Supreme Court
S.153C Income Tax Act | Preceding 6 Years Period As Regards 3rd Party To Be Calculated From Date When Documents Are Assigned To Concerned AO : Supreme Court
The Supreme Court has rejected the argument of the Income Tax department that Section 153C of the Income Tax Act 1961 empowers the assessing officer to seek information from a third party regarding income tax returns of the period of six years preceding the date of the search of the assessee whose premises was originally searched.A Bench comprising Justice S. Ravindra Bhat and Justice Aravind Kumar held that under Section 153C, a third party would only have to furnish income tax returns of...
In Suit For Passing Off, Plaintiff Required To Prove Figures Of Sale/ Advertisement Expenses To Establish Goodwill : Supreme Court
The Supreme Court has reiterated that in a suit for passing off, for establishing goodwill of the product, it is necessary for the plaintiff to prove not only the figures of sale of the product but also the expenditure incurred on promotion and advertisement of the product. The Court was hearing an appeal against the decision of the High Court, who had stayed the execution of the decree passed by the Triall Court in favour of the appellant-plaintiff in a suit for copyright infringement and...
Special Effects & 3D Conversion Services Are Not ‘Video-Tape Production’ Services Under S. 65(120) Of Finance Act, 1994: Supreme Court
The Supreme Court has upheld the order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) that the 3D conversion services provided by the assessee, including services such as ‘imparting special effects’, ‘post production service’, ‘digital asset management and content service’ and ‘digital restoration service’, will not fall under the ambit of ‘video-tape production’ under Section 65(120) of the Finance Act, 1994.While adjudicating the service tax demand raised on the assessee,...
Income Tax Act | Completed/Unabated Assessments Cannot Be Reopened by AO If No Incriminating Material Is Found During Search: Supreme Court
The Supreme Court has reiterated that in view of the judgment of the Supreme court in Principal Commissioner of Income Tax vs. Abhisar Buildwell Pvt. Ltd.,2023 LiveLaw (SC) 346, an Assessing Officer (AO) cannot make additions to assessee’s income in respect of completed/unabated assessments if no incriminating material has been found during the course of search under Section 132 or requisition under Section 132A of the Income Tax Act, 1961. However, the bench comprising Justices C.T. Ravikumar...
Self-Assessment Of Assessee Not Rendered Malafide Merely Because It Was Based On A CETSTAT View Which Was Later Overturned : Supreme Court
The Supreme Court has upheld the decision of the Ahmedabad bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) by holding the demand for differential excise duty raised against the assessee, M/s Reliance Industries Ltd, as time barred.The court dismissed the contention that Reliance had deliberately suppressed and withheld material information and documents from the departmental officers by not filing the same and thus, the ground for invoking the extended period of...
Income Tax Act - Carrier of Goods Not An ‘Owner’; Bitumen Not A ‘Valuable Article’ Under S. 69A : Supreme Court
The Supreme Court has ruled that bitumen cannot be treated as a ‘valuable article’ under Section 69A of the Income Tax Act, 1961. The bench comprising Justices K.M. Joseph and Hrishikesh Roy made the observation while dealing with an appeal filed against the decision of the Patna High Court, who had upheld the additions made by the Assessing Officer (AO) towards the bitumen lifted by the assessee as a carriage contractor, which was allegedly not delivered by it to the consignee- the Road...
Loss On Confiscation Of Smuggled Items By DRI Officials Cannot Be Claimed As ‘Business Loss’ Under Income Tax Act: Supreme Court
The Supreme Court bench comprising Justices M. R. Shah and M.M. Sundresh has set aside the Rajasthan High Court’s order of allowing the loss claimed by the assessee on account of confiscation of silver bars by the Customs department, as ‘business loss’ under Section 37(1) of the Income Tax Act, 1961. Justice M. R. Shah reckoned that the assessee was carrying on a legitimate business of dealing in silver and in an attempt to make larger profits, he indulged into smuggling of silver. ...
Income Tax Act- AO Can’t Make Additions to Completed Assessments In Absence Of Incriminating Materials: Supreme Court
The Supreme Court has ruled that no additions can be made by the Assessing Officer (AO) under Section 153A of the Income Tax Act, 1961 in the absence of any incriminating material found during the course of search under Section 132 or requisition under Section 132 A, in respect of completed /unabated assessments. The bench of Justices M.R. Shah and Sudhanshu Dhulia remarked that block assessment under Section 153A of the Income Tax Act is linked with the search and requisition under ...
Transfer Pricing | High Courts Not Precluded From Scrutinising ITAT’s Determination Of Arm’s Length Price : Supreme Court
The Supreme Court has ruled that the High Court is not precluded from considering the determination of the arm’s length price determined by the Income Tax Appellate Tribunal (ITAT), in exercise of its powers under Section 260A of the Income Tax Act, 1961.Dismissing the proposition that in every case where the Tribunal determines the arm’s length price, the same shall attain finality, the bench of Justices M.R. Shah and M.M. Sundresh remarked that there cannot be any absolute proposition of law...
S. 80-IB Of Income Tax Act - Assessee Not Entitled To Deduction Under On Profit Derived From DEPB And Duty Drawback Schemes: Supreme Court
The Supreme Court has ruled that the assessee is not entitled to deduction under Section 80- IB of the Income Tax Act, 1961 on the amount received / profit derived from the Duty Entitlement Pass Book Scheme (DEPB) and the Duty Drawback Schemes.The bench of Justices M.R. Shah and B.V. Nagarathna held that the profit from DEPB and the Duty Drawback claims cannot be said to be an income “derived from” the industrial undertaking. The court added that even otherwise, such an income is chargeable to...
Income Tax Act | For A Company To Be A "Resident" In India, Domicile Or Registration Irrelevant; Test Is Where De Facto Control Lies : Supreme Court
The Supreme Court has ruled that under the Income Tax Act, 1961, the domicile or the registration of the company is not at all relevant, and the determinate test is the place where, the sole right to manage the company and the control of the company lies. The place where the “head and seat” and the “directing power” of the affairs of the company and the control and management is shown, must not merely be theoretical control and power, i.e., not de jure control and power. Rather, in order to hold...