Taxpayer Entitled To Hearing On Merits If Appeals Were Dismissed By HC For Delay In Filing Paper-Book: Supreme Court

Case Title: Herbicides India Limited verses ACIT

While setting aside the Rajasthan High Court orders, the Supreme Court restored the assessee's appeals by condoning the delay in filing the paper-book before High Court and observed that the assessee is entitled to have his appeals heard on merits.

Tax Return Filed Without Regular Books Of Account Not Invalid, Burden To Call For Curing Of Defects On Assessing Officer: Supreme Court

Case Title: M/S Mangalam Publications, Kottayam V. Commissioner Of Income Tax, Kottayam

Citation : 2024 LiveLaw (SC) 55

While deciding the question as to whether reopening of a concluded assessment under Section 147 of the Income Tax Act (“Act”) was legally sustainable or not, the Supreme Court recently held that for the purposes of tax assessment, an assessee's obligation is limited to making a "full and true" disclosure of all "material" or primary facts, and thereafter, the burden shifts on the assessing officer. If a return is defective, it is upto the officer that he intimate the assessee in order that defects may be cured. But if the officer fails to do so, the return cannot be called defective.

Delhi High Court

Transactions Concerning Mutual Funds Not In The Nature Of Investment And Not Motivated By Trade: Delhi High Court

Case Title: PCIT Versus M/S Wig Investment

The Delhi High Court has held that transactions concerning mutual funds were in the nature of investment and not motivated by trade.

Fees Received For Sub-Licensing Sports Broadcasting Rights Attributable To 'Live Feed', Not Taxable As Royalty: Delhi High Court

Case Title: The Commissioner Of Income Tax - International Taxation -1 Versus Fox Network Group Singapore Pte Ltd.

The Delhi High Court has held that fees received by assessees for sub-licensing sports broadcasting rights attributable to 'live feed' is not taxable as royalty.

Income Tax: Denial of 80lA Benefit In 4th Year Of Assessment, U-Turn By Department Is Not Justified: Delhi High Court

Actual Interest Expenditure Had To Be Adjusted Against Income Earned By Way Of Interest: Delhi High Court

The Delhi High Court has held that actual interest expenditure had to be adjusted against the income earned by way of interest.

Use Of Trademark Incidental To Advertisement Or Publicity Is A Business Income, Not Royalty And FTS: Delhi High Court

Case Title: Hyatt International-Southwest Asia Ltd. Versus Additional Director Of Income Tax

The Delhi High Court has held that the use of trademarks incidental to advertisement or publicity was held as neither royalty nor fees for technical services (FTS) but as business income.

Employee Accepted Salary After TDS Deduction, Employer Responsible For Non-Deposit: Delhi High Court

Case Title: Harshdip Singh Dhillon Versus Union Of India

The Delhi High Court has held that the employee accepted salary after TDS deduction and the employer is responsible for non-deposit of TDS.

Sales Tax Subsidy/Incentive Is Capital Receipt: Delhi High Court

Case Title: Commissioner Of Income Tax Versus M/S Indo Rama Textiles Ltd.

The Delhi High Court has held that the sales tax subsidy or incentive received by the assessee under the Dispersal of Industries Package of Incentives, 1993, was a capital receipt.

Bombay High Court

Change Of Opinion Does Not Constitute Justification To Believe Income Chargeable To Tax Has Escaped Assessment: Bombay High Court

Case Title: Geopreneur Realty Private Limited Versus UOI

The Bombay High Court has held that a change of opinion does not constitute justification and/or reasons to believe that income chargeable to tax has escaped assessment.

AO Has No Jurisdiction To Assess Or Reassess Income Which Was Subject Matter Of Appeal: Bombay High Court

Case Title: Shri Shanmukhananda Fine Arts Versus The Deputy Director of Income Tax (Exemptions)

The Bombay High Court has held that the AO has no jurisdiction to assess or reassess any income, which was the subject matter of an appeal.

The bench of Justice K.R. Shriram and Justice Neela Gokhale has observed that since the grant of benefit under Section 11 of the Income Tax Act, 1961, was the subject matter of appeal and has been held in favour of the assessee, the matter cannot be reopened.

Bombay High Court Directs Dept. To Accept Declaration Under VsV Act

Case Title: Neelam Ajit Versus ACIT

The Bombay High Court at Goa has directed the department to accept the declaration under the Vivad Se Vishwas Act, 2020 (VsV Act).

