Section 54G of the Income Tax Act
Income-tax Act, 2025: s.87
Section 54G of the Income-tax Act, 1961 corresponds to section 87 (Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area) of the Income-tax Act, 2025.
Read section 87 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 54G is Commissioner of Income Tax, Chennai v. M/s. Accel Limited 421 of (423 ITR 180), cited in 41 of the 49 judgments on BharatTax that turn on this section.
Leading authorities on Section 54G
An addition to income cannot be made solely on the basis of a transaction, especially when its bona fides are established and the department does not allege the sale to be bogus.
For the Commissioner to exercise revisional jurisdiction under Section 263, the show-cause notice must clearly specify the exact error in the assessment order that is considered erroneous and prejudicial to the revenue, giving the assessee an adequate opportunity to respond.
