"Fishing Inquiry": Bombay High Court Upholds Quashing Of Income Tax Revision Against Impact Foundation

The Bombay High Court has dismissed the Income Tax Department's appeal against Impact Foundation (India), holding that revisionary proceedings under the Income Tax Act could not be sustained merely because the Commissioner believed the assessing officer should have conducted further enquiry. “The ITAT has therefore rightly come to the conclusion that the CIT (Exemptions), could not have initiated proceedings with a view to start de novo or a fishing inquiry in matters or orders which are...

Bombay High Court Condones 430-Day Delay By Charitable Trust In Filing Declaration For Tax Exemption

The Bombay High Court has condoned a 430-day delay by Bombay Prathana Samaj, a charitable trust, in submitting a mandatory declaration required for claiming a tax exemption benefit, after finding that the trust had shown reasonable cause for the delay and would otherwise suffer genuine hardship. “The approach of the authority ought to be equitious, balancing and judicious and availing of exemption should not be denied merely on the bar of limitation,” the Court observed while referring to the...

ITAT Mumbai Restores Fees Regulating Authority Matter Pending Section 10(46) Notification Outcome

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 30 April held that the taxability of the Fees Regulating Authority cannot be conclusively decided while its application for notification under Section 10(46) of the Income-tax Act, 1961 remains pending before the Central Board of Direct Taxes (CBDT). A Bench comprising Accountant Member Bijayananda Pruseth and Judicial Member Sandeep Singh Karhail allowed the appeal for statistical purposes and set aside the impugned order. It...

ITAT Mumbai Holds Section 68 Applies Only to Fresh Credits, Deletes ₹1.20 Crore Addition

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 4 May held that additions under Section 68 of the Income-tax Act, 1961 cannot be made in the absence of any fresh credit arising during the relevant previous year, and remanded the matter for fresh verification. A Bench comprising Accountant Member Bijayananda Pruseth and Judicial Member Sandeep Singh Karhail set aside the orders of the Assessing Officer and the Commissioner of Income Tax (Appeals), who had sustained an addition of...

ITAT Mumbai Allows Deduction For Donation To PM Relief Fund Despite Being Part Of CSR

The Income Tax Appellate Tribunal (ITAT), Mumbai, has allowed Landmark Worldwide Breakthrough Technologies Pvt. Ltd. to claim a deduction on its donation to the Prime Minister's National Relief Fund, even though the payment formed part of its CSR expenditure. The bench comprising Judicial Member Pawan Singh and Accountant Member Girish Agrawal held that such a claim cannot be denied merely because the donation was made to meet CSR obligations. The taxpayer had filed its return declaring a...

NFAC Must Decide Appeal on Merits, Cannot Dismiss for Non-Prosecution: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 30 April held that the National Faceless Appeal Centre (NFAC) cannot dismiss an appeal for non-prosecution and must decide it on merits under Section 250 of the Income Tax Act. A Bench comprising Judicial Member Sudhir Kumar and Accountant Member Manish Agarwal heard an appeal against the NFAC order dated 11 September 2025 for Assessment Year 2012-13 and condoned a delay of 53 days after accepting the taxpayer's explanation of...

ITAT New Delhi Sets Aside Rejection Of Trust Registration Over Missing Irrevocability Clause

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 30 April held that absence of an irrevocability clause in a Trust Deed is not, by itself, fatal to registration where the defect is subsequently cured and set aside the rejection of registration of a charitable Trust. A Bench of Judicial Member Raj Kumar Chauhan and Accountant Member Brajesh Kumar Singh allowed the appeal filed by Social Welfare Public Trust and set aside the orders dated 3 December 2025 passed by the...

Receipts From Capital Asset Transfer Cannot Be Taxed Under Residuary Head: ITAT Mumbai

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 30 April 2026 held that once a receipt is characterised as arising from the transfer of a capital asset, the tax authority cannot reclassify it under the residuary head of income merely because computation under the capital gains provisions is disputed or fails. The Bench comprising Judicial Member Pawan Singh and Accountant Member Makarand Vasant Mahadeokar dismissed the Revenue's appeal against the order of the Commissioner of...

Cash Deposits In Education Trust Account Not Taxable In Individual's Hands: ITAT New Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT), on 30 April, held that cash deposits in a bank account of a separate legal entity cannot be taxed in an individual's hands merely because he is an authorised signatory, unless there is evidence establishing beneficial ownership or undisclosed income. A Bench comprising Judicial Member Raj Kumar Chauhan and Accountant Member Brajesh Kumar Singh dismissed the Revenue's appeal and upheld the CIT(A)'s order deleting an addition of Rs....

Delhi High Court Refuses To Condone Delay In Late Filing To Opt Lower Corporate Tax Regime

The Delhi High Court has recently refused to condone delay by a company in opting for a concessional corporate tax regime, holding that its application filed beyond the three-year limit prescribed under a CBDT circular was not maintainable.The division bench of Justices Dinesh Mehta and Vinod Kumar thus dismissed the writ petition filed by a company challenging the rejection of its application under Section 119(2)(b) of the Income Tax Act seeking condonation of delay in filing Form 10-IC for...

Gujarat HC Upholds Constitutionality Of CGST Provision Denying ITC To Buyers If Supplier Fails To Pay Tax

The Gujarat High Court has on Friday upheld the constitutional validity of a GST provision that denies input tax credit to a purchaser if the supplier has not deposited the tax with the government. The court upheld the validity of Section 16(2)(c) of the Central Goods and Services Tax Act, 2017, holding that entitlement to input tax credit is conditional upon actual payment of tax to the government. Emphasising that there was no constitutional infirmity in the provision, the court held, ...

Capgemini Not Liable To Pay Advance Tax Interest For Period Before Commencement Of Business: ITAT Mumbai

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held that Capgemini IT Solutions India Private Limited cannot be charged interest for delay in paying advance tax for the period before it started its business in October 2019. “The levy of interest under section 234C in respect of the instalments falling due prior to 17.10.2019 is not sustainable in law.”, it observed.The bench of Judicial Member Kavitha Rajagopal and Accountant Member Makarand Vasant Mahadeokar passed the order...