The bench of Justice M. S. Sonak and Justice Valmiki Sa Menezes has observed that the delay alleged on the part of the Petitioner is hardly 11 days. The alleged deficit payment, if any, is of hardly 2,21,862. However, even if it is assumed that there was some marginal delay, this delay is attributable to the technical glitches and also the mistakes of the Respondents in processing the Petitioner's declaration.

Defect Notice Caused No Prejudice Since Last 30 Years, Assessee Clearly Understood Purport Of Notice: Bombay High Court

Case Title: Veena Estate Pvt. Ltd. Versus Commissioner of Income-Tax

The Bombay High Court has held that even assuming that there was a defect in the notice, it had caused no prejudice to the assessee, and the assessee “clearly understood” what the purport and import of the notice were under Section 274 read with Section 271 of the Income-tax Act, 1961. The principles of natural justice cannot be read in abstract form.

Madras High Court

Income Tax Act | Penalty U/S 271E Cannot Be Levied On Repayment Of Loan In Absence Of Cash Transaction: Madras HC

While observing that transaction pertaining to loan between two concerns wherein the liability of borrower stood reduced in the books of accounts to an extent of payment made to clear the liability of assessee appears to be in accordance with law, the Madras High Court ruled that penalty under Section 271E of Income tax Act, 1961 cannot be levied on repayment of loan in absence of cash transaction.

Reopening Of Assessment Inspired From 'Review' & 'Change Of Opinion' By Subsequent AO Is Deprecated: Madras HC

Case Title: BNY Mellon Technology Private Limited Vs Additional / Joint / Deputy / Assistant Commissioner of Income Tax

Citation: 2024 LiveLaw (Mad) 12

While setting aside the order disposing of the assessee's objection to re-opening of the assessment pursuant to the issue of notice u/s 148 of the Income Tax Act, 1961 and the consequent reassessment order, the Madras High Court held that there is no scope for re-opening the assessment, since the reasons cited for same was inspired from change of opinion of the Assessing officer.

Madras High Court permits Compounding Of Prosecution In Tax Evasion Case By MRF Chairman & Managing Director

The bench of Justice R. Mahdevan and Justice Mohammed Shaffiq, while upholding the order passed by the single judge, held that since the penalty was reduced from 300% to 100% of the tax sought to be evaded, the assessee is entitled to the benefit of Section 279(1A) of Income Tax. The section deals with non-prosecution for tax offences where the penalty is reduced.

Kerala High Court

Assessee Can't Indefinitely Seek Time In Response To SCN: Kerala High Court

The Kerala High Court has held that the assessee cannot indefinitely seek time in response to a show cause notice.

Income Tax Act | Gujarat High Court Invalidates Income Tax Assessment Order Due To Violations Of Section 144B

In a significant legal development, the Gujarat High Court has invalidated an Income Tax Assessment Order, citing violations of Section 144B of the Income Tax Act.

Income Tax Act | Section 119(2)(B) Application Cannot Be Rejected Citing Vague & Arbitrary Reasons

In a recent ruling, the Gujarat High Court has emphasized that applications under Section 119(2)(b) of the Income Tax Act, 1961 must not be dismissed arbitrarily, especially when citing the absence of genuine hardship to the petitioner.

Calcutta High Court

Income From Sub-Letting Is 'Business Income' If Object Is Business Of Renting/Licensing Of Shops: Calcutta High Court

Finding that assessee's income from sub-letting/sub-licensing the space in question, has always been accepted by Respondent / Income Tax Department as income from business, the Calcutta High Court held that assessee's income from sub-licensing/sub-letting is chargeable to tax as business income and not as income from house property.

Assessee Attempted To Drag Matter Knowing Well That Assessment Will Be Time Barred: Calcutta High Court Upholds Reassessment

The Calcutta High Court has held that the assessee had repeatedly sought adjournments, which would show that the assessee attempted to drag the matter along, knowing well that the assessment would be time-barred.

Case Title: Commissioner Of Income Tax Versus Gopal Sharma

Karnataka High Court

Revised Returns Filed Waiving Claim And Paid Taxes: Karnataka High Court Quashes Section 276C(1) Prosecution For Wilful Tax Evasion

Case Title: Anurag Bagaria Versus The Income Tax Department

The Karnataka High Court has quashed the prosecution under Section 276C(1) of the Income Tax Act for wilful tax evasion.

