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Corporate TaxArticle·27 April 2026

CG cannot be taxed when the underlying sale deed held void

By J the App

Executive Summary

The Tribunal delivered a clear and decisive principle: no capital gain can arise where the transaction itself is legally non-existent. 

It held that once a competent civil court declares a sale deed void due to fraud and non-payment of consideration, the very foundation for taxation collapses. Even protective additions cannot be sustained in absence of evidence of receipt or accrual of income.

Tax Domain; Income Tax – Corporate Tax- Capital Gains & Reassessment (Sections 45, 147)

Case Deta...

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