Audit Objection Alone Cannot Justify Reopening Of Income Tax Assessment Without Fresh Material: Delhi High Court

The Delhi High Court on Monday held that a completed income tax scrutiny assessment can't be reopened merely on the basis of an audit objection when no fresh tangible material has come to the Assessing Officer's notice.A Division Bench of Justice V. Kameswar Rao and Justice Vinod Kumar observed,“reopening the assessment on the basis of the objections of the Audit Party, shall in the above facts, amount to reviewing the assessment already made, as the relevant material was available with the...

Delhi High Court Slams IT Officer For Relying On Set-Aside Order, Directs Issue Of Nil TDS Certificate

The Delhi High Court has strongly criticised the Income Tax Department for relying on a long-set-aside assessment order to deny withholding tax relief, holding that such an approach amounts to a revenue-driven exercise contrary to law and judicial discipline.A Division Bench of Justices Dinesh Mehta and Vinod Kumar set aside the order passed under Section 197 of the Income Tax Act, 1961, which had directed deduction of tax at 15% instead of issuing a nil withholding certificate to a a UK-based...

Delhi High Court Temporarily Restrains Deepika Padukone's 82°E From Using “Lotus Splash” Mark In Dispute With Lotus Herbals

The Delhi High Court has issued a temporary injunction restraining actress Deepika Padukone's DPKA Universal Consumer Ventures Private Limited, the entity behind the skincare brand 82°E, from manufacturing, advertising or selling its "Lotus Splash" facial cleanser until final disposal of the suit. The Division Bench comprising Justice V. Kameswar Rao and Justice Vinod Kumar held that the use of the mark "Lotus Splash" by the defendants was not merely descriptive of an ingredient but was being...

Income Tax | Duty Drawback Not Eligible for 80-IC Relief ; Taxes on Raw Materials Must Be Set Off: Delhi High Court

The Delhi High Court has held that while duty drawback receipts are not eligible for deduction under Section 80-IC of the Income Tax Act, the excise and customs duties paid by a taxpayer on raw materials are required to be deducted/subsumed from the duty drawback while recomputing income in the facts of the case.A Division Bench of Justices Dinesh Mehta and Vinod Kumar partly allowed the appeal filed by Narayan Industries against ITAT order denying its claim for deduction under Section 80-IC in...

Reassessment Must Be Based On AO's Independent 'Reason To Believe,' Not Borrowed: Delhi High Court

The Delhi High Court has dismissed the Income Tax Department's appeals against NTPC Ltd., holding that reassessment proceedings cannot be initiated merely on the basis of an audit objection and that the statutory requirement of “reason to believe” must be from independent satisfaction of the Assessing Officer (AO).A Division Bench of Justices Dinesh Mehta and Vinod Kumar observed,“the provision expressly used the language 'reason to believe' and the same has been interpreted by Hon'ble the...

Delhi High Court Grants Bail In NDPS Case, Says Customs Detention Without Magistrate's Authorisation Illegal

The Delhi High Court has recently granted bail to a foreign national accused in a narcotics smuggling case, holding that once contraband was partially recovered at the airport, Customs authorities were bound to arrest him and produce him before a Magistrate, and that his continued detention without judicial authorisation rendered the subsequent arrest illegal.Justice Manoj Jain observed, “The contraband contained in 19 capsules, suspected to be cocaine, was seized, and thus offence stood...

Delhi High Court Affirms ITAT View That Excise Duty Refund Under Kutch Incentive Scheme Is Capital Receipt

The Delhi High Court has upheld an order of the Income Tax Appellate Tribunal (ITAT) holding that excise duty refund received by Jindal SAW Ltd. under the Kutch district incentive scheme is a capital receipt and not taxable as income.While dismissing the Income Tax Department's appeal, the Division Bench of Justices Dinesh Mehta and Vinod Kumar agreed with ITAT's view that the refund was granted under the Incentive Scheme 2001 for Economic Development of Kutch District, notified by the...

Delhi High Court Reiterates Limited Interference In Appeals Against Interim IPR Orders

The Delhi High Court has reiterated that appellate courts must remain highly circumspect before overturning discretionary orders issued by commercial courts in intellectual property matters. The bench comprising Justice C. Hari Shankar and Justice Om Prakash Shukla dismissed an appeal in limine by the owners of the “Golden Eagle” brand against a rival “Golden Kingfisher” product, upholding the decision of the Commercial Court at Tis Hazari to refuse ex parte ad-interim injunction and...

Delhi High Court Quashes GST Demand Order For Failing To Consider IBC Moratorium Plea

The Delhi High Court has set aside a GST demand order passed against a Finance company, holding that the tax authorities failed to consider the company's specific plea that proceedings were barred due to a moratorium under the Insolvency and Bankruptcy Code, 2016 (IBC).A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul quashed the order passed by the Assistant Commissioner of CGST, which had confirmed a demand of Rs. 67.5 lakh towards alleged ineligible input tax credit (ITC),...

Customs Act | Once SCN States Market Value Of Seized Goods, Burden Lies On Noticee To Disprove It: Delhi High Court

The Delhi High Court has recently held that once the market value of goods seized by the Customs is specified in a show cause notice, the burden lies on the one who recieved notice to disprove the valuation with cogent material, and a mere denial is insufficient to seek interference in appellate proceedings.A division bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul was hearing an importer's appeal challenging concurrent findings of the Customs adjudicating authority and CESTAT,...

Delhi High Court Allows Oswaal Books To Register 'ONE FOR ALL' As Trademark

The Delhi High Court on 10 February cleared the way for Oswaal Books and Learnings Private Ltd. to register “ONE FOR ALL” as their trademark, observing that the phrase is a protectable suggestive mark rather than a merely descriptive slogan. The Division Bench of Justice C. Hari Shankar and Justice Om Prakash Shukla observed: “We find that the applied mark “ONE FOR ALL” does not evoke a connect, in the mind, between the mark and books. The mark has no relation with books and can be used...

Once Arbitral Award Holder Files CIRP Claim, Execution Under Arbitration Law Not Maintainable: Delhi High Court

The Delhi High Court has recently observed that once a decree holder lodges its claim arising out of an arbitral award before the resolution professional during the corporate insolvency resolution process (CIRP), it cannot pursue parallel execution proceedings under the Arbitration and Conciliation Act.A single bench of Justice Harish Vaidyanathan Shankar delivered the ruling in a petition filed by Paharpur Cooling Towers Ltd, seeking enforcement of an arbitral award dated November 12, 2021...