tax Returns

Tax professionals receive compliance updates regarding the due date for filing annual Goods and Services Tax returns for financial year 2025-26. Entities must prepare their financial records to meet upcoming statutory filing deadlines.

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For professionals: Initiate annual reconciliations early by matching books of accounts with GSTR-3B and GSTR-1 filings. Review the schedule for filing GSTR-9 to ensure timely submission of consolidated outward and inward supply details.

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Retired individual secures tax exemption on accumulated leave encashment earnings

A retiree successfully secured a tax exemption on their leave encashment earnings following a legal or administrative challenge. This development provides relief to retiring individuals regarding the tax treatment of accumulated leave benefits.

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Surat tribunal rules in favor of retired worker denied Rs 8.02 lakh leave relief

An individual who retired from service secured a favorable ruling after authorities denied a tax exemption of Rs 8.02 lakh on accumulated leave encashment. The Surat bench of the Income Tax Appellate Tribunal examined the dispute and delivered a decision supporting the taxpayer. Finance professionals must review similar client claims regarding retirement benefits to ensure proper compliance and dispute management.

Effective Not specified in the update

For professionals: Surat ITAT ruled in favor of a retired employee, setting aside the tax authority disallowance and confirming entitlement to the Rs 8.02 lakh leave encashment tax exemption. Tax professionals and payroll accountants must ensure retirement income schedules accurately segregate exempt leave encashment amounts from taxable salary components. Salaried retirees should retain employer calculation sheets and Form 16 details during tax assessments to substantiate exemption claims.

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Calcutta High Court rules lack of prior GST commissioner sanction does not invalidate FIR under BNS

The Calcutta High Court held that an FIR cannot be quashed at a preliminary stage simply because prior sanction from the Goods and Services Tax (GST) Commissioner was absent, provided the complaint also alleges offences under the Bharatiya Nyaya Sanhita (BNS).

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Exploring cultural and historical reasons behind edible silver and gold leaf on Indian sweets

Traditional Indian confectionery, known as mithai, is frequently adorned with edible silver and gold leaf. This practice reflects historical culinary traditions and cultural associations with prestige during celebrations.

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Samco Wealth recommends ten diverse equities for Samvat 2083 with potential upside targets

Samco Wealth released its top ten stock picks for Samvat 2083, emphasizing portfolio diversification following a volatile market year. Recommended shares include Azad Engineering, Adani Power, HFCL, Tech Mahindra, BSE, L&T Technology Services, Tips Music, TVS Motor, Sansera Engineering, and MCX, with projected upside potential reaching up to 109 percent.

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