Depreciation In Sale–Leaseback Cannot Be Denied On Mere Suspicion: Madras High Court

The Madras High Court on 20 April 2026 held that under the Income Tax Act, 1961, a taxpayer is entitled to claim deduction of accrued construction expenses and depreciation arising from sale and leaseback transactions. It ruled that such transactions cannot be treated as colourable devices merely because they result in tax advantages. A Division Bench comprising Justices G. Jayachandran and Shamim Ahmed dismissed the appeals filed by the Income Tax Department under Section 260-A and affirmed...

Conditional Land Tax Acceptance Unsustainable Without Civil Court Adjudication: Kerala High Court

The Kerala High Court on 5 March held that the State cannot impose conditions while accepting land tax that create a cloud over title, as such disputes require adjudication by a competent civil court and cannot be decided through administrative endorsements. A Division Bench comprising Justices Anil K. Narendran and Muralee Krishna S set aside the condition in Order G.O.(Ms.)No.172/2019/Rev. dated 6 June 2019 and declined to direct unconditional acceptance of land tax, while permitting the...

ITAT Quashes Reassessment Based On Third-Party Statements, Deletes ₹94.5 Lakh Additions

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 7 April 2026 held that reassessment proceedings cannot survive where the Assessing Officer relies solely on general third-party statements without establishing a clear nexus with the taxpayer, as such material fails to show independent application of mind or escapement of income. The Bench comprising Vice-President Dr. B.R.R. Kumar and Judicial Member Suchitra R. Kamble allowed the appeal filed by Crystal Quinone Pvt. Ltd. for...

Bombay HC Flags 'Judicial Chaos,' Urges Uniform Litigation Policy Over Contradictory Stands Taken by Tax Depts

The Bombay High Court has recently flagged a persistent issue of the tax and customs department taking inconsistent stands on the same legal question before different High Courts, warning that such conduct leads to “judicial chaos” and needs correction through a uniform litigation policy. A bench of Justice G. S. Kulkarni and Justice Aarti Sathe held that once a legal issue has reached finality against the department, it cannot be reopened elsewhere by taking a contrary stand. The court...

Bombay High Court Allows Delay Condonation For Charitable Trust IT Filing, Attributes Delay To CA Lapse

The Bombay High Court has set aside an order rejecting a charitable trust's request to excuse a delay in filing Form 10, holding that a lapse on the part of its Chartered Accountant could not be used to deny the trust tax exemption under Section 11 of the Income Tax Act. A Bench of Justice B.P. Colabawalla and Justice Firdosh P. Pooniwalla said, “the Petitioner Trust would suffer grave hardship if the delay is not condoned since the Petitioner Firm would be saddled with a huge tax liability for...

Bombay High Court Quashes Infinx GST Refund Rejection After Hearing Adjournment Denied Despite Heavy Rains

The Bombay High Court has set aside a GST refund rejection against Infinx Services Private Limited, finding that the tax department shut the company out of the process by deciding the case without giving it a hearing, even after it asked for time citing heavy rains in Mumbai. A Bench of Justice G. S. Kulkarni and Justice Aarti Sathe held that the order had been passed without affording a personal hearing despite a specific request to reschedule the hearing on account of heavy rains in the city....

Taxpayer Liable Only For Own Investment Share, Not Spouse's Contribution: Delhi High Court

The Delhi High Court on 17 April 2026 held that a taxpayer can only be required to explain his own share of investment and cannot be saddled with tax liability for the contribution of a co-owner, including a spouse, where joint ownership and independent sources of funds are evident. A Division Bench of Justice Dinesh Mehta and Justice Vinod Kumar set aside the assessment order passed under Sections 143(3) read with 144B of the Income Tax Act, 1961, and remanded the matter for reconsideration,...

Correct Appeal Forum Depends On Officer's Actual Rank, Not What An Order Mentions: Gujarat High Court

The Gujarat High Court on 15 April 2026 held that the appellate forum under the Customs Act, 1962 must be determined by the actual rank and statutory authority exercised by the adjudicating officer, and not by any incorrect or clerical mention in the order. A Division Bench comprising Justices A.S. Supehia and Pranav Trivedi dismissed the Department's Tax Appeal and upheld the CESTAT's order, holding that the appeal was correctly filed before the Tribunal under Section 129A of the Customs Act,...

CESTAT Bangalore Upholds Service Tax On Emmvee Photovoltaics' Bonus Payments To Foreign Shareholders

On 21 April, the Bangalore Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) upheld the service tax on bonus payments made by Emmvee Photovoltaics Power Pvt. Ltd. to foreign shareholders and partly allowed the company's appeal, granting limited relief on penalties imposed under the Order-in-Original. A Bench comprising Judicial Member Dr. D.M. Misra and Technical Member R. Bhagya Devi held that bonus payments linked to performance conditions constitute consideration for...

Madras High Court Holds Post-Search Return Invalid In Block Assessment, Rejects Kerala Roadways' Claim

The Madras High Court on 7 April, held that a return filed after the initiation of search proceedings and beyond the due date cannot qualify as a valid disclosure to exclude such income from undisclosed income in block assessment under the Income Tax Act. A Division Bench of Justices G. Jayachandran and R. Sakthivel rejected the Kerala Roadways appeal. It partly accepted one of the Revenue's appeals and fully accepted another, while deciding issues on block assessment, revisional powers, and...

Supreme Court Declines To Interfere With Calcutta High Court IT Order Favouring Britannia

The Supreme Court on Tuesday refused to interfere with a tax department plea against Britannia Industries Ltd, upholding a Calcutta High Court ruling that had set aside a Income Tax revision order. The dispute concerned the valuation of property acquired by the company and deductions claimed for statutory dues such as taxes.A bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe, while declining to interfere with the High Court's order, kept the interpretation of Section 56(2)(x) of the...

Delhi High Court Sets Aside GST Demand Order Despite Delay In Filing Writ, Cites Denial Of Hearing

The Delhi High Court has recently set aside a GST demand order after finding that the taxpayer was not given an opportunity of hearing, even though the writ petition was filed belatedlyA bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul set aside a GST demand order passed under Section 73 of the Delhi Goods and Services Tax Act, 2017, while imposing costs and granting conditional relief to the petitioner.Petitioner had challenged an Order-in-Original confirming a tax demand of over Rs. 20...