Direct Tax Cases Monthly Round Up: March 2024

Delhi High Court Revisional Jurisdiction Can't Be Invoked For Inadequacy Of Enquiry By AO: Delhi High Court Case Title: PCIT Versus M/S Clix Finance India Pvt. Ltd. The Delhi High Court has held that the inadequacy of the inquiry by the AO with respect to certain claims would not in itself be a reason to invoke the powers enshrined in Section 263 of the Income Tax Act. Pick And Choose Method Of Rejecting Certain Entries From Books Of Account Is Arbitrary: Delhi High Court Case Title: PCIT Versus M/S Forum Sales Pvt. Ltd. The Delhi High Court has held that any pick-and-choose method of rejecting certain entries from the books of account while accepting others without an appropriate justification is arbitrary and may lead to an incomplete, unreasonable, and erroneous computation of the income of an assessee. Expression “Yes” By PCIT Couldn't Be Considered A Valid Approval U/s 151 Of Income Tax Act: Delhi High Court Case Title: The Pr. Commissioner Of Income Tax -7 Versus Pioneer Town Planners Pvt. Ltd. The Delhi High Court has held that the expression “yes” could not be considered to be a valid approval under Section 151 of the Income Tax Act. Assessment Order Passed Beyond Time Limit Prescribed U/s 153 Merits To Be Quashed: Delhi High Court Case Title: Readers Digest Book and Home Entertainment (India) Pvt Ltd vs DCIT Finding that no valid demand stood raised against the Petitioner / assessee prior to Sep 30, 2021, the Delhi High Courtdirected the Respondents / Revenue to re-compute the refund payable to the petitioner along with statutory interest which shall run up to the date of remittance in accordance with law. ITAT Must Recall Its Order U/s 254 To Correct Manifest Error Apparent On Record: Delhi High Court Case Title: PCIT vs Fiserv India Private Ltd. While condoning the delay of 86 days by Revenue in filing the appeal, the Delhi High Court dismisses Revenue's appeal filed against the Tribunal's order in miscellaneous application filed by assessee to review its earlier order u/s. 254(2) of the Income tax Act. Upward Adjustments Of Income As Proposed By TPO Stands Withdrawn: Delhi High Court Applies Rule Of Consistency To Adopt TNMM Case Title: Pr. CIT vs Oriflame India Pvt Ltd Finding that the matter has been resolved and Modicare Limited has been excluded from the list of comparable to determine the ALP, the Delhi High Court dismisses Revenue's appeal against ITAT's decision in case of assessee engaged in sale of a wide variety of skin care and cosmetic products Services Provided By Irish Company To Its Indian Counterpart Not Technical Services: Delhi High Court Quashes Order Denying Nil/Lower TDS certificate Case Title: SFDC Ireland Limited Versus Commissioner Of Income Tax The Delhi High Court has quashed the order denying Nil or lower TDS certificates and held that the services provided by the assessee, Irish Company, to its Indian counterpart were not technical services. ITO Can't Retain Amount Deposited By Taxpayer Without Framing Final Assessment Order During Period Of Stay: Delhi High Court Case Title: Navisite India Pvt Ltd vs CIT The Delhi High Court allowed assessee's petition seeking refund of amounts which was deposited towards part payment of demand raised in pursuance of assessment order for AYs 2008-09 and 2009-10. Pre-Deposit Of 20% Demand Is Not Precondition For Consideration Of Stay Application During Pendency Of First Appeal: Delhi High Court Case Title: National Association Of Software And Services Companies (NASSCOM) Versus Deputy Commissioner Of Income Tax (Exemption) Circle 2 (1) The Delhi High Court has held that a 20% pre-deposit demand is not a precondition for consideration of a stay application during the pendency of the first appeal. Failure Of AO To Take Concrete Steps To Ascertain The Genuineness And Creditworthiness Of Transactions: Delhi High Court Case Title: PCIT Versus M/S Paramount Propbuild Pvt. Ltd. The Delhi High Court has held that the AO has not taken any concrete steps to ascertain the genuineness and creditworthiness of the transactions. Variance In Allowable Deductions Doesn't Amount To Furnishing Inaccurate Particulars Of Income: Delhi High Court Case Title: Pr. Commissioner of Income Tax V/s. ICICI Bank Ltd The Delhi High Court has held that the assessee cannot be said to furnish inaccurate particulars of income merely for variance in allowable deductions. Abhisar Buildwell Judgment Can't Be Construed To Be An Authority To Override Mandate Of Section 245-I: Delhi High Court Case Title: Orchid Infrastructure Developers Pvt. Ltd. Versus PCIT The Delhi High Court has held that the judgement of Abhisar Buildwell passed by the Supreme Court cannot be construed to be an authority to override the mandate of Section 245-I of the Income Tax Act. Addition Solely Based On...

Direct Tax Cases Monthly Round Up: March 2024

Mariya Paliwala

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