Recovery Action Against Company Directors Cannot Be Initiated If Status Of Assessee Is Non-Existent: Madras High Court

The Madras High Court ruled that recovery actions against the directors of a company cannot be initiated if the status of the assessee is non-existent. The Division Bench of Justices Anita Sumanth and G. Arul Murugan observed that “while in the case of amalgamation, it is only the apparent and outer shell of the company which is destroyed…. However, in the case of...

[S.263 IT Act] Revisionary Power Can Be Invoked When Order Meets Twin Conditions Of Being Erroneous, Prejudicial To Interest Of Revenue: Delhi HC

The Delhi High Court has held that in order to invoke Section 263 of the Income Tax Act, 1961, the Principal Commissioner must satisfy “twin conditions”, i.e. form an opinion that the order passed by the Assessing Officer is “erroneous” and “prejudicial” to the interests of the Revenue. The provision confers power of revision upon the Principal Commissioner or Commissioner,...

Cross-Examination Requests In Show Cause Proceedings Cannot Be Allowed Without A Reply From Noticee: Madras High Court

The Madras High Court stated that a request for cross-examination of a witness in a Show Cause proceeding cannot be allowed if no reply on merits has been provided by the noticee. The Division Bench of Justices R. Suresh Kumar and C. Saravanan observed that “………the question of entertaining an application for cross-examination of the witnesses without any reply on merits by...

Hotel Replacing Damaged Furniture, Carpets Is Current Expenditure Allowable U/S 37 Income Tax Act: Telangana HC

The Telangana High Court has held that the expenditure incurred by a hotel on replacement of damaged items is a current expenditure, allowable under Section 37 of the Income Tax Act, 1961. Section 37 of Income Tax Act states that any business expenditure, excluding capital expenditure and the individual's personal expenses, that is spent for the business's operations shall be...

[Tamil Nadu General Sales Tax] Assessee Liable For Tax On Proceeds From Sale Of Unredeemed Articles By Auctioneers: Madras High Court

The Madras High Court stated that assessee is liable to tax on consideration received from sale of unredeemed articles by auctioneers. The Division Bench of Justices Anita Sumanth and G. Arul Murugan observed that “the levy of penalty under Section 12(3)(a), in the case of non-filing of returns, is, automatic. Admittedly, the assessee has not filed the returns and hence, the basis...

Amount Received In Advance For Services To Be Treated As Income Of Assessee, Chargeable Under Income Tax: Madras High Court

The Madras High Court ruled that any amount received in advance for services should be treated as the income of the assessee and is, therefore, subject to income tax. The Division Bench of Justices R. Suresh Kumar and C. Saravanan observed that “if “Accounting Standards” are properly applied by an assessee, the “accounting income” for the payment of income tax will...

Entry Made In Dispatch Register Is Not Primary Evidence To Prove Service Of Notice On Assessee: Orissa High Court

The Orissa High Court has made it clear that an entry in the dispatch register maintained by the Revenue is not primary evidence to show service of notice on an assessee. In the case at hand, Petitioner-assessee was aggrieved by rejection of application made under section 154 in Income Tax Act, 1961 for rectification. Petitioner was issued a notice for scrutiny assessment...

Owner Of Electric Vehicle Purchased Prior To October 14, 2022 Can't Seek Refund Of Tax Citing Subsequent Exemption Notification: Allahabad HC

The Allahabad High Court has held that the owner of an electric vehicle which was purchased prior to October 14, 2022 cannot seek refund of tax citing a subsequent notification exempting the payment of One Time Tax. Petitioner had sought refund of One Time Tax paid in respect of his Hybrid Vehicle purchased on October 13, 2022. The relief was sought on the strength of...

TDS Deposited In Wrong PAN By Employer: Gauhati HC Denies Interest U/S 244A Of IT Act, Says It Applies Only When Refund Is Delayed By Dept

The Gauhati High Court has made it clear that interest on refund under Section 244A of the Income Tax Act, 1961 applies only to those cases where refund is delayed by the Income Tax Department. Justice Devashis Baruah thus declined interest to a construction contractor, whose TDS was deposited in the wrong PAN number by the Defence Ministry's Border Roads Organisation. The bench...

GST | Assessee Entitled To Fresh Notice If Initial Notice U/S 73 Was Missed Due To Being Uploaded Under 'Additional Notices' Tab: Allahabad HC

The Allahabad High Court has held that an assessee is entitled to fresh notices demanding unpaid tax or short tax under Section 73 of the Goods and Service Tax Act, 2017, if the initial notices were not duly communicated to the assessee. A division bench of Chief Justice Arun Bhansali and Justice Vikas Budhwar relied on Ola Fleet Technologies Pvt. Ltd. v. State of UP (2024)...

[Income Tax] Assessing Authority Can't Reassess Prior Years Without Inquiry While Determining Relevant Year's Assessment: Kerala High Court

The Kerala High Court stated that while determining the assessment of relevant years assessing authority cannot determine the assessment for earlier years without enquiry. The Division Bench of Justices A.K. Jayasankaran Nambiar and Syam Kumar V.M. observed that “…….we fail to understand how the assessing authority, as well as the First Appellate Authority, while...

Consequential Order Passed By Assessing Authority Beyond Terms Of Remand By Commissioner Is Unacceptable: Kerala High Court

The Division Bench of Kerala High Court comprising Justices A.K. Jayasankaran Nambiar and Syam Kumar V.M. observed that “the concern of the Assessing Authority, while passing a consequential order, has to be limited to those specific issues that have been remanded to it for consideration by the Commissioner………..” Section 263 of the Income Tax Act, 1961 empowers the...