Section 263 Order Passed in Name of Non-Existent Company Held Void

In a significant judgment dated 27 January 2026, the Gujarat High Court quashed a reassessment notice issued under Sections 148A and 148 of the Income Tax Act in the case of Guruvayur Infratech Pvt. Ltd. vs ACIT (AY 2021-22).

Minimum Alternate Tax (MAT) was introduced to tax “zero-tax companies” that reported good profits in books but paid little or no income tax due to exemptions and incentives. With the Finance Bill, 2026, MAT itself has been re-engineered. The Government now wants most companies to move to the simpler, concessional corporate tax regime (like 22%/15% rates without exemptions).

🎁 Taxation of Gifts under Income Tax Act (Section 56(2)(x)) ❗ Gift = Income? YES, Sometimes Many people believe gifts are always tax-free. 👉 Wrong assumption — wrong reporting leads to notices & penalties . 🔍 What Does the Law Say? If a person receives money, property or assets without consideration or for inadequate consideration , it may be taxable as “Income from Other Sources” . 💰 Gift in Cash 🟢 Not taxable if total gifts ≤ ₹50,000 in a financial year 🔴 Taxable i