Expression “Yes” By PCIT Couldn't Be Considered A Valid Approval U/s 151 Of Income Tax Act: Delhi High Court

Case Title: The Pr. Commissioner Of Income Tax -7 Versus Pioneer Town Planners Pvt. Ltd.

The Delhi High Court has held that the expression “yes” could not be considered to be a valid approval under Section 151 of the Income Tax Act.

Assessment Order Passed Beyond Time Limit Prescribed U/s 153 Merits To Be Quashed: Delhi High Court

Case Title: Readers Digest Book and Home Entertainment (India) Pvt Ltd vs DCIT

Finding that no valid demand stood raised against the Petitioner / assessee prior to Sep 30, 2021, the Delhi High Court directed the Respondents / Revenue to re-compute the refund payable to the petitioner along with statutory interest which shall run up to the date of remittance in accordance with law.

ITAT Must Recall Its Order U/s 254 To Correct Manifest Error Apparent On Record: Delhi High Court

Case Title: PCIT vs Fiserv India Private Ltd.

While condoning the delay of 86 days by Revenue in filing the appeal, the Delhi High Court dismisses Revenue's appeal filed against the Tribunal's order in miscellaneous application filed by assessee to review its earlier order u/s. 254(2) of the Income tax Act.

Upward Adjustments Of Income As Proposed By TPO Stands Withdrawn: Delhi High Court Applies Rule Of Consistency To Adopt TNMM

Case Title: Pr. CIT vs Oriflame India Pvt Ltd

Finding that the matter has been resolved and Modicare Limited has been excluded from the list of comparable to determine the ALP, the Delhi High Court dismisses Revenue's appeal against ITAT's decision in case of assessee engaged in sale of a wide variety of skin care and cosmetic products

Services Provided By Irish Company To Its Indian Counterpart Not Technical Services: Delhi High Court Quashes Order Denying Nil/Lower TDS certificate

Case Title: SFDC Ireland Limited Versus Commissioner Of Income Tax

The Delhi High Court has quashed the order denying Nil or lower TDS certificates and held that the services provided by the assessee, Irish Company, to its Indian counterpart were not technical services.

ITO Can't Retain Amount Deposited By Taxpayer Without Framing Final Assessment Order During Period Of Stay: Delhi High Court

The Delhi High Court allowed assessee's petition seeking refund of amounts which was deposited towards part payment of demand raised in pursuance of assessment order for AYs 2008-09 and 2009-10.

Bombay High Court

Exgratia Bonus Paid By Indian Express To Employees Over And Above Eligible Bonus Is Allowable As Business Expenditure: Bombay High Court

Case Title: Indian Express Newspapers (Bombay) Ltd. Versus CIT

The Bombay High Court has held that exgratia bonuses paid to employees over and above the eligible bonus under the Payment of Bonus Act are allowable as business expenditures.

Harshad Mehta Scam: AO Can't Assess Additions Again If Deleted By CIT(A) In First Round Of Proceedings; Bombay High Court

Case Title: CCIT(OSD)/Pr. Commissioner of Income Tax, Central Versus Bhupendra Champaklal Dalal

The Bombay High Court in the Harshad Mehta Scam case, while upholding the ITAT's ruling, held that the Assessing Officer could not have assessed additions again since the CIT (A) had deleted the same in the first round of proceedings and the concerned matters have attained finality.

Interest Paid On Borrowed Funds For Investment In Shares Is Hit By Sec 14A If Dividend Received On Shares Was Not Part Of Total Income: Bombay HC

The Bombay High Court recently held that the interest paid on borrowed funds in respect of investment in shares of two companies was hit by Section 14A of the Act inasmuch as the dividend received on such shares did not form part of the total income.

Madras High Court

CBDT's Digital Evidence Investigation Manual Is Mandatory For Income Tax Dept. While Conducting Searches, Seizing Electronic Evidence: Madras High Court

The Madras High Court has held that it is mandatory for the income tax department to follow the Digital Evidence Investigation Manual issued by the Central Board of Direct Taxes (CBDT) while conducting searches and seizing electronic evidence.

Internal Arrangement W/r/t Transfer Of Assessment Proceedings Not Material For Ascertaining Limitation: Madras High Court

Finding that the period of one month expired on July 31, 2022, whereas the assessment order came to be issued on Mar 25, 2023, the Madras High Court Held the assessment order issued beyond time-limit specified in Sec.144C(13) as unsustainable.

Any Order Passed By Referring To Sec 144(C)(1) Should Be Construed Only As Draft Assessment Order: Madras High Court

While dismissing assessee's petition, the Madras High Court held that the impugned assessment order passed by the respondent/ AO is only a draft assessment order in which case, the petitioner/ assessee should approach the appropriate forum and address their grievance in terms of Section 144 (C) of the Income Tax Act.

AO Competent To Invoke Section 154 Jurisdiction If Glaring Mistake Of Fact/Law Is Committed While Passing Assessment Order: Madras High Court

The Madras High Court has held that the Assessing Officer is not incompetent to invoke the jurisdiction under Section 154 of the Income Tax Act, 1961, if such officer had committed a glaring mistake of fact or law while passing the assessment order.

Calcutta High Court

Tested Party Normally Should Be Least Complex Party To Controlled Transaction, Reiterates Calcutta High Court

The Calcutta High Court reiterated that the selection of the tested party is to further the object of the comparability analysis by making it less complex and requiring fewer adjustment.

Himachal Pradesh High Court

Himachal Pradesh High Court Declares Water Cess Levied By State Government On Hydropower Generation As Unconstitutional

Case Title: N.H.P.C. Ltd. Versus State of H.P. & ors.

The Himachal Pradesh High Court has declared the levy of water cess by the state government on hydropower generation unconstitutional.

Rajasthan High Court

Generation Of Surplus From Year To Year Cannot Be Bar For Trust In Seeking Section 10 (23C) (vi) Exemption: Rajasthan High Court

The Rajasthan High Court has held that the assessee is being run as a trust solely for educational purposes, thus seeking the exemption under Section 10(23C)(vi) of the Income Tax Act of 1961, and the generation of surplus from year to year cannot be a bar in seeking such an exemption under the provision of law.