INCOME TAX
ITAT Delhi Upholds Tax Incentive For Big Babol, Mentos Maker Perfetti's Uttarakhand Unit
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the order allowing confectionery manufacturer Perfetti Van Melle India Pvt. Ltd. to claim tax deduction under Section 80-IC of the Income Tax Act on profits from its Rudrapur manufacturing unit in Uttarakhand. Section 80-IC grants profit-linked tax incentives to manufacturing units located in notified industrial areas of certain states, including Uttarakhand, subject to specified conditions. A bench of Judicial Member...
Transfer Pricing Adjustment Cannot Amount To 'Misreporting of Income': Madras High Court Quashes Penalty On Verizon
The Madras High Court has recently quashed penalty proceedings against Verizon Data Services India Pvt Ltd, holding that a transfer pricing adjustment based on estimation of arm's length price cannot by itself constitute “misreporting of income” under Section 270A of the Income Tax Act.A single-bench of Justice C. Saravanan, while quashing the penalty order and rejection of its immunity application against Verizon observed,"The entire basis for initiation of penalty proceedings is the transfer...
ITAT Delhi Upholds Deletion Of ₹1.34 Crore Tax Addition Against NDTV
The Income Tax Appellate Tribunal (ITAT) at Delhi on Friday upheld relief granted to New Delhi Television Ltd. (NDTV) in a dispute over a Rs 1.34 crore disallowance under Section 14A of the Income Tax Act for the assessment year 2010–11. The tribunal held that expenditure cannot be disallowed under the provision where the taxpayer has not earned any tax-exempt income during the relevant year. A bench comprising Judicial Member Madhumita Roy and Accountant Member Manish Agarwal dismissed the...
Limitation For TDS Default Orders Runs Quarter-Wise, Not Annually: Bombay High Court
The Bombay High Court has recently held that limitation for passing an order treating a person responsible for deducting tax at source as an “assessee in default” under Section 201 of the Income Tax Act must be computed quarter-wise based on the filing of each TDS statement, and not on an annual or cumulative basis. A Division Bench of Justice M.S. Karnik and Justice Gautam A. Ankhad on March 5, 2026 dismissed the Income Tax Department's appeal against Vodafone Cellular Ltd., Pune. In doing...
ITAT Delhi Quashes Reassessment Against Lalit Modi Over Credit Card, Private Jet Expenses
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed reassessment proceedings initiated against former IPL commissioner Lalit Kumar Modi over alleged unexplained credit card expenditure and private jet costs. The tribunal held that reassessment cannot be initiated while regular scrutiny assessment proceedings are still pending.A bench of Judicial Member Vikas Awasthy and Accountant Member Brajesh Kumar Singh held that the reassessment was without jurisdiction. It observed that...
Penalty Invalid Where AO Issues Stereotypical Notice Without Specifying Charge: ITAT Delhi
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 25 February quashed an income tax penalty imposed on an taxpayer, after finding that the Assessing Officer issued a stereotypical penalty notice without specifying the exact charge under the Income Tax Act. A Tribunal Bench comprising Judicial Member Yogesh Kumar U.S. and Accountant Member Renu Jauhri held that a notice issued must clearly state whether the penalty proceedings are initiated for “concealment of income” or “furnishing...
No Cancellation Of Educational Trust Registration For Generating Surplus: Punjab & Haryana High Court
The Punjab and Haryana High Court on 27 February held that mere generation of surplus by an educational institution cannot be a ground for cancelling registration of a charitable trust, so long as the activities are genuine and carried out in accordance with the objects of the trust. A Division Bench comprising Justice Lisa Gill and Justice Parmod Goyal dismissed an appeal filed by the Income Tax Department and upheld the order of the Income Tax Appellate Tribunal (ITAT) restoring the...
Central Bank Digital Currencies Not 'Relevant Crypto-Assets' For CRS Reporting: CBDT
The Central Board of Direct Taxes (CBDT) has amended the Income Tax Rules, 1962, to clarify that Central Bank Digital Currencies (CBDCs) will not fall within the definition of “relevant crypto-assets” for Common Reporting Standard (CRS) framework.The amendment forms part of the Income-tax (Amendment) Rules, 2026 notified on March 5, 2026 and the changes introduce new definitions and reporting provisions relating to crypto-assets, electronic money products and digital currencies under the Common...
Non-Resident Individual Eligible For Dispute Resolution Panel Route In Tax Reassessment: Madras High Court Clarifies
The Madras High Court has clarified that a non-resident individual falls within the amended definition of an “eligible assessee” under the Income Tax Act, and therefore reassessment proceedings routed through the Dispute Resolution Panel cannot be challenged on that ground.The court dismissed a writ petition filed by individual taxpayers Motilal Jain and Mahaveer Jain and upheld a reassessment order issued under the Income Tax Act following directions of the Dispute Resolution Panel.The order...
Tax Evasion Prosecution Not Liable To Be Terminated If IT Penalty Set Aside On Technical Grounds: Kerala High Court
The Kerala High Court has reiterated that criminal prosecutions for alleged tax evasion under the Income Tax Act do not automatically fail merely because penalty proceedings were set aside on technical grounds, and that such prosecutions can validly continue where allegations disclose wilful and deliberate concealment of income. The ruling was delivered by Justice G. Girish while dismissing a batch of criminal miscellaneous petitions filed by Dr. P.H. Abdul Majeed, who had sought the quashing...
Taxpayer Cannot Escape Prosecution By Filing Revised Returns Post-Search: Kerala High Court
The Kerala High Court on 20 February held that filing revised income tax returns after a search and seizure operation does not absolve a taxpayer from criminal prosecution for wilful tax evasion, and that such revised returns cannot be used as a shield against offences punishable under the Income Tax Act, 1961. Justice G. Girish, dismissed a batch of petitions filed by a medical practitioner challenging prosecutions pending before the Additional Chief Judicial Magistrate (Economic Offences),...
Notice Issued By Officer Without Jurisdiction Cannot Sustain Assessment: ITAT Quashes Assessment
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 26 February quashed an assessment against taxpayer Jagruti Kirti Shah, holding that the notice under Section 143(2) of the Income Tax Act was issued by an officer lacking jurisdiction as per the Central Board of Direct Taxes (CBDT) Instruction No. 1 of 2011. Instruction 1 prescribes the officer-level jurisdiction for issuing scrutiny notices based on the assessee's income and category.The Bench, comprising Judicial Member Rahul...