Direct Tax Cases Weekly Round-Up: 28 April To 4 May 2024

Update: 2024-05-06 15:30 GMT
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Delhi High Court Eligible Industrial Undertakings Carrying Out Manufacturing Activity Is Only Essential Requisite For Claiming Benefit Of Sec 80IC: Delhi High Court Case Title: CIT verses Dabur India Ltd The Delhi High Court dismisses Revenue's appeal against ITAT's order in case of Dabur India Ltd., while reiterating that for purpose of deduction u/s 80IB & 80IC of...

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Delhi High Court

Eligible Industrial Undertakings Carrying Out Manufacturing Activity Is Only Essential Requisite For Claiming Benefit Of Sec 80IC: Delhi High Court

Case Title: CIT verses Dabur India Ltd

The Delhi High Court dismisses Revenue's appeal against ITAT's order in case of Dabur India Ltd., while reiterating that for purpose of deduction u/s 80IB & 80IC of the Income tax Act, the only essential requisite is that the eligible industrial undertakings should be carrying out manufacture or production of articles or things.

Bombay High Court

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.

Sanctioning Authority Has To Be PCCIT For Issuing Reopening Notice After Expiry Of Three Years: Bombay High Court

Case Title: Balkrishna Barsha Sutar Versus The Income Tax Officer

The Bombay High Court has held that the sanctioning authority has to be the Principal Chief Commissioner of Income Tax (PCCIT) for issuing a reopening notice after the expiry of three years.

Income Tax Authority Should Refrain From Over Analysis Which Leads To Paralysis Of Justice: Bombay High Court

Case Title: Bhatewara Associates Versus Income Tax Appellate Tribunal, Pune & Ors.

The Bombay High Court, while setting aside the order of the Income Tax Appellate Tribunal (ITAT), held that the authority should refrain from overanalyzing, which leads to paralysis of justice.

Kerala High Court

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

Case Title: Annamanada Gramakshemam Nidhi Limited verses UOI

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.

Allahabad High Court

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.

Punjab & Haryana High Court

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

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

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

Unjust Retention Of Money Or Property Of Another Is Against Fundamental Principles And Patently Illegal: Jharkhand HC Imposes Rs 5 Lakh Penalty On JBVNL, Directs Board To Refund TDS

Case Title: Anvil Cables Pvt. Ltd. v. State of Jharkhand and Ors.

LL Citation: 2024 LiveLaw (Jha) 64

The Jharkhand High Court has held that any unjust withholding of money or property from another party goes against the fundamental principles of justice, fairness, and good conscience. In this context, the unauthorized deductions made from the ongoing bills are unquestionably unlawful.


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