“Income Chargeable to Tax Means Chargeable Under the Act”: Rajasthan HC Quashes S.148A(d) Order on NRI’s Land Purchase

The Rajasthan High Court quashed an order issued under Section 148AD of the Income Tax Act concerning an NRI's land purchase. The court clarified that "income chargeable to tax" specifically refers to income chargeable under the Income Tax Act itself. This ruling emphasizes the importance of adhering to the precise legal definitions within tax law. It highlights that tax assessments must be based on legally defined income, preventing arbitrary extensions of tax liability. The decision protects NRIs from undue tax burdens and reinforces the necessity of legal accuracy in tax proceedings. This judgment provides clarity on the scope of income tax assessments.