Delhi High Court Gives Income Tax Dept Final Chance To Credit ₹3.65 Crore Advance Tax To 92-Year-Old Assessee

The Delhi High Court has given the Income Tax Department a final opportunity to comply with its earlier order directing adjustment of a ₹3.65 crore advance tax payment towards the capital gains tax liability of a 92-year-old assessee, failing which the Court said it would direct payment of interest on the amount.The Division Bench of Justices Subramonium Prasad and Renu Bhatnagar has directed the Department to ensure that the amount is credited to the assessee's account by October 31, 2026.The...

Director Can't Challenge Income-Tax Search Against Company In Individual Capacity: Karnataka High Court

On 6 October, the Karnataka High Court held that a company director cannot challenge an income-tax search and seizure conducted against the company in his individual capacity when the search is not directed against him personally. Justice B M Shyam Prasad found force in the Revenue's contention that Obedulla A, a director of Attica Gold Private Limited, could not challenge the search against the company in his individual capacity. The Bench observed: “If any person could have a grievance with...

Calcutta High Court Rejects Revenue's Bid To Reopen Facts In ₹9.32 Crore Unlisted Share Sale Addition

The Calcutta High Court on 5 October dismissed the Revenue's appeal against deletion of a Rs. 9.32 crore addition relating to sale proceeds from unlisted equity shares of Superdeal Resources Private Limited, finding that the Tribunal's conclusions were based on the evidence on record. A Division Bench comprising Justices Rajarshi Bharadwaj and Sudip Deb held that the Revenue cannot seek a fresh examination of factual findings in an appeal under Section 260A of the Income Tax Act in the absence...

Kerala High Court Upholds Rejection Of South Indian Bank's ₹52 Cr. Additional Bad-Debt Claim To ITAT

The Kerala High Court on 28 September held that the Income Tax Appellate Tribunal (ITAT) cannot refuse to examine a bad-debt disallowance on merits merely because a separate additional claim was raised before the first appellate authority. A Division Bench comprising Justices Devan Ramachandran and Basant Balaji remanded South Indian Bank's Rs. 14.10 crore bad-debt disallowance to the ITAT for fresh consideration, while upholding the rejection of the Bank's separate Rs. 52 crore additional...

Calcutta High Court Upholds ITAT Order Deleting ₹11.35 Crore Addition For Alleged Cash Loans

On 5 October, the Calcutta High Court dismissed the Revenue's appeal against the Income Tax Appellate Tribunal's (ITAT) September 2025 order deleting a Rs. 11.35 crore addition made against businessman Suresh Kumar Banthia for Assessment Year 2020-21. A Division Bench comprising Justices Rajarshi Bharadwaj and Sudip Deb held that although the strict rules of evidence do not apply to income-tax proceedings, tax authorities and tribunals are guided by the general principles underlying the law of...

Revenue Cannot Reopen Assessment Over Additions Already Pending In Tax Appeals: Gujarat High Court

The Gujarat High Court on 16 September held that the Revenue cannot reopen an assessment under Section 147 of the Income Tax Act and pursue parallel proceedings where the same additions have already been examined by the CIT(A) on merits and remain subject matter of tax appeals before the High Court. A Division Bench comprising Justices A.S. Supehia and Vaibhavi D. Nanavati quashed reassessment proceedings initiated against Venus Township (India) LLP, finding that the reassessment sought to...

Director Of Public Company Cannot Be Made Liable For Tax Dues Due To Substantial Shareholding: Gujarat High Court

The Gujarat High Court has held that a public limited company cannot be treated as a private company merely because one of its directors holds a substantial number of shares. Thus, a director cannot be held personally liable for the company's unpaid tax merely because the director holds substantial shares in the company.The case concerned Section 179 of the Income Tax Act. The provision allows the Income Tax Department, in certain circumstances, to recover a private company's unpaid tax from its...

Insight Portal Screenshots Without Underlying Material Can't Sustain Reassessment: Gujarat High Court

The Gujarat High Court on 7 September held that reassessment proceedings cannot be sustained where the Revenue relies merely on screenshots from the Insight Portal without furnishing the underlying reports and material allegedly linking the taxpayer to accommodation transactions. A Division Bench comprising Justices A.S. Supehia and Vaibhavi D. Nanavati quashed the reassessment proceedings against Jyoti CNC Automation Ltd., finding that the notice issued under Section 148A(1) of the Income Tax...

Rajasthan High Court Quashes Jepee Construction's ₹6.93 Crore Tax Addition Over Short Response Time

On 6 October, the Rajasthan High Court held that less than three days to respond to a substantial tax addition is not a reasonable opportunity of hearing and set aside an assessment order passed by the National Faceless Assessment Centre against Jepee Construction Pvt. Ltd., involving an addition of about Rs. 6.93 crore. A Division Bench comprising Chief Justice Sanjay K. Agrawal and Justice Baljinder Singh Sandhu found that the assessment order wrongly recorded that the company had not filed...

Infosys, Infosys BPO Not Comparable To Goldman Sachs: Karnataka HC Upholds ITAT Order

The Karnataka High Court has upheld the exclusion of Infosys Ltd and Infosys BPO Ltd as comparable companies for Goldman Sachs Services Pvt Ltd in a transfer pricing dispute, finding no reason to interfere with the tribunal's factual assessment of the companies.A Division Bench of Justice S.G. Pandit and Justice Chillakur Sumalatha dismissed the Income Tax Department's appeal against the tribunal's order concerning Goldman Sachs for assessment year 2014-15.The department had challenged, among...

Madras High Court Rejects Review Of ₹10 Crore Cash Credit Addition For Lack Of Due Diligence

The Madras High Court on 28 September dismissed a review application seeking to reopen a Rs. 10 crore unexplained cash credit addition against an individual engaged in civil contract business. A Division Bench comprising Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan dismissed the review application, holding that the petitioner failed to show due diligence in producing documents relied upon as new evidence and failed to establish the identity and creditworthiness of the...

Madras High Court Acquits Woman, Says Non-Filing Of IT Return Not Wilful Without Tax Liability

The Madras High Court has acquitted a woman convicted for failing to file her income tax return, holding that the non-filing was not wilful where the Income Tax Department had failed to establish that she was liable to pay any tax.Justice Sunder Mohan observed that Section 276CC of the Income Tax Act makes the tax payable by the assessee relevant for determining whether prosecution for failure to file a return can be sustained. It held that, in the absence of any assessment or determination...