INCOME TAX
ITAT Delhi Remands Partnership Firm's Reassessment, Faults Authorities' Cryptic Orders
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has remanded a reassessment involving a partnership firm's write-back of a retired partner's capital balance after finding that the tax authorities passed cryptic orders without specifying the provision under which the amount was chargeable to tax.A coram of Judicial Member Yogesh Kumar US and Accountant Member Ramit Kochar partly allowed the appeal for statistical purposes. While upholding the reopening of the assessment, it restored...
Supreme Court Refuses To Entertain PIL Seeking Transfer Of Benami Act Appeals To ITAT, Allows Representation
The PIL was filed by former ITAT Vice President Parveen Kumar Bansal, who sought transfer of appellate jurisdiction under the PBPT Act from the PMLA Appellate Tribunal to the Income Tax Appellate Tribunal
Telangana High Court Holds Deferred Sales Tax Benefit Cannot Be Denied, Remands Krebs Biochemicals Case
The Telangana High Court on 19 June held that tax authorities cannot deny a taxpayer the benefit of a sales tax deferment scheme merely because statutory adjustment orders supporting the claim were not available during the original assessment proceedings, and directed the Assessing Officer to reconsider the claim after examining the subsequent orders. A Division Bench of Justices P. Sam Koshy and Suddala Chalapathi Rao partly allowed the appeals filed by Krebs Biochemicals & Industries...
Automated Software Services Cannot Be Treated As FTS Without Examining Human Intervention: ITAT Delhi
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 17 July held that receipts from automated software services cannot be treated as Fees for Technical Services (FTS) under the India-Ireland Double Taxation Avoidance Agreement (DTAA) without first examining whether the services involve the requisite human intervention and possess the characteristics of specialised technical services. Judicial Member Vikas Awasthy and Accountant Member Brajesh Kumar Singh allowed an appeal filed by...
Sitting Judge Moves Allahabad HC Against Denial of Exemption On Statutory Allowances Under New Income Tax Regime
The court called for instructions from the State on the plea, observing that the interim relief sought was in the nature of final relief.
Revised Return Filed After Income Tax Inspection Cannot Shield Dealer From Sales Tax Penalty: Madras High Court
The Madras High Court has upheld Income tax additions and penalty against a dealer, holding that a revised return filed after an Income Tax inspection cannot protect a taxpayer from the consequences of suppressed turnover.It observed that a revised return filed after detection does not automatically establish bona fide conduct or protect a taxpayer from penalty."The revised return filed subsequent to Income Tax inspection cannot be a protection blanket for the tax evaders. Even if the Trader...
Salaries Paid By Foreign Bank's Head Office To Expatriates Working For Indian Branch Not Head Office Expenses: ITAT Mumbai
Salary paid by the head office of a foreign bank to expatriate employees working exclusively for its Indian operations cannot be treated as head office expenditure merely because the payment was initially made outside India, the Mumbai Income Tax Appellate Tribunal (ITAT) has held. A bench of Judicial Member Beena Pillai and Accountant Member Arun Khodpia dismissed the Revenue's appeal. It upheld the Commissioner (Appeals)' order allowing Standard Chartered Bank's claim for deduction of...
Karnataka High Court Upholds Deletion Of Tax Addition On Advances Received By Businessman Procuring Land
The Karnataka High Court has upheld the deletion of a ₹21.11 crore tax addition made against a Bengaluru-based businessman engaged in identifying and procuring land for real estate projects. The court held that advances received in the course of that business cannot be taxed merely because they remained outstanding for several years.The court observed that the mere passage of time does not amount to forfeiture, and such advances cannot be treated as taxable income in the absence of material...
Telangana High Court Upholds Capital Gains Tax Exemption Despite Delay In Villa Registration
The Telangana High Court has held that a taxpayer who invested capital gains in a residential villa under a joint development agreement cannot be denied tax exemption merely because the developer delayed construction and execution of the sale deed. The court observed that delays beyond the assessee's control cannot defeat the benefit intended under the law. A Division Bench of Justice P. Sam Koshy and Justice Narsing Rao Nandikonda allowed the appeal filed by non-resident Indian Sudhakar...
Karnataka High Court Holds S. 271DA , IT Act Penalty Begins Only With S. 274 Notice, Reads In Six-Month Limit
The Karnataka High Court on 7 July held that penalty proceedings under Section 271DA of the Income Tax Act commence only when the Joint Commissioner issues a show cause notice under Section 274, and not when the Assessing Officer merely forwards a proposal for initiating penalty. A Division Bench of Justices S.G. Pandit and K.V. Aravind partly allowed a batch of ten Revenue appeals, clarifying that, although the Act does not prescribe a time limit for issuing a notice under Section 274, the...
Income Tax Order Not Invalid If DIN Is Communicated Later Through Separate Intimation: Karnataka High Court
The Karnataka High Court has held that an income tax order initially communicated without a Document Identification Number (DIN) does not become invalid merely because the DIN is communicated later through a separate authenticated intimation letter. The court held that the procedure substantially complied with CBDT Circular No. 19/2019 as it maintained the audit trail and authenticity of departmental communications. A Division Bench of Justice S.G. Pandit and Justice K.V. Aravind allowed two...
Carbon Credit Sale Receipts Are Capital Gains, Not Taxable Before AY 2017-18 : ITAT New Delhi
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 13 July held that receipts from the sale of carbon credits are capital receipts and are not taxable for Assessment Years 2012-13 and 2013-14. Judicial Member Satbeer Singh Godara and Accountant Member Manish Agarwal dismissed the Revenue's appeals and partly allowed the appeals filed by Jindal Saw Ltd. (formerly known as Saw Pipes Ltd.). The Bench observed: “We conclude in this factual backdrop that the assessee's impugned...