Select Five Direct Tax Judgments of the Week

Select Five Direct Tax Updates of this week: 1) The Madras High Court allowed the deduction under Section 54EC for agricultural land sold beyond municipality limits by interpreting the statutory criteria for classifying land as a "capital asset" under Section 2(14) of the Income Tax Act. Shri K.Kumaran TS-414-HC-2025(MAD)

2) Supreme Court instructed courts to inform Income-Tax Dept. about suits involving cash payments over Rs. 2 lakh. Correspondence, RBANMS Educational Institution v. B. Gunashekar

3) PMS expenses incurred by the assessee by way of fee to the portfolio managers has to be treated as expenses wholly and exclusively incurred in connection with the business of the assessee and therefore, are allowable under s. 37. ITAT Kolkatta in Deputy Commissioner of Income Tax vs Meenakshi Merchantiles Ltd.

4) AO cannot deny exemption. Exemption u/s 11 once registered u/s 12AA. ITAT Mumbai in Indian Institute for Human Settlements TS-406-ITAT-2025(Mum)

5) Interest for delayed refund under VsV Act. Interest granted; revenue’s interpretation rejected. Where revenue was clearly at fault in not releasing amount of refund in due time, assessee was entitled to claim interest on delayed refund of excess amount under section 244A. Kerala High Court in Commissioner of Income-tax v. Satwashil Vasant Mane [(2025) 173 taxmann com 105 :: TS-397-HC-2025(KER)]