Delhi High Court
Income Tax Act | Reassessment Notice To Merged Entity U/S 148A(d) Not Invalid Merely Because SCN Was Issued In Name Of Ceased Entity: Delhi HC
The Delhi High Court has made it clear that merely because notice under Section 148A(b) of the Income Tax Act, 1961 is issued in the name of an amalgamating company which had ceased to exist, subsequent notice issued under Section 148A(d) in the name of merged entity cannot be declared invalid. A division bench of Acting Chief Justice Vibhu Bakhru and Justice Swarana Kanta Sharma held, “The nature of proceedings under Section 148A of the Act is to enable the AO to form an opinion...
AO Bound To Ascertain 'Correctness' Of Information Available Against Assessee, 'Decide' Whether It Is Sufficient To Reopen Assessment: Delhi HC
The Delhi High Court has turned down the contention that an Assessing Officer, at the stage of passing an order under Section 148A(d) of the Income Tax Act, 1961 for initiation of reassessment proceedings, is not required to form any opinion as to the genuineness or veracity of the information available against an assessee. A division bench of Acting Chief Justice Vibhu Bakhru and Justice Swarana Kanta Sharma observed, “As is clear from the plain language of Section 148A(d) of the...
Delay In Issuing Requisition U/S 132A Of Income Tax Act Due To Investigation By Department Can Be Condoned: Delhi HC
The Delhi High Court has held that the delay in issuing requisition under Section 132A of the Income Tax Act, 1961, can be condoned if the same is explained by the Authority concerned. The provision contemplates powers to requisition books of account, etc. It stipulates that where a search has already been conducted by any authority under any other law, the Income Tax authority shall authorize the Assessing Officer to make requisition to that authority to deliver books of accounts and...
Customs Dept Cannot Encash Bank Guarantee Furnished By Trader During Pendency Of Appeal If Pre-Deposit Is Made: Delhi HC Affirms
Based on a circular issued by the Finance Ministry, the Delhi High Court has affirmed that the Customs Department cannot encash the bank guarantee furnished by a trader, whose import/export transactions are in dispute, if the latter has made a pre-deposit with his appeal against the demand and penalty. A division bench of Justices Prathiba M. Singh and Dharmesh Sharma observed, “A perusal of the Circular and the clauses extracted above would show that no coercive measures can be...
Income Tax Dept Can Invoke S.159 When Reassessment Notice Was Issued During Lifetime Of Deceased Assessee: Delhi HC
The Delhi High Court has held that Section 159 of the Income Tax Act can be invoked to proceed against the legal representative of an assessee, only in cases where the reassessment notice was issued to the assessee during his lifetime, not after. When a person dies, the provision makes his legal representative liable to pay any sum which the deceased would have been liable to pay if he had not died. Sub-section (2) thereof clearly stipulates that any proceeding taken against the...
Assessee Must Clearly Establish 'Movement Of Goods' To Defend Allegations Of Accommodation Entries: Delhi HC
The Delhi High Court has made it clear that merely producing transaction documents to establish that payments were made to an entity is not sufficient to defend the allegations of accommodation entries. A division bench of Acting Chief Justice Vibhu Bakhru and Justice Tushar Rao Gedela observed, “The documents provided by the petitioner would establish that the payments had been made to Shri Ajay Gupta through banking channels. However, the same does not address the allegation of...
No Bar To Avail Remedy U/S 9 Of Arbitration Act Even Against Non-Parties To Subject Matter Of Dispute: Delhi High Court
The Delhi High Court bench of Justice Neena Bansal Krishna has held that the Plaintiffs are not barred from availing the remedy under Section 9 of the Arbitration and Conciliation Act, 1996 even against individual(s)/entities who are not party to the Family Settlement out of which the dispute arose. The application for ad interim injunction was held to be not maintainable due to pending Arbitration proceedings in regard to the Family Settlement and a pending Application under Section...
Uploading Information On Insight Portal Not A Substitute For Handing Over Material To AO For Non-Searched Entity U/S 153C Of IT Act: Delhi HC
The Delhi High Court has held that the provision under Section 153C of the Income Tax Act, 1961 for the Assessing officer of a searched person to record 'satisfaction' and handover documents regarding undisclosed income of another person cannot be substituted by merely uploading such information on the Department's insight portal. The provision stipulates that where the Assessing Officer of the person searched is satisfied that records of undisclosed assets relate to another person,...
Customs Dept Should Serve Notices By Email In Addition To Post, Will Prevent Delay And Non-Appearances: Delhi High Court
The Delhi High Court recently called upon the Customs Department to make use of Section 153(c) of the Customs Act, 1962 which empowers it to serve notices through email. A division bench of Justices Prathiba M. Singh and Amit Sharma said such an approach will prevent delay and non-appearances, leading to expeditious disposal of matters. “In the opinion of this Court, the provision itself makes it clear that notices can be sent by email…The Customs Department ought to in future...
Reassessment U/S 150 Of Income Tax Act Can't Be Initiated On Mere 'Incidental' Findings Of Appellate Authority: Delhi High Court
The Delhi High Court has held that Section 150 of the Income Tax Act, 1961 can be invoked for reassessment only to give effect to a 'conclusive finding' by an appellate authority regarding escapement of income by an assessee. Section 150 makes provision for cases where assessment is in pursuance of an order on appeal, etc. It empowers an Assessing Officer to issue reassessment notice under Section 148, to give effect to any finding or direction contained in an order passed by any...
Commissioner Cannot Use Its Power U/S 107(2) CGST Act To Review Order Passed By Appellate Authority: Delhi High Court
The Delhi High Court has made it clear that a Commissioner under the Central Goods and Services Tax Act 2017 cannot, in purported exercise of its powers under Section 107(2), sit in appeal over an order passed by the Appellate Authority. Section 107(2) empowers the Commissioner to call for and examine the record of any proceedings in which an adjudicating authority has passed any order, for the purpose of satisfying himself of its legality. A division bench of Justices Yashwant Varma...
Designated Authority Under Direct Tax Vivad Se Vishwas Act Cannot Reopen Assessment After Issuance Of Final Certificate: Delhi HC Reiterates
The Delhi High Court has reiterated that a designated authority under the Direct Tax Vivad Se Vishwas Act, 2020 cannot reopen an assessment after a final certificate is issued under Section 5 of the Act and all disputes with regard to the 'tax arrear' stand concluded. Section 5 stipulates a designated authority to determine the amount payable by a declarant under the Act within 15 days and grant a certificate (in Form no.5) containing particulars of the tax arrear and the amount payable...