Direct Tax Cases Monthly Round Up: February 2024

Supreme Court Reopening Of Income Tax Assessments : Supreme Court Refuses To Interfere With Delhi High Court's Guidelines To Tax Dept. Case Title: Asst. Commissioner Of Income Tax Versus Sabh Infrastructure Ltd. The Supreme Court has refused to interfere with a 2017 Delhi High Court judgment which issued a set of guidelines to the Income Tax Department regarding the reopening of assessments. TDS Under S.194-H Income Tax Act Won't Apply To Business Transactions Where Assessee Is Not Responsible For Paying Income : Supreme Court Case Title: Bharti Cellular Limited v. Assistant Commissioner of Income Tax and Another Citation : 2024 LiveLaw (SC) 176 In a significant development, the Supreme Court recently held that under Section 194-H of the Income Tax Act, 1961, cellular mobile service providers are not liable to deduct tax at source on income/profit component in payments received by their franchisees/distributors from third parties/customers. Delhi High Court AO Lacks Jurisdiction To Pass Draft Assessment Order In Absence Of " Any Variation In Income Or Loss ": Delhi High Court Case Title: The Commissioner Of Income Tax - International Taxation Versus S.A.Chitra Ventures Ltd. Citation: 2024 LiveLaw (Del) 211 The Delhi High Court has held that the AO, under Section 144C of the Income Tax Act, would have no jurisdiction to pass a draft assessment order in the absence of "any variation in the income or loss returned," which is prejudicial to the interest of the assessee. Subscription To Legal Database Can't Be Construed Transfer Of Copyright, Subscription Fee Is Not Royalty: Delhi High Court Case Title: The Commissioner Of Income Tax - International Taxation -3 Versus Relx Inc The Delhi High Court has held that subscription to legal databases cannot be construed as a transfer of copyright. Bombay High Court HSBC Bank Carrying On Bona Fide Banking Business In Mauritius Exempt From Tax In India: Bombay High Court Case Title: Commissioner of Income Tax Versus M/s. HSBC Bank (Mauritius) Ltd. The Bombay High Court has held that HSBC Bank carrying on bona fide banking business in Mauritius is exempt from tax in India. Income Tax Deduction Available On Excise Duty Claim As It Does Not Amount To Double Deduction: Bombay High Court Case Title: M/s. Johnson and Johnson Ltd. Versus The Deputy Commissioner of Income Tax The Bombay High Court has held that excise duty paid and included in the closing stock has to be claimed separately as a deduction; otherwise, the appellant would not be claiming the entire excise duty paid in the year of its payment. AO Can't Take Recourse To Re-open Assessment To Remedy Error Resulting From His Oversight In Assessment Proceeding: Bombay High Court Case Title: Emkay Global Financial Services Limited Versus Assistant Commissioner of Income Tax The Bombay High Court has held that the assessing officer cannot take recourse to reopen the assessment to remedy the error resulting from his oversight in the assessment proceeding. Legal Services Provided By Individual Advocate, Partnership Firm Of Advocates Exempted From Service Tax: Bombay High Court Case Title: Adv. Pooja Patil Versus The Deputy Commissioner The Bombay High Court has held that the service provided by an individual advocate, a partnership firm of advocates, by way of legal services is exempt from levy of service tax. Share Premium Received By Issuance Of Shares Is On Capital Account And Gives Rise To No Income: Bombay High Court Case Title: Shendra Advisory Services P. Ltd. Versus The Deputy Commissioner of Income Tax The Bombay High Court has held that the share premium received by the issuance of shares is on the capital account and gives rise to no income. Storage Tanks Does Not Qualify Either As Land Or As Building, TDS Deductible On Storage Charges: Bombay High Court Case Title: The Commissioner of Income Tax (TDS) Versus M/s. B. Arunkumar Trading Ltd. The Bombay High Court has held that the respondent (assessee) ought to have deducted tax under Section 194I of the Income Tax Act, 1961, from the storage charges paid by the assessee. Bombay High Court Quashes Reassessment Notices Issued Against Godrej For Beyond Limitation Period Case Title: Godrej Industries Ltd. Versus The Assistant Commissioner of Income Tax The Bombay High Court has quashed the reassessment notices issued against Godrej because the notice was issued beyond the limitation period. Madras High Court Madras High Court Quashes Assessment Proceedings Initiated In Violation Of Procedure Prescribed As Per Sec 144B Case Title: CPF (INDIA) Private Limited Verses Addl. CIT Citation: 2024 LiveLaw (Mad) 62 While holding that the draft assessment order suffers from non-application of mind, the Madras High Court sets...

Direct Tax Cases Monthly Round Up: February 2024

Mariya Paliwala

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Direct Tax Cases Monthly Round Up: February 2024

Mariya Paliwala

This is a premium content Available exclusively to Our subscribers

INR 1099+GST

Tags

This is a premium content
Available exclusively to
Our subscribers