Direct Tax Cases Weekly Round-Up: 31 March To 6 April 2024

Delhi High Court Income Tax Addition Made Towards Unsubstantiated Share Capital Is Eligible For Section 80-IC Deduction: Delhi High Court Case Title: Valley Iron & Steel Co.Ltd Versus PCIT The Delhi High Court has held that income tax additions made towards unsubstantiated share capital are eligible for deduction under Section 80-IC of the Income Tax Act. Delhi High Court Quashes Initiation Of Section 153C Assessment Proceedings Falling Beyond Maximum 10 Years Block Period Case Title: PCIT Versus Ojjus Medicare Pvt. Ltd. The Delhi High Court has quashed the initiation of assessment proceedings under Section 153C of the Income Tax Act, which was falling beyond the maximum 10-year block period. Delhi High Court Interpretes Rule 11UA For Determination FMV Of Shares U/S 56(2)(viib) Case Title: Agra Portfolio Pvt. Ltd. Versus Pr. Commissioner Of Income Tax Citation: 2024 LiveLaw (Del) 415 The Delhi High Court has held that it has interpreted Rule 11UA of the Income Tax Rules, 1962, for determining the fair market value (FMV) of shares under Section 56(2)(viib) of the Income Tax Act, 1961. Bombay High Court Revenue Officers Bound By Decisions Of Appellate Authorities While Disposing Quasi-Judicial Issues: Bombay High Court Case Title: M/s. OM Siddhakala Associates Versus Deputy Commissioner of Income Tax The Bombay High Court has held that the revenue officers are bound by the decisions of appellate authorities while disposing of quasi-judicial issues. Retrospective Legislation Can't Affect Vested Rights Of Assessee: Bombay High Court Case Title: Senapati Santaji Ghorpade Sugar Factory Versus Assistant Commissioner of Income Tax The Bombay High Court has held that retrospective legislation cannot affect the vested rights of the assessee. Kerala High Court Writ Petition Challenging Orders Of Tamil Nadu Assessing Authority Not Maintainable Merely For Having A Bank Account In Kerala: Kerala High Court Citation: 2024 LiveLaw (Ker) 218 Case Title: Manaf Ali Hassan Versus The National Faceless Assessment Centre The Kerala High Court has held that the writ petition challenging orders of Tamil Nadu assessing authority is not maintainable merely for having a bank account in Kerala. Assessment Can Be Reopened Based On Audit Objections Under New Reassessment Regime: Kerala High Court Case Citation: 2024 LiveLaw (Ker) 219 Case Title: M/S Sree Narayana Guru Memorial Educational And Cultural Trust Versus The Assistant Commissioner Of Income Tax The Kerala High Court has held that assessments can be reopened based on audit objections under a new reassessment regime. Affording Personal Hearing Is Mandatory In An Enquiry Under Section 148A(B) Of Income Tax Act: Kerala High Court Case Citation: 2024 LiveLaw (Ker) 222 Case Title: The Income Tax Officer Ward Versus Vazhakkulam Block Rural Co-Operative Society Ltd. The Kerala High Court has held that affording a personal hearing to the assessee is mandatory in an inquiry under Section 148A(b) of the Income Tax Act. Land Used For Agricultural Purposes Yielding Agricultural Income Is Exempted From Income Tax: Kerala High Court Citation: 2024 LiveLaw (Ker) 230 Case Title: Mini Muthoottu Credit India (P) Ltd. Versus Commissioner Of Income Tax The Kerala High Court has held that the land in question was used for agricultural purposes, which yielded agricultural income, which in turn was exempt from income tax under Section 10(1) of the Income Tax Act. Andhra Pradesh High Court Andhra Pradesh High Court Directs Municipal Corporation To Decide Representation On Waiver Of Interest On Property Tax Arrears Case Title: S.v.v.estates (swarna Palace) Versus The State Of Andhra Pradesh and Others The Andhra Pradesh High Court, while restraining the Municipal Corporation from taking coercive steps against the petitioner, directed the corporation to decide representation on a waiver of interest on property tax arrears. Consideration Received By Trustees For Relinquishment Of Trusteeship Cannot Be Treated As Capital Receipt: Kerala High Court Case Title: The Principal Commissioner Of Income Tax Versus Gracy Babu The Kerala High Court has held that consideration received by trustees for such relinquishment of trusteeship cannot be treated as a capital receipt for the purposes of assessing it under the head of capital gains; the consideration will have to be treated as the individual income of the assessees and assessed accordingly under the appropriate head. Jammu & Kashmir High Court Leasehold Interest In Land Is An Asset Of Company And Is Capable Of Valuation: Jammu & Kashmir High Court Case Title: Principal Commissioner of Income Tax Versus Dr. Karan Singh The Jammu & Kashmir High Court has held that leasehold interest in the land is an ...

Direct Tax Cases Weekly Round-Up: 31 March To 6 April 2024

Mariya Paliwala

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