Ignorance Of Indian Tax Law Not 'Genuine Hardship' To Condone Delay In Filing ITR: Delhi High Court Rejects Canadian Citizen's Plea

The Delhi High Court has held that ignorance of Indian tax laws doesn't constitute “genuine hardship” to condone delay in filing an Income Tax Return (ITR) under Section 119(2)(b) of the Income Tax Act, 1961.A division bench of Justices V. Kameswar Rao and Vinod Kumar thus rejected the plea of a Canadian citizen seeking such relief on ground of being unaware of Indian tax requirements and facing difficulties due to COVID-19 pandemic.For context, Petitioner had earned income taxable in India but...

20% Pre-Deposit Not Mandatory For Stay Of Demand, AO Must Exercise Discretion U/S 220(6) Income Tax Act: Delhi High Court

The Delhi High Court has reiterated that deposit of 20% of the disputed tax demand is not mandatory for grant of stay, and that the Assessing Officer (AO) must independently exercise discretion under Section 220(6) of the Income Tax Act, 1961.A division bench of Justices V. Kameswar Rao and Vinod Kumar relied on National Association of Software and Services Companies (NASSCOM) v. Deputy Commissioner of Income-tax (Exemption)Circle 2 (1), Delhi And Ors (2024) where it was held that 20%...

Income Tax Act | Centralisation Of Assessment U/S 127 Permissible Where Cases Are Inter-Linked: P&H High Court

The Punjab and Haryana High Court held that the transfer of assessment jurisdiction under Section 127 of the Income Tax Act is valid where cases are inter-linked, and centralisation is required for effective investigation and public interest. Section 127 of the Income Tax Act, 1961, grants the power to senior tax authorities to transfer a taxpayer's case from one Assessing Officer (AO) to another. Justices Deepaksibal and Lapita Banerji stated that in the absence of allegations...

Entity Recognised As Charitable Under Income Tax Act With S.12A Registration Cannot Be Treated Otherwise Under FCRA: Madras High Court

The Madurai Bench of the Madras High Court has held that a trust already recognised as a charitable organisation under the Income Tax Act cannot be ignored as such while considering its application under the Foreign Contribution (Regulation) Act, 2010 (FCRA). A Single Judge Bench of Justice G.R. Swaminathan was dealing with a writ petition filed by Arsha Vidya Parampara Trust challenging the rejection of its FCRA registration by the Ministry of Home Affairs . The Bench stated that when ...

Income Tax Act | Delhi High Court Sets Aside Reassessment Against MakeMyTrip Over ₹50 Crore Receipt, Cites Vague S.148A Notices

The Delhi High Court has set aside reassessment proceedings initiated against MakeMyTrip India Pvt. Ltd., holding that the notices issued under Section 148A of the Income Tax Act, 1961 were unreasoned.A Division Bench of Justices V. Kameswar Rao and Vinod Kumar allowed the writ petition filed by the company, which had challenged the reassessment action relating to an alleged unexplained receipt of over ₹50 crore, purportedly arising from information obtained during a search conducted in the case...

Income Tax Act | Multiple Presentations Of Proposal For Reopening U/S 148 After Rejection Not Permissible: Uttarakhand High Court

The Uttarakhand High Court held that once a proposal for reopening an assessment under Section 148 is rejected by the competent authority, repeated representations of the same proposal are impermissible and without jurisdiction. Chief Justice G. Narendar and Justice Subhash Upadhyay examined whether the multiple presentations / repeated re-presentation of the proposal for initiation of proceedings under Section 148 to the Competent Authority under Section 151, is permissible under the...

120-Day Timeline In S.132B Income Tax Act For Deciding Assessee's Plea To Release Seized Assets Not Mandatory: Delhi High Court

The Delhi High Court has held that the 120-day period prescribed under the second proviso to Section 132B(1)(i) of the Income Tax Act, 1961 for deciding an assessee's request for release of seized assets is not mandatory, and a decision taken beyond the said period does not automatically become invalid.A division bench of Justices V. Kameswar Rao and Vinod Kumar was dealing with a petition challenging the Income Tax Department's refusal to release jewellery seized during search proceedings under...

Software Receipts Can't Be Taxed On PE Assumption Already Rejected By ITAT: Delhi High Court

The Delhi High Court has held that software receipts cannot be subjected to tax deduction at source (TDS) on the assumption of a Permanent Establishment (PE) when such an assumption has already been rejected by ITAT, setting aside a withholding certificate issued under Section 197 of the Income Tax Act.A division bench of Justices V. Kameswar Rao and Vinod Kumar was dealing with a petition filed by Zscaler Inc, a US-based software company, challenging the Assessing Officer's order granting TDS...

Income Tax | Revised 2024 Compounding Guidelines Cannot Be Applied After Case Attains Finality: Madras High Court

The Madras High Court held that once the assessee's entitlement to compounding had attained finality through earlier orders, then the Income Tax Department could not apply the revised Compounding Guidelines. Justice C. Saravanan referred to the Explanation to Section 279(6) of the Income Tax Act, 1961 and noted that the new compounding Guidelines dated 17.10.2024 bearing reference F.No.285/08/2014-IT (Inv.V) would apply, only if a new application is/was filed in terms of paragraph 3.2...

'Did Not Apply Mind': Gujarat High Court Quashes Tax Authority's Order Refusing To Condone Delay In Filing Return Due To COVID Pandemic

The Gujarat High Court quashed an order of the tax authorities rejecting a partnership firm's application seeking condonation of 13 day delay in filing income tax return on account of Covid pandemic, observing that authority "did not apply its mind" to the reasons given by the firm. The petitioner partnership firm engaged in real estate development business had challenged a 27.10.2023 rejecting its application for condonation of delay in filing income tax return for Assessment Year 2021-22 under...

Income Tax Act | No Addition U/S 153A Without Incriminating Material Found During Search: Bombay High Court

The Bombay High Court has held that no income addition can be made under Section 153A of the Income Tax Act, 1961 unless incriminating material is found during a search, even if the Revenue relies on information received from foreign authorities. A Division Bench of Justice G.S. Kulkarni and Justice Aarti Sathe dismissed an income tax appeal filed by the Revenue and upheld the order of the Income Tax Appellate Tribunal (ITAT), Mumbai, which had deleted additions of nearly ₹28 crore made...

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...