Patna High Court

Appellate Authority Cannot Dismiss Appeal For Non-Prosecution Due To Non-Appearance Of Assessee Or Authorized Representative: Patna High Court

Case Title: M/s Nav Nirman Construction vs The Union of India & Ors LL

Citation: 2024 LiveLaw (Pat) 4

The Patna High Court has observed that the appellate authority is not empowered to dismiss the appeal for non-prosecution due to the non-appearance of the Assessee or authorized representative as the appellate authority has a duty and obligation to take into consideration the merits of the matter, examine the grounds raised by the appellant even if the appellant or authorized representative presence is not recorded; and decide the issue on merits.

Rajasthan High Court

Once Deduction Claim Of Education Cess Is Withdrawn, Assessee Immuned From Imposition Of Section 270A Penalty: Rajasthan High Court

Case Title: G R Infraprojects Limited Versus Assistant Commissioner Of Income-Tax

The Rajasthan High Court has held that once the deduction claim for education cess is withdrawn, the assessee is immune from the imposition of a penalty under Section 270A of the Income Tax Act.

Dept.'s Action Denying Immunity Benefit Merely Because Section 270A Penalty Was Initiated Is Erroneous: Rajasthan High Court

Case Title: Chambal Fertilizers and Chemicals Limited Versus Office of the Principal Commissioner of Income Tax

The Rajasthan High Court has held that the department's action of denying the benefit of immunity on the ground that the penalty was initiated under Section 270A of the Income Tax Act for misreporting of income is not only erroneous but also arbitrary and bereft of any reason, as in the penalty notice, the respondents have failed to specify the limb, "under-reporting" or "misreporting" of income, under which the penalty proceedings had been initiated.

Andhra Pradesh High Court

Income Tax Not Leviable On Interest-Free Refundable Security Deposit For Due Completion Of Project By Developer: Andhra Pradesh High Court

The Andhra Pradesh High Court at Amaravati has held that income tax is not leviable on an interest-free refundable security deposit for the due completion of a project by the developer.

Himachal Pradesh High Court

Delay In Filing Return Bonafide: Himachal Pradesh High Court Allows Deduction To H.P. Housing & Urban Development Authority

Case Title: PCIT Versus M/s H.P. Housing & Urban Development Authority

The Himachal Pradesh High Court has allowed the deduction under Section 80IB(10) of the Income Tax Act to the H.P. Housing & Urban Development Authority as the delay in filing the return was bona fide.

ITAT

S. 54F Exemption Not Available On Property Predominantly Being Used For Religious Purposes: ITAT

Case Title: Asstt. CIT Versus Iqbal Ali Khan

The Hyderabad Bench of Income Tax Appellate Tribunal (ITAT) has held that exemption under Section 54F of the Income Tax Act is not available on property predominantly being used for religious purposes.

ITAT Deletes Addition Of Unexplained Investment In Stock Valuation Difference

Case Title: Ethiraj Hotel Mart Versus DCIT

The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition of unexplained investment in stock as a difference in the valuation of stock.

Indian Chamber Of Commerce Entitled To Claim Exemption In Respect Of Receipts From Seminars And Conferences: ITAT

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Indian Chamber of Commerce (ICC) is entitled to claim exemption in respect of its entire receipts.

Kolkata ITAT Deletes Addition Made Based On Third-Party Statement Who Was Not Allowed To Be Cross- Examined By Assessee

Case Title: DCIT verses Alom Extrusions Ltd.

Finding that assessee has discharged the burden of proving identity, creditworthiness, and genuineness of the creditors to the loan transaction, the Kolkata ITAT deleted the addition made for alleged unexplained loan under Section 68 of Income Tax Act, 1961 based on the statement of third-party in a post-search assessment whose cross-examination was never allowed to assessee.

CIT(A) Has No Jurisdiction To Enhance Income U/S 251(1) By Disallowing ESOP Expenses In Revised Return If AO Has Not Dealt With It: Mumbai ITAT

While setting aside the CIT(A)'s order enhancing assessee's income under Section 251(1)(a) of Income tax Act, 1961 by disallowing Employees Stock Option Plan (ESOP) expenses under Section 37(1), the Mumbai ITAT held that the CIT(A) has acted beyond his jurisdiction in enhancing assessee's income, since the AO during the course of assessment, has not taken into consideration the assessee's revised return and has not examined the taxability of ESOP expenses.

