Madras High Court Dismisses Taxpayer Appeal, Says Books Were Rejected Before DVO Reference

The Madras High Court has held that the Assessing Officer was justified in referring the matter to the District Valuation Officer after examining the books of accounts and finding inconsistencies in them, and that the taxpayer could not rely on the Supreme Court's ruling in Sargam Cinema to argue that the reference to the Valuation Officer was invalid. The Division Bench of Justice G. Jayachandran and Justice Shamim Ahmed dismissed the tax appeal filed by taxpayer M. Ravindran and affirmed the...

ITAT Ahmedabad Upholds 100% Deduction After Expansion Of Sintex's Himachal Unit

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the eligibility of Sintex Industries Ltd. to claim 100% deduction on profits under Section 80-IC of the Income Tax Act even after the initial five-year period where the eligible unit had undertaken substantial expansion. The tribunal coram of Judicial Member Sanjay Garg and Accountant Member Annapurna Gupta dismissed the Revenue's appeal challenging the deletion of an addition of Rs 59.53 crore made by the Assessing...

Transfer Of Self-Generated Trademark Before April 2002 Not Taxable As Capital Gains: Gujarat High Court

The Gujarat High Court has held that money received from transferring a self-generated trademark before 2002 cannot be taxed as capital gains, as the law allowing such taxation came into force only later. The Court noted that Section 55(2) of the Income Tax Act was amended with effect from April 1, 2002, to allow taxation of transfers of trademarks by treating their cost of acquisition as nil, and the amendment cannot apply to earlier transactions.A Division Bench comprising Justice A.S....

Direct Tax Vivad Se Vishwas Act | Revival On Default Applies To Proceedings Initiated By Both Department And Assessee: J&K&L High Court

The Jammu & Kashmir and Ladakh High Court has held that under the Direct Tax Vivad Se Vishwas Act, 2020, failure to comply with the conditions of the scheme results in automatic revival of all proceedings withdrawn earlier, irrespective of whether they were initiated by the assessee or the Income Tax Department. A Division Bench of Chief Justice Arun Palli and Justice Rajnesh Oswal ruled that Section 4(6) of the act applies to “all proceedings and claims” without distinction, and therefore...

Taxpayer Must Be Heard Before 'Draconian' Step Of Provisional Attachment: Rajasthan High Court

The Rajasthan High Court on 6 March observed that the minimum requirement before invoking provisional attachment under Section 281B of the Income Tax Act, 1961, is to grant the taxpayer an opportunity of hearing to make the payment, or part of it, given the “draconian” nature of the provision. The Division Bench of Acting Chief Justice Sanjeev Prakash Sharma and Justice Sangeeta Sharma was hearing a petition by ARL Infratech Limited challenging an order of the Deputy Commissioner of Income Tax...

Charitable Registration Cannot Be Cancelled For Disputed Transactions Alone: ITAT New Delhi

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 11 March held that the registration of a charitable institution under Section 12AB of the Income Tax Act cannot be cancelled merely on the basis of alleged irregularities in certain financial transactions, as long as the core charitable activities continue to be genuine. A Bench comprising Judicial Member Challa Nagendra Prasad and Accountant Member M. Balaganesh restored the charitable registration of Richmond Educational...

CIT Cannot Reject Delay Condonation Plea On Grounds Beyond Scope of Application: Gujarat High Court

The Gujarat High Court on 9 March held that while deciding an application for condonation of delay under Section 119(2)(b) of the Income Tax Act, the Authority cannot examine issues beyond the scope of the delay condonation request. Section 119(2)(b) empowers the Central Board of Direct Taxes (CBDT) to authorise Income Tax authorities to admit delayed refund or loss carry-forward claims on showing “genuine hardship.” A Division Bench of Justice A. S. Supehia and Justice Pranav Trivedi held...

Supreme Court Dismisses Revenue SLP In DLF Case, Declines To Interfere With Deletion Of ₹80.66 Crore Income Tax Disallowance

The Supreme Court of India recently dismissed a Special Leave Petition filed by the revenue challenging a judgment of the Delhi High Court which had granted relief to DLF Home Developers Ltd. by deleting a disallowance of Rs 80.66 crore made under Section 14A of the Income-tax Act. Section 14A of the Income Tax Act disallows deduction of expenditure incurred in relation to income which does not form part of the total taxable income, and Rule 8D of the Income Tax Rules prescribes the method for...

Gujarat High Court Sets Aside Transfer Of Income Tax Case From Ahmedabad To Rajkot Without Hearing Taxpayer

The Gujarat High Court has set aside an order transferring an assessee's income-tax reassessment case from Ahmedabad to Rajkot after finding that the transfer was made without granting the taxpayer an opportunity of hearing as required under the Income Tax Act. The division bench of Justice A. S. Supehia and Justice Pranav Trivedi held that in the present case the transfer of jurisdiction under Section 127(2) of the Income Tax Act could not be sustained since it had been effected without...

Goodwill Arising From Amalgamation Eligible For Depreciation In Subsequent Years: ITAT Ahmedabad

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) held that depreciation on goodwill arising from an amalgamation can be continued in subsequent years, as long as it pertains to the same intangible asset already recognized in the foundational year. A Bench comprising Judicial Member Sanjay Garg and Accountant Member Narendra Prasad Sinha upheld the deletion of disallowance of depreciation claimed by Unicorn Packers Pvt. Ltd. (now part of the taxpayer LLP) on goodwill arising from...

ITAT Ahmedabad Grants Digvijay Lions Foundation Final Chance For 12A Renewal With ₹10,000 Cost

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 25 February granted Digvijay Lions Foundation a final opportunity to furnish documents for renewal of its charitable registration under Section 12A of the Income Tax Act. The Bench, comprising Judicial Member Suchitra Kamble and Accountant Member Narendra Prasad Sinha, was hearing the foundation's appeal against rejection of its renewal application by the Commissioner of Income Tax (Exemption), Ahmedabad. As penalty for...

Vehicle Possession And Document Transfer Concludes A Sale For Capital Gains Tax: Madras High Court

The Madras High Court has held that delivery of a vehicle along with its original documents may constitute a completed sale for income-tax purposes, even if the registration certificate is not formally transferred in the buyer's name. A Bench comprising Justice C. Saravanan dismissed the writ petition filed by Dr. Arvind Kumar R. Shaw (the petitioner), upholding the assessment order passed by the Income Tax Department treating the sale of his Rolls‑Royce as a short-term capital gains...