Direct Tax Cases Weekly Round-Up: 25 February To 3 March 2024

Supreme Court 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 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 Tamil Nadu Urban Local Bodies Act Mandates 15 days' Time To Be Provided To Property Tax Assessee To Respond To Notice: Madras High Court Case Title: M/s.Indralok Hotel Pvt. Ltd. versus The Greater Chennai Corporation Citation: 2024 LiveLaw (Mad) 92 The Madras High Court has held that Section 116A of the Tamil Nadu Urban Local Bodies Act, 1998, mandates that 15 days' time should be provided to the property tax assessee to respond to the notice before action is taken. Allahabad High Court Burden To Prove Escaped Assessment Lies On Assessing Authority: Allahabad High Court Quashes Reassessment Order Against Flipkart Case Title: M/S Flipkart India Pvt. Ltd. Versus State Of U P And 4 Others The Allahabad High Court has quashed the reassessment order against Flipkart and held that the burden to prove escaped assessment lies on assessing authority. Rajasthan High Court Time Of Accrual For Taxing Income Gets Postponed Till Adjudication Of Dispute By Civil Court: Rajasthan High Court Stays Demand Order The Rajasthan High Court has stayed the penalty order and consequential demand notices passed under Section 270-A and Section 156 of the Income Tax Act, respectively. Gujarat High Court Gujarat High Court Refuses To Interfere With Section 153C Income Tax Notice, Allows Assessee To Raise Objections Case Title: Shyamlal Rupchand Parwani Versus The Assistant Commissioner Income Tax , Central Circle 1(1) (1) LL Citation: 2024 LiveLaw (Guj) 18 In a judgment with significant implications, the Gujarat High Court has declined to intervene in a case challenging the validity of notices issued under Section 153C of the Income Tax Act, 1961. ITAT TDS Can't Be Isolatedly Taken In Any Assessment Year Without Offering Corresponding Income For Taxation: ITAT Case Title: DCIT Versus Cicon Engineers Private Limited The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that the TDS cannot be isolatedly taken in any assessment year without offering the corresponding income for taxation. Possession Of Transport Vehicles Is Sufficient Than Legal Ownership For S. 194C-TDS Exception: ITAT Case Title: Adhunik Khanan VA Parivahan Theka Sahakari Samiti Limited Versus ITO The Jodhpur...

Direct Tax Cases Weekly Round-Up: 25 February To 3 March 2024

Mariya Paliwala

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