Direct Tax Cases Monthly Round Up: January 2024

Supreme Court Taxpayer Entitled To Hearing On Merits If Appeals Were Dismissed By HC For Delay In Filing Paper-Book: Supreme Court Case Title: Herbicides India Limited verses ACIT While setting aside the Rajasthan High Court orders, the Supreme Court restored the assessee's appeals by condoning the delay in filing the paper-book before High Court and observed that the assessee is entitled to have his appeals heard on merits. Tax Return Filed Without Regular Books Of Account Not Invalid, Burden To Call For Curing Of Defects On Assessing Officer: Supreme Court Case Title: M/S Mangalam Publications, Kottayam V. Commissioner Of Income Tax, Kottayam Citation : 2024 LiveLaw (SC) 55 While deciding the question as to whether reopening of a concluded assessment under Section 147 of the Income Tax Act (“Act”) was legally sustainable or not, the Supreme Court recently held that for the purposes of tax assessment, an assessee's obligation is limited to making a "full and true" disclosure of all "material" or primary facts, and thereafter, the burden shifts on the assessing officer. If a return is defective, it is upto the officer that he intimate the assessee in order that defects may be cured. But if the officer fails to do so, the return cannot be called defective. Delhi High Court Transactions Concerning Mutual Funds Not In The Nature Of Investment And Not Motivated By Trade: Delhi High Court Case Title: PCIT Versus M/S Wig Investment The Delhi High Court has held that transactions concerning mutual funds were in the nature of investment and not motivated by trade. Fees Received For Sub-Licensing Sports Broadcasting Rights Attributable To 'Live Feed', Not Taxable As Royalty: Delhi High Court Case Title: The Commissioner Of Income Tax - International Taxation -1 Versus Fox Network Group Singapore Pte Ltd. The Delhi High Court has held that fees received by assessees for sub-licensing sports broadcasting rights attributable to 'live feed' is not taxable as royalty. Investment In Shares In Indian Subsidiary 'Capital Account Transaction', Not Income: Delhi High Court Case Title: M/S Angelantoni Test Technologies Srl V. Assistant Commissioner Of Income Tax The Delhi High Court has held that investment in shares by a company in its Indian subsidiary is a “capital account transaction” which does not give rise to any income. Therefore, the same cannot be treated as income for taxation. Delhi High Court Directs Income Tax Commissioner To Accept BCI's Form No.10 After Condoning Delay Case Title: Bar Council Of India Versus Commissioner Of Income Tax (Exemption) The Delhi High Court has directed the income tax commissioner to accept Form No. 10 submitted by the Bar Council of India (BCI) after condoning the delay. Income Tax: Denial of 80lA Benefit In 4th Year Of Assessment, U-Turn By Department Is Not Justified: Delhi High Court Case Title: Pr. Commissioner Of Income Tax Versus M/S Bt Global Communications India Pvt. Ltd. The Delhi High Court has held that the Principal Commissioner Income Tax (PCIT) wrongly invoked jurisdiction under Section 263 of the Income Tax Act and fell in error by taking a U-turn in the fourth assessment year, thereby denying the benefit of Section 80IA of the Income Tax Act. Actual Interest Expenditure Had To Be Adjusted Against Income Earned By Way Of Interest: Delhi High Court Case Title: CIT Versus RRPR Holding Pvt. Ltd. Citation: 2024 LiveLaw (Del) 3 The Delhi High Court has held that actual interest expenditure had to be adjusted against the income earned by way of interest. Use Of Trademark Incidental To Advertisement Or Publicity Is A Business Income, Not Royalty And FTS: Delhi High Court Case Title: Hyatt International-Southwest Asia Ltd. Versus Additional Director Of Income Tax The Delhi High Court has held that the use of trademarks incidental to advertisement or publicity was held as neither royalty nor fees for technical services (FTS) but as business income. Employee Accepted Salary After TDS Deduction, Employer Responsible For Non-Deposit: Delhi High Court Case Title: Harshdip Singh Dhillon Versus Union Of India The Delhi High Court has held that the employee accepted salary after TDS deduction and the employer is responsible for non-deposit of TDS. Sales Tax Subsidy/Incentive Is Capital Receipt: Delhi High Court Case Title: Commissioner Of Income Tax Versus M/S Indo Rama Textiles Ltd. The Delhi High Court has held that the sales tax subsidy or incentive received by the assessee under the Dispersal of Industries Package of Incentives, 1993, was a capital receipt. Bombay High Court Change Of Opinion Does Not Constitute Justification To Believe Income Chargeable To Tax Has Escaped Assessment: Bombay High Court Case Title: Geopreneur Realty Private Limited Versus UOI The Bombay High Court ...

Direct Tax Cases Monthly Round Up: January 2024

Mariya Paliwala

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