Gujarat High Court Quashes Reassessment Against Adani Exports For AY 2010-11

The Gujarat High Court has quashed reassessment proceedings against Adani Exports for AY 2010-11. It found that the Assessing Officer had relied on an unamended partnership deed while reopening the assessment, despite the assessee having specifically informed him that the deed had been amended to remove the obligation to pay interest on partners' capital.A Division Bench comprising Justice A.S. Supehia and Justice Vaibhavi D. Nanavati held that the amended partnership deed expressly provided...

Merely Because No Income Was Booked, Business Expenses Cannot Be Disallowed: Gujarat High Court

The Gujarat High Court has recently ruled that expenses incurred on business projects cannot be disallowed merely because no income was booked against them for the relevant year. The court noted that if the Revenue's case was that no income had been booked, it had to determine whether the assessee had failed to account for that income or had not treated a particular receipt as income.“Merely because no income has been booked against the same, it would not result into disallowance of such...

No Income Tax On RFCTLARR Land Acquisition Compensation: Andhra Pradesh High Court

The Andhra Pradesh High Court on 7 August held that compensation paid for compulsory acquisition of land under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act) is exempt from income tax, except in cases covered by Section 46 of the Act. A Single Bench comprising Justice Tarlada Rajasekhar Rao set aside the executing court's orders permitting deduction of tax from compensation awarded to landowners and remanded the...

Madras High Court Quashes Geeco Enercon Reassessment, Says New Regime Cannot Revive Limitation

The Madurai Bench of the Madras High Court has held that the Income Tax Department cannot initiate reassessment proceedings under the new reassessment regime after the limitation period under the old regime has expired, and quashed the reassessment proceedings against Geeco Enercon Private Limited for Assessment Year (AY) 2015-16. Justice C. Saravanan held that the proceedings the Income Tax Department initiated in August 2024 were barred by limitation and quashed the order dated 31 August 2024...

Burden Shifts To Revenue Once Taxpayer Proves Creditworthiness And Genuineness: Telangana High Court

The Telangana High Court on 22 July held that once a taxpayer establishes the identity, creditworthiness and genuineness of credits through sufficient documentary evidence, the burden shifts to the Assessing Officer to disprove the material with independent and cogent evidence, and deleted income tax additions totalling Rs. 5.58 crore against Agarwal Industries Pvt. Ltd. A Division Bench comprising Justices P. Sam Koshy and Narsing Rao Nandikonda allowed the company's appeal and set aside the...

Income Tax Act | Delhi High Court Allows Set-Off Of Loss Of Eligible Unit Against Profits Of Other Non-Eligible Units

The Delhi High Court has held that the loss incurred by a unit eligible for deduction under Section 10B of the Income Tax Act can be set off against the profits of other units of the assessee.Section 10B provides for deductions in respect of profits derived by eligible 100% export-oriented undertakings from the export of articles, things or computer software.The Division Bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta held that although profits of each eligible unit are required to be...

Income Tax Authorities Can Condon Delay Despite CBDT Time Limit: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that tax authorities cannot reject an application for condonation of delay merely because it was filed beyond the time limit prescribed by a CBDT circular. The court held that the authorities have discretion under the Income Tax Act to consider genuine hardship while deciding such applications.A Division Bench comprising Justice Ninala Jayasurya and Justice T.C.D. Sekhar observed that Section 119(2)(b) of the Income Tax Act allows tax authorities to accept...

Income Tax | Assessing Officer Can Complete Assessment If No Objections Before Dispute Resolution Panel: Allahabad HC

The Allahabad High Court at Lucknow has held that objections to a draft assessment order under Section 144C of the Income Tax Act, 1961, must be filed before the Dispute Resolution Panel as well as the Assessing Officer and that filing them before the Assessing Officer alone will not do. It held that where no objections are filed before the Dispute Resolution Panel, the Assessing Officer may finalise the assessment on the basis of the draft order itself. Section 144C of the Income...

Chhattisgarh High Court Rejects Plea Against ₹19.75 Lakh Property Tax Demand On Loyola School

The Chhattisgarh High Court has dismissed a writ petition filed by Madhya Pradesh Jesuits challenging property tax demand notices of around Rs. 19.75 lakh raised against Loyola Higher Secondary School, Bilaspur.Justice Rakesh Mohan Pandey held that the school could not claim property tax exemption based on a Section 12A registration certificate, which is required for eligible educational institutions to claim the exemption. The certificate, however, was issued in favour of “The President, Madhya...

Bank Cannot Mark Lien On Cooperative Society Account For TDS On Cash Withdrawals: Karnataka High Court

The Karnataka High Court has recently held that Bank of Baroda had no statutory authority to create a lien over a cooperative society's current account for collection of TDS on cash withdrawals. It held that the responsibility to deduct the tax under Section 194N of the Income Tax Act rested on the bank.Justice M.G.S. Kamal observed that Section 194N placed the responsibility for deducting the prescribed tax on the banking company making the payment. “Perusal of the aforesaid provision indicate...

Income Tax Act | 18-Month Period To Decide Settlement Application Cannot Restart On Transfer Between Interim Boards: Allahabad High Court

The Allahabad High Court at Lucknow has recently held that the period of 18 months for deciding a settlement application under Section 245D(4A)(iii) of the Income Tax Act, 1961, begins to run when the application first stands allotted to an Interim Board for Settlement and does not begin afresh when the Central Board of Direct Taxes later transfers the application from one Interim Board to another. Section 245D(4A)(iii) of the Act requires an order under Section 245D(4) to be...

2010 IT Act Amendment Bringing Overseas Technical Services Into Tax Net Cannot Apply Retrospectively: Karnataka HC

The Karnataka High Court has recently held that a 2010 amendment to the Income Tax Act, which widened the scope of taxation of fees for technical services paid to non-residents, cannot be applied retrospectively to create a tax liability on past transactions. The court found that the amendment did more than clarify the existing law, as it widened the charging provision by removing the requirement that the technical services must have been rendered in India.“The impugned Amendment Act—Finance Act...