Supreme Court

TDS Under S.194-H Income Tax Act Won't Apply To Business Transactions Where Assessee Is Not Responsible For Paying Income : Supreme Court

In a significant development, the Supreme Court recently held that under Section 194-H of the Income Tax Act, 1961, cellular mobile service providers are not liable to deduct tax at source on income/profit component in payments received by their franchisees/distributors from third parties/customers.

Delhi High Court

AO Lacks Jurisdiction To Pass Draft Assessment Order In Absence Of " Any Variation In Income Or Loss ": Delhi High Court

Case Title: The Commissioner Of Income Tax - International Taxation Versus S.A.Chitra Ventures Ltd.

The Delhi High Court has held that the AO, under Section 144C of the Income Tax Act, would have no jurisdiction to pass a draft assessment order in the absence of "any variation in the income or loss returned," which is prejudicial to the interest of the assessee.

Subscription To Legal Database Can't Be Construed Transfer Of Copyright, Subscription Fee Is Not Royalty: Delhi High Court

The Delhi High Court has held that subscription to legal databases cannot be construed as a transfer of copyright.

Bombay High Court

Share Premium Received By Issuance Of Shares Is On Capital Account And Gives Rise To No Income: Bombay High Court

Storage Tanks Does Not Qualify Either As Land Or As Building, TDS Deductible On Storage Charges: Bombay High Court

Case Title: The Commissioner of Income Tax (TDS) Versus M/s. B. Arunkumar Trading Ltd.

The Bombay High Court has held that the respondent (assessee) ought to have deducted tax under Section 194I of the Income Tax Act, 1961, from the storage charges paid by the assessee.

Bombay High Court Quashes Reassessment Notices Issued Against Godrej For Beyond Limitation Period

The Bombay High Court has quashed the reassessment notices issued against Godrej because the notice was issued beyond the limitation period.

Madras High Court

Tamil Nadu Urban Local Bodies Act Mandates 15 days' Time To Be Provided To Property Tax Assessee To Respond To Notice: Madras High Court

The Madras High Court has held that Section 116A of the Tamil Nadu Urban Local Bodies Act, 1998, mandates that 15 days' time should be provided to the property tax assessee to respond to the notice before action is taken.

Allahabad High Court

Burden To Prove Escaped Assessment Lies On Assessing Authority: Allahabad High Court Quashes Reassessment Order Against Flipkart

Case Title: M/S Flipkart India Pvt. Ltd. Versus State Of U P And 4 Others

The Allahabad High Court has quashed the reassessment order against Flipkart and held that the burden to prove escaped assessment lies on assessing authority.

Rajasthan High Court

Time Of Accrual For Taxing Income Gets Postponed Till Adjudication Of Dispute By Civil Court: Rajasthan High Court Stays Demand Order

The Rajasthan High Court has stayed the penalty order and consequential demand notices passed under Section 270-A and Section 156 of the Income Tax Act, respectively.

Gujarat High Court

Gujarat High Court Refuses To Interfere With Section 153C Income Tax Notice, Allows Assessee To Raise Objections

In a judgment with significant implications, the Gujarat High Court has declined to intervene in a case challenging the validity of notices issued under Section 153C of the Income Tax Act, 1961.

ITAT

TDS Can't Be Isolatedly Taken In Any Assessment Year Without Offering Corresponding Income For Taxation: ITAT

Case Title: DCIT Versus Cicon Engineers Private Limited

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that the TDS cannot be isolatedly taken in any assessment year without offering the corresponding income for taxation.

Possession Of Transport Vehicles Is Sufficient Than Legal Ownership For S. 194C-TDS Exception: ITAT

The Jodhpur Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessee, the legal owner, is not required to TDS under Section 194C, where a declaration under Section 194C(6) along with a PAN is obtained from the payees who are in possession of the vehicle, though they are not registered owners.

Notion Of Earning 90% Profit Is Unimaginable, Is Contractual Loot Under Guise Of Alleged Development Activities: ITAT

The Hyderabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the notion of earning 90% profit is unimaginable and is contractual loot under the guise of alleged development activities.

Delivery Cost And Warranty Expenses Are Post Sales Activities Doesn't Form The Part Of AMP Expenditure For Amazon India: ITAT

The Bangalore Bench of Income Tax Appellate Tribunal (ITAT) has held that delivery costs and warranty expenses are not part of advertising, marketing, and promotion (AMP) expenditures.

Mobile Number Mentioned In ITR Turned Out To Be A Fraud Number On True Caller Can't Be A Ground To Refuse Tax Treaty Benefit: ITAT

Case Title: Abu Dhabi Investment Authority Versus Dy. Commissioner of Income Tax

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee, Abu Dhabi Investment Authority, is liable to benefit provided under Article 24 of the India-UAE Double Taxation Avoidance Agreement (DTAA), which provides that the government of one contracting state shall be exempt from tax in other contracting states in respect of any income derived by such income from those other contracting states.