Supreme Court Grants IT Dept. Liberty To File HC Appeal In Google Ireland ₹116 Crore Tax Dispute

The Supreme Court on Thursday declined to entertain the Income Tax Department's challenge to a Karnataka High Court judgment dated June 3, 2025, which had quashed assessment orders passed against Google Ireland for AYs 2009-10 and 2010-11.The Court held that the Revenue must first pursue the available intra-court appeal before the High Court. A Bench of Justices Aravind Kumar and Prasanna B. Varale dismissed the Revenue's Special Leave Petition, holding that an intra-court appeal against the...

ITAT Ahmedabad Deletes ₹20 Crore+ 14A Disallowance Against Axis Bank, Bars Mechanical Use of Rule 8D

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 20 May held that disallowance under Section 14A of the Income Tax Act cannot be made by mechanically invoking Rule 8D unless the Assessing Officer first records dissatisfaction with the taxpayer's own computation of expenditure relatable to exempt income. Judicial Member Sanjay Garg and Accountant Member Annapurna Gupta allowed the appeal filed by Axis Bank Limited and directed deletion of the disallowance made under Section...

ITAT Bangalore Allows 80P Deduction On Interest Income Earned From Co-Operative Bank Deposits

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) on 20 May held that a co-operative credit society is entitled to deduction under Section 80P of the Income Tax Act on interest income earned from deposits placed with co-operative banks, as the income remains attributable to its business of providing credit facilities to members. A single-member Bench comprising Vice-President Shri Prashant Maharishi also held that transactions with nominal members do not disentitle the society...

ITAT Delhi Deletes ₹99.50 Crore Addition Against Baker Hughes, Finds No Permanent Establishment In India

On 27 May, the New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) held that Section 44BB of the Income Tax Act could not be invoked to tax offshore supply receipts in the absence of a Permanent Establishment (PE) in India and deleted an addition of Rs.99.50 crore made against Baker Hughes Energy Technology UK Ltd. Judicial Member Vikas Awasthy and Accountant Member Renu Jauhri observed: “The burden of establishing existence of a PE rests upon the Revenue. Not a single piece of...

ITAT Delhi Remands Cargill India's Intra-Group Services TP Dispute To TPO

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has remanded transfer pricing adjustments relating to intra-group services received by Cargill India Pvt. Ltd., after observing that the Arm's Length Price (ALP) of various services had been determined at nil without discussing the evidence produced by the taxpayer. A bench comprising Judicial Member Vimal Kumar and Accountant Member S. Rifaur Rahman and partly allowed cross-appeals filed by Cargill India Pvt. Ltd. and the Revenue for...

Trust Eligible For 80G Approval For Religious Activities If Expenditure Stays Within 5% Cap: ITAT Delhi

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 26 May held that authorities cannot deny approval under Section 80G of the Income Tax Act to a trust or institution merely because it undertakes religious activities, so long as its expenditure on such activities does not exceed five per cent of its total income in the relevant year. Judicial Member Raj Kumar Chauhan and Accountant Member Brajesh Kumar Singh allowed the appeal filed by Shri 108 Gupti Sagar Dham Jain Trust and...

Supreme Court Seeks Attorney General's Intervention Over Long-Vacant Administrative Posts In ITAT

The Supreme Court on May 26 expressed concern over longstanding vacancies in the administrative establishment of the Income Tax Appellate Tribunal (ITAT) and sought the intervention of the Attorney General for India to ensure that the posts are filled expeditiously.The petition filed by Parveen Kumar Bansal, sought directions for immediate initiation and completion of the recruitment process for vacant posts including Deputy Registrar and Assistant Registrar, besides convening long-pending...

Tax Department Cannot Force Net Asset Value Method When Taxpayer Uses Discounted Cash Flow: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 26 May dismissed the Revenue's appeal against First Class Infrabuild Pvt. Ltd. and held that the Tax Department cannot force a taxpayer to adopt the Net Asset Value (NAV) method when the law permits valuation under the Discounted Cash Flow (DCF) method for determining fair market value under Section 56(2)(viib) of the Income Tax Act. Judicial Member Satbeer Singh Godara and Accountant Member M. Balaganesh upheld the order of the...

ITAT Mumbai Quashes Bang Overseas Reassessment, Holds PCIT Sanction Invalid Under Section 151(ii)

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 25 May quashed reassessment proceedings initiated against Bang Overseas Limited, holding that the sanction for issuing notice under Section 148 of the Income Tax Act, 1961 violated Section 151(ii) of the Act. Vice President Saktijit Dey and Accountant Member Prabhash Shankar clarified that where authorities issue a notice after the expiry of three years from the end of the relevant assessment year, they must obtain approval from...

ITAT Delhi Grants Relief To Welkin Industries, Holds Form 10-IC Delay Cannot Deny 115BAA Benefit

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 26 May held that a procedural delay in filing Form 10-IC cannot deny a taxpayer the benefit of the concessional 22% corporate tax regime under Section 115BAA of the Income Tax Act, 1961. Accountant Member S. Rifaur Rahman and Judicial Member Sudhir Kumar allowed the appeal filed by Welkin Industries Private Limited against the order of the Commissioner of Income Tax (Appeals), Lucknow, for Assessment Year 2022-23, and directed the...

Digital Evidence Alone Insufficient For Section 69A Addition, Tangible Assets Must Be Found: ITAT Delhi

The New Delhi Bench of the Income Tax Appellate Tribunal on 26 May held that authorities cannot sustain additions under Section 69A of the Income Tax Act in the absence of recovery of unexplained money, bullion, jewellery or other valuable articles from the taxpayer, and cannot invoke the provision merely on the basis of digital material indicating alleged transactions. Judicial Member Sudhir Kumar and Accountant Member Manish Agarwal partly allowed the appeal filed by Sham Sunder Dhingra for...

ITAT Delhi Deletes ₹15.96 Crore Addition Against Charitable Society Over Allegedly Non-Genuine Donations

The Income Tax Appellate Tribunal (ITAT) has deleted a ₹15.96 crore addition made against ARVR Education Societya charitable society after rejecting the tax department's claim that corpus donations received by the charitable society from four parties were unexplained cash credits rather than genuine voluntary contributions. A Delhi bench comprising Judicial Member Satbeer Singh Godara and Accountant Member Naveen Chandra framed the central issue as, “The first and foremost question which...