Section 48 of the Income Tax Act

Income-tax Act, 2025: s.72

Section 48 of the Income-tax Act, 1961 corresponds to section 72 (Mode of computation of capital gains) of the Income-tax Act, 2025.

Read section 72 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 48 is CIT v. Walfort Share & Stock Brokers (P.) Ltd. (326 ITR 1), cited in 543 of the 1,457 judgments on BharatTax that turn on this section.

Leading authorities on Section 48

CIT v. Walfort Share & Stock Brokers (P.) Ltd.
326 ITR 1 · 2010 · Supreme Court
543
citing judgments

For attracting Section 14A disallowance, there must be a proximate cause relating the expenditure to actual tax-exempt income, and such disallowance is not automatic but requires positive material. Additionally, Section 94(7) on dividend stripping only ignores losses to the extent of dividend received for assessment years post-April 1, 2002, allowing the remaining loss.

Escorts Ltd. v. UOI
199 ITR 43 · 1993 · Supreme Court
267
citing judgments

A statute should not be construed to permit double deduction for the same expenditure unless specifically provided by law.

E.D. Sassoon & Co. Ltd. v. CIT
26 ITR 27 · 1954 · Supreme Court
256
citing judgments

Income is taxable only when it represents real income, not notional income. It accrues only when there is a vested right to receive it, typically upon the occurrence of a transfer or event, rather than merely on a time basis.

CIT v. Balbir Singh Maini
398 ITR 531 · 2017 · Supreme Court
228
citing judgments

A transfer of immovable property, for the purpose of capital gains under section 2(47)(v) of the Income-tax Act, occurs only when the agreement allowing possession in part performance of a contract is a registered instrument, as mandated by Section 53A of the Transfer of Property Act.

Gramaphone Co. of India Ltd. v. Birendra Bahadur Pandey
132 Taxmann 373 · 2003 · Supreme Court
146
citing judgments
CIT v. D.P. Sandhu & Bros.
273 ITR 1 · 2005 · Supreme Court
140
citing judgments

Surrender of tenancy rights is a transfer of a capital asset, and the consideration received is a capital receipt subject to capital gains tax. If the cost of acquisition cannot be determined, the transfer of such an asset was not taxable under capital gains prior to the amendment of Section 55(2) in 1995.

Morvi Industries Ltd. v. CIT
82 ITR 835 · 1971 · Supreme Court
136
citing judgments

Income accrues when it becomes due, vesting the assessee with the right to claim the amount, even if payment is not immediate. It requires a corresponding liability from the other party to pay, emphasizing real rather than hypothetical accrual, particularly for assessees using the mercantile system of accounting.

Nirma Industries Ltd. v. DCIT
283 ITR 402 · 2006 · High Court
136
citing judgments

Interest received on delayed payments for sales is considered part of the sale proceeds and is eligible for deduction under Section 80-IA as business income.

CIT v. Manjula J. Shah
355 ITR 474 · 2013 · High Court
113
citing judgments

For capital assets acquired by gift or will, the indexed cost of acquisition under Section 48 is computed with reference to the year the previous owner first held the asset. The period of holding for determining if an asset is long-term also includes the previous owner's holding period, as per Section 2(42A).

Indian Express 498 Newspapers (Bombay) (P) Ltd. v. Union of India
1 SCC 641 · 1985 · Reported
109
citing judgments

The Supreme Court examined the validity of customs duty on newsprint in the context of Article 19(1)(a), emphasizing that the press advances public interest by publishing facts and opinions crucial for a democratic country.

Judgments on Section 48

Assistant Commissioner of Income Tax Ncc3(1) Chennai, Nungambakkam vs. Shri Venkatesh Meghraj Kathare, Alwarpet

In the result, the appeal filed by the Revenue is dismissed

ITA 974/CHNY/2024[2014-15]Status: DisposedITAT Chennai20 Sept 2024AY 2014-15

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwalआयकर अपील सं./Ita No.:974/Chny/2024 िनधा"रण वष"/Assessment Year:2014-15 The Assistant Commissioner Shri Venkatesh Meghraj Kathare, Of Income Tax, Vs. New No.205, Old No.128, Non-Corporate Circle 3(1), St. Mary Road, Chennai. Chennai – 600 018. Pan: Aadpk 5251E (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Ms. R. Anita, Addl.Cit ""यथ" क" ओर से/Respondent By : Shri G. Seetharaman, C.A. सुनवाई क" तारीख/Date Of Hearing : 18.09.2024 घोषणा क" तारीख/Date Of Pronouncement : 20.09.2024 आदेश /O R D E R Per Mahavir Singh: This Appeal By The Revenue Is Arising Out Of The Order Of The Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre In Order No.Itba/Nfac/S/250/2023-24/1061041943(1) Dated 16.02.2024. The Assessment Was Framed By The Assistant Commissioner Of Income-Tax, Non-Corporate Circle 3, Chennai For The Assessment Year 2014-15 U/S. 143(3) Of The Income Tax Act, 1961 (Hereinafter The ‘Act’) Vide Order Dated 30.12.2016. 2. The First Issue In This Appeal Of Revenue Is Against The Order Of Cit(A) Treating The Sale Of Land At Tiruvottiyur High Road As Long Term Capital Gain As Against Assessed By Ao As Short Term Capital Gain. For This, Revenue Has Raised The Following Grounds:- 1) The Cit(A) Has Erred On The Facts Of The Case In Treating The Capital Gains On Sale Of Land At Tiruvottiyur High Road As Long Term Capital Gain Instead Of Short Term Capital Gain Without Appreciating That :

For Appellant: Ms. R. Anita, Addl.CITFor Respondent: Shri G. Seetharaman, C.A
Section 143(3)Section 2Section 2(47)Section 46(2)