R&D Deduction Claim Cannot Be Rejected As Delayed When Audit Report Was Filed On Time: Bombay High Court

The Bombay High Court has ruled that an application for the DSIR's report on eligible in-house R&D expenditure (Form 3CL) cannot be treated as delayed where the company had submitted the required audit report (Form 3CLA) within the deadline for filing its income tax return.“It must therefore be accepted that uploading of Form 3CLA by an Assessee to its e-filing account on the website of the Income Tax Department, on or before the due date of filing of the Return of Income, satisfies the...

S.147A Income Tax Act Challenge: Delhi High Court Orders Status Quo On Recovery, Penalty Proceedings

The Delhi High Court has directed that the status quo be maintained on recovery and penalty proceedings against two assessees who have challenged the constitutional validity of the newly inserted Section 147A of the Income Tax Act, 1961, which retrospectively clarifies the role of the Jurisdictional Assessing Officer (JAO) in reassessment proceedings.The division bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta passed the direction while allowing applications filed by Neena Wadhwa and...

Patna High Court Quashes Reassessment Based On Bank's Wrong Reporting Of ₹12.50 Lakh FD As ₹12.50 Cr

The Patna High Court on 10 August quashed income tax reassessment proceedings against Satya Narayan Jha after Union Bank of India wrongly reported his fixed deposit of Rs. 12.50 lakh as Rs. 12.50 crore to the Income Tax Department, holding that the Department had relied on incorrect information. A Division Bench of Justices Rajeev Ranjan Prasad and Ramesh Chand Malviya held that the notice issued under Section 148A(b) of the Income Tax Act, 1961, which requires the taxpayer to be given an...

ITAT Delhi Cuts Share Of BBC Global News' India Ad Revenue Attributed To Indian PE From 15% To 12%

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has reduced from 15% to 12% the share of BBC Global News Limited's Indian advertisement revenue treated as profit attributable to its Indian Permanent Establishment (PE). The same finding has been applied to assessment years 2017-18 to 2022-23.The ITAT took assessment year 2022-23 as the lead case. It held that while an increase from the earlier 8.75% rate was justified, the assessing officer had fixed the 15% rate merely on estimation....

Taxpayer Cannot Revise Income-Tax Return Under Garb Of Revision After Deadline: Supreme Court

The Supreme Court has ruled that an assessee cannot use a revision remedy to effectively alter an income-tax return after the time allowed for filing a revised return has expired.A bench of Justice J.B. Pardiwala and Justice K. Vinod Chandran held that the assessee could not invoke Section 264 of the Income Tax Act, 1961 to revise its return after failing to do so within the prescribed period. The court set aside a Bombay High Court order that had remanded the case of Om Siddhakala Associates...

ITAT Cannot Automatically Confirm Adverse Order For Non-Payment Of Costs: Calcutta High Court

The Calcutta High Court on 7 August held that the Income Tax Appellate Tribunal (ITAT) cannot make payment of costs a condition for continuation of an appeal or direct that non-payment would automatically revive or confirm an adverse appellate order. A Division Bench of Justices Rajarshi Bharadwaj and Uday Kumar clarified that while the ITAT can impose costs for procedural lapses, such costs cannot be made a condition precedent to a litigant's statutory right to have an appeal adjudicated,...

Delhi High Court Seeks PAN Details Of Supreme Court, High Court Judges Amid Income Tax Allowances Dispute

The Delhi High Court on Monday directed the Private Secretaries of Supreme Court and High Court judges who have filed their income tax returns under the new tax regime to furnish their PAN Card details.The Court had also directed furnishing other details like assessment year, date of filing and Acknowledgment Number (of Return) to the Income Tax Department, to ensure that their returns are not processed pending adjudication of a plea concerning the tax treatment of judicial allowances.The bench...

Assessing Officer Can't Become An Economist To Question Expected Return In Share Valuation: Delhi High Court

The Delhi High Court has held that an Assessing Officer (AO) cannot act as an economist to determine the expected rate of return while examining a company's share valuation.The Division Bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta added that while the AO may identify flaws in the valuation methodology adopted by a taxpayer, he cannot substitute the commercial assumptions underlying a recognized valuation method with his own.The Court made the observations while dismissing the Income...

Delhi High Court Seeks Centre's Response On PIL Seeking Automatic TDS Refunds For Non-Taxable Individuals

The Delhi High Court on Wednesday sought the response of the Union Government and the Central Board of Direct Taxes (CBDT) on a public interest litigation seeking an automatic mechanism to refund Tax Deducted at Source (TDS) to individuals whose income falls below the taxable limit without requiring them to file income tax returns (ITRs). A division bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela issued notice on the petition filed by petitioner-in-person Aakash...

Co-Operative Banks Need Not Deduct TDS On Interest Paid To Co-Operative Societies: Bombay High Court

The Bombay High Court has ruled that co-operative banks are not required to deduct Tax Deducted at Source (TDS) on interest paid on fixed deposits held by another co-operative society, holding that the exemption for such payments continues to apply. A Division Bench of Justice G.S. Kulkarni and Justice Aarti Sathe interpreted Section 194A(3)(v) of the Income Tax Act, which exempts certain categories of interest payments from TDS. The dispute before the bench was whether the exemption...

Mere Presumption About Foreign Parent's Deputed Employees Can't Establish Permanent Establishment: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has recently held that a mere presumption that employees of a parent company deputed to an Indian group entity rendered services on behalf of a non-resident assessee, without any cogent material to support it, is insufficient to establish a Permanent Establishment (PE) in India. A coram of Judicial Member Vimal Kumar and Accountant Member S. Rifaur Rahman observed that the Revenue had failed to establish that Honda Trading Asia...

Lok Sabha Passes Bill Giving Centre Power To Decide Which Digital Payments Are Free Of Merchant Charges

The Lok Sabha on Thursday passed the Taxation and Other Laws (Amendment) Bill, 2026. The Bill amends the Payment and Settlement Systems Act, 2007, to give the central government the power to decide which digital payment modes, including those currently exempt from merchant charges such as UPI and RuPay debit cards, will continue to enjoy that protection. At present, Section 10A of the Payment and Settlement Systems Act prohibits banks and payment system providers from levying charges on digital...