Case Title: PCIT Versus M/S Clix Finance India Pvt. Ltd.

The Delhi High Court has held that the inadequacy of the inquiry by the AO with respect to certain claims would not in itself be a reason to invoke the powers enshrined in Section 263 of the Income Tax Act.

Case Title: PCIT Versus M/S Forum Sales Pvt. Ltd.

The Delhi High Court has held that any pick-and-choose method of rejecting certain entries from the books of account while accepting others without an appropriate justification is arbitrary and may lead to an incomplete, unreasonable, and erroneous computation of the income of an assessee.

Expression “Yes” By PCIT Couldn't Be Considered A Valid Approval U/s 151 Of Income Tax Act: Delhi High Court

Case Title: The Pr. Commissioner Of Income Tax -7 Versus Pioneer Town Planners Pvt. Ltd.

The Delhi High Court has held that the expression “yes” could not be considered to be a valid approval under Section 151 of the Income Tax Act.

Assessment Order Passed Beyond Time Limit Prescribed U/s 153 Merits To Be Quashed: Delhi High Court

Case Title: Readers Digest Book and Home Entertainment (India) Pvt Ltd vs DCIT

Finding that no valid demand stood raised against the Petitioner / assessee prior to Sep 30, 2021, the Delhi High Courtdirected the Respondents / Revenue to re-compute the refund payable to the petitioner along with statutory interest which shall run up to the date of remittance in accordance with law.

ITAT Must Recall Its Order U/s 254 To Correct Manifest Error Apparent On Record: Delhi High Court

Case Title: PCIT vs Fiserv India Private Ltd.

While condoning the delay of 86 days by Revenue in filing the appeal, the Delhi High Court dismisses Revenue's appeal filed against the Tribunal's order in miscellaneous application filed by assessee to review its earlier order u/s. 254(2) of the Income tax Act.

Upward Adjustments Of Income As Proposed By TPO Stands Withdrawn: Delhi High Court Applies Rule Of Consistency To Adopt TNMM

Case Title: Pr. CIT vs Oriflame India Pvt Ltd

Finding that the matter has been resolved and Modicare Limited has been excluded from the list of comparable to determine the ALP, the Delhi High Court dismisses Revenue's appeal against ITAT's decision in case of assessee engaged in sale of a wide variety of skin care and cosmetic products

Services Provided By Irish Company To Its Indian Counterpart Not Technical Services: Delhi High Court Quashes Order Denying Nil/Lower TDS certificate

Case Title: SFDC Ireland Limited Versus Commissioner Of Income Tax

The Delhi High Court has quashed the order denying Nil or lower TDS certificates and held that the services provided by the assessee, Irish Company, to its Indian counterpart were not technical services.

ITO Can't Retain Amount Deposited By Taxpayer Without Framing Final Assessment Order During Period Of Stay: Delhi High Court

Case Title: Navisite India Pvt Ltd vs CIT

The Delhi High Court allowed assessee's petition seeking refund of amounts which was deposited towards part payment of demand raised in pursuance of assessment order for AYs 2008-09 and 2009-10.

Pre-Deposit Of 20% Demand Is Not Precondition For Consideration Of Stay Application During Pendency Of First Appeal: Delhi High Court

Case Title: National Association Of Software And Services Companies (NASSCOM) Versus Deputy Commissioner Of Income Tax (Exemption) Circle 2 (1)

The Delhi High Court has held that a 20% pre-deposit demand is not a precondition for consideration of a stay application during the pendency of the first appeal.

Failure Of AO To Take Concrete Steps To Ascertain The Genuineness And Creditworthiness Of Transactions: Delhi High Court

Case Title: PCIT Versus M/S Paramount Propbuild Pvt. Ltd.

The Delhi High Court has held that the AO has not taken any concrete steps to ascertain the genuineness and creditworthiness of the transactions.

Variance In Allowable Deductions Doesn't Amount To Furnishing Inaccurate Particulars Of Income: Delhi High Court

Case Title: Pr. Commissioner of Income Tax V/s. ICICI Bank Ltd

The Delhi High Court has held that the assessee cannot be said to furnish inaccurate particulars of income merely for variance in allowable deductions.

Abhisar Buildwell Judgment Can't Be Construed To Be An Authority To Override Mandate Of Section 245-I: Delhi High Court

Case Title: Orchid Infrastructure Developers Pvt. Ltd. Versus PCIT

The Delhi High Court has held that the judgement of Abhisar Buildwell passed by the Supreme Court cannot be construed to be an authority to override the mandate of Section 245-I of the Income Tax Act.

