Delhi High Court Quashes Order Requiring OYO Parent Oravel Stays To Deposit 20% Tax Demand During Appeal

The Delhi High Court has quashed an order directing Oravel Stays Limited, the parent company of OYO, to deposit 20% of the outstanding tax demand as a condition for the grant of a stay during the pendency of its appeal.A division bench of Justices Dinesh Mehta and Vinod Kumar set aside the order passed by the Commissioner of Income Tax which had disposed of the company's stay application by directing payment of 20% of the total demand while keeping the remaining demand stayed.In its petition,...

Income Tax Assessment Order Against Amalgamated Boeing Entity Is Void: Delhi High Court

The Delhi High Court has reiterated that an income tax assessment order passed in the name of a company that had ceased to exist following amalgamation is void ab initio and cannot be sustained in law.A division bench of Justices V. Kameswar Rao and Vinod Kumar thus dismissed an appeal filed by the Income Tax Department against Boeing India.For context, Boeing International Corporation India Pvt. Ltd. (BICIPL) had originally filed its return declaring an income of ₹60.55 crore. Subsequently, the...

Delhi High Court Sets Aside Rejection Of MakeMyTrip's NIL TDS Certificate, Calls Order Non-Speaking

The Delhi High Court has recently set aside an order of the Income Tax Department rejecting online travel company MakeMyTrip's application for a NIL or lower withholding tax certificate for FY 2025-26 (AY 2026-27) under Section 197 of the Income Tax Act.A division bench of Justices V. Kameswar Rao and Vinod Kumar observed that the impugned order was a non-speaking one and failed to provide reasons for the rejection. It observed,“...in the past, withholding certificates were issued at rates...

Search Year Must Be Included While Computing 10-Year Block For Reassessment: Gujarat High Court

The Gujarat High Court on 9 March, held that while computing the extended ten-year block period for reassessment in search cases, the assessment year relevant to the previous year in which the search is conducted (search assessment year) must be included in the computation. The Division Bench comprising Justice A. S. Supehia and Justice Pranav Trivedi quashed the notice issued to Dilipbhai Prabhudas Patel (petitioner) under Section 148 of the Income Tax Act. The Bench held: "The statutory...

Supreme Court Upholds Quashing Of Income Tax Reassessment Against BPCL Over ₹37.10 Crore Dividend Income

The Supreme Court on Monday refused to interfere with the Bombay High Court's order quashing income tax reassessment proceedings initiated against Bharat Petroleum Corporation Ltd. (BPCL) for AY 2013-14 in relation to Rs 37.10 crore dividend income received through a trust structure.A bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe dismissed the Special Leave Petition, after being informed by the counsels that a previous matter on the same subject was dismissed by the supreme...

Madras High Court Dismisses Taxpayer Appeal, Says Books Were Rejected Before DVO Reference

The Madras High Court has held that the Assessing Officer was justified in referring the matter to the District Valuation Officer after examining the books of accounts and finding inconsistencies in them, and that the taxpayer could not rely on the Supreme Court's ruling in Sargam Cinema to argue that the reference to the Valuation Officer was invalid. The Division Bench of Justice G. Jayachandran and Justice Shamim Ahmed dismissed the tax appeal filed by taxpayer M. Ravindran and affirmed the...

ITAT Ahmedabad Upholds 100% Deduction After Expansion Of Sintex's Himachal Unit

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the eligibility of Sintex Industries Ltd. to claim 100% deduction on profits under Section 80-IC of the Income Tax Act even after the initial five-year period where the eligible unit had undertaken substantial expansion. The tribunal coram of Judicial Member Sanjay Garg and Accountant Member Annapurna Gupta dismissed the Revenue's appeal challenging the deletion of an addition of Rs 59.53 crore made by the Assessing...

Transfer Of Self-Generated Trademark Before April 2002 Not Taxable As Capital Gains: Gujarat High Court

The Gujarat High Court has held that money received from transferring a self-generated trademark before 2002 cannot be taxed as capital gains, as the law allowing such taxation came into force only later. The Court noted that Section 55(2) of the Income Tax Act was amended with effect from April 1, 2002, to allow taxation of transfers of trademarks by treating their cost of acquisition as nil, and the amendment cannot apply to earlier transactions.A Division Bench comprising Justice A.S....

Direct Tax Vivad Se Vishwas Act | Revival On Default Applies To Proceedings Initiated By Both Department And Assessee: J&K&L High Court

The Jammu & Kashmir and Ladakh High Court has held that under the Direct Tax Vivad Se Vishwas Act, 2020, failure to comply with the conditions of the scheme results in automatic revival of all proceedings withdrawn earlier, irrespective of whether they were initiated by the assessee or the Income Tax Department. A Division Bench of Chief Justice Arun Palli and Justice Rajnesh Oswal ruled that Section 4(6) of the act applies to “all proceedings and claims” without distinction, and therefore...

Taxpayer Must Be Heard Before 'Draconian' Step Of Provisional Attachment: Rajasthan High Court

The Rajasthan High Court on 6 March observed that the minimum requirement before invoking provisional attachment under Section 281B of the Income Tax Act, 1961, is to grant the taxpayer an opportunity of hearing to make the payment, or part of it, given the “draconian” nature of the provision. The Division Bench of Acting Chief Justice Sanjeev Prakash Sharma and Justice Sangeeta Sharma was hearing a petition by ARL Infratech Limited challenging an order of the Deputy Commissioner of Income Tax...

Charitable Registration Cannot Be Cancelled For Disputed Transactions Alone: ITAT New Delhi

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 11 March held that the registration of a charitable institution under Section 12AB of the Income Tax Act cannot be cancelled merely on the basis of alleged irregularities in certain financial transactions, as long as the core charitable activities continue to be genuine. A Bench comprising Judicial Member Challa Nagendra Prasad and Accountant Member M. Balaganesh restored the charitable registration of Richmond Educational...

CIT Cannot Reject Delay Condonation Plea On Grounds Beyond Scope of Application: Gujarat High Court

The Gujarat High Court on 9 March held that while deciding an application for condonation of delay under Section 119(2)(b) of the Income Tax Act, the Authority cannot examine issues beyond the scope of the delay condonation request. Section 119(2)(b) empowers the Central Board of Direct Taxes (CBDT) to authorise Income Tax authorities to admit delayed refund or loss carry-forward claims on showing “genuine hardship.” A Division Bench of Justice A. S. Supehia and Justice Pranav Trivedi held...