Gift Pursuant To Family Settlement Not Taxable As Deemed Income: ITAT Delhi Dismisses Revenue's Appeal

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has dismissed the Revenue's appeal against an individual taxpayer, Ratna Aggarwal, holding that, in the facts of the case, a property received pursuant to a family settlement was not taxable under Section 56(2)(vii)(b) of the Income Tax Act. Section 56(2)(vii)(b) provides that where an individual receives immovable property without consideration from a person who is not a specified "relative," the stamp duty value of such property is...

Income Tax Act | Ten-Year Block Under Section 153A Includes Search Year: Gujarat High Court

The Gujarat High Court on 23 February held that tax authorities must include the search year when computing the ten-year block for reopening assessments under Section 153A of the Income Tax Act, 1961. A Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi quashed a notice issued in 2025 for Assessment Year 2014-2015, as it fell outside the ten-year period, with the tenth year being Assessment Year 2015-16. The Court observed that to reopen proceedings under Section 153A, “the date...

Extraordinary Writ Jurisdiction Cannot Be Invoked In Factual Disputes: Orissa High Court

The Orissa High Court on 18 February, held that questions involving disputed facts, including the existence and relevance of incriminating material, cannot be examined in writ proceedings under Articles 226 and 227 of the Constitution. A Division Bench of Chief Justice Harish Tandon and Justice Murahari Sri Raman, while dismissing a writ petition filed by Saroj Kumar Sahoo, emphasised that extraordinary writ jurisdiction is not available where an effective alternative remedy exists under the...

ITAT Cannot Grant Tax Exemption Or Donor Tax Benefit To Charitable Trust Without Proper Inquiry: Delhi High Court

The Delhi High Court has held that the Income Tax Appellate Tribunal (ITAT) cannot direct the grant of registration under Sections 12AB (which grants income tax exemption to charitable trusts) and 80G (which allows donors to claim tax deductions on donations) of the Income Tax Act, 1961 without a proper inquiry into the genuineness of the charitable activities of the applicant trust.A Division Bench of Justices Dinesh Mehta and Vinod Kumar thus set aside an ITAT order which had directed the...

ITAT Mumbai Re-characterises Investment in Mauritius Subsidiary as Loan, Denies ₹146.73 Crore Interest To Tata Chemicals

The Income Tax Appellate Tribunal has upheld a Rs. 146.73 crore interest disallowance against Tata Chemicals Ltd and affirmed a Rs. 3.62 crore transfer pricing adjustment, ruling against the company on the two biggest issues in its 2015-16 assessment. A Bench of Judicial Member Rahul Chaudhary and Accountant Member Om Prakash Kant said, “In view of the foregoing discussion, we find no infirmity in the order of the Dispute Resolution Panel affirming the action of the Transfer Pricing Officer in...

ITAT Mumbai Holds CSR Donations Deductible Under Section 80G, Allows Aditya Birla's PF Contributions

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 6 February, observed that CSR donations to approved institutions qualify for deduction under Section 80G of the Income Tax Act, 1961. The Bench also clarified that employees' provident fund contributions cannot be disallowed if deposited within the statutory due date. In the consolidated appeals filed by Aditya Birla Sun Life AMC Limited, the Bench of Judicial Member Amit Shukla and Accountant Member Makarand Vasant...

Delhi High Court Quashes 15% TDS Certificate On SaaS Under India–US DTAA, Orders 2% Certificate

The Delhi High Court has quashed a 15% tax deduction at source (TDS) certificate issued under Section 197 of the Income Tax Act, in respect of payments made for Software-as-a-Service (SaaS) to a US-based company providing a web-based Vendor Management System (VMS) to Indian clients, including Infosys Ltd.A Division Bench of Justices Dinesh Mehta and Vinod Kumar held that the company had made out a prima facie arguable case on non-taxability under the India–US Double Taxation Avoidance Agreement...

Entire Accommodation Entry Purchases Cannot Be Treated as “Unexplained Cash”: ITAT Mumbai

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 23 February, held that even if purchases are accommodation entries, once they are recorded in regular books of account and routed through banking channels, they cannot be treated as “unexplained expenditure” under Section 69C of the Income Tax Act. The Bench, comprising Accountant Member Om Prakash Kant and Judicial Member Ms. Kavitha Rajagopal, was hearing cross-appeals in the case of Balaji Bullions and Commodities India Pvt....

'Reimbursements' Fixed As Percentage Of Sales Are Contractual, Liable For TDS: Calcutta High Court

The Calcutta High Court has upheld the disallowance of expenses claimed by Deys Medical Private Limited (appellant) on account of alleged reimbursements paid to its group companies, holding that payments calculated as a percentage of sales constituted contractual consideration liable for tax deduction at source (TDS).The appeal arose from an order of the Income Tax Appellate Tribunal, Kolkata, which had partially affirmed the Assessing Officer's disallowance of over Rs. 3.35 crore under the...

Income Tax | Delay in Filing Form 67 Not Ground to Deny Foreign Tax Credit: Delhi High Court

The Delhi High Court has held that a mere delay in filing Form 67, the prescribed declaration required to claim credit in India for taxes already paid abroad as required under Rule 128 of the Income Tax Rules, 1962 cannot be used to deny an assessee the substantive benefit of Foreign Tax Credit (FTC).A Division Bench of Justices Dinesh Mehta and Vinod Kumar made the observation while allowing a petition filed by Real Time Data Services Private Limited against the Principal Commissioner of...

Bogus Purchases: Bombay High Court To Examine If ITAT Can Limit Disallowance To Profit Margin

The Bombay High Court has recently admitted an Income Tax Appeal filed by the Department and will examine the correct approach to disallowance in cases involving bogus purchases. A Division Bench of Justice M S Karnik and Justice S.M. Modak, by an order dated February 5, 2026, admitted the Revenue's appeal against Chandrakant L. Nishar The Court recorded the submission of the Revenue's counsel that although the tax effect appeared to be less than Rs.2 crore, the appeal fell within an...

Delhi High Court Treats 5.25% Withholding Certificate Issued To EY As Nil

The Delhi High Court has recently treated a 5.25% withholding tax certificate issued to Ernst & Young LLP (EY) under Section 195 of the Income Tax Act, 1961, as a NIL-rate certificate, holding that the tax officer acted contrary to an earlier binding order of the Court for the same assessment year.A Division Bench of Justices Dinesh Mehta and Vinod Kumar disposed of the writ petition filed by EY challenging the order of the Assistant Commissioner of Income Tax which had directed withholding...