Tax Cases Monthly Round-Up: June 2022

Direct Tax: Delhi High Court: Underreporting Of Income Due To Re-Computation Of Disallowance By The AO, Does Not Amount To Misreporting Of Income: Delhi High Court Case Title: Prem Brothers Infrastructure LLP. versus National Faceless Assessment Centre & Anr. Citation: 2022 LiveLaw (Del) 568 The Delhi High Court has ruled that where the underreporting of income allegedly done by the assessee is due to the re-computation of the disallowance under Section 14A of the Income Tax Act, 1961 by the Assessing Officer, it would not amount to misreporting of income. The Bench, consisting of Justices Manmohan and Manmeet Pritam Singh Arora, observed that the underreporting of income by the assessee was due to the increase in the disallowance made under Section 14A, which was voluntarily estimated by the assessee and later recalculated by the Assessing Officer on the basis of the same material. Notice Issued Under Section 148 Of The Income Tax Act Against ADeceased Assessee Is Invalid : Reiterates Delhi High Court Case Title: Davinder Singh Thapar versus Assistant Commissioner of Income Tax & Anr. Citation: 2022 LiveLaw (Del) 575 The Delhi High Court has reiterated that a notice issued under Section 148 of the Income Tax Act, 1961, on the ground of escapement of income from assessment, against a deceased assessee is invalid in law. The Division Bench of Justices Jyoti Singh and Anoop Kumar Mendiratta observed that though the notices were issued by the revenue authorities pursuant to an order of the Supreme Court, however, the said order did not deal with the issue of whether the notices could be issued against the deceased assesses. Therefore, the Court quashed the notices issued by the revenue authorities against the deceased assessee. Right To File Objection To SCN Can't Be Denied Due To One Day Delay: Delhi High Court Case Title: Ernst & Young, US LLP Versus ACIT Citation: 2022 LiveLaw (Del) 586 The Delhi High Court bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora ruled that the right to file an objection to the Show Cause Notice cannot be denied owing to a one-day delay. Just 3 Days' Time Granted To Respond To The Income Tax Notice: Delhi High Court Remands The Matter Back To Assessing Officer Case Title: Shubham Thakral Vs ITO Citation: 2022 LiveLaw (Del) 593 The Delhi High Court bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has remanded the matter back to the assessing officer as just 3 days' time was granted to respond to the income tax notice. Whether Income Tax Demand And Penalty Extinguished In CIRP? Delhi High Court Stays Demand Notice Case Title: Indo Enviro Integrated Solution Limited Versus ACIT The Delhi High Court bench of Justice Manmohan and Justice Manmeet Pritam Singh stayed an income tax assessment order and consequential demand and notice of penalty, which were assailed on grounds of being in contravention of the order of the National Company Law Tribunal (NCLT). ShowCause Notice Mailed To The Wrong Email Address: Delhi High Court Remands TheMatter To The Assessing Officer For A Fresh Decision Case Title: M/s Schneider Electric India Pvt. Ltd. Versus ACIT Citation: 2022 LiveLaw (Del) 545 The Delhi High Court, consisting of Justice Manmohan and Justice Manmeet Preetam Singh Arora, has remanded the matter to the assessing officer for a fresh decision as the department mailed the show cause notice to the wrong email address. Delhi High Court Quashes Reassessment Order Issued Without Considering The Reply Filed By The Assessee Case Title: Karida Real Estates Private Limited Versus ACIT Citation: 2022 LiveLaw (Del) 546 The Delhi High Court, consisting of Justice Manmohan and Justice Manmeet Preetam Singh Arora, has quashed the reassessment order issued without considering the reply filed by the assessee. Delhi High Court Quashes Assessment Order For Not Giving Opportunity To File Objection To SCN Case Title: Jindal Exports and Imports Private Limited Vs DCIT Citation: 2022 LiveLaw (Del) 576 The Delhi High Court bench of Justice Manmohan and Justice Dinesh Kumar Sharma has quashed the assessment order as the assessee was not given an opportunity to file an objection to the show cause notice. Himachal Pradesh High Court: AO Failed To Consider Genuine Purchases And Sales Entered In The Books Of Account: Himachal Pradesh High Court Deletes Addition Case Title: PCIT Vs Smart Value Products And Services Ltd. Citation: 2022 LiveLaw (HP) 11 The Himachal Pradesh High Court bench of Justice Sabina and Justice Satyen Vaidya has deleted the additions made to the assessee's income on the ground that the Assessing Officer (AO) had failed to consider genuine purchases and sales entered in the books of account. Madras High Court: Deliberately Concealing The Income, Assessee Can Be Prosecuted :Madras High ...

Tax Cases Monthly Round-Up: June 2022

Parina Katyal

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