Delhi High Court Distinguishes From SC's Sky Light Judgment, Declines Assessment Issued In Wrong Name After Entity's Merger

The Delhi High Court on Friday declined the Income Tax Department's appeal to treat as 'curable', the error committed in naming the relevant entity while issuing reassessment notices.A division bench of Justices Yashwant Varma and Dharmesh Sharma refused to grant the benefit which the Supreme Court had given to the Department in Sky Light Hospitality LLP v. Assistant commissioner of Income-tax (2018). It observed,“It was the conduct of the assessee in Sky Light which had convinced the Supreme...

[S.151 IT Act] SC Judgment In Rajeev Bansal Doesn't Affirm Authority Of Joint Commissioner To Accord Approvals For Reassessment: Delhi HC

The Delhi High Court has held that the Supreme Court's decision in Union of India and Ors. vs. Rajeev Bansal (2024) did not affirm the authority of a Joint Commissioner to grant approval under Section 151 of the Income Tax Act, 1961 for initiation of reassessment proceedings. The provision precludes the Assessing Officer from issuing notice for reassessment after the expiry of four years from the end of the relevant Assessment Year, unless the Principal Chief Commissioner or...

[S.115JB Income Tax Act] Delhi HC Rejects Dept's Appeals Against Tata Power's Joint Venture With Delhi Govt For Supply Of Electricity

The Delhi High Court has held that Section 115JB of the Income Tax Act, 1961, as it stood prior to its amendment by virtue of Finance Act, 2012, would be inapplicable to an electricity generation company. A division bench of Acting Chief Justice Vibhu Bakhru and Justice Swarana Kanta Sharma thus dismissed the Department's appeals against Tata Power Delhi Distribution Limited, a joint venture of Tata Power with the Delhi government for purposes of power generation and distribution of ...

ITAT Cannot Decide On Grounds Not Addressed By Commissioner Of Income Tax (Appeals): Delhi High Court

The Delhi High Court recently said aside an order passed by the Income Tax Appellate Tribunal, deciding grounds that did not arise from the impugned order passed by the Commissioner of Income Tax (Appeals). A division bench of Acting Chief Justice Vibhu Bakhru and Justice Tushar Rao Gedela observed, “The Assessee's challenge to the addition of ₹4,30,00,000/- under Section 68 of the Act had remained unaddressed by the learned CIT(A) but had been affirmed by the learned ITAT, without...

Baggage Rules Should Be Reviewed To Prevent Harassment Of Genuine Air Travellers Carrying Gold Jewellery To Attend Weddings: Delhi HC

The Delhi High Court has urged the Central government as well as the Customs department to review the Baggage Rules, 2016 which regulate the amount of gold or gold jewellery that can be carried by a person travelling to India by air. A division bench of Justices Prathiba M. Singh and Dharmesh Sharma observed, “While, there is no doubt that any illegal smuggling of gold deserves to be curbed, at the same time, bona-fidely and genuine tourists/travellers, including people from Indian...

Samsung India Electronics Not A 'Permanent Establishment' Of Samsung Korea, Cannot Be Taxed In India: Delhi High Court

The Delhi High Court has held that Samsung India Electronics Pvt. Ltd (SIEL), a wholly owned subsidiary of South Korea-based Samsung Electronics Co. is not its 'Permanent Establishment' (PE) in India, hence not exigible to tax here.A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar agreed with ITAT's findings that the secondment of employees by Samsung Korea was merely with the objective of facilitating the activities of SIEL, not its own.It observed,“the secondment of...

S.149 IT Act | Additions Made During Reassessment Don't Validate Proceedings Initiated For Income Escapement Below ₹50 Lakh Threshold: Delhi HC

The Delhi High Court has held that the benchmark of minimum Rs. 50 lakh income escapement prescribed under Section 149 of the Income Tax Act, 1961 must be met at the very initiation of reassessment proceedings. A division bench of Justices Yashwant Varma and Dharmesh Sharma observed, “Additions ultimately made in the course of reassessment would not validate the initiation of proceedings if founded on income of INR 46,17,000/- having escaped assessment and thus evidently below the...

Tariff, License Fee Received By Electricity Regulatory Commissions Not Exigible To Tax: Delhi High Court

The Delhi High Court has made it clear that amounts received by the Electricity Regulatory Commissions under the heads of filing fee, tariff fee, license fee, annual registration fee and miscellaneous fee are not exigible to tax. A division bench of Justices Yashwant Varma and Dharmesh Sharma thus allowed the petitions filed by the Central Electricity Regulatory Commission as well as the Delhi Electricity Regulatory Commission against the show cause notices issued to them by the GST...

Absence Of Formal Communication U/S 148A Of Income Tax Act Not Fatal When Opportunity To Question Reassessment Had Been Provided: Delhi HC

The Delhi High Court observed that absence of a formal notice under Section 148A of the Income Tax Act, 1961 was not fatal to reassessment proceedings initiated in the twilight zone when the inquiry provisions were introduced by the Finance Act, 2021. A division bench of Justices Yashwant Varma and Dharmesh Sharma noted that the Department had provided an opportunity to the petitioner-assessee to question the assumption of jurisdiction under Section 148, which was the “underlying...

GST Act | Notification Not Needed For Cross-Empowerment Of State Officials : Kerala High Court

In a significant judgment having a wide impact on several pending cases, the Kerala High Court on Wednesday (January 15) ruled that separate notification is not necessary for the cross-empowerment of State officials under the Goods and Services Tax Act.A division bench comprising Justice Dr AK Jayasankaran Nambiar and Justice S Easwaran delivered this significant judgment while answering a reference made to it by a single bench.The division bench endorsed the prima facie view expressed by the...

'Will Pull You Up' : Supreme Court Asks GST Department To Rectify Issues Over Fake Invoices, Asks How Genuine Purchasers Are Liable

The Supreme Court on Wednesday flagged a recurring problem in GST matters whereby genuine purchasers who paid Goods and Services Tax (GST) face issues because their suppliers raised fictitious bills to evade crediting the GST to the department.The Court orally wondered how could the purchaser be held liable for the incorrect GST registration of the suppliers when they have genuinely made purchases and paid the money, including the GST amount.A bench of Chief Justice of India Sanijv Khanna and...

Interim Release Of Goods Can Be Ordered Pending Adjudication Of Notice U/S 130 GST Act In Lieu Of Fine: Kerala High Court

The Kerala High Court has held that interim release of goods can be ordered pending adjudication of notice under section 130 GST Act in lieu of fine.The Bench of Justice Murali Purushothaman observed that “….the adjudication can be proceeded even if the goods are released pending adjudication. Even if confiscation is ordered, there is an option to the owner of the goods to pay fine in lieu of confiscation…..” The assessee/petitioner is engaged in the wholesale trade of gold, precious...