IT Reassessment Notice Received On April 1, 2021, Must Follow New Reassessment Regime: Bombay High Court

The Bombay High Court has held that an income tax reassessment notice dated and digitally signed on March 31, 2021, cannot be treated as having been issued on that date if it was actually dispatched through the Income Tax Business Application (ITBA) portal and reached the assessee only on April 1, 2021. The court ruled that the notice would be deemed to have been issued on April 1, 2021, and the reassessment proceedings must continue under the framework introduced by the Finance Act, 2021. A...

Bombay High Court Says ITAT Took 'Pedantic Approach', Condones 1,797-Day Delay in Income Tax Appeals

The Bombay High Court has set aside an Income Tax Appellate Tribunal (ITAT) order refusing to condone a 1,797-day delay in appeals filed by Uttar Bhartiya Education Society. Holding that the trust's explanation for the delay deserved due consideration, the court condoned the delay and restored the appeals for a decision on merits. A division bench of Justice G.S. Kulkarni and Justice Aarti Sathe held that the tribunal had adopted a "pedantic approach" while rejecting the charitable trust's...

Charitable Status Cannot Be Denied Merely Because Activities Benefit Specific Industry: ITAT New Delhi

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 10 July held that an institution does not lose its charitable character merely because its activities benefit a specific industry, and set aside the Commissioner (Exemptions)'s order rejecting registration of the National Lubricating Grease Institute India Chapter under Sections 12AA/12AB of the Income Tax Act. A Bench comprising Accountant Member S. Rifaur Rahman and Judicial Member Vimal Kumar held: “Only because of...

Bombay High Court Sets Aside Order Rejecting Naresh Goyal's Objections In Income Tax Reassessment

The Bombay High Court has recently set aside an order rejecting former Jet Airways chairman Naresh Goyal's objections to the reopening of his income tax assessment for the Assessment Year 2014-15. It directed the Assessing Officer to reconsider the objections after taking into account Goyal's March 8, 2022 letter and the annexures explaining the source of funds used to acquire Jet Airways (India) Ltd. shares. A division bench of Justice B.P. Colabawalla and Justice Firdosh P. Pooniwalla held...

Telangana HC Restores DBS Technology Services' Tax Deduction Claim, Says Technical Lapse Cannot Prevail

The Telangana High Court on 3 July held that the Income Tax Department cannot reject a genuine claim for deduction on the sole ground of a technical or procedural lapse if the taxpayer is otherwise entitled to the benefit. A Division Bench of Justices P. Sam Koshy and Suddala Chalapathi Rao set aside the order rejecting the deduction claimed by DBS Technology Services India Private Limited and directed the Assessing Officer to reconsider the company's claim in accordance with law. The judges...

CBDT Notifies No TDS on Specified Payments to Eligible IFSC Units Under Income-tax Act, 2025

The Central Board of Direct Taxes (CBDT) has exempted specified payments made to eligible units operating in an International Financial Services Centre (IFSC) from tax deduction at source (TDS), provided the units have opted to claim deductions under the Income-tax Act, 2025. The exemption is available only for the categories of payments notified by the government and is subject to prescribed conditions. Through the notification issued under the Income-tax Act, 2025, the CBDT has also...

UK-Based Arms Consultant Sanjay Bhandari Moves SC Against Delhi HC Fugitive Economic Offender Ruling

Businessman Sanjay Bhandari has approached the Supreme Court against the Delhi High Court's decision affirming his declaration as a Fugitive Economic Offender under the Fugitive Economic Offenders ActBhandari, a defence consultant is under investigation in the alleged Pilatus basic trainer aircraft procurement and Tatra all terrain military truck procurement cases apart from proceedings under the Black Money Act.The special leave petition filed on July 9 is yet to be listed before the apex...

Late Corrigendum To Final Assessment Order Cannot Cure Failure To Follow DRP Directions: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed an assessment order passed against an Indian subsidiary of a foreign technology company. The tribunal held that the Assessing Officer could not rectify the failure to give effect to the Dispute Resolution Panel's (DRP) directions by issuing a corrigendum after the statutory time limit had expired. A bench of Judicial Member Raj Kumar Chauhan and Accountant Member S. Rifaur Rahman observed that the final assessment order,...

ITAT Chennai Upholds Deletion Of Unexplained Money Addition Against Forex Commission Agent

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the deletion of an addition of ₹3.44 crore made against an individual who worked as a commission agent for foreign exchange companies. It held that cash withdrawn from the agent's own bank account for disbursal to customers could not be treated as unexplained money under Section 69A of the Income Tax Act, which addresses unexplained assets. The case involved an individual who acted as an authorised sub-agent for...

ITAT Delhi Quashes Reassessment After AO Failed To Decide Objections Before Proceeding

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has recently quashed a reassessment against Meramandali Finvest Ltd., holding that the Assessing Officer was required to dispose of the assessee's objections to the reopening by passing a separate speaking order before proceeding with the reassessment. A bench of Judicial Member Satbeer Singh Godara and Accountant Member Naveen Chandra observed: "It is now settled law by a series of judicial precedents that the failure of the...

ITAT Ahmedabad Upholds Rejection Of Tax Deduction Claim On ₹12 Lakh Donation To Political Party

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the denial of a tax deduction claimed by a salaried taxpayer on a ₹12 lakh donation made to a political party, holding that he failed to establish that the contribution was genuine and eligible for deduction. A division bench of Vice-President Dr. B.R.R. Kumar and Judicial Member Rahul Chaudhary observed, "the assessee has failed to establish that the impugned contribution represented a genuine donation eligible for...

AO Cannot Grant Fresh Opportunity To Extend Reassessment Notice Deadline: ITAT Ahmedabad

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 7 July held that a reassessment notice issued after the expiry of the prescribed “surviving period” under the Income Tax Act, 1961 is barred by limitation. Vice President Dr. B.R.R. Kumar and Judicial Member Rahul Chaudhary allowed the appeal filed by Scarlet Tradelink Private Limited against the order of the National Faceless Appeal Centre for Assessment Year 2016-17 and quashed the reassessment proceedings. The Bench observed:...