« Top Headlines » Open DEMAT Account in 24 hrs  Mock Test Papers Series - I & II for Students appearing in CA Foundation January 2027 Examination.  Income Tax Rules 2026: CBDT Introduces Revised Form 161 for Penalty Waiver, Clarifies Misreporting Categories and Taxpayer Relief  ITR Filing and Income Tax Audit Deadline Extended: 5 Critical Things Taxpayers Must Know  Filing Belated ITR for AY 2026-27? Know Which Losses You Can Carry Forward and Which You May Lose  CBDT Extends Tax Audit Report Deadline to October 21, ITR Filing Last Date to November 21 for AY 2026-27  CBDT Extends AY 2026-27 ITR Filing Deadline for Tax-Audit Cases: New Dates and Key Compliance Details  Foreign Assets Missing From Your ITR? Income Tax Department Opens One-Time Disclosure Window  Tax Audit Deadline September 30: Why AIS, TDS and GST Figures May Not Match Your ITR and What Taxpayers Should Do  Tax audit deadline September 30: Common mistakes taxpayers should avoid  Your ITR says ‘verified’, but the refund hasn’t arrived? 5 reasons why your money could be stuck  Missed the ITR Deadline but TDS Refund Is Due? Here’s How You Can Still Claim Your Money «  Application of technology decides fee for services... Direct tax code demystified... » I-T questions Mukesh`s plea September, 09th 2006 The income-tax department has questioned Reliance Industries Chairman and Managing Director Mukesh Ambanis contention that the benefit accrued from the transfer of 500 million shares of Reliance Infocomm to him in March 2004 was not income. This follows a clarification by Ambani to the department that these shares of Re 1 face value were transferred by Reliance Infocomms promoter Reliance Communications Infrastructure Ltd (RCIL) to his demat account as pledge. Ambani replied to the department after it had sent a notice asking him to explain why he should not pay tax on a deemed income of Rs 2,635 crore for the 2004-05 assessment year. But the I-T department contested this as it felt that nobody would transfer shares worth Rs 2,685 crore against a loan of Rs 50 crore. Also no information was given to the depository about the pledge or lock-in period regarding the shares. The department has thus contended that it was actually a purchase consideration. When contacted, the Reliance spokesperson said the facts based on which the query has been raised by the income tax department are incorrect and hence any conclusion drawn from the said facts will only be faulty. Since the entire transaction was annulled, no income accrues. No tax can be levied on notional income. This issue has been widely publicised in the past many times. The departments notice had said that going by Reliance Infocomms valuation at Rs 53.71 per share in November 2002, the 500 million shares were worth Rs 2,685 crore. Ambani provided loan of Rs 50 crore to Reliance Infocomm. The tax authorities felt that Ambani had accrued an income gain of Rs 2,635 crore (subtracting Rs 50 crore from Rs 2,685 crore) according to the provisions of Section 2(24)(iv) of the Income-tax Act, 1961.