Case Title: Shell India Markets Private Limited Versus Union of India

The Bombay High Court has held that business support services are not taxable as a fee for technical services (FTS), and no TDS is liable to be deducted.

Case Title: Ashok Chaganlal Thakkar Versus National Faceless Assessment Centre

The Bombay High Court has held that actual carrying on of agricultural operations is not a necessary condition for deciding that the parcels of land were agricultural lands.

Exgratia Bonus Paid By Indian Express To Employees Over And Above Eligible Bonus Is Allowable As Business Expenditure: Bombay High Court

Case Title: Indian Express Newspapers (Bombay) Ltd. Versus CIT

The Bombay High Court has held that exgratia bonuses paid to employees over and above the eligible bonus under the Payment of Bonus Act are allowable as business expenditures.

Harshad Mehta Scam: AO Can't Assess Additions Again If Deleted By CIT(A) In First Round Of Proceedings; Bombay High Court

Case Title: CCIT(OSD)/Pr. Commissioner of Income Tax, Central Versus Bhupendra Champaklal Dalal

The Bombay High Court in the Harshad Mehta Scam case, while upholding the ITAT's ruling, held that the Assessing Officer could not have assessed additions again since the CIT (A) had deleted the same in the first round of proceedings and the concerned matters have attained finality.

Interest Paid On Borrowed Funds For Investment In Shares Is Hit By Sec 14A If Dividend Received On Shares Was Not Part Of Total Income: Bombay HC

Case Title: Mahesh K. Mehta Vs Deputy Commissioner of Income Tax

The Bombay High Court recently held that the interest paid on borrowed funds in respect of investment in shares of two companies was hit by Section 14A of the Act inasmuch as the dividend received on such shares did not form part of the total income.

Madras High Court

CBDT's Digital Evidence Investigation Manual Is Mandatory For Income Tax Dept. While Conducting Searches, Seizing Electronic Evidence: Madras High Court

Case Title: M/s.Saravana Selvarathnam Retails Private Limited Versus Commissioner of Income Tax Appeals

Citation: 2024 LiveLaw (Mad) 101

The Madras High Court has held that it is mandatory for the income tax department to follow the Digital Evidence Investigation Manual issued by the Central Board of Direct Taxes (CBDT) while conducting searches and seizing electronic evidence.

Internal Arrangement W/r/t Transfer Of Assessment Proceedings Not Material For Ascertaining Limitation: Madras High Court

Case Title: Taeyang Metal India Private Limited vs DCIT

Citation: 2024 LiveLaw (Mad) 107

Finding that the period of one month expired on July 31, 2022, whereas the assessment order came to be issued on Mar 25, 2023, the Madras High Court Held the assessment order issued beyond time-limit specified in Sec.144C(13) as unsustainable.

Any Order Passed By Referring To Sec 144(C)(1) Should Be Construed Only As Draft Assessment Order: Madras High Court

Case Title: The Ramco Cements Limited vs ITO

Citation: 2024 LiveLaw (Mad) 108

While dismissing assessee's petition, the Madras High Court held that the impugned assessment order passed by the respondent/ AO is only a draft assessment order in which case, the petitioner/ assessee should approach the appropriate forum and address their grievance in terms of Section 144 (C) of the Income Tax Act.

AO Competent To Invoke Section 154 Jurisdiction If Glaring Mistake Of Fact/Law Is Committed While Passing Assessment Order: Madras High Court

Case Title: M/s.Sabari Alloys & Metals India Private Limited Versus The Deputy Commissioner of Income Tax

Citation: 2024 LiveLaw (Mad) 110

The Madras High Court has held that the Assessing Officer is not incompetent to invoke the jurisdiction under Section 154 of the Income Tax Act, 1961, if such officer had committed a glaring mistake of fact or law while passing the assessment order.

Tax Recovery Officer Cannot Declare Sale Made By Assessee In Favour Of 3rd Party As Void: Madras High Court

Case Title: K.N.Subramaniam Versus PCIT

Citation: 2024 LiveLaw (Mad) 116

The Madras High Court has held that a tax recovery officer cannot declare a sale made by the assessee in favour of a third party void if he finds that the property of the assessee was transferred by the assessee to a third party with an intention to defraud the revenue.

Wilful Failure To Furnish Return As Per Sec 139(1) Is Only Criterion For Initiation Of Prosecution U/s 276CC: Madras High Court

Case Title: Vinayagam Sabarisanthanakrishnan verses ACIT

Citation: 2024 LiveLaw (Mad) 118

The Madras High Court recently highlighted that provision of Section 278E of the Income tax Act brings in a statutory presumption regarding the existence of a culpable mental state.

