Delhi High Court Dismisses Revenue Appeals Against ITAT Order In Mahagun TDS Dispute Over NOIDA Lease Rent

The Delhi High Court has dismissed three appeals filed by the Income Tax Department challenging orders of the Income Tax Appellate Tribunal (ITAT) that had granted relief to Mahagun developers in a long-running dispute over deduction of tax at source (TDS) on lease rent payments made to the NOIDA Authority.A Division Bench of Justices Dinesh Mehta and Justice Vinod Kumar rejected the appeals after noting that the controversy was squarely covered by its earlier ruling in Rajesh Projects (India)...

Supreme Court To Examine If Delay In Filing ITR Can Be Condoned Under Section 119(2)(b) Of Income Tax Act

The Supreme Court is to examine whether a delay in filing a return of income can be condoned under Section 119(2)(b) of the Income Tax Act, 1961. A Bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan issued notice in a Special Leave Petition filed by Sirez Limited challenging the judgment dated December 8, 2025, of the Delhi High Court. “The short point that falls for our consideration is whether delay in filing the Return of income can be condoned under Section 119(2)(b) of the Act,...

Gujarat High Court Sets Aside TDS Order For Failure To Apply 'Make Available' Test Under India–Singapore DTAA

The Gujarat High Court has recently set aside a tax deduction at source order against Solvay Specialities India, holding that the Income Tax Department failed to apply the mandatory “make available” test under the India–Singapore tax treaty. Under this test, tax authorities are required to first determine whether the foreign service provider actually passed on any technical knowledge, skill, or know-how in a way that allows the Indian company to use it independently in the future. Without...

Supreme Court Dismisses Plea Seeking Checks To Prevent TDS Defaults On Property Purchases Above ₹50 Lakh

The Supreme Court on Wednesday dismissed a plea seeking directions to introduce safeguards so that property buyers are not unknowingly penalised for failing to deduct tax at source (TDS) while purchasing property worth more than Rs 50 lakhs. A bench of Justice Vikram Nath and Justice Sandeep Mehta heard the matter and dismissed the petition after brief submissions. The petition concerned Section 194IA of the Income Tax Act, 1961. The provision requires a buyer of immovable property (other than...

Delhi High Court Quashes Transfer Pricing Order After TPO Failed To Share Agreements Relied Upon

The Delhi High Court has recently has held that a Transfer Pricing Officer (TPO) is bound to furnish copies of agreements relied upon for benchmarking before finalising a transfer pricing adjustment.A division bench of Justices Dinesh Mehta and Vinod Kumar observed, “It is the settled position of law that any authority is bound to provide copies of the relied upon documents.”The court was dealing with a writ petition challenging a transfer pricing order, whereby the TPO relied on third-party...

PIL In Supreme Court Challenges Income Tax Law Allowing Search Of Digital Devices, Cloud Data

A public interest litigation has been filed before the Supreme Court challenging the constitutionality of provisions in the Income Tax Act, 2025 that empower tax authorities to conduct searches of “computer systems” and “virtual digital space”, including personal electronic devices, cloud servers, emails and private communications. The plea, filed under Article 32 of the Constitution by entrepreneur Vishwaprasad Alva, assails Section 247 of the Income Tax Act, 2025, as well as the corresponding...

ITAT Mumbai Sets Aside ₹1.14 Crore Transfer Pricing Adjustment For Lack Of Proper FAR Analysis

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 6 January set aside a transfer pricing adjustment of Rs. 1.14 crore against Corporate Worldwide Stay LLP, after finding that the revenue authorities had proceeded on assumptions about the firm's functions and risks without a proper FAR analysis.The bench, comprising Judicial Member Anikesh Banerjee and Accountant Member Vikram Singh Yadav remitted to the assessing officer and transfer pricing officer for fresh adjudication.The...

CBDT Issues Draft Income Tax Rules 2026 Navigator Mapping Existing Rules To New Framework

With the Income Tax Act, 2025 set to come into force on 1 April 2026, the Central Board of Direct Taxes (CBDT) has released the Draft Income Tax Rules, 2026 for public consultation. To assist stakeholders in navigating the transition, the CBDT has also published an official navigator that maps each of the 333 draft rules to their corresponding provisions under the existing Income Tax Rules, 1962, which currently comprise 511 rules. In addition to revising and consolidating existing draft...

Supreme Court Issues Notice In Plea Challenging Punjab and Haryana HC Ruling Against AO Consulting Superiors Before IT Assessment

The Supreme Court on Monday issued notice on an appeal by the Income Tax Department against a Punjab and Haryana High Court judgment that held that an Assessing Officer abdicated his quasi-judicial function by repeatedly consulting superior officers before passing an assessment order. A bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe issued notice on both the application seeking condonation of delay and the Special Leave Petition. The matter is listed next on March 16,...

Income Tax | Mere Disagreement On Facts With Assessing Officer No Ground to Invoke Writ Jurisdiction: Delhi High Court

The Delhi High Court has reiterated that its writ jurisdiction under Article 226 of the Constitution cannot be invoked merely because a taxpayer disputes the correctness of facts or the material relied upon by the Assessing Officer in reassessment proceedings under the Income Tax Act, 1961.A division bench of Justices Dinesh Mehta and Vinod Kumar observed,“A challenge to notice or proceedings can be considered normally, in case where the notice and proceedings are without jurisdiction. Simply...

Income Tax Act | Loan Repayment Within Two-Day Of Receipt Alone Doesn't Prove Bogus Transaction: Delhi High Court

The Delhi High Court has recently held that mere repayment of a loan within a short span of time, even within two days, does not by itself establish that the transaction was a sham or a bogus accommodation entry for the purposes of Section 68 of the Income Tax Act, 1961.A division bench of Justices Dinesh Mehta and Vinod Kumar observed,“Simply because the loan has been paid within two days, it cannot be said with certitude that the loan was not a genuine loan and was only a paper entry....

S.148 Income Tax Act | Assessing Officer Not Required To Share Entire Record At Reassessment Notice Stage: Delhi High Court

The Delhi High Court has held that an Assessing Officer is not required to supply the entire material on record to an assessee at the stage of issuing a notice under Section 148A of the Income Tax Act ,1961 (re-assessment stage) observing that such a requirement would unnecessarily protract reassessment proceedings and enable assessees to manufacture defences.A division bench of Justices Dinesh Mehta and Vinod Kumar observed,“If it is held that every material has to be supplied to the assessee...