capital gains — Indian case law & digests

High CourtHigh Court of Kerala

Sainaba Hamza Koya v. ITO (2025): Section 54F and borrowed funds

The Kerala High Court held that a Section 54F deduction does not require the sale consideration itself to be invested in the new house — borrowed funds used to build it can qualify. The relief, however, is not automatic: the assessee must satisfy the authority of a genuine intention to repay the borrowings out of the capital gains. A digest of the facts, the writ relief on a Capital Gain SB Account, and what it means in practice.

Valkya Editorial·20 Jun 2026·8 min

Supreme CourtSupreme Court of India

Jindal Equipment Leasing v. CIT: shares received in amalgamation can be Section 28 business income

On 9 January 2026, a two-judge bench held that shares received in an amalgamation in substitution of stock-in-trade are taxable as business income under Section 28; Section 47(vii) is confined to capital assets.

Valkya Editorial·1 Jun 2026·9 min