Section 46A of the Income Tax Act

Income-tax Act, 2025: s.69

Section 46A of the Income-tax Act, 1961 corresponds to section 69 (Capital gains on purchase by company of its own shares or other specified securities) of the Income-tax Act, 2025.

Read section 69 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 46A is CIT v. MAF Academy (P) Ltd. (361 ITR 258), cited in 132 of the 520 judgments on BharatTax that turn on this section.

Leading authorities on Section 46A

CIT v. MAF Academy (P) Ltd.
361 ITR 258 · 2014 · High Court
132
citing judgments

Amounts received from bogus share transactions, where a private limited company sells shares to unrelated parties at a huge premium and then repurchases them at a loss shortly after, are taxable as unexplained cash credits under Section 68. The onus to prove identity, creditworthiness, and genuineness of such transactions lies solely on the assessee.

CIT v. D. Ananda Basappa
309 ITR 329 · 2009 · High Court
97
citing judgments

For exemption under Section 54, the expression 'a residential house' allows for investment in multiple residential units that form one functional unit, as 'a' does not imply a singular number. The amendment to Section 54, effective from April 1, 2015, is prospective.

CIT v. Virgin Securities & Credits (P) Ltd.
332 ITR 396 · 2011 · High Court
85
citing judgments

The Commissioner of Income-tax (Appeals) must admit additional evidence if it is crucial for the proper disposal of the appeal, ensuring substantial justice to the appellant.

CIT v. Gita Duggal
357 ITR 153 · 2013 · High Court
77
citing judgments

For capital gains exemption under sections 54 and 54F, the term "a residential house" does not restrict the exemption to a single residential unit and can include multiple contiguous or combined residential units treated as one house.

Shankar Khandasari Sugar Mills v. CIT
193 ITR 669 · 1992 · High Court
64
citing judgments

Best judgment assessments under Section 144 must be a fair and rational estimation of income by the Assessing Officer, not capricious or arbitrary. Appellate authorities should accept clarificatory evidence to test the fairness of such assessments, even if produced for the first time.

Raja Bahadur Kamakhya Narain Singh v. CIT
77 ITR 253 · 1970 · Supreme Court
49
citing judgments

The Supreme Court clarifies the distinction between income chargeable as capital gains and income taxable as business profits, guiding the assessment of whether a transaction constitutes a transfer of a capital asset or is in the nature of trade.

CIT v. Glaxo Smithkline Asia (P.) Ltd.
195 Taxmann 35 · 2010 · Supreme Court
46
citing judgments

The Supreme Court may dismiss an appeal challenging the allocation of intra-group cross-charges if the entire transaction is found to be revenue neutral for the relevant assessment year.

CIT v. Gumanmal Jain
394 ITR 666 · 2017 · High Court
46
citing judgments

Multiple floors or houses can qualify as 'a residential house' for capital gains exemption under Sections 54 and 54F if they are constructed or capable of being used as a single unit. This applies to assessment years where the unamended law used the term 'a residential house'.

PCIT v. NDR Promoters
102 Taxmann.com 182 · 2019 · High Court
27
citing judgments

Additions under Section 68 for share capital received from companies managed by one person are justified when the Assessing Officer establishes this fact. The Supreme Court has upheld this view.

CIT v. V.S. Dempo & Co. Pvt. Ltd.
336 ITR 209 · 2011 · High Court
27
citing judgments

Disallowance under Section 40A(2)(b) is not maintainable when both the payer and payee are assessed at the maximum marginal rate, as it results in a revenue-neutral situation.

Judgments on Section 46A

ACIT, New Delhi vs. Satilila Charitable Society, New Delhi

In the result, appeal of the Revenue is allowed for statistical purpose

ITA 2792/DEL/2024[2017-18]Status: DisposedITAT Delhi02 Sept 2025AY 2017-18

Bench: Shri Vikas Awasthy & Shri M. Balaganeshआअसं.2792/िद"ी/2024 (िन.व. 2017-18) Assistant Commissioner Of Income Tax, ...... अपीलाथ"/Appellant 2408, E-2 Block, Civic Centre, New Delhi 110001 बनाम Vs. Satilila Charitable Society, B-12, Greater Kailash Enclave-I, New Delhi 110048 ..... "ितवादी/Respondent Pan No: Aacts-8808-A Assessee By : S/Shri Hemant Kumar, Deepak Upadhyay & Alok Gupta, Chartered Accountants Department By : Shri Mahesh Kumar, Cit(Dr) सुनवाई क" ितिथ/ Date Of Hearing : 04/06/2025 घोषणा क" ितिथ/ Date Of Pronouncement : : 02/09/2025 आदेश/Order Per Vikas Awasthy, Jm: This Appeal By The Revenue Is Directed Against The Order Of Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [In Short ‘The Cit(A)’] Dated 30.03.2024, For Assessment Year 2017-18. 2. The Revenue Has Assailed The Order Of Cit(A) On Following Grounds:- “1. The Ld. Cit(A) Has Erred In Allowing Relief To The Assessee Without Appreciating The Fact That, The Assessee Intentionally Not Cooperated In Assessment Proceedings In Spite Of Having Knowledge Of The Notices/Letters Issued To It.

For Appellant: S/Shri Hemant Kumar, Deepak Upadhyay & Alok GuptaFor Respondent: Shri Mahesh Kumar, CIT(DR)
Section 12ASection 144

Trigat Life Sciences Private Limited, Lucknow vs. Deputy Commissioner of Income Tax -6, Lucknow

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 190/LKW/2025[2016-17]Status: DisposedITAT Lucknow28 Aug 2025AY 2016-17

Bench: Sh. Sudhanshu Srivastava & Sh. Nikhil Choudharya.Y. 2016-17 Trigat Life Sciences Private Limited, Vs. Deputy Commissioner Of 301, 3Rd Floor, Kusum Deep Income Tax-6, Lucknow New Complex Chowk, Lucknow, U.P. Pan:Aacct7404N (Appellant) (Respondent) Assessee By: None Revenue By: Sh. R.K. Agarwal, Cit Dr Date Of Hearing: 30.07.2025 Date Of Pronouncement: 29.08.2025 O R D E R Per Nikhil Choudhary, A.M.: This Is An Appeal Filed By The Assessee, Against The Orders Of The Ld. Cit(A), Nfac Under Section 250 Of The Income Tax Act, 1961 On 27.02.2025, Dismissing The Appeal Of The Assessee Filed Against The Orders Of The Ld. Dcit, Circle-6, Lucknow, Under Section 143(3) On 27.11.2018. The Grounds Of Appeal Are As Under: - “1. The Ld. Commissioner Of Income-Tax (Appeal) Has Erred In Law & On Facts In Passing The Order, Which Is Unlawful, Unjustified & Against The Principles Of Natural Justice. 2. The Ld. Commissioner Of Income-Tax (Appeal) Has Erred In Law & On Facts In Passing The Order Without Giving Adequate Opportunity Of Being Heard. 3. The Ld. Commissioner Of Income-Tax (Appeal) Has Erred In Law & On Facts In Passing The Order With Intangible Addition Of 50 Percent Sales Promotion Expenses Of Rs 7188348 On Estimated Basis. 4. The Ld. Commissioner Of Income-Tax (Appeals) Has Erred In Law & On Facts In Passing Assessment Order Which Is Contrary To The Facts & Law.

For Appellant: NoneFor Respondent: Sh. R.K. Agarwal, CIT DR
Section 143(3)Section 250
Section 46A Income Tax Act (2025: s.69) — Case Laws | BharatTax