Indian tax authorities issue multiple rulings on exemptions and disputes

Various Indian judicial and tax authorities have issued several rulings regarding income tax disputes and exemptions.

The Bombay High Court upheld a deduction for ECA Infrastructure India Pvt Ltd, allowing a provision for major repairs based on scientific estimates and contractual obligations under a Build Operate Transfer agreement with the Government of Maharashtra.

The Income Tax Appellate Tribunal (ITAT) issued several other decisions:

- A Chennai ITAT bench ruled that an ONGC retiree is eligible for an enhanced leave encashment exemption of Rs. 25 lakh, despite retiring before the limit was officially revised in 2023.

- The Mumbai ITAT granted relief to Aditya Birla Real Estate Limited, ruling that Ind-AS accounting entries alone do not determine taxability.

- The Mumbai ITAT allowed St. Joseph’s High School to renew its 12AB registration and receive 80G approval, accepting its internal governance under Canon Law in lieu of a formal trust deed.

- The Chandigarh ITAT deleted a tax addition against an NRI assessee regarding cash deposits in a joint account, noting the individual was abroad during the transactions.

- The Indore ITAT remanded a capital gains dispute involving agricultural land to the lower authorities for fresh adjudication.