Direct Tax Half Yearly Digest: January To June 2024 - PART I

Supreme CourtTaxpayer Entitled To Hearing On Merits If Appeals Were Dismissed By HC For Delay In Filing Paper-Book: Supreme CourtCase Title: Herbicides India Limited vs ACIT2024 LiveLaw (SC) 44While setting aside the Rajasthan High Court orders, the Supreme Court restored the assessee's appeals by condoning the delay in filing the paper-book before High Court and observed that the assessee is entitled to have his appeals heard on merits.Tax Return Filed Without Regular Books Of Account Not Invalid, Burden To Call For Curing Of Defects On Assessing Officer: Supreme CourtCase Title: M/S Mangalam Publications, Kottayam V. Commissioner Of Income Tax, Kottayam Citation : 2024 LiveLaw (SC) 55While deciding the question as to whether reopening of a concluded assessment under Section 147 of the Income Tax Act (“Act”) was legally sustainable or not, the Supreme Court recently held that for the purposes of tax assessment, an assessee's obligation is limited to making a "full and true" disclosure of all "material" or primary facts, and thereafter, the burden shifts on the assessing officer. If a return is defective, it is upto the officer that he intimate the assessee in order that defects may be cured. But if the officer fails to do so, the return cannot be called defective.Reopening Of Income Tax Assessments : Supreme Court Refuses To Interfere With Delhi High Court's Guidelines To Tax Dept.Case Title: Asst. Commissioner Of Income Tax Versus Sabh Infrastructure Ltd.The Supreme Court has refused to interfere with a 2017 Delhi High Court judgment which issued a set of guidelines to the Income Tax Department regarding the reopening of assessments.TDS Under S.194-H Income Tax Act Won't Apply To Business Transactions Where Assessee Is Not Responsible For Paying Income : Supreme CourtCase Title: Bharti Cellular Limited v. Assistant Commissioner of Income Tax and AnotherCitation : 2024 LiveLaw (SC) 176In 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.Interest-Free/Concessional Loans To Bank Employees Taxable As Perquisite : Supreme Court Upholds Rule 3(7)(I) Of Income Tax RulesCase Name- All India Bank Officers' Confederation Vs The Regional Manager, Central Bank Of India & OthersCitation : 2024 LiveLaw (SC) 352A Division bench of the Supreme Court comprising of Justice Sanjiv Khanna and Justice Dipankar Datta while deciding a Civil Appeal in the case of All India Bank Officers' Confederation Vs The Regional Manager, Central Bank Of India & Others has held that Rule 3(7)(i) of the Income Tax Rules, 1962 is not violative of Article 14 of the Constitution of India and provision of interest free/concessional loan benefits provided by banks to bank employees shall be taxable as a perquisite under Section 17 of the Income Tax Act, 1961.Delhi High CourtTransactions Concerning Mutual Funds Not In The Nature Of Investment And Not Motivated By Trade: Delhi High CourtCase Title: PCIT Versus M/S Wig InvestmentCitation: 2024 LiveLaw (Del) 60The Delhi High Court has held that transactions concerning mutual funds were in the nature of investment and not motivated by trade.Fees Received For Sub-Licensing Sports Broadcasting Rights Attributable To 'Live Feed', Not Taxable As Royalty: Delhi High CourtCase Title: The Commissioner Of Income Tax - International Taxation -1 Versus Fox Network Group Singapore Pte Ltd.Citation: 2024 LiveLaw (Del) 73The Delhi High Court has held that fees received by assessees for sub-licensing sports broadcasting rights attributable to 'live feed' is not taxable as royalty.Investment In Shares In Indian Subsidiary 'Capital Account Transaction', Not Income: Delhi High CourtCase Title: M/S Angelantoni Test Technologies Srl V. Assistant Commissioner Of Income TaxCitation: 2024 LiveLaw (Del) 25The Delhi High Court has held that investment in shares by a company in its Indian subsidiary is a “capital account transaction” which does not give rise to any income. Therefore, the same cannot be treated as income for taxation.Delhi High Court Directs Income Tax Commissioner To Accept BCI's Form No.10 After Condoning DelayCase Title: Bar Council Of India Versus Commissioner Of Income Tax (Exemption)Citation: 2024 LiveLaw (Del) 27The Delhi High Court has directed the income tax commissioner to accept Form No. 10 submitted by the Bar Council of India (BCI) after condoning the delay.Income Tax: Denial of 80lA Benefit In 4th Year Of Assessment, U-Turn By Department Is Not Justified: Delhi High CourtCase Title: Pr. Commissioner Of Income Tax Versus M/S Bt Global Communications India Pvt. Ltd.Citation: 2024 LiveLaw (Del) 34The Delhi High Court has held that the Principal Commissioner Income Tax (PCIT) wrongly invoked jurisdiction under Section 263 of the Income Tax Act and fell in...

Direct Tax Half Yearly Digest: January To June 2024 - PART I

Mariya Paliwala

Tags