Income Tax | Mere Disagreement On Facts With Assessing Officer No Ground to Invoke Writ Jurisdiction: Delhi High Court

The Delhi High Court has reiterated that its writ jurisdiction under Article 226 of the Constitution cannot be invoked merely because a taxpayer disputes the correctness of facts or the material relied upon by the Assessing Officer in reassessment proceedings under the Income Tax Act, 1961.A division bench of Justices Dinesh Mehta and Vinod Kumar observed,“A challenge to notice or proceedings can be considered normally, in case where the notice and proceedings are without jurisdiction. Simply...

Income Tax Act | Loan Repayment Within Two-Day Of Receipt Alone Doesn't Prove Bogus Transaction: Delhi High Court

The Delhi High Court has recently held that mere repayment of a loan within a short span of time, even within two days, does not by itself establish that the transaction was a sham or a bogus accommodation entry for the purposes of Section 68 of the Income Tax Act, 1961.A division bench of Justices Dinesh Mehta and Vinod Kumar observed,“Simply because the loan has been paid within two days, it cannot be said with certitude that the loan was not a genuine loan and was only a paper entry....

S.148 Income Tax Act | Assessing Officer Not Required To Share Entire Record At Reassessment Notice Stage: Delhi High Court

The Delhi High Court has held that an Assessing Officer is not required to supply the entire material on record to an assessee at the stage of issuing a notice under Section 148A of the Income Tax Act ,1961 (re-assessment stage) observing that such a requirement would unnecessarily protract reassessment proceedings and enable assessees to manufacture defences.A division bench of Justices Dinesh Mehta and Vinod Kumar observed,“If it is held that every material has to be supplied to the assessee...

Wrong Attachment In Reassessment Email Does Not Invalidate Income Tax Notice: Delhi High Court

The Delhi High Court has held that an inadvertent attachment of another assessee's notice along with a reassessment email doesn't invalidate proceedings under Section 148 of the Income Tax Act, 1961, so long as the substance of the communication clearly indicates that the statutory notice was intended for the concerned assessee.A division bench of Justices Dinesh Mehta and Vinod Kumar thus dismissed the writ petition filed by an assessee challenging the continuation of reassessment proceedings...

S. 197 Income Tax Act| Delhi High Court Flags Date Mismatch Between Orders And Certificates Issued For Lower TDS, Asks CBDT To Address

The Delhi High Court has flagged an administrative issue in the processing of applications under Section 197 of the Income Tax Act, noting that a mismatch between the dates on orders and certificates issued for lower or nil tax deduction can create a misleading impression of delay. The court noted that while the certificate may be issued later, the order deciding the application often bears the date of filing of the application. A division bench of Justices Dinesh Mehta and Vinod Kumar...

CBDT Issues Draft Income Tax Rules And Forms For New Act With 34% Fewer Rules [Read Draft Rules Here]

The Central Board of Direct Taxes (CBDT) has released the draft Income Tax Rules, 2026 along with the draft forms, in connection with the Income Tax Act, 2025, which is scheduled to come into force from April 1, 2026. The draft rules and forms have been placed in the public domain to invite comments and suggestions from stakeholders and the general public.As per the CBDT, the draft Income Tax Rules, 2026 will remain open for public feedback for a period of 15 days, up to February 22,...

Tax Authority Cannot Deny Interest Waiver Through A Cryptic Order: Karnataka High Court

The Karnataka High Court recently held that a tax authority cannot deny a taxpayer's request for interest waiver through a cryptic order. It must pass a reasoned, speaking order after objectively examining whether the income could have been anticipated at the relevant time. A Bench of Justice K.S. Hemalekha, partly allowed a writ petition filed by Kanhaiyalal Dudheria (petitioner) and partially set aside an order of the Chief Commissioner of Income Tax, that allowed waiver of the second and...

No Additions On Mere Suspicion When Shareholders In Capital Assessments Are Traceable: Calcutta High Court

The Calcutta High Court on 4 February held that in share capital assessments, income tax additions cannot be sustained on mere suspicion, when the investors are identifiable, the taxpayers and share subscriptions are backed by audited records, and clear there are clear banking trails for transactions. A Division Bench of Justice Rajarshi Bharadwaj and Justice Uday Kumar dismissed an appeal filed by the Principal Commissioner of Income Tax, Kolkata, against Express Tradelink Pvt. Ltd....

Deep Tech Startups To Retain Status For 20 years Under New DPIIT Notification

On 4 February, the Ministry of Commerce and Industry, through the Department for Promotion of Industry and Internal Trade (DPIIT), issued a notification extending enhanced tax incentives and revising the startup recognition criteria for “Deep Tech Startups” (DTSs) DTSs are entities engaged in developing advanced scientific or engineering solutions involving high research and development intensity, significant intellectual property creation, long gestation periods, and elevated technical or...

BREAKING | Madras High Court Dismisses Actor Vijay's Plea Challenging Rs 1.5 Crore Penalty In Undisclosed Income Case

The Madras High Court on Friday dismissed a plea by actor-turned-politician Vijay challenging a Rs 1.5 crore penalty imposed on him by the Income Tax Department in connection with alleged undisclosed income of Rs 15 crore for the financial year 2015–16.The judgment was pronounced by a single judge, Justice Senthilkumar Ramamoorthy, after reserving the same on January 23, 2026.The court noted that the show cause notice was passed within the time limit prescribed under Section 263 of the Income...

Delhi High Court Cuts TDS To 0.5% for UK Company Travelport, Sets Aside 1.6% Certificate

The Delhi High Court has granted partial relief to UK-based travel technology company Travelport International Operations Limited by setting aside a tax withholding certificate that required deduction of tax at 1.6%. A division bench of Justices Dinesh Mehta and Vinod Kumar directed the tax authorities to issue a fresh certificate providing deduction of tax at a reduced rate of 0.5%.Travelport, a United Kingdom tax resident, provides electronic global distribution services to the travel industry...

Delhi High Court Quashes Tax Demand On NGO, Raps Revenue for 'Taking Advantage' Of Taxpayer's Ignorance

The Delhi High Court has granted tax exemption to the International Buddhist Confederation, a Non-Governmental Organisation holding that tax authorities can't deny statutory benefits merely because of an inadvertent disclosure error made in the income tax return. A division bench of Justices Dinesh Mehta and Vinod Kumar also criticised the Revenue for taking advantage of the assessee's ignorance of his rights while passing the scrutiny assessment.Briefly put, the NGO filed its income tax return...