Income Tax Return Must Be Accepted For Assessing Victim's Income In Motor Accident Claims: Calcutta High Court Grants ₹39 Lakh Compensation

The Calcutta High Court held that when a victim's income tax return is filed, it is a reliable and authentic basis for assessing income in motor accident claims. The bench granted compensation of Rs. 39 Lakh to the claimants (mother and father) of the victim. Justice Biswaroop Chowdhury stated that once an Income Tax Return is accepted by the Income Tax Authority, it becomes an authentic document with regard to the income of the victim. When Income Tax Return is not filed it...

Income Tax Act | Long Term Capital Gain On Shares Cannot Be Branded Bogus Without Evidence: ITAT Mumbai

The Income Tax Appellate Tribunal (ITAT), Mumbai has held that long-term capital gains (LTCG) arising from the sale of listed shares cannot be treated as unexplained cash credit under Section 68 of the Income Tax Act, 1961 merely on the basis of general allegations of penny-stock manipulation, when the assessee has supported the transactions with complete documentary evidence. A Division Bench comprising Vikram Singh Yadav (Accountant Member) and Anikesh Banerjee (Judicial Member)...

Internal Dispute Among Directors Of Company Not 'Genuine Hardship' Preventing Timely Filing Of ITR: Delhi High Court

The Delhi High Court has held that internal disputes between the Directors of a company is not 'genuine hardship' under Section 119(2)(b) of the Income Tax Act 1961, preventing timely filing of its Income Tax Return, particularly in absence of convincing evidence.A division bench of Justices V. Kameswar Rao and Madhu Jain observed,“The internal dispute among the Directors of the company is not a genuine hardship, which can be the ground on which the delay can be condoned. Even otherwise, we are...

Delhi High Court Dismisses Revenue's Appeal In Avery Dennison Transfer Pricing Case, Upholds ITAT Order On Intra-Group Services

The Delhi High Court has dismissed the Income Tax Department's appeal against M/s Avery Dennison (India) Pvt. Ltd., reaffirming that no substantial question of law arises where the Transfer Pricing Officer's (TPO) conclusions are unsupported by cogent evidence and the issue stands settled in favour of the assessee in earlier years. A Division Bench comprising Justice V. Kameswar Rao and Justice Mini Pushkarna was hearing an appeal filed by the Revenue for AY. 2012-2013, stated that that...

ITAT Cannot Re-Adjudicate Issues Under Guise Of Rectification U/S 254(2) Income Tax Act: Madras High Court

The Madras High Court has held that the rectification power under Section 254(2) of the Income Tax Act is akin to the review power under Order 47 Rule 1 CPC and is limited to rectifying any mistake apparent on the face of the record. The Tribunal cannot re-adjudicate issues or modify its original order under the guise of rectification. Section 254(2) of the Indian Income Tax Act, 1961, grants the Income Tax Appellate Tribunal (ITAT) the authority to amend its orders to rectify any...

Income Tax Act | CIT(A) Can't Remand Matter Back To AO Without Deciding Jurisdictional Validity Of S.144 Order: Delhi High Court

The Delhi High Court has made it clear that the Commissioner of Income Tax Appeals cannot remand assessment back to the Assessing Officer, unless it decides the jurisdictional validity of AO's order passed under Section 144 of the Income Tax Act 1961.Section 144 empowers the deals with the assessment of a taxpayer that is carried out by the Assessing Officer (AO) as per his best judgement and based on all relevant information gathered.In the case at hand, the Appellant-assessee argued that the...

Income Tax Act | No Error In Issuing Successive Reassessment Notices On Same 'Reasons To Believe': Delhi High Court

The Delhi High Court has refused to interfere with income reassessment action initiated by the tax authorities merely on the ground that two successive notices under Section 148A(1) of the Income Tax Act 1961 were issued to the assessee.A division bench of Justices V. Kameswar Rao and Vinod Kumar observed,“as the fresh notice dated 13.06.2025 was issued with the same contents, the previous notice automatically becomes infructuous. Thus, no jurisdictional issue arises.”Briefly put, the Department...

Income Tax Appeal Cannot Be Rejected Solely For Assessee's Non-Appearance Before CIT(A): Kerala High Court

The Kerala High Court has held that an Income Tax Appeal cannot be rejected solely for the assessee's non-appearance before the Commissioner of Income Tax (Appeals). Justice Ziyad Rahman A.A. stated that none of the provisions in Section 250 of the Income Tax Act permit the appellate authority to reject the appeal on the ground of non-appearance of the assessee/appellant, without going into the merits of the case. In this case, the assessee/petitioner had filed an appeal,...

Interest On Delayed Agricultural Income Tax Not Deductible U/S 37 Income Tax Act: Kerala High Court

The Kerala High Court has held that interest on delayed agricultural income tax is not deductible under Section 37 Income Tax Act. Section 37 of the Income Tax Act provides deductions on expenses which are directly related to a business's operations. Justices A. Muhamed Mustaque and Harisankar V. Menon examined whether the interest paid on account of the delayed payment of Agricultural Income Tax is eligible for deduction under Section 37 of the Income Tax Act, 1961. The ...

Income From Public Religious/Charitable Trusts Not Eligible For Exemption U/S 10(23BBA) Income Tax Act: Kerala High Court

The Kerala High Court has held that income derived from public religious/charitable trusts is not eligible for exemption under Section 10(23BBA) of the Income Tax Act. Section 10(23BBA) of the Income Tax Act, 1961, provides a complete exemption from income tax for the income of a body or authority that has been established, constituted, or appointed under any Central, State, or Provincial Act specifically for the administration of public religious or charitable trusts or endowments. ...

Income Tax Act | Documents Seized From Actor Yash's Residence Make Him 'Searched Person': Karnataka High Court Quashes Order U/S 153C

The Karnataka High Court has held that the search conducted at Actor Yash's residence makes him a 'searched person' under the Income Tax Act, as documents were seized from him, during the search and a panchanama was drawn. Hence, the order under Section 153C of the Act, which applies to persons other than the one originally searched, is without jurisdiction. Section 153C of the Income Tax Act, 1961 allows the Income Tax Department to assess or reassess the income of a person other than...

Income Tax | ITAT Mumbai Deletes ₹10.84 Cr Addition Against Preity Zinta; Holds Loans Were Genuine, Not Unexplained Cash Credits

The Income Tax Appellate Tribunal (ITAT) Mumbai has set aside a ₹10.84 crore addition made under Section 68 of the Income Tax Act in the case of actress Preity G. Zinta, holding that the Assessing Officer failed to appreciate the documentary evidence establishing identity, creditworthiness and genuineness of the loan transactions routed through entities of the Danish Merchant Group. A Bench of Saktijit Dey (Vice President) and Girish Agrawal (Accountant Member), while hearing the...