In the midst of evolving tax jurisprudence and significant developments in insolvency law, it becomes increasingly important for professionals and businesses to remain updated on judicial interpretations that shape practical decision-making. With this objective, this edition brings together discussions on 2 noteworthy subjects involving direct taxation and insolvency resolution.
The first article examines the tax implications arising where immovable properties are transferred at a consideration lower than the stamp duty value, particularly in cases involving litigated properties and auction-acquired assets. The discussion analyses the scope of Section 78 of ITA, 2025 (section 50C of ITA, 1961), along with the relevance of Section 56(2)(x) in the hands of the purchaser. By drawing support from important judicial precedents, the article highlights that adoption of stamp duty value is not automatic where title disputes, encumbrances, or litigation materially depress the FMV, and further evaluates the interpretational concerns surrounding genuine public auction transactions.
The second article discusses an important insolvency law ruling concerning the rights of a successful resolution applicant after revaluation of assets and rejection of an earlier approved resolution plan by the Committee of Creditors. It analyses the decision of the Hon’ble Appellate Authority in the context of whether a resolution applicant can insist upon reconsideration of its prior plan once fresh Expression of Interest has been directed and earlier orders have attained finality. The article also examines the significance of timely challenge to interlocutory orders, the commercial wisdom of the Committee of Creditors, and the limited scope of judicial interference once a fresh resolution process has been set in motion.
Lastly, CBDT notifications for the month of February 2026 has been included in this wiki to ensure continual updating with the latest regulatory developments.
Key Topics:
- Taxability Of Acquisition of Under Value Property when the Title is under Litigation
- Revaluation of an asset already forming part of a resolution plan – Right to seek for revision of Resolution Plan vs. Fresh Participation
- CBDT notifications for the month of February 2026
