Income Tax Act | Centralisation Of Assessment U/S 127 Permissible Where Cases Are Inter-Linked: P&H High Court

The Punjab and Haryana High Court held that the transfer of assessment jurisdiction under Section 127 of the Income Tax Act is valid where cases are inter-linked, and centralisation is required for effective investigation and public interest. Section 127 of the Income Tax Act, 1961, grants the power to senior tax authorities to transfer a taxpayer's case from one Assessing Officer (AO) to another. Justices Deepaksibal and Lapita Banerji stated that in the absence of allegations...

ITAT Mumbai Deletes ₹50 Lakh Section 68 Addition In Absence Of Incriminating Material Found During Search

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the appeal filed by M/s JS Infrastructure, deleting an addition of ₹50 lakh made under Section 68 of the Income Tax Act in proceedings initiated under Section 153C. A Bench comprising Judicial Member Kavitha Rajagopal and Accountant Member Omkareshwar Chidara held that no addition could be sustained in a completed assessment in the absence of any incriminating material found during the course of search. The...

Entity Recognised As Charitable Under Income Tax Act With S.12A Registration Cannot Be Treated Otherwise Under FCRA: Madras High Court

The Madurai Bench of the Madras High Court has held that a trust already recognised as a charitable organisation under the Income Tax Act cannot be ignored as such while considering its application under the Foreign Contribution (Regulation) Act, 2010 (FCRA). A Single Judge Bench of Justice G.R. Swaminathan was dealing with a writ petition filed by Arsha Vidya Parampara Trust challenging the rejection of its FCRA registration by the Ministry of Home Affairs . The Bench stated that when ...

Income Tax Act | Delhi High Court Sets Aside Reassessment Against MakeMyTrip Over ₹50 Crore Receipt, Cites Vague S.148A Notices

The Delhi High Court has set aside reassessment proceedings initiated against MakeMyTrip India Pvt. Ltd., holding that the notices issued under Section 148A of the Income Tax Act, 1961 were unreasoned.A Division Bench of Justices V. Kameswar Rao and Vinod Kumar allowed the writ petition filed by the company, which had challenged the reassessment action relating to an alleged unexplained receipt of over ₹50 crore, purportedly arising from information obtained during a search conducted in the case...

Income Tax Act | Multiple Presentations Of Proposal For Reopening U/S 148 After Rejection Not Permissible: Uttarakhand High Court

The Uttarakhand High Court held that once a proposal for reopening an assessment under Section 148 is rejected by the competent authority, repeated representations of the same proposal are impermissible and without jurisdiction. Chief Justice G. Narendar and Justice Subhash Upadhyay examined whether the multiple presentations / repeated re-presentation of the proposal for initiation of proceedings under Section 148 to the Competent Authority under Section 151, is permissible under the...

ITAT Flags Mismatch Between Stock & Sales Of Jewellery Firm During Demonetisation Period, Orders Fresh Examination

The Lucknow Bench of the Income Tax Appellate Tribunal (ITAT) has set aside an appellate order deleting a ₹2.75 crore addition made on account of cash deposits during the demonetisation period and has remanded the matter back to the Assessing Officer for a fresh assessment. A Bench comprising Vice President Kul Bharat and Accountant Member Anadee Nath Mishra was hearing the Revenue's appeal against an order passed by the National Faceless Appeal Centre, which had earlier deleted the...

Film Broadcasting Licence Fees Not Royalty Under India–Mauritius DTAA: Mumbai ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal has allowed the appeal, holding that the consideration received for granting non-exclusive broadcasting rights of Hindi feature films does not constitute “royalty” taxable in India under the Income Tax Act or the India–Mauritius Double Taxation Avoidance Agreement (DTAA). A Bench comprising Judicial Member Narender Kumar Choudhry and Accountant Member Omkareshwar Chidara was hearing the appeal for Assessment Year 2004-05 against an...

120-Day Timeline In S.132B Income Tax Act For Deciding Assessee's Plea To Release Seized Assets Not Mandatory: Delhi High Court

The Delhi High Court has held that the 120-day period prescribed under the second proviso to Section 132B(1)(i) of the Income Tax Act, 1961 for deciding an assessee's request for release of seized assets is not mandatory, and a decision taken beyond the said period does not automatically become invalid.A division bench of Justices V. Kameswar Rao and Vinod Kumar was dealing with a petition challenging the Income Tax Department's refusal to release jewellery seized during search proceedings under...

Income Tax | Cannot Curtail Trust's Time Window For Availing Exemption On Existing Accumulations: ITAT Delhi

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has allowed a Trust that had accumulated Income for Financial Year 2016-2017 to claim exemption under Section 11 of the Income Tax Act, 1961 and deleted addition of ₹37,99,090. In a recent order, a Division Bench, comprising Shri S. Rifaur Rahman (Accountant Member) and Shri Sudhir Kumar (Judicial Member) on effect of amendment restricting the accumulation period for income of charitable/religious trusts under Section 11, it was ...

Software Receipts Can't Be Taxed On PE Assumption Already Rejected By ITAT: Delhi High Court

The Delhi High Court has held that software receipts cannot be subjected to tax deduction at source (TDS) on the assumption of a Permanent Establishment (PE) when such an assumption has already been rejected by ITAT, setting aside a withholding certificate issued under Section 197 of the Income Tax Act.A division bench of Justices V. Kameswar Rao and Vinod Kumar was dealing with a petition filed by Zscaler Inc, a US-based software company, challenging the Assessing Officer's order granting TDS...

Income Tax | Revised 2024 Compounding Guidelines Cannot Be Applied After Case Attains Finality: Madras High Court

The Madras High Court held that once the assessee's entitlement to compounding had attained finality through earlier orders, then the Income Tax Department could not apply the revised Compounding Guidelines. Justice C. Saravanan referred to the Explanation to Section 279(6) of the Income Tax Act, 1961 and noted that the new compounding Guidelines dated 17.10.2024 bearing reference F.No.285/08/2014-IT (Inv.V) would apply, only if a new application is/was filed in terms of paragraph 3.2...

Income Tax | Govt Grant/Subsidy Under Rehabilitation Scheme Is Capital Receipt, Not Taxable As Revenue: Madras High Court

The Madras High Court held that the grant-in-aid/subsidy received by the assessee under a government rehabilitation scheme is a capital receipt and is not taxable as revenue. Chief Justice Manindra Mohan Shrivastava and G. Arul Murugan examined whether the grant-in-aid/subsidy received by the assessee from the Government under the rehabilitation scheme should be treated as a revenue receipt in the hands of the assessee or as a capital receipt, taking it out of the purview of the...