Telangana High Court Holds Deferred Sales Tax Benefit Cannot Be Denied, Remands Krebs Biochemicals Case

The Telangana High Court on 19 June held that tax authorities cannot deny a taxpayer the benefit of a sales tax deferment scheme merely because statutory adjustment orders supporting the claim were not available during the original assessment proceedings, and directed the Assessing Officer to reconsider the claim after examining the subsequent orders. A Division Bench of Justices P. Sam Koshy and Suddala Chalapathi Rao partly allowed the appeals filed by Krebs Biochemicals & Industries...

Sitting Judge Moves Allahabad HC Against Denial of Exemption On Statutory Allowances Under New Income Tax Regime

The court called for instructions from the State on the plea, observing that the interim relief sought was in the nature of final relief.

Revised Return Filed After Income Tax Inspection Cannot Shield Dealer From Sales Tax Penalty: Madras High Court

The Madras High Court has upheld Income tax additions and penalty against a dealer, holding that a revised return filed after an Income Tax inspection cannot protect a taxpayer from the consequences of suppressed turnover.It observed that a revised return filed after detection does not automatically establish bona fide conduct or protect a taxpayer from penalty."The revised return filed subsequent to Income Tax inspection cannot be a protection blanket for the tax evaders. Even if the Trader...

Karnataka High Court Upholds Deletion Of Tax Addition On Advances Received By Businessman Procuring Land

The Karnataka High Court has upheld the deletion of a ₹21.11 crore tax addition made against a Bengaluru-based businessman engaged in identifying and procuring land for real estate projects. The court held that advances received in the course of that business cannot be taxed merely because they remained outstanding for several years.The court observed that the mere passage of time does not amount to forfeiture, and such advances cannot be treated as taxable income in the absence of material...

Telangana High Court Upholds Capital Gains Tax Exemption Despite Delay In Villa Registration

The Telangana High Court has held that a taxpayer who invested capital gains in a residential villa under a joint development agreement cannot be denied tax exemption merely because the developer delayed construction and execution of the sale deed. The court observed that delays beyond the assessee's control cannot defeat the benefit intended under the law. A Division Bench of Justice P. Sam Koshy and Justice Narsing Rao Nandikonda allowed the appeal filed by non-resident Indian Sudhakar...

Karnataka High Court Holds S. 271DA , IT Act Penalty Begins Only With S. 274 Notice, Reads In Six-Month Limit

The Karnataka High Court on 7 July held that penalty proceedings under Section 271DA of the Income Tax Act commence only when the Joint Commissioner issues a show cause notice under Section 274, and not when the Assessing Officer merely forwards a proposal for initiating penalty. A Division Bench of Justices S.G. Pandit and K.V. Aravind partly allowed a batch of ten Revenue appeals, clarifying that, although the Act does not prescribe a time limit for issuing a notice under Section 274, the...

Income Tax Order Not Invalid If DIN Is Communicated Later Through Separate Intimation: Karnataka High Court

The Karnataka High Court has held that an income tax order initially communicated without a Document Identification Number (DIN) does not become invalid merely because the DIN is communicated later through a separate authenticated intimation letter. The court held that the procedure substantially complied with CBDT Circular No. 19/2019 as it maintained the audit trail and authenticity of departmental communications. A Division Bench of Justice S.G. Pandit and Justice K.V. Aravind allowed two...

Madras High Court Grants Stay On ₹101.14 Crore TDS Penalty Recovery Against Cognizant

The Madras High Court on 6 July granted interim relief to Cognizant Technology Solutions India Private Limited by staying recovery proceedings arising from tax deducted at source (TDS) penalty demands exceeding Rs. 101.14 crore. A Bench of Justice Senthilkumar Ramamoorthy found that the company had established a prima facie case, directed it to deposit Rs. 4 crore within two months, and stayed recovery of the balance penalty amount until the Commissioner of Income Tax (Appeals) decides the...

Delhi High Court Quashes ₹21 Crore Block Assessment Over Failure To Issue Mandatory Scrutiny Notice

The Delhi High Court has reiterated that issuance of a notice under Section 143(2) of the Income Tax Act, 1961, is mandatory for completing block assessments under Section 158BC of the Act.A Division Bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta relied on Assistant Commissioner of Income Tax vs. Hotel Blue Moon (2010), where the Supreme Court held that the omission to issue such notice is not a curable procedural irregularity.The High Court thus quashed a ₹21-crore tax addition made...

IT Reassessment Notice Received On April 1, 2021, Must Follow New Reassessment Regime: Bombay High Court

The Bombay High Court has held that an income tax reassessment notice dated and digitally signed on March 31, 2021, cannot be treated as having been issued on that date if it was actually dispatched through the Income Tax Business Application (ITBA) portal and reached the assessee only on April 1, 2021. The court ruled that the notice would be deemed to have been issued on April 1, 2021, and the reassessment proceedings must continue under the framework introduced by the Finance Act, 2021. A...

Bombay High Court Says ITAT Took 'Pedantic Approach', Condones 1,797-Day Delay in Income Tax Appeals

The Bombay High Court has set aside an Income Tax Appellate Tribunal (ITAT) order refusing to condone a 1,797-day delay in appeals filed by Uttar Bhartiya Education Society. Holding that the trust's explanation for the delay deserved due consideration, the court condoned the delay and restored the appeals for a decision on merits. A division bench of Justice G.S. Kulkarni and Justice Aarti Sathe held that the tribunal had adopted a "pedantic approach" while rejecting the charitable trust's...

Bombay High Court Sets Aside Order Rejecting Naresh Goyal's Objections In Income Tax Reassessment

The Bombay High Court has recently set aside an order rejecting former Jet Airways chairman Naresh Goyal's objections to the reopening of his income tax assessment for the Assessment Year 2014-15. It directed the Assessing Officer to reconsider the objections after taking into account Goyal's March 8, 2022 letter and the annexures explaining the source of funds used to acquire Jet Airways (India) Ltd. shares. A division bench of Justice B.P. Colabawalla and Justice Firdosh P. Pooniwalla held...