Direct Tax Weekly Round-Up: 30 June To 6 July, 2024

Services Provided By IMG Utilized By BCCI Outside India, Income Not Liable To Be Taxed: Delhi High Court

Case Title: International Management Group (Uk) Limited Versus Commissioner Of Income Tax-2, International Taxation, New Delhi

The Delhi High Court has held that services provided by International Management Group (IMG) are utilized by the Board of Control for Cricket in India (BCCI) outside India, so the income determined as Fee for Technical Services (FTS) cannot be deemed to accrue in India and therefore cannot be taxed in India.

Order Of ITSC Final And Conclusive For AY For Which Application Has Been Filed: Delhi High Court

Case Title: Pr. Commissioner Of Income Tax -Central -1 Versus Maharaji Education Trust

The Delhi High Court has held that the order of the Income Tax Settlement Commission (ITSC) is final and conclusive for a particular assessment year (AY) for which the application has been filed.

ITSC Empowered To Make Income Tax Addition: Delhi High Court

Case Title: Harsh Dhanuka HUF Versus PCIT

The Delhi High Court has held that the Income Tax Settlement Commission (ITSC) does not lack jurisdiction to make an addition, which has also been duly recorded in the terms of settlement.

AO Can't Review Its Own Order: Delhi High Court

Case Title: Aarti Fabricott Private Limited Versus Income Tax Officer, Ward 1(1), Delhi & Anr.

The Delhi High Court has held that the Assessing Officer (AO) cannot review its own order.

Himachal Pradesh High Court

Assessment Re-Opened By Dept. Based On 'Change Of Opinion'; Himachal Pradesh High Court Quashes Reassessment

Case Title: J.B.J. Perfumes Private Limited Versus Principal Commissioner of Income Tax and another

Citation: 2024 Livelaw (HP) 32

The Himachal High Court quashed the reassessment order on the grounds that the assessment was re-opened by the department based on 'change of opinion'.

Gujarat High Court

Gujarat High Court Allows Section 54 Deduction On Cash Transaction Of Sell And Purchase Of Residential Property

Citation: 2024 LiveLaw (Guj) 84

Case Title: Ashwinbhai Babubhai Dudhat Versus The Interim Board For Settlement

The Gujarat High Court has allowed the deduction under Section 54 of the Income Tax Act on the cash transaction of the sale and purchase of residential property.

Kerala High Court

Filing Appeal In Tax Matters Require Legal, Technical Assistance: Kerala High Court Condones 11 Days Delay

Citation: 2024 LiveLaw (Ker) 415

Case Title: The Meenachil Taluk Cooperative Employees Cooperative Society Limited Versus Commissioner Of Income Tax (Appeals)

The Kerala High Court, while condoning the delay of 11 days, observed that filing an appeal in tax matters may require legal and technical assistance.

Transfer Of Depreciable Capital Assets Attracts Capital Gains Tax: Kerala High Court

Citation: 2024 LiveLaw (Ker) 414

Case Title: PVR Tourist Home Versus CIT

The Kerala High Court has held that the transfer of the depreciable capital assets attracted capital gains tax under Section 45(4) of the Income Tax Act, in the absence of distribution of any capital asset among the partners following a dissolution of the appellant firm.

ITAT

Section 80P(2)(d) Deduction Allowable To Co-operative Society On Interest Earned From Co-operative Bank: Delhi ITAT

Case Title: The Janta Adarsh Co-operative Thrift & Credit Society Ltd. Versus ITO

The Delhi bench of Income Tax Appellate Tribunal (ITAT) has held that the deduction under Section 80P(2)(d) of the Income Tax Act is allowable to the co-operative society on interest earned from co-operative banks.

Licence Fees Received Towards Live Transmissions Of Cricket Matches Held In Australia, Not Taxable In India As Royalty: Delhi ITAT

Case Title: Cricket Australia Versus ACIT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the licence fees received by the assessee towards live transmissions of cricket matches held in Australia are not taxable in India as royalty.