Direct Tax Cases Monthly Round Up: April 2024

Delhi High Court Income Tax Addition Made Towards Unsubstantiated Share Capital Is Eligible For Section 80-IC Deduction: Delhi High Court Case Title: Valley Iron & Steel Co.Ltd Versus PCIT The Delhi High Court has held that income tax additions made towards unsubstantiated share capital are eligible for deduction under Section 80-IC of the Income Tax Act. Delhi High Court Quashes Initiation Of Section 153C Assessment Proceedings Falling Beyond Maximum 10 Years Block Period Case Title: PCIT Versus Ojjus Medicare Pvt. Ltd. The Delhi High Court has quashed the initiation of assessment proceedings under Section 153C of the Income Tax Act, which was falling beyond the maximum 10-year block period. Delhi High Court Interpretes Rule 11UA For Determination FMV Of Shares U/S 56(2)(viib) Case Title: Agra Portfolio Pvt. Ltd. Versus Pr. Commissioner Of Income Tax Citation: 2024 LiveLaw (Del) 415 The Delhi High Court has held that it has interpreted Rule 11UA of the Income Tax Rules, 1962, for determining the fair market value (FMV) of shares under Section 56(2)(viib) of the Income Tax Act, 1961. Delhi High Court Interprets Rule 11UA For Determination FMV Of Shares U/S 56(2)(viib) Case Title: Agra Portfolio Pvt. Ltd. Versus Pr. Commissioner Of Income Tax The Delhi High Court has held that it has interpreted Rule 11UA of the Income Tax Rules, 1962, for determining the fair market value (FMV) of shares under Section 56(2)(viib) of the Income Tax Act, 1961. AO Is Not Clothed With Powers To Ascertain ALP Of Any International Transaction: Delhi High Court Case Title: M/S. Giesecke And Devrient India Pvt. Ltd.Versus DCIT The Delhi High Court has held that AO is not clothed with the powers to ascertain the Arm's Length Price (ALP) of any international transaction. Reopening Or Abatement Of Assessment To Be Triggered Only Upon Discovery Of Material: Delhi High Court Case Title: Saksham Commodities Limited Versus Income Tax Officer The Delhi High Court has held that a reopening or abatement would be triggered only upon the discovery of material that is likely to “have a bearing on the determination of the total income” and would have to be examined bearing in mind the AYs' that are likely to be impacted. ITSC Entrusted With Power Of Granting Immunity From Penalty And Prosecution Only In Case Of Full And True Disclosure: Delhi High Court Case Title: PCIT Versus Pankaj Buildwell Ltd. & Group The Delhi High Court has held that the Income Tax Settlement Commission (ITSC) is entrusted with the power to grant immunity from penalty and prosecution only in cases of full and true disclosure. Delhi High Court Grants Relief Of As Low As 5% IGST On Import Of Dialysis Machines By FMC India Case Title: Fresenius Medical Care India Private Limited Versus UOI The Delhi High Court has granted relief of as low as 5% Integrated Goods and Service Tax (IGST) on the import of dialysis machines by Fresenius Medical Care India Private Limited (FMC India). NFAC Can't Sustain Invocation Of Penalty Proceedings Based On Their Own Failure To Lodge Claim Under IBC Within Time: Delhi High Court Case Title: M Tech Developers Pvt. Ltd. Versus National Faceless Assessment Centre The Delhi High Court has held that the National Faceless Assessment Centre (NFAC) cannot sustain invocation of penalty proceedings based on their own failure to lodge a claim under the Insolvency and Bankruptcy Code (IBC) within time. Failure Of Dept. To Comply With ITAT's Order: Delhi High Court Directs Dept. To Remove Demands, Penalty From ITBA portal Case Title: Sunshine Capital Limited Versus DCIT The Delhi High Court has held that the Department has failed to comply with Income Tax Appellate Tribunal's (ITAT's) Order in passing a fresh assessment order within the stipulated time. Bombay High Court Revenue Officers Bound By Decisions Of Appellate Authorities While Disposing Quasi-Judicial Issues: Bombay High Court Case Title: M/s. OM Siddhakala Associates Versus Deputy Commissioner of Income Tax The Bombay High Court has held that the revenue officers are bound by the decisions of appellate authorities while disposing of quasi-judicial issues. Retrospective Legislation Can't Affect Vested Rights Of Assessee: Bombay High Court Case Title: Senapati Santaji Ghorpade Sugar Factory Versus Assistant Commissioner of Income Tax The Bombay High Court has held that retrospective legislation cannot affect the vested rights of the assessee. Bombay High Court Quashes Reassessment Order Against Housewife When Property Was Purchased By Her Husband Case Title: Kalpita Arun Lanjekar Versus Income Tax Officer The Bombay High Court has quashed a reassessment order against a housewife when the alleged investment was made by her husband. AO To Record Dissatisfaction With Correctness Of ...

Direct Tax Cases Monthly Round Up: April 2024

Mariya Paliwala

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