Direct Tax Cases Weekly Round-Up:3 March To 9 March 2024
Mariya Paliwala
11 March 2024 10:00 AM IST
Delhi High Court Revisional Jurisdiction Can't Be Invoked For Inadequacy Of Enquiry By AO: Delhi High Court 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. Pick...
Delhi High Court
Revisional Jurisdiction Can't Be Invoked For Inadequacy Of Enquiry By AO: Delhi High Court
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.
Pick And Choose Method Of Rejecting Certain Entries From Books Of Account Is Arbitrary: Delhi High Court
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.
Bombay High Court
TDS Not Liable To Be Deducted On Business Support Services As Not Taxable As FTS: Bombay High Court
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.
Actual Agricultural Operation, Not a Necessary Condition To Qualify As Agricultural Land; Bombay High Court
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.
Patna High Court
Differentiation Between Government Employees And Other Employees For Leave Encashment Exemption Not Violative Of Article 14: Patna High Court
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
Where Statutory Appeals Filed After Making Pre-Deposit, Stay Applications Must Be Decided In Reasonable Time: 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.
Jammu & Kashmir And Ladakh High Court
Leasehold Interest In Land Is Asset Of Company, Capable Of Valuation: Jammu & Kashmir And Ladakh High Court
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.
ITAT
Filing Return By Due Date U/s 139 Is Mandatory For Political Party To Claim Exemption U/s 13A: Delhi ITAT Refuses To Stay Recovery Against Congress Party
Case Title: Indian National Congress Verses Deputy Commissioner of Income Tax
While holding the argument that an assessee is entitled to a stay on the recovery proceedings on payment of 20% of the demand during the pendency of appeal before the Tribunal, as too general, the New Delhi ITAT dismisses the stay application of Indian National Congress treating it as meritless.
