Topic
ITAT Pune holds that the rebate under Section 87A of the Income Tax Act extends to short-term capital gains (STCG) taxable under Section 111A, even for assessees opting for the new tax regime. The ruling overturns CPC's denial of the full rebate, reinforcing that tax rebates must be applied to all eligible income heads without arbitrary restrictions.
ITAT Pune holds that reassessment notices under Section 148 of the Income Tax Act, 1961, relying solely on unverified Insight Portal data without independent verification, are invalid. The ruling reinforces CBDT Circular compliance, mandating AO scrutiny beyond automated alerts to protect taxpayers from arbitrary proceedings.
ITAT Pune reaffirms that co-operative societies engaged in providing credit facilities exclusively to members are eligible for deduction under Section 80P(2)(a)(i) on interest income, distinguishing the Totgars precedent. The ruling reinforces binding judicial consistency for salary earners' credit societies, impacting tax liability calculations for similar entities.
ITAT Pune holds that deductions under Section 35(1)(iv) of the Income Tax Act for capital expenditure on scientific research are allowable only after the assessee's business has commenced. The ruling clarifies that pre-commencement R&D expenses, even if substantial, do not qualify for tax relief, impacting biotech and pharmaceutical startups.