Direct Tax Cases Weekly Round-Up: 7 April To 13 April 2024

Delhi High Court Delhi High Court Interprets Rule 11UA For Determination FMV Of Shares U/S 56(2)(viib) Case Title: Agra Portfolio Pvt. Ltd. Versus Pr. Commissioner Of Income Tax 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. AO Is Not Clothed With Powers To Ascertain ALP Of Any International Transaction: Delhi High Court Case Title: M/S. Giesecke And Devrient India Pvt. Ltd.Versus DCIT The Delhi High Court has held that AO is not clothed with the powers to ascertain the Arm's Length Price (ALP) of any international transaction. Reopening Or Abatement Of Assessment To Be Triggered Only Upon Discovery Of Material: Delhi High Court Case Title: Saksham Commodities Limited Versus Income Tax Officer The Delhi High Court has held that a reopening or abatement would be triggered only upon the discovery of material that is likely to “have a bearing on the determination of the total income” and would have to be examined bearing in mind the AYs' that are likely to be impacted. ITSC Entrusted With Power Of Granting Immunity From Penalty And Prosecution Only In Case Of Full And True Disclosure: Delhi High Court Case Title: PCIT Versus Pankaj Buildwell Ltd. & Group The Delhi High Court has held that the Income Tax Settlement Commission (ITSC) is entrusted with the power to grant immunity from penalty and prosecution only in cases of full and true disclosure. Delhi High Court Grants Relief Of As Low As 5% IGST On Import Of Dialysis Machines By FMC India Case Title: Fresenius Medical Care India Private Limited Versus UOI The Delhi High Court has granted relief of as low as 5% Integrated Goods and Service Tax (IGST) on the import of dialysis machines by Fresenius Medical Care India Private Limited (FMC India). Rationale To Deny ITC To Service Provider Who Is Not Liable To Pay Tax On Output Services Is Obvious: Delhi High