Direct Tax Weekly Round-Up: 4 To 10 August 2024

Amendment In Section 153C Income Tax Act Can't Be Interpreted For Revival Of Already Time Barred Proceedings: Delhi High Court

Case Title: PCIT Versus Karina Airlines International Ltd.

The Delhi High Court has held that the power to assess the block period of ten years would clearly not be attracted in the case of a search that had taken place prior to April 1, 2017.

Section 80-IA(7) Requirement Deems Fulfilled When Audit Report Filed At Any Time Before Framing Of Assessment: Delhi High Court

Case Title: The Associated Chambers Of Commerce And Industry Of India Versus Deputy Commissioner Of Income Tax & Ors.

The Delhi High Court has held that the assessee to be eligible and entitled to exemptions under Section 11(1) and 11(2) of the Income Tax Act and the alleged ground of non-filing of audit report along with return of income, which was at the best procedural omission, could never be an impediment in law in claiming the exemption.

Reopening Based On Entirely New Material Deprives Taxpayer's Right To Object To Re-Assessment: Delhi High Court

Case Title: Banyan Real Estate Fund Mauritius Verses Assistant Commissioner Of Income Tax Circle International Tax

The Delhi High Court held that a decision to reopen or reassess cannot be based or sought to be justified either on additional reasons or those which may be supplied subsequently while disposing of objections preferred by an assessee.

Resolution Plan Approved Under IBC, Income Tax Reassessment Not Sustainable: Delhi High Court

Case Title: Asian Colour Coated Ispat Limited Versus ACIT

The Delhi High Court has quashed the income tax assessment order and held that the statutory injunct which would operate in respect of any claim which may pertain to a period prior to the Resolution Plan being approved.

Revenue Department Can't Take Fresh Ground Which Was Not Disclosed To Taxpayer, While Passing Re-assessment U/s 148A(D): Delhi HC

Case Title: Tosca Master vs. Deputy CIT

Finding major flaw in the fundamental premise of the Revenue Department that the investment made by the taxpayer in shares amounted to “income” which has escaped assessment, the Delhi High Court quashed the reopening proceeding initiated u/s 148A.

Settlement Consideration Liable To Be Recognized As “Capital Gains” And Not “Profits In Lieu Of Salary”: Delhi High Court

Case Title: Akash Poddar Versus ACIT

The Delhi High Court has held that the settlement consideration is liable to be recognized as capital gains and not “profits in lieu of salary.”.

Bombay High Court

Income Tax Additions Can't Be Made On The Basis Of Superficial Inquiry: Bombay High Court

Case Title: Pr. Commissioner Of Income Tax-1 Versus SVD Resins & Plastics Pvt. Ltd.

The Bombay High Court has directed to constitute a committee to decide the declaration that was filed by the petitioner on 30th December 2019 and, on or before 30th September 2024, dispose of the declaration in accordance with law.

Chhattisgarh High Court

Unexplained Cash Credited To Assessee's Book Would Be Treated As Taxable Income Under Income Tax Act, 1961: Chhattisgarh High Court

Case Details: M/s. Sumit Global Pvt. Ltd Versus The Income Tax Officer-1 Raigarh, TAXC No. 120 of 2024

Citation: 2024 LiveLaw (CH) 16

The Chhattisgarh High Court reiterated a settled position of law that the assessee would be liable to pay the income tax on the unexplained cash credited into its books if the assessee fails to prove the source of a sum of money found to have been received by an assessee.

Decision Of Reassessment At Dictation Of Higher Authorities Leads To Biased Outcome: Chhattisgarh High Court

Case Title: Deputy Commissioner of Income Tax (Assessment) Special Range Bhilai District Durg Chhattisgarh Versus Surendra Kumar Jain

The Chhattisgarh High Court has held that decisions of reassessment at the dictation of higher authorities lead to biased outcomes.

Karnataka High Court

Settlement Commission's Order Accepting Explanation 'In The Spirit Of Settlement' Doesn't Require Interference: Karnataka High Court

Case Title: PCIT Versus Smt. Umah Agarwal

The Karnataka High Court has held that the Settlement Commission, by accepting the explanation 'in the spirit of settlement', cannot be faulted for calling for interference in exercise of the limited jurisdiction.

Punjab & Haryana High Court

Construction Of Public Library Forms Part Of Charitable Function, Eligible For Section 80G Exemption: Punjab & Haryana High Court

Case Title: Mumukshu Mandal (Regd.) Shri Geeta Mandir, Panipat Versus Commissioner of Income Tax, Karnal and another

The Punjab and Haryana High Court has held that the construction of public libraries forms part of a charitable function and is eligible for the exemption under Section 80G of the Income Tax Act.