ITAT Rejects Congress Party's Appeal To Exempt ₹199.15 Crore From Income Tax, Cites Belated Filing Of Return

The Income Tax Appellate Tribunal dismissed an appeal by the Indian National Congress seeking income tax exemption for the income of ₹199.15 crore during the assessment year 2018-19.The Tribunal rejected the party's claim for exemption on the ground that there was a violation of the conditions in Section 13A of the Income Tax Act. The returns were filed late, the ITAT noted. Calling for a strict interpretation of the exemption clause, the ITAT observed that "the moment there is violation...

Income Tax | Salary Received By Chinese Resident For Services In China Not Taxable In India, Even If Credited To Indian Bank Account: ITAT

The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has stated that salary received by Chinese resident for the services in China not taxable in India, even if credited to the Indian bank account. Manu Kumar Giri (Judicial Member) and S.R. Raghunatha (Accountant Member) observed that “the AO has disallowed the exemption claimed with respect to salary received in India for services rendered in China as taxable in India since the salary has been credited by BMW India Pvt Ltd into...

Notice U/S 153C Income Tax Act Can Be Issued Only If Incriminating Material Has 'Bearing On Total Income' Of Non-Searched Assessee: Delhi HC

The Delhi High Court has made it clear that assessments under Section 153C of the Income Tax Act, 1961 can be made on a non-searched entity only when the Assessing Officer has incriminating material which “has a bearing” on its total income.Section 153C allows the Revenue department to proceed against a party other than the person who is being searched, if incriminating articles belonging to the other person are found during the search.A division bench of Justices Vibhu Bakhru and Tejas Karia...

[Income Tax] Filing Of Form 10-IC Prior To Filing Of Return Not Mandatory, Delay May Be Condoned In “Genuine Hardship”: Allahabad High Court

The Allahabad High Court has held that filing of Form 10-IC prior to filing of income tax return is not mandatory and the delay in filing the Form may be condoned in cases where “genuine hardship” is shown to exist. Form 10-IC, under the Income Tax Act, is required to filed only if a Domestic Company chooses to pay tax at concessional rate of 22% under Section 115BAA of the Income Tax Act,1961. Section 115BAA provides that subject to the provisions of Chapter XII of the Income Tax Act,...

S.148 Income Tax Notice Issued After 31.03.2021 Under Old Regime Invalid Despite TOLA Extension: ITAT

The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has held that S.148 Income Tax notice issued after 31.03.2021 under old regime invalid despite TOLA [Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020] extension. Section 148 of Income Tax Act, 1961 empowers the Income Tax Department to reopen assessments if there's reason to suspect inaccurate income reporting. George George K. (Vice President) and S.R. Raghunatha (Accountant Member) observed that...

Section 80IA Income Tax Act | Internal CUP Method Is Most Appropriate For ALP Determination In Captive Power Transactions: Calcutta High Court

The Calcutta High Court held that Internal CUP (Comparable Uncontrolled Price) method is most appropriate for ALP (Arm's Length Price) determination in captive power transactions. Chief Justice T.S. Sivagnanam and Justice Chaitali Chatterjee (Das) was addressing issue of whether the Internal Comparable Uncontrolled Price (CUP) method adopted by the assessee was right in determining the Arm's Length Price (ALP) for power supplied by the assessee's Captive Power Plants (CPPs) to ...

Insurance Claim Received On Dead Horses Is Capital Receipt, Not Taxable As Income U/S 41(1): Bombay High Court

The Bombay High Court held that insurance claim received on dead horses is capital receipt, not taxable as income under Section 41(1) Of Income Tax Act. The bench opined that horses in respect of which the insurance claim was received were Assessee's capital assets and that therefore insurance receipt arising therefrom could only have been considered as capital receipt, not chargeable to tax. The question before the bench consists of Chief Justice Alok Aradhe and Justice Sandeep...

[Income Tax Act] Amount Indicated In P&L Account As Provision For Doubtful Debts/Advances Cannot Be Treated As "Reserve" U/S 115JA: Bombay HC

The Bombay High Court has ruled that a provision for doubtful debts cannot be treated as either a "reserve" or a "provision for liability" under clauses (b) or (c) of the Explanation to Section 115JA of the Income Tax Act, 1961, and thus cannot be added back to the book profits for the purpose of minimum alternate tax (MAT). The Court accordingly overturned the addition of ₹2.49 crore made by the Assessing Officer and upheld by the Tribunal.A Division Bench of Chief Justice Alok Aradhe and...

Revisional Authority U/S 264 Of Income Tax Act Can Only Review Existing Orders, Cannot Issue Directions To Assessing Authority: Kerala HC

The Kerala High Court stated that the powers of revisional authority under Section 264 of the Income Tax Act is confined to reviewing existing orders, and the authority cannot issue directions to the assessing authority. Section 264 of the Income Tax Act, 1961 empowers the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner, or Commissioner to revise certain orders. Justice Ziyad Rahman A.A. agreed with the department that powers conferred upon the revisional...

[Income Tax Act] Reassessment Beyond 4 Years Requires Specific Non-Disclosure By Assessee, Not Mere Allegations: Bombay High Court

The Bombay High Court stated that reassessment under Section 147 Income Tax Act beyond 4 years requires specific non-disclosure by assessee, not mere bald allegations. Section 147 of the Income Tax Act, 1961 provides for the reopening of assessment proceedings. This section gives discretion to the Assessing Officer (AO) to reopen the assessment proceedings when he/she has reason to believe that some of the income has escaped assessment. Justices B.P. Colabawalla and Firdosh P....

Income Tax | Serving SCN On Old Email After Updation Is Invalid, Despite Earlier Acknowledgement: Kerala High Court

The Kerala High Court stated that reply to one SCN on old email cannot justify non-service of subsequent notice on updated email. Justice Ziyad Rahman A.A. stated that “one of the notices issued under Section 142(1) of the Income Tax Act was indeed served to the assessee in the old email ID, which was after updating the email ID. The assessee also submitted a response to the said notice as well. However, that by itself cannot be a reason to reject the contentions put forward by the...

Kerala High Court Quashes Proceedings U/S 148 Of Income Tax Act Initiated Against Cancelled PAN Number

The Kerala High Court quashed Income Tax proceedings under Section 148 against co-operative society initiated on cancelled PAN. Justice Ziyad Rahman A.A. observed that the transactions pertain to the relevant assessment year were carried out based on the PAN card that was then in existence, which was later cancelled. By the time the proceedings of assessment were initiated by issuing a notice under Section 148, the assessee was issued with a new PAN card, wherein, the status of the...