Direct Tax Cases Weekly Round-Up: 26 May To 01 June 2024

Delhi High CourtInterest Received By Indian PE On Deposit Maintained With Head Office/Overseas Branch Is Not Taxable In India: Delhi High CourtCase Title: The Commissioner Of Income Tax-International Taxation-3 Versus The Bank Of Tokyo-Mitsubishi UFJ Ltd.The Delhi High Court has held that interest received by the Indian PE on deposits maintained with the Head Office/Overseas Branch is not taxable in India.Bombay High Court'Transit Rent' Can't Be Considered As 'Revenue Receipt', Not Liable To Be Taxed: Bombay High CourtCase Title: Sarfaraz S. Furniturewalla Versus Afshan Sharfali Ashok Kumar & Ors.The Bombay High Court has held that 'Transit Rent' is not to be considered a revenue receipt and is not liable to be taxed. As a result, there will be no question of the deduction of TDS from the amount payable by the developer to the tenant.Gauhati High CourtLong-Term Capital Gains Exempted From Income Tax, Non-Disclosure Doesn't Amount To Loss Of Revenue: Gauhati High CourtCase Title: Karan Jain Versus The Union Of IndiaThe Gauhati High Court has held that the long-term capital gains are exempt from income tax, and the non-disclosure while computing the long-term capital gains cannot result in causing prejudice to the department.Kerala High CourtExpenditure Incurred By Way Of Addition To Buildings, Electrical Fittings On Leasehold Premises Is Capital Expenditure: Kerala High CourtCitation: 2024 LiveLaw Ker 312Case Title: Hotel Allied Trades Pvt. Ltd Versus The Additional Commissioner Of Income-TaxThe Kerala High Court has held that the expenditure that was incurred by the appellant/assessee by way of addition to buildings and electrical fittings on leasehold premises was in the nature of capital expenditure and not revenue expenditure.Opening And Closing Stock Of The Year Is To Be Valued By Applying Same Methodology: Kerala High CourtCitation: 2024 LiveLaw Ker 311Case Title: P. A. JOSE Versus UOIThe Kerala High Court has held that the stipulation under Clause 16 of the Income Computation and Disclosure Standards (ICDS) for the adoption of first-in, first-out (FIFO) or weighted average cost for valuation of the stock or inventory cannot be applied in the Assessment Year 2017-2018 for the valuation of the opening stock, as the opening and closing stock of the year are to be valued by applying the same methodology.Allahabad High Court“Reason To Believe” U/S 148A(C) Income Tax Act Amended To “Info Which Suggests”; Thorough Consideration Of Assessee's Reply Not Necessary: Allahabad HCCase Title: Rahul Sachan v. Income Tax Officer The Allahabad High Court has held that a pointwise consideration of objections that may be raised by an assessee in response to a notice issued to him under Section 148 A(b) is not necessary while passing an order under Section 148A(d) of the Income Tax Act, 1961.

Direct Tax Cases Weekly Round-Up: 26 May To 01 June 2024

Mariya Paliwala

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