Right To Broadcast Live Events Is Not 'Copyright', Hence Payment Made In Relation Thereto Cannot Be Taxed As 'Royalty' U/S 9(1)(VI), Clarifies Delhi ITAT

Case Title: Lex Sportel Vision Pvt Ltd Verses Income Tax Officer

Emphasizing that the right to broadcast live events i.e., “Live Rights”, is not “copyright” and therefore any payment made thereto can't be said to be chargeable to tax as royalty under section 9(1)(vi) of the Income tax Act, 1961, the Delhi ITAT holds assessee as not in default for non-deduction of tax at source on foreign remittances made towards acquisition of right to broadcast 'live-events'.

Revisionary Powers U/S 263 Can't Be Exercised For Directing Fuller Inquiry Once Plausible View Taken By AO After Inquiry: Mumbai ITAT

Case Title: The Synthetic & Art Silk Mills Research Association verses Commissioner of Income Tax (Exemption)

While setting aside the revision order passed on the ground that the AO did not conduct any enquiry or verification which should have been made with regards to income from auditorium hire charges, hoarding site & service charges and rent vis-a-vis Trust's objectives and consequential eligibility under Section 10(21), the Bench opined that it is important to show that the view taken by the AO is wholly unsustainable in law before embarking upon exercise of revisionary powers and that the revisionary powers cannot be exercised for directing a fuller inquiry to merely find out if the earlier view taken is erroneous particularly when a view was already taken after inquiry.

Taxpayer Staying In India For Less Than 182 Days As Per Exp 1(A) To Sec 6(1) Of I-T Act, Entitles To 'Non-Resident' Status: Mumbai ITAT

Case Title: Assistant Commissioner of Income Tax verses Nishant Kanodia

While opining that even if the taxpayer has left India for the purpose of business or profession, the same shall be considered for purpose of employment outside India under Explanation 1(a) to Section 6(1) of Income tax Act, 1961, the Mumbai ITAT held that assessee has rightly claimed to be a 'non-resident' as he stayed in India only for a period of 176 days during the year which entitles him to non-resident status as per Explanation 1(a) to Section 6(1).

Assessment Order Passed Beyond Sec 144C(4) Is Time Barred If Objections To Draft Order Were Filed After Expiry Of Limitation As Per Sec 144C(2): Delhi ITAT

Case Title: Mavenir UK Holdings verses ACIT

Noticing that the draft assessment order was passed on Mar 4, 2022 and the assessee filed objection before the DRP on Apr 6, 2022 which was beyond the due date provided for filing objection, the Delhi ITAT held the assessment order to be time-barred being passed beyond Section 144C(4) of Income tax Act, 1961 time-limit.

No Escapement Of Income By Singaporean Entity On Repatriating Rs.203.56 Cr. Arising From Redemption Of NCDs: ITAT

Case Title: BCP V Singapore FVCI Pte. Ltd. Versus ACIT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the Singaporean Entity has not escaped the income on repatriating Rs.203.56 Cr. arising from redemption of non-convertible debentures (NCDs).

Information Found In Pen Drive/Laptop Of Employees Can't Be Considered As Credible Evidence Without Corroborative Evidence: ITAT

Case Title: Padmashree Dr. D.Y. Patil University Versus DCIT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the information found in the pen drive or laptop of employees cannot be considered credible evidence unless it has been corroborated with any other evidence.

ITAT Deletes Additions Against Unsuspecting Investor In A 'Penny Stock' To Make Quick Profit

Case Title: Farzad Sheriar Jehani Versus ITO

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessee was an unsuspecting investor who transacted in a 'penny stock' with a view to earning a quick profit, and since his involvement in any dubious transaction relating to price rigging or connection with exit providers could not be shown, the transaction could not be treated as a 'pre-arranged' one even if there were no underlying fundamentals in or financial performance by the company whose shares were sold.

There Cannot Be Sale Without Purchase: ITAT Deletes Addition

Case Title: Bhartiya International Ltd. Versus DCIT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition made by the AO as there cannot be a sale without a purchase.