When Application U/S 33 Of A&C Act Is 'Disguised Review', Limitation For Challenging Award U/S 34 Cannot Be Extended: Delhi HC

The Delhi High Court bench of Justice Subramonium Prasad has held that if the application under Section 33 of the Arbitration and Conciliation Act, 1996 is purely an application for review, then the person seeking to challenge the award cannot avail of the time taken between the filing of the application under Section 33 and the date of disposal for calculating the period to challenge the award. The court stated that Section 33 cannot be allowed to be used as a tool to prolong limitation...

S.153C Income Tax Act | Two-Tier Satisfaction Of Assessing Officers Of Both Searched & Non-Searched Entity Needed Even Prior To 2015 Amendment: Delhi HC

The Delhi High Court has held that even though Section 153C of the Income Tax Act, 1961 did not in its original form prescribe two-tier satisfaction of Assessing Officers of both the searched and non-searched entity for initiating reassessment, the same cannot be deemed absent.Section 153C allows the Revenue department to proceed against a party other than the person who is being searched, if incriminating articles belonging to the other person are found during the search.The provision was...

Arbitral Award Not Signed By All Members Of Tribunal Can Be Set Aside If Reasons For Omission Of Missing Signature Are Not Stated: Delhi High Court

The Delhi High Court Bench of Justice Prateek Jalan has observed that the signature of all members of the arbitral tribunal should be available on the award as the signing of an award is not a ministerial act but a substantive requirement. It was further observed that if the signature of any member of the tribunal is omitted, then the reasons should be stated as this requirement is referable to the need to ensure that all members of the tribunal have has an opportunity to participate in...

[S.292B Income Tax Act] Inadvertent Mistakes In Reassessment Can Be Saved But Assessment Order Overlooking Apparent Error Cannot: Delhi HC

The Delhi High Court has made it clear that Section 292B of the Income Tax Act, 1961 cannot be used to save an assessment order passed by overlooking errors apparent on face of the record.The provision provides that no notice or assessment or any proceedings can be deemed to be invalid merely for the reason of any mistake, defect or omission in such notice, assessment or other proceedings.A division bench of Chief Justice Devender Kumar Upadhyay and Justice Tushar Rao Gedela said while the...

Enterprise Manufacturing Specified Items In Designated States Can Seek Tax Deduction U/S 80IC Income Tax Act Without Agreement With Govt: Delhi HC

The Delhi High Court has held that Section 80IC of the Income Tax Act, 1961, which contemplates tax incentives for enterprises operating in specific industries and locations in India, does not require such enterprises to enter into an agreement with the Government.In doing so, a division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar distinguished the provision from Section 80IA, whereunder agreement with the Centre, State or local authority is a pre-condition for claiming...

Customs Department's Baggage Rules Have 'Limited Application' On Foreign Tourists: Delhi HC Orders Release Of Russian National's Gold Chain

The Delhi High Court has held that the Baggage Rules 2016 which are framed under the Customs Act 1962 to ensure that every passenger entering India passes through a Customs check has limited application on foreign tourists coming to India.While holding so, a division bench of Justices Prathiba M. Singh and Dharmesh Sharma ordered the release of a Russian national's gold chain, valued at about Rs. 7 lakhs, which was confiscated by the Customs Department when he arrived in India.It observed, “It...

Can't Presume Pending Investigation For Disqualification Under 'Sabka Vishwas Scheme' When Proof Of Service Of Notice Not Available: Delhi HC

The Delhi High Court recently granted relief to a trader whose application for availing the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 over service tax dues was declined by the GST Department “without providing any reason”.A division bench of Justices Prathiba M. Singh and Dharmesh Sharma observed that in the absence of proof of service of notice upon the trader, prior to his making an application for dispute resolution, it cannot be presumed that any investigation was pending...

DTAA | Subsidiary Of A Company Does Not Ipso Facto Constitute Its Permanent Establishment: Delhi High Court

The Delhi High Court has held that a subsidiary or an entity which is substantially controlled by another entity in a contracting State does not by itself become a Permanent Establishment (PE) of that other entity.Citing Article 5 of the India-Finland Double Taxation Treaty, a division bench of Justices Yashwant Varma and Ravinder Dudeja observed,“There is no general presumption in law that a subsidiary can never be acknowledged to be a PE. This since Article 5(8) itself merely states that the...

CBDT Cannot Impose Limitations To Extinguish Rights Granted Under Income Tax Act: Delhi High Court

Recently, the Delhi High Court held that Central Board of Direct Taxes (CBDT) cannot impose limitations to extinguish rights granted under Income Tax Act, 1961. The Court held that the wide powers granted to the CBDT are not for extinguishing a right that is conferred by the Act. Accordingly, the Court Circular No. 07/2007 dated 23 October 2007 issued by the CBDT to the be ultra vires the Income Tax Act.Circular No. 07/2007 dated 23 October 2007 issued by the Central Board of Direct Taxes...

Man Accused Of Taking ₹2 Crore Dowry Seeks Income Tax Dept Probe Into Wife's Family, Delhi High Court Rejects Plea

The Delhi High Court has rejected the writ petition filed by a man, seeking an inquiry into the finances of his wife and her family who claimed to have paid him ₹2 crores dowry, in addition to spending crores of rupees on their wedding.A division bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela observed that the complaint stemmed from a matrimonial feud and the man was unable to indicate the provision under which such a complaint was made to the Income Tax...

MSMED Act Will Prevail Over Arbitration Act In Disputes Pertaining To A Party Which Is An MSME: Delhi High Court

The Delhi High Court Bench of Justice Manoj Kumar Ohri has reiterated that the Arbitration and Conciliation Act, 1996 is a general law governing the field of arbitration whereas the MSMED Act, 2006 governing a very specific nature of disputes concerning MSMEs, is a specific law and being a specific law would prevail over Arbitration and Conciliation Act, 1996. Background Facts The Petitioner had engaged the Respondent for providing certain IT services in a project awarded to the...

Delhi High Court Quashes ₹2000 Crore Tax Reassessment Notice Against Maruti Suzuki For Alleged Escapement Of Income In AY 2009-10

The Delhi High Court has quashed the reassessment action initiated by the Income Tax Department against car manufacturer Maruti Suzuki India Ltd for alleged escapement of income in the Assessment Year 2009-10.A division bench of Justices Yashwant Varma and Ravinder Dudeja observed that the company had made full and true disclosure of all facts in the course of the assessment and the Department did not have jurisdiction to reopen the assessment under Sections 147/148 of the Income Tax Act,...