Section 68 Addition Unsustainable Where Identity and Creditworthiness Are Proven: ITAT New Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 5 June held that an addition under Section 68 of the Income Tax Act cannot be sustained merely because share subscribers disclosed relatively low income in their income tax returns, where the taxpayer establishes their identity, creditworthiness, and the genuineness of the transactions. Judicial Member Raj Kumar Chauhan and Accountant Member Renu Jauhari dismissed the Revenue's appeal and upheld the Commissioner (Appeals)' decision...

ITAT Delhi Quashes Antriksh Group Assessments Over Mechanical Search Assessment Approval

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has recently reiterated that approval required before search assessments are finalised must reflect independent application of mind and cannot be accorded mechanically through a common approval covering multiple assessees and assessment years. Holding that the approval granted in the present case suffered from non-application of mind, the Tribunal quashed assessments framed against various entities and individuals belonging to the...

Kerala HC Directs CIT To Reconsider Registration Of Trust From 2021, Examines CBDT Circular 7/2024

On 4 June, the Kerala High Court directed the Commissioner of Income Tax (Exemptions) to reconsider a Atma Bodhodaya Sangham Sree Subhananda Trust's claim for registration under Section 12A of the Income Tax Act with effect from 1 April 2021, after examining the applicability of CBDT Circular No. 7/2024 on rectification of defective exemption applications. A Division Bench of Justices Devan Ramachandran and Basant Balaji set aside the orders of the Income Tax Appellate Tribunal (ITAT) and the...

Standardized Cybersecurity Software Offerings Are Not Taxable As Fees For Technical Services: ITAT Delhi

On 5 June, the Delhi Bench of the Income Tax Appellate Tribunal (ITAT) held that consideration received from the sale of standard cybersecurity software licences, subscriptions, and related support services does not qualify as Fees for Technical Services (FTS), as FireEye Ireland Limited did not render any customised technical or consultancy services. Judicial Member Vikas Awasthy and Accountant Member Renu Jauhari partly allowed the appeals filed by FireEye Ireland Limited for Assessment Years...

IMAX's Five-Day Site Visit, 17-Day Installation Period Do Not Create Permanent Establishment In India: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has recently held that IMAX Corporation, Canada, did not have either a fixed place Permanent Establishment (PE) or an installation/supervisory PE in India. The tribunal held that a five-day site inspection visit and subsequent installation activities lasting only 17 days did not satisfy the conditions prescribed under the India-Canada Double Taxation Avoidance Agreement (DTAA). Since no PE existed in India, the Tribunal held that no...

Jet Lite's Defence In FBT Proceedings Cannot Be Treated As Furnishing Inaccurate Particulars: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the deletion of penalties exceeding ₹7.6 crore imposed on Jet Lite (India) Ltd. in a fringe benefit tax (FBT) disputeThe tribunal held that the assessee had sought to justify its case against the fringe benefit assessment and that this could not be treated as furnishing inaccurate particulars. A bench of Judicial Member Satbeer Singh Godara and Accountant Member Manish Agarwal dismissed the Revenue's appeals against orders...

No Relief For Reimbursement Claims Made To Foreign Parent Without Expense Break-Up: Madras High Court

The Madras High Court has recently dismissed appeals filed by Cairn India Limited, now Vedanta Limited, and upheld tax demands over its failure to deduct tax at source (TDS) on payments remitted to its Australian parent company. While dismissing Cairn's plea, the court made it clear that a taxpayer cannot obtain relief merely by describing a lump-sum payment as a reimbursement. If the claim is that the payment represents reimbursement of expenses, the taxpayer must disclose what those expenses...

FIIs, BIS Get Income Tax Exemption On Government Securities Under New Income Tax Ordinance

Foreign Institutional Investors (FIIs) and the Bank for International Settlements (BIS) will be exempt from income tax on interest earned from government securities and capital gains arising from their sale, exchange, or transfer under amendments introduced by the Centre through the Income-tax (Amendment) Ordinance, 2026. The ordinance, published in the Gazette on June 5, amends Schedule IV of the Income-tax Act, 2025 and is deemed to have come into force from April 1, 2026. The exemption is...

60% Tax Rate Under Section 115BBE Cannot Apply To Pre-1 April 2017 Income: Rajasthan High Court

The Rajasthan High Court on 27 May held that the enhanced tax rate of 60% introduced under Section 115BBE of the Income-tax Act through the Taxation Laws (Second Amendment) Act, 2016, cannot be applied retrospectively to income pertaining to Financial Year 2016–17, as the amendment was expressly made effective from 1 April 2017. The Division Bench of Justices Arun Monga and Sunil Beniwal held that the higher rate could operate only prospectively and could not govern income earned prior to its...

Registered Sale Deed Triggers Capital Gains Tax Even If Payment Is Delayed: ITAT Ahmedabad

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 27 June held that execution and registration of a sale deed complete “transfer” for capital gains taxation purposes, and that delayed payment or dishonour of cheques does not postpone taxability unless the transaction itself is cancelled. Vice President Dr. B.R.R. Kumar and Judicial Member T.R. Senthil Kumar passed the order in an appeal filed by Mehboob Jabir Patel. The Bench, however, directed the Assessing Officer to grant...

Transfer Pricing Must Be Benchmarked Using AE Transactions, Not Entity-Level Profits: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 2 June 2026 held that transfer pricing analysis must ordinarily be restricted to international transactions with Associated Enterprises (AEs) where reliable segmental data is available, and cannot be extended to entity-level profitability. Judicial Member Anubhav Sharma and Accountant Member Naveen Chandra partly allowed the appeal filed by Cornell Overseas Pvt. Ltd. for Assessment Year 2007–08 and remanded the transfer pricing...

ITAT Delhi Holds TDS Applicable On CAM Charges As They Are Maintenance Payments, Not Rent

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 26 May held that Common Area Maintenance (CAM) charges paid by tenants in shopping malls constitute payments for maintenance services and not rent, and therefore attract Tax Deducted at Source (TDS) under Section 194C of the Income Tax Act and not under Section 194-I. Judicial Member Raj Kumar Chauhan and Accountant Member Renu Jauhri dismissed Revenue's appeals against Biba Apparels Pvt. Ltd. for Assessment Years 2013–14,...