Assessing Officers Are Not Governed By Strict Rules Of Indian Evidence Act, 1872 In Case Of Assessment Proceedings: Madras High Court

Case Title: M/s.LKS Gold House Private Limited Versus The Deputy Commissioner of Income Tax

Citation: 2024 LiveLaw (Mad) 120

The Madras High Court has held that assessing officers are not governed by the strict rules of the Indian Evidence Act, 1872.

10% of Demand Already Paid By Assessee, Madras High Court Allows Cooperative Bank's Writ Appeal By Waiving 10% Pre-Deposit

Case Title: The Salem Urban Co-operative Bank limited Versus The Income Tax Officer (TDS Ward)

Citation: 2024 LiveLaw (Mad) 122

The Madras High Court has waived the condition of payment of a 10% pre-deposit as the 10% demand was already paid by the assessee.

Case Title: Purnendu Shekhar Sinha Versus The Union Of India

LL Citation: 2024 LiveLaw (Pat) 23

The Patna High Court has held that differentiation between government employees and other employees for leave encashment exemption is neither discriminatory nor violative of Article 14 of the Constitution of India.

Allahabad High Court

Case Title: Gurdeep Singh vs. Nagar Ayukt Nagar Nigam Moti Jheel And Another

Case Citation: 2024 LiveLaw (AB) 129

The Allahabad High Court has held that were a statutory appeal has been filed and the condition for pre-deposit has been complied with, stay applications filed along with such appeals must be decided within a reasonable time.

S.144B Income Tax | Burden to Provide Registered Email Shifts On Assessee Only If It Can't Be Obtained From ITR/Portal/MCA Website: Allahabad HC

Case Title: Grs Hotel Pvt. Ltd. Lko. Thru. Director Shri Ganga Charan Rajput vs. Union Of India Thru. Its Secy. (Revenue) Ministry Of Finance Govt. Of India

Case Citation: 2024 LiveLaw (AB) 188

The Allahabad High Court has held that the provision requiring the assesee to provide his “registered email address” to the income tax authorities under Section 144B of the Income Tax Act, 1961 is residuary in nature.

Karnataka High Court

Average Income Is To Be Considered If Variations Found In Income Tax Returns Filed By Claimant: Karnataka High Court

Citation No: 2024 LiveLaw (Kar) 141

Case Title: Jayashree AND Mahaningappa & Others

The Karnataka High Court has held that if income tax returns are available the same should be considered as best a piece of evidence and if variations are found in the income tax returns, considered for different assessment years, it would be appropriate to consider the average income of three assessment years to arrive at the annual stable income of the claimant seeking compensation under the Motor Vehicles Act.

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

Citation: 2024 LiveLaw (JKL) 32

The Jammu & Kashmir and Ladakh High Court has held that leasehold interest in the land is an asset of the company and is capable of valuation. As such, it is to be included in the value of the assets of M/s. Jyoti Private Limited so as to determine the fair market value of shares held by the assessee as well as other shareholders.

Calcutta High Court

Tested Party Normally Should Be Least Complex Party To Controlled Transaction, Reiterates Calcutta High Court

Case Title: PCIT vs ITC INFOTECH INDIA LIMITED

The Calcutta High Court reiterated that the selection of the tested party is to further the object of the comparability analysis by making it less complex and requiring fewer adjustment.

Himachal Pradesh High Court

Himachal Pradesh High Court Declares Water Cess Levied By State Government On Hydropower Generation As Unconstitutional

Case Title: N.H.P.C. Ltd. Versus State of H.P. & ors.

The Himachal Pradesh High Court has declared the levy of water cess by the state government on hydropower generation unconstitutional.

Rajasthan High Court

Generation Of Surplus From Year To Year Cannot Be Bar For Trust In Seeking Section 10 (23C) (vi) Exemption: Rajasthan High Court

Case Title: Chandigarh Manav Vikas Trust Versus Chief Commissioner Of Income Tax

The Rajasthan High Court has held that the assessee is being run as a trust solely for educational purposes, thus seeking the exemption under Section 10(23C)(vi) of the Income Tax Act of 1961, and the generation of surplus from year to year cannot be a bar in seeking such an exemption under the provision of law.

Andhra Pradesh High Court Directs Municipal Corporation To Decide Representation On Waiver Of Interest On Property Tax Arrears