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

Income Tax Officer, Kolkata vs. Sonu Marketing Private Limited, Kolkata

In the result, appeal of the revenue is dismissed

ITA 923/KOL/2025[2016-17]Status: DisposedITAT Kolkata01 Jul 2025AY 2016-17

Bench: Shri George Mathanito, Ward-5(1), Kolkata Vs M/S Sonu Marketing Pvt. Ltd. 71/3, Kankurgachi, Kolkata-700054 Pan No. :Aadcs 5515 L (अपीलार्थी /Appellant) (प्रत्यर्थी / Respondent) .. राजस्व की ओर से /Revenue By : Shri S.B.Chakraborthy, Sr. Dr नििााररती की ओर से /Assessee By : Ms. Vidhi Ladia, Ar सुनवाई की तारीख / Date Of Hearing : 01/07/2025 घोषणा की तारीख/Date Of Pronouncement : 01.07.2025 आदेश / O R D E R This Is An Appeal Filed By The Revenue Against The Order Of The Ld. Cit(A), National Faceless Appeal Centre (Nfac), Delhi, Dated 19.03.2025, Passed In Din & Order No.Itba/Nfac/S/250/2024-25/1074708973(1) For The Assessment Year 2016-2017. 2. Shri S.B.Chakraborthy, Ld.Sr. Dr Appeared On Behalf Of The Revenue & Ms. Vidhi Ladia, Ld. Ar Appeared On Behalf Of The Assessee. 3. In The Revenue'S Appeal The Revenue Has Raised The Following Grounds:- 1. Whether On Facts & Circumstances Of The Case & In Law, The Ld. Cit(A) Erred In Deleting The Addition Of Rs. 29.48,304/- On Account Of Non-Genuine Losses. 2. Whether On The Facts & Circumstances Of The Case & In Law, The Cit(A) Erred In Deciding The Case In Favour Of The Assessee By Misinterpreting The Relevant Terms Of The Decisions Hon'Ble Supreme Court In The Cases Of Uoi Vs. Ashish Agarwalla (2022 Scc Online Sc 543) & Uoi Vs. Rajeev Bansal (Dated 03.10.2024) [Civil Appeal No. 8629 Of 2024].

For Appellant: Ms. Vidhi Ladia, ARFor Respondent: Shri S.B.Chakraborthy, Sr. DR
Section 68

Banumathy Educational Service Trust, Thanjavur vs. ITO, Exemptions, Ward, Trichy

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 1228/CHNY/2025[2020-21]Status: DisposedITAT Chennai30 Jun 2025AY 2020-21

Bench: Shri S.S. Viswanethra Ravi & Shri Jagadishआयकर अपील सं./I.T.A. No.1228/Chny/2025 िनधा"रण वष"/Assessment Year: 2020-21 Banumathy Educational Service Trust, Vs. The Income Tax Officer, Best Matriculation School, Mariamman Exemptions Ward, Koil Road, Bye Pass Rountana, Trichy. Thanjavur 613 001. [Pan:Aabtb6646G] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri T. Vasudevan, Advocate ""थ" की ओर से/Respondent By : Shri Vijay Kumar, Jcit सुनवाई की तारीख/ Date Of Hearing : 18.06.2025 घोषणा की तारीख /Date Of Pronouncement : 30.06.2025 आदेश /O R D E R Per S.S. Viswanethra Ravi: This Appeal Filed By The Assessee Is Directed Against The Order Dated 10.01.2025 Passed By The Ld. Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi For The Assessment Year 2020-21. 2. We Find That This Appeal Is Filed With A Delay Of 30 Days. The Assessee Filed An Affidavit For Condonation Of Delay Stating The Reasons. Upon Hearing Both The Parties & On Examination Of The Said Affidavit, We

For Appellant: Shri T. Vasudevan, AdvocateFor Respondent: Shri Vijay Kumar, JCIT
Section 143(3)