Different Evidence View By AO, CIT(A) No Ground To Interfere With ITAT Findings: Calcutta High Court

On 22 September, the Calcutta High Court held that a different view of the evidence taken by the Assessing Officer and Commissioner of Income-tax (Appeals) cannot, by itself, justify interference with factual findings of the Income Tax Appellate Tribunal (ITAT) under Section 260A of the Income Tax Act. A Division Bench of Justices Rajarshi Bharadwaj and Sudip Deb dismissed the Revenue's appeal against an ITAT Kolkata order granting relief to bullion trader Utkarsh Rai for Assessment Year...

ATMs Are 'Computers' Under Income Tax Rules, Calcutta High Court Allows Higher Depreciation

The Calcutta High Court has held that Automated Teller Machines (ATMs) qualify as “computers” for claiming the higher depreciation rate under the Income Tax Rules, rejecting the Revenue's classification of the machines as general office equipment or machinery.“The revenue's attempt to categorise these units as general office equipment or machinery ignores the technical reality that they are specialised computing devices. Given that the technical specifications of an ATM align with the broad...

Delhi High Court Declines Writ On Jurisdiction Issue As Statutory Appeal Against Assessment Order Is Pending

The Delhi High Court has declined to exercise its writ jurisdiction in a challenge concerning the jurisdiction of an Income Tax Officer to pass an assessment order, noting that the assessee had already availed the statutory remedy of appeal against the assessment order and the appeal had been pending before the Commissioner of Income Tax (Appeals) since January 2020.The Division Bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta, however, requested CIT(A) to decide the pending appeal...

Karnataka HC Sets Aside Notice Seeking Revision Of ₹27.13 Crore Tax Refund To Myntra Co-Founder Mukesh Bansal

The Karnataka High Court has set aside income tax revision proceedings initiated against entrepreneur and Myntra and Cult. fit co-founder Mukesh Bansal in connection with a refund of over ₹27.13 crore for AY 2019-20.Justice S. Sunil Dutt Yadav held that an intimation issued under Section 143(1) of the Income Tax Act, without any adjustment, could not be treated as an order for exercising revisionary powers under Section 263.Bansal had originally declared a total income of ₹231.73 crore and tax...

Diary Entries At Partner's Premises Insufficient For Additions Without Link To Firm: Gujarat High Court

The Gujarat High Court on 8 September held that diary entries or other material found during survey proceedings cannot, by themselves, justify additions in the hands of a partnership firm when the material was not recovered from the firm's premises and there is no independent evidence linking the transactions recorded in it to the firm. A Bench of Justices Bhargav D. Karia and Pranav Trivedi dismissed the Revenue's appeals against Expert Particle Board and its partner, upholding the orders of...

Karnataka High Court Quashes Revision Proceedings Over ESOP Tax Treatment After ₹27.13 Cr. Refund

On 18 September, the Karnataka High Court set aside revision proceedings initiated against taxpayer Mukesh Bansal after his revised income tax return for the assessment year 2019-20 resulted in a refund of Rs. 27.13 crore. Justice S. Sunil Dutt Yadav held that an intimation issued under Section 143(1) of the Income Tax Act, without any adjustment, cannot be treated as an “order” for exercising revisionary powers under Section 263 of the Act. The Bench observed: “...The corollary would be that,...

Kerala High Court Quashes Order Dismissing Actor Jayasurya's Income Tax Appeal Over Non-Appearance

The Kerala High Court has quashed an order dismissing Malayalam actor Jayasurya's (Jayan Vathakkattu Moni) income tax appeal solely because he failed to appear for the hearing despite notices being issued on four occasions.Justice Ziyad Rahman A.A. held that an appellant's non-appearance cannot, by itself, be a ground to dismiss an appeal without considering the grounds raised in it.The court was hearing a plea challenging an order passed by the Commissioner of Income Tax (Appeals). The appeal...

Income Tax Act | Delhi High Court Seeks Affidavit On Pending Advance Ruling Cases, Appointment Of Board Members

The Delhi High Court has directed the Union Government to file an affidavit disclosing the pendency of cases before the Boards for Advance Rulings and their benches, while also seeking details regarding the status of Chief Commissioners nominated by the Central Board of Direct Taxes (CBDT) as members of the Boards.The Division Bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta passed the direction while hearing a batch of petitions, including those filed by Mitsubishi Electric and the...

Delhi High Court Upholds Delhivery's ₹51.48 Crore Deduction For ESOP Expenditure

The Delhi High Court has upheld Delhivery Pvt. Ltd.'s claim for deduction of ₹51.48 crore in ESOP expenditure, ruling that the Assessing Officer was also not justified in rejecting a Chartered Accountant's valuation report for an assessment year when such certification was permissibleThe Division Bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta dismissed the Revenue's appeal in its entirety and answered both questions raised before it in favour of the assessee.One of the questions before...

Reassessment Notice Can Be Issued Without Section 148A Procedure For Pre-Sept 2024 Searches: Delhi High Court

The Delhi High Court has held that where a search was conducted between April 1, 2021 and September 1, 2024, the reassessment provisions under Sections 147 to 151 of the Income Tax Act, 1961, as they stood before the Finance Act, 2024 amendment, would continue to apply.The Division Bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta accordingly upheld the issuance of a notice under Section 148 of the Income Tax Act without first following the procedure under Section 148A(b), (c) and (d).The...

Delhi High Court Stays Income Tax Reassessment Against GoDaddy Over 'Over-Zealous' Approach Of AO

The Delhi High Court has stayed income reassessment proceedings initiated against domain registrar GoDaddy.com LLC, observing that the Assessing Officer (AO) was proceeding with an “over-zealous approach” and appeared to be guided by revenue considerations.The Division Bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta observed that the AO had “ignored objectivity and basic tenet of tax adjudication system, being certainty and finality of the assessment proceedings.”GoDaddy's counsel...

“Tremendous Pressure” Not Ground: Calcutta HC Refuses To Condon 1,480-Day Income Tax Department Appeal Delay

The Calcutta High Court has refused to condone a 1,480-day delay in filing an income tax appeal, holding that the Income Tax Department cannot explain such an inordinate delay merely by pointing to its heavy workload and the number of matters it was handling.A Division Bench of Justice Rajarshi Bharadwaj and Justice Sudip Deb found that the Department had not shown due diligence in pursuing the appeal. The explanation offered for the delay was not sufficient to justify condoning it.The court was...