Bombay HC Quashes IT Assessment for Breach of Natural Justice, Orders Fresh Hearing

Income tax assessment passed without an effective personal hearing violates principles of natural justice and is liable to be quashed.

Realty Company's Sale of Long-Held Freehold Land Is Capital Gains Not Business Income: Madras Court

The Madras High Court has held that profits earned from the sale of decades-old freehold land must be taxed as capital gains and not as business income, rejecting the income tax department's attempt to treat the transaction as part of a real estate business. A division bench of Justices Anita Sumanth and Mummineni Sudheer Kumar said the record clearly showed that the land was held as a long-term asset and was sold without any development or trading activity. "The accounts reveal that the...

Large Cash Claims In Civil Suits Can Be Flagged To Income Tax Department: Madras High Court

This can be done even if the transaction took place before the 2017 restrictions on cash transactions came into force.

Charitable Trust Cannot Lose Tax Exemption For Late Filing Of Form Declaring Future Use of Income: Madras HC

The High Court condoned a 530-Day delay in filing form 10 under the Income Tax Act

Auction Under Income Tax Act Cannot Be Confirmed Without Addressing Objections: Madras High Court

The court held that Rules 62 & 63 of the Second Schedule to the Income Tax Act must be read together.

Income Tax Recovery Without Supplying Assessment Order Is Illegal: Delhi High Court

The Court, holding so, ordered the refund of ₹11.14 Lakh recovered from a taxpayer

Delhi High Court Quashes Rejection of Nil Withholding Certificate For UK Education Firm, Says Ignored Rule 28AA

The Delhi High Court has quashed the rejection of a Nil Withholding Certificate sought by a UK-based education company after noting that the Assessing Officer (AO) failed to comply with the mandatory requirements under Rule 28AA of the Income Tax Rules, 1962.A Division Bench comprising Justices V. Kameswar Rao and Vinod Kumar set aside the certificate dated July 30, 2025, by which the Revenue had directed deduction of tax at source (TDS) at 15% under Section 197 of the Income Tax Act, 1961. For...

Reassessment Unsustainable Where Income Was Declared And Tax Paid At Highest Rate: Delhi High Court

Noting so, the court rejected the Revenue's appeal seeking to reopen a taxpayer's income tax assessment over alleged trading gains.

Delhi High Court Allows Income Tax Assessment Despite Notice Under Unused PAN, Orders Its Cancellation

The Delhi High Court recently (January 13) allowed income tax assessment proceedings to continue against a taxpayer despite him holding more than one Permanent Account Number (PAN) and directed that the unused PAN be cancelled. A Division Bench of Justices Dinesh Mehta and Vinod Kumar was dealing with a writ petition wherein the taxpayer challenged the continuation of assessment proceedings on the ground that notices had been issued under a PAN different from the one currently claimed by...

Bombay High Court Quashes Tax Reassessment Against Hospital Over Unsigned Reopening Notice

The Bombay High Court has set aside reassessment and penalty proceedings against Ambernath City Hospital Pvt. Ltd., holding that the Income Tax Department lacked jurisdiction to reopen the assessment, as the mandatory notice issued under Section 148 of the Income Tax Act, 1961, was unsigned.Relying on its own decision in Prakash Krishnavtar Bhardwaj vs. Income Tax Officer,(2023), the court held, “the Notice issued under Section 148, having no signature affixed to it, either digitally or...

Employees Liable To Pay Tax Even If Employer Deducts TDS but Fails To Deposit It: Kerala High Court

Holding that employees cannot avoid their income tax liability merely because their employer deducted tax at source from their salaries but failed to deposit it with the Income Tax Department, the Kerala High Court has ruled that the statutory protection under Section 205 of the Income Tax Act applies only when the deducted tax is actually paid to the Central Government. A division bench of Justice A K Jayasankaran Nambiar and Justice Jobin Sebastian madethe ruling while dismissing writ...

Bombay High Court Quashes Special Audit Order For Want Of Mandatory DIN

The Bombay High Court has held that an approval for a special audit issued without a Document Identification Number (DIN) is invalid and deemed never to have been issued. A Division Bench of Justice B P Colabawalla and Justice Firdosh P Pooniwalla allowed a writ petition filed by assessee Sanjay Nathalal Shah and quashed a special audit ordered for Assessment Year 2023–24 . Relying on a CBDT circular issued in August 2019, which mandates that every communication, including statutory approvals,...