Case Title: Valley Iron & Steel Co.Ltd Versus PCIT

Case Title: PCIT Versus Ojjus Medicare Pvt. Ltd.

The Delhi High Court has quashed the initiation of assessment proceedings under Section 153C of the Income Tax Act, which was falling beyond the maximum 10-year block period.

Case Title: Agra Portfolio Pvt. Ltd. Versus Pr. Commissioner Of Income Tax

Citation: 2024 LiveLaw (Del) 415

The Delhi High Court has held that it has interpreted Rule 11UA of the Income Tax Rules, 1962, for determining the fair market value (FMV) of shares under Section 56(2)(viib) of the Income Tax Act, 1961.

Delhi High Court Interprets Rule 11UA For Determination FMV Of Shares U/S 56(2)(viib)

Case Title: Agra Portfolio Pvt. Ltd. Versus Pr. Commissioner Of Income Tax

The Delhi High Court has held that it has interpreted Rule 11UA of the Income Tax Rules, 1962, for determining the fair market value (FMV) of shares under Section 56(2)(viib) of the Income Tax Act, 1961.

AO Is Not Clothed With Powers To Ascertain ALP Of Any International Transaction: Delhi High Court

Case Title: M/S. Giesecke And Devrient India Pvt. Ltd.Versus DCIT

The Delhi High Court has held that AO is not clothed with the powers to ascertain the Arm's Length Price (ALP) of any international transaction.

Reopening Or Abatement Of Assessment To Be Triggered Only Upon Discovery Of Material: Delhi High Court

Case Title: Saksham Commodities Limited Versus Income Tax Officer

The Delhi High Court has held that a reopening or abatement would be triggered only upon the discovery of material that is likely to “have a bearing on the determination of the total income” and would have to be examined bearing in mind the AYs' that are likely to be impacted.

ITSC Entrusted With Power Of Granting Immunity From Penalty And Prosecution Only In Case Of Full And True Disclosure: Delhi High Court

Case Title: PCIT Versus Pankaj Buildwell Ltd. & Group

The Delhi High Court has held that the Income Tax Settlement Commission (ITSC) is entrusted with the power to grant immunity from penalty and prosecution only in cases of full and true disclosure.

Delhi High Court Grants Relief Of As Low As 5% IGST On Import Of Dialysis Machines By FMC India

Case Title: Fresenius Medical Care India Private Limited Versus UOI

The Delhi High Court has granted relief of as low as 5% Integrated Goods and Service Tax (IGST) on the import of dialysis machines by Fresenius Medical Care India Private Limited (FMC India).

NFAC Can't Sustain Invocation Of Penalty Proceedings Based On Their Own Failure To Lodge Claim Under IBC Within Time: Delhi High Court

Case Title: M Tech Developers Pvt. Ltd. Versus National Faceless Assessment Centre

The Delhi High Court has held that the National Faceless Assessment Centre (NFAC) cannot sustain invocation of penalty proceedings based on their own failure to lodge a claim under the Insolvency and Bankruptcy Code (IBC) within time.

Failure Of Dept. To Comply With ITAT's Order: Delhi High Court Directs Dept. To Remove Demands, Penalty From ITBA portal

Case Title: Sunshine Capital Limited Versus DCIT

The Delhi High Court has held that the Department has failed to comply with Income Tax Appellate Tribunal's (ITAT's) Order in passing a fresh assessment order within the stipulated time.

The Bombay High Court has held that the revenue officers are bound by the decisions of appellate authorities while disposing of quasi-judicial issues.

Case Title: Senapati Santaji Ghorpade Sugar Factory Versus Assistant Commissioner of Income Tax

The Bombay High Court has held that retrospective legislation cannot affect the vested rights of the assessee.

Bombay High Court Quashes Reassessment Order Against Housewife When Property Was Purchased By Her Husband

Case Title: Kalpita Arun Lanjekar Versus Income Tax Officer

The Bombay High Court has quashed a reassessment order against a housewife when the alleged investment was made by her husband.

AO To Record Dissatisfaction With Correctness Of Claim Of Assessee In Respect Of Expenditure: Bombay High Court

Case Title: PCIT Versus M/s. Tata Capital Ltd.

The Bombay High Court has held that the Assessing Officer should record his dissatisfaction with the correctness of the claim of the assessee in respect of the expenditure, and to arrive at such dissatisfaction, he should give cogent reasons.

