INCOME TAX
Jurisdictional Assessing Officer Lacks Jurisdiction To Issue Reassessment Notices U/S 148 Of Income Tax Act: Rajasthan High Court
The Rajasthan High Court stated that the Jurisdictional Assessing Officer (JAO) lacks jurisdiction to issue income tax reassessment notices under section 148 of the Income Tax Act, 1961. The Bench of Justice Pushpendra Singh Bhati and Munnuri Laxman observed that “the JAO shall not have the jurisdiction to issue notices under Section 148 of the Act of 1961, as it would not only render Section 151A weak, but may also lead to its diminishing activation.” Section 147 of the Income Tax...
Income Tax Act | Order Passed By Commissioner U/S 263 Can't Be Construed As Closed Remand, No Need To Challenge Order Separately: Kerala High Court
The Kerala High Court stated that the order passed by the Commissioner of Appeals under Section 263 of the Income Tax Act cannot be under any circumstances construed as a closed remand and there is no requirement to challenge the order under Section 263 separately. The Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S. observed that “In as much as the Commissioner of Income Tax (Appeals) had decided the appeal preferred by the assessee against the revised assessment...
Income Tax Bill Allows Officials To Access Assessee's Computer System Overriding Access Code In Certain Cases: Finance Ministry
The Ministry of Finance has told the Parliament that the Income Tax officials cannot access the personal emails, social media accounts and bank accounts of all assesses.However, there is a provision in the new Income Tax Bill 2025, which allows Income Tax officals, in certain cases of search and seizure, to access the computer systems of the assesses by "overriding the access code", if the assesse is not cooperating. Minister of State in the Ministry of Finance, Pankaj Chaudhary, made these...
Application Of Funds By Indian Broadcasting Foundation In BARC Is Not For Profit, Exempted U/S 11 & 12 Of Income Tax Act: Delhi High Court
In an order bringing relief to the Indian Broadcasting Foundation (IBF), which was incorporated to protect the interests of various stakeholders in the field of television broadcasting, the Delhi High Court allowed the body to claim exemption from payment of tax under Sections 11 and 12 of the Income Tax Act, 1961.The provisions govern the taxation of income derived from property held under trust for charitable or religious purposes.Section 11 provides for the exemption of income from property...
'Proof Beyond Reasonable Doubt' Is A Principle Of Criminal Law, Not Applicable To Tax Law: Delhi High Court
The Delhi High Court has made it clear that the principle of 'proof beyond reasonable doubt' cannot be made applicable to Section 148 of the Income Tax Act, 1961 which enables an assessing officer to open an assessment if he has 'reason to believe' that an assessee's income escaped assessment.A division bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela observed, “It is trite that the concept of “proving beyond reasonable doubt” applies “strictu senso” to penal...
Expansion Of Definition Of 'Sikkimese' In S.10(26AAA) Of Income Tax Act Doesn't Affect Rights Of Indigenous People: Sikkim High Court
The Sikkim High Court has upheld the constitutional validity of the definition 'Sikkimese' under the Income Tax Act, which was slightly expanded by way of an amendment in terms of the Finance Act, 2023.A division bench of Chief Justice Biswanath Somadder and Justice Meenakshi Madan Rai upheld the vires of Explanation (v) contained under clause (26AAA) of section 10 of the Income Tax Act, 1961.The initial definition excluded from the definition Indians who had settled in Sikkim prior to the...
Fair Market Value Of Shares Determined By Statutory Methods Can't Be Rejected By Income Tax Department: Karnataka High Court
The Karnataka High Court stated that fair market value of shares determined by statutory methods can't be rejected by the income tax department. The Division Bench of Justices Krishna S Dixit and Ramachandra D. Huddar was addressing a case where the revenue has challenged the order passed by the Tribunal where the Tribunal held that the valuation report on DCF Method produced during assessment proceedings was a valid report justifying valuation of shares. In this case, the...
Contingent Liability vs Laid Out Expense: Delhi HC Allows Vodafone To Claim ₹5.1 Crore Depreciation Over Estimated Costs To Restore Mobile Tower Sites
The Delhi High Court has allowed Vodafone Mobile, engaged in providing telecommunication services, to claim depreciation of ₹5.10 crores in respect of fixed assets over provisioned expenditure to discharge its contractual obligation of restoring mobile tower sites to their original condition at the end of the lease period.Though Asset reconstruction Cost (ARC) was laid out by Vodafone, the Assessing Officer had disallowed the claim, stating that the same is not 'ascertained liability'.Rejecting...
Income Tax Rules | Centre's Power To Relax Conditions Under Rule 9C Exceptional & Discretionary, Not Ordinarily Subject To Judicial Review: Delhi HC
The Delhi High Court has made it clear that the power of the Central government to relax conditions prescribed under Rule 9C of the Income Tax Rules 1962, read with Section 72A of the Income Tax Act, 1962, is exceptional, discretionary and cannot ordinarily be subject to judicial review.In terms of Section 72A of the Act, the accumulated losses and unabsorbed depreciation of the amalgamated companies are deemed to be unabsorbed depreciation and losses of the amalgamated company for the previous...
S.36 Income Tax Act | Deduction For Bad Debt Allowed Only If Assessee Lends In Ordinary Course Of Banking/Money Lending Business: Delhi HC
The Delhi High Court has made it clear that allowance in respect of bad debts as an expense under Section 36 of the Income Tax Act, 1961, is permissible only if:(a) the debt was taken into account for computing the income of the assessee in the previous year in which the amount is written off or prior previous years; or (b) represents money lent in the ordinary course of business of banking or money lending.A division bench of Justices Vibhu Bakhru and Swarana Kanta Sharma thus set aside an ITAT...
Income Tax Act | Principal Commissioner Has Authority To Cancel Registration Of Assessee Without Waiting For Decision From Assessing Authority: Kerala HC
The Kerala High Court stated that principal commissioner has authority to cancel registration of assessee without waiting for decision from assessing authority. The Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S. observed that “the provisions of Section 12AA independently empower the Principal Commissioner to consider whether or not the circumstances mentioned in Section 12AA(3) and 12AA(4) of the Income Tax Act exist as a pre-condition for directing a...
Income Tax | Whether There Was Proper Notice Or Not Is Disputed Question Of Fact, Can't Be Challenged Under Article 226: Kerala High Court
The Kerala High Court stated that the issue as to whether there was a proper notice or not is a disputed question of fact and cannot be challenged under Article 226 of the Constitution of India. “…….As rightly observed by the learned Single Judge, the question as to whether there was a proper notice or not is certainly a disputed question of fact, which cannot be gone into in a proceedings under Article 226 of the Constitution of India” stated the Division Bench of Justices A.K. ...