Approval To Reopen Assessment Against Vodafone Granted By The Dept. In A Most Casual Manner: Bombay High Court

Case Title: Vodafone India Ltd. Versus Deputy Commissioner of Income Tax

The Bombay High Court has held that the approval has been granted in a most casual manner. The power vested in the authorities under Section 151 to grant or not grant approval to the AO to reopen the assessment is coupled with a duty. The authorities were duty-bound to apply their minds to the proposal put up for approval in light of material relied upon by the AO.

No Order Passed On Rectification Application Filed By Assessee For Six Years: Bombay High Court Directs Disciplinary Action Against AO

The Bombay High Court has directed the disciplinary action against AO as no order has been passed on the rectification application filed by the assessee for six years.

Filing Delayed Returns, Power To Condone Delay Is Conferred On CBDT To Ensure Substantial Justice; Bombay High Court

Case Title: Pankaj Kailash Agarwal verses ACIT

Explaining the scope of powers u/s 119(2)(b) of the Income tax Act, the Bombay High Court recently clarified that the legislature has conferred power on the Principal Commissioner of Income Tax (respondent no.3) to condone the delay to enable the authorities to do substantive justice to the parties by disposing the matter on merits.

“Certainly The High Court Should Not Scrutinise An Order Of The ITSC As An Appellate Court,” Says Bombay High Court

Case Title: The Commissioner of Income Tax, Central Versus Income Tax Settlement Commission

The Bombay High Court has held that interference with the orders of the Income Tax Settlement Commission (ITSC) should be avoided, keeping in mind the legislative intent. The scope of interference is very narrow, and certainly the High Court should not scrutinize an order of the ITSC as an appellate court. Unsettling reasoned orders from the ITSC may erode the confidence of assessees. The larger picture has to be kept in mind.

Refund More Than 10% Of Tax As Determined On Regular Assessment, CEAT Entitled To Interest On Refund Of Rs. 5.24 Cr.: Bombay High Court

Case Title: Ceat Limited Versus Commissioner of Income Tax

The Bombay High Court has held that Ceat Limited is entitled to interest on a refund of Rs. 5.24 crore as the refund is more than 10% of tax as determined on regular assessment.

Tata Steel Entitled To Treat Contribution Of Rs. 212.52 Crores To CAF As Revenue Expenditure: Bombay High Court

Case Title: PCIT Versus Tata Steel

The Bombay High Court has held that Tata Steel is entitled to treat the contribution of Rs. 212.52 crores to the Compensatory Afforestation Fund (CAF) as revenue expenditure.

Error On Part Of Auditor Should Be Accepted As Reasonable Cause Shown By Trust Management For Delay Condonation: Bombay High Court

Case Title: Al Jamia Mohammediyah Education Society Versus Commissioner Of Income Tax (Exemptions)

The Bombay High Court has held that the error on the part of the auditor cannot be rejected but should be accepted as a reasonable cause shown by the trust management.

Reassessment Can't Be Based On Reasons Borrowed From Other Dept. Or Justice M.B. Shah Commission Report: Bombay High Court

Case Title: Balaji Mines And Minerals Pvt. Ltd. Versus The Assistant Commissioner Of Income Tax

The Bombay High Court has held that the reasons for reopening clearly show that the assessing officer, except borrowing the information from the third report of the Justice M.B. Shah Commission, failed to record independently to his own satisfaction any reason so as to direct the reopening of the assessment.

Madras High Court

CBDT Circular Not Extending Time To File Application For Regular Registration Of New Provisionally Registered Trusts U/S 80G Violative Of Constitution: Madras High Court

Case Title: Sri Nrisimha Priya Charitable Trust versus Central Board of Direct Taxes

Citation: 2024 LiveLaw (Mad) 156

The Madras High Court has held that the Circular dated May 24, 2023, issued by the Central Board of Direct Taxes (CBDT) not extending time to file applications for regular registration of new provisionally registered trusts under Section 80G of the Income Tax Act is violative of the Constitution of India.

Opportunity For Hearing Was Refused Due To Assessee's Failure To Click On Appropriate Button, Madras High Court Quashes Faceless Assessment Order

Case Title: M/s.Bay-Forge Private Limited Versus Additional/Joint/Deputy/Assistant Commissioner of Income Tax/ Income Tax Officer, National Faceless Assessment Centre, New Delhi

Citation: 2024 LiveLaw (Mad) 162

The Madras High Court has quashed the order as the opportunity for hearing was refused due to the assessee's failure to click on the appropriate button.

Kerala High Court

Citation: 2024 LiveLaw (Ker) 218

Case Title: Manaf Ali Hassan Versus The National Faceless Assessment Centre

The Kerala High Court has held that the writ petition challenging orders of Tamil Nadu assessing authority is not maintainable merely for having a bank account in Kerala.

Case Citation: 2024 LiveLaw (Ker) 219

Case Title: M/S Sree Narayana Guru Memorial Educational And Cultural Trust Versus The Assistant Commissioner Of Income Tax

The Kerala High Court has held that assessments can be reopened based on audit objections under a new reassessment regime.

Case Citation: 2024 LiveLaw (Ker) 222

Case Title: The Income Tax Officer Ward Versus Vazhakkulam Block Rural Co-Operative Society Ltd.

The Kerala High Court has held that affording a personal hearing to the assessee is mandatory in an inquiry under Section 148A(b) of the Income Tax Act.

Citation: 2024 LiveLaw (Ker) 230

Case Title: Mini Muthoottu Credit India (P) Ltd. Versus Commissioner Of Income Tax

The Kerala High Court has held that the land in question was used for agricultural purposes, which yielded agricultural income, which in turn was exempt from income tax under Section 10(1) of the Income Tax Act.

Counter Sales Permission Of Alcoholic Liquor Was Concession Given To Bar Attached Hotel Owners For Carrying On Business During Covid-19: Kerala High Court

Case Title: Lukose. K.C. Versus Deputy Commissioner

The Kerala High Court has held that the permission to effect over-the-counter sales of alcoholic liquor was a concession given to bar-attached hotel owners to permit them to carry on business and tide over the COVID lockdown period. The assessee cannot now contend that the tax on such transactions should not be levied on him because he did not originally have permission to effect such sales.

Financial Activity Can't Glissade Into Situation Where Its Operations Become Impossible: Kerala HC Issues Directions On Status Of Nidhi Companies

The Kerala High Court recently held that any financial activity ought to be regulated reasonably within the ambit of law, and it cannot glissade into a situation where its operations become impossible, or are defeated by oppressive or impossible restrictions and regulations.

Andhra Pradesh High Court

Case Title: The Principal Commissioner Of Income Tax Versus Gracy Babu

The Kerala High Court has held that consideration received by trustees for such relinquishment of trusteeship cannot be treated as a capital receipt for the purposes of assessing it under the head of capital gains; the consideration will have to be treated as the individual income of the assessees and assessed accordingly under the appropriate head.

Case Title: Principal Commissioner of Income Tax Versus Dr. Karan Singh

The Jammu & Kashmir High Court has held that leasehold interest in the land is an asset of the company and is capable of valuation.

Case Title: Munjal BCU Centre Of Innovation And Entrepreneurship, Ludhiana Versus Commissioner Of Income Tax Exemptions, Chandigarh

The Punjab and Haryana High Court has held that the assessee is not expected to keep the e-portal of the department open all the time so as to have knowledge of what the department is supposed to be doing.

No Addition Is Permitted On Account Of Estimated Profit U/s 41(1) Simply Based On Assumptions: Punjab & Haryana High Court

Case Title: M/s Shree Digvijaya Woollen Mills Ltd Versus Commissioner of Income-Tax

The Punjab & Haryana High Court deleted the addition made by the AO u/s 41(1) of the Income tax Act on account of sale of copper wire, finding that the AO had made additions under the said provision simply on basis of presumption regarding the said sale, even after finding no stock in the premises.

Once ITO Accepts Rate At Which Closing Stock Was Valued, No Addition To Net Profit Can Be Made Without Recomputing Trading Result U/s 145(1): Punjab & Haryana HC

Finding that the stock production and consumption records were maintained under the supervision of the Excise Authorities and there is no objection raised with regard to the said stock by the ITO, the Punjab & Haryana High Court held that the Assessing Officer could not have proceeded on a presumption alleging higher wastage shown by the assessee.

Jharkhand High Court

Decision On A Question Of Law That Is Later Overturned Or Modified By The Superior Court In Another Case Does Not Form A Ground For Review: Jharkhand High Court

Case Title: Adarsh Sahkari Grih Nirman Swawlambi Samiti Limited Vs Commissioner of Income Tax, Jamshedpur

LL Citation: 2024 LiveLaw (Jha) 55

The Jharkhand High Court has recently clarified the criteria for reviewing judgments in tax appeal cases, particularly regarding decisions based on legal questions.

Calcutta High Court

Assessee's Failure To Establish Genuineness Of Transaction With Cogent And Credible Evidence, Calcutta High Court Upholds Addition

Case Title: The Principal Commissioner Of Income Tax, (Central) -2, Kolkata Versus M/S. BST Infratech Limited

The Calcutta High Court has held that merely proving the identity of the investors does not discharge the onus on the assessee if the capacity or credit worthiness has not been established.

Payments By Supervisors To Individual Labourers, Each Not Exceeding Rs. 20,000, Can't Be Disallowed: Calcutta High Court

Case Title: SK. Jaynal Abddin Versus Commissioner Of Income Tax, Kolkata

The Calcutta High Court has held that payments by supervisors to individual labourers, each not exceeding Rs. 20,000, cannot be disallowed under Section 40A(3) of the Income Tax Act, 1961.

Gujarat High Court

Gujarat High Court Quashes Demand Notice And Assessment Order In Absence Of Any Claim Not Forming Part Of Resolution Plan

Case Title: Surya Exim Limited Thro Director Bhawani Singh Versus Union Of India & Ors.

LL Citation: 2024 Livelaw (Guj) 42

The Gujarat High Court has quashed the demand notice and assessment order in the absence of any claim not forming part of the resolution plan (RP).

Allahabad High Court

S.132B(1)(i) Income Tax Act | Power Of Assessing Authority To Decide Application For Release Of Seized Assets Not Automatically Abated After 120 Days: Allahabad HC

Case Title: Dipak Kumar Agarwal vs. Assessing Officer And 4 Others 2024 Case Citation: 2024 LiveLaw (AB) 248

The Allahabad High Court has held that the jurisdiction of the Assessing Authority to decide the application for release of seized assets under Section 132B (1)(i) does not abate after a period of 120 days from the date on which the last of the authorizations for search under section 132 or for requisition under section 132-A was executed.

[Income Tax Act] Supreme Court Decision In UOI v. Ashish Agarwal Applicable To Parties Who Challenged Notice U/S 148: Allahabad High Court

Case Title: M/S Arvind Kumar Shivhare vs. Union Of India And Another Case Citation: 2024 LiveLaw (AB) 249

The Allahabad High Court has held that Supreme Court in Union of India v. Ashish Agarwal had not issued a general mandamus quashing all notices issued under Section 148 of the Income Tax Act, 1961. The Court observed that the order of Supreme Court was limited to those notices which had been challenged before the Apex Court and various High Courts in India.

[House Tax] Authorities Acted In Undue Haste By Giving Only One Day's Notice For Hearing: Allahabad High Court Quashes Assessment Order

Case Title: Hotel President Through Its Partner / Proprietor And Another v. State Of Up And 2 Others

Case citation: 2024 LiveLaw (AB) 251

While quashing the enhanced assessment order regarding house tax passed by the authorities, the Allahabad High Court held that the authorities acted in undue haste by giving one day's notice for the hearing, which is not sufficient notice.

Statement Of Contractor Without Supporting Material Not Enough To Declare Transaction Benami: Allahabad HC Quashes Benami Transaction Proceedings

Case Title: Meera Pandey Thru. Her Attorney vs. Union Of India

Citation: 2024 LiveLaw (AB) 271

The Allahabad High Court has held that mere statement of the contractor doing construction work cannot be relied upon to declare such construction as benami transaction under the Prohibition of Benami Property Transactions Act, 1988. The Court held that “reasons to believe” in Section 24(1) of the Act must be based on cogent and relevant material.

Rajasthan High Court

For Establishing Offence Of Filing Delayed ITR, “Mens Rea” Is A Necessary Ingredient: Rajasthan High Court

Case Title: The Income Tax Officer Versus Rajendra Prasad Vaish

The Rajasthan High Court has held that for holding an assessee guilty of the offence of filing delayed income tax returns, “mens rea“ is a necessary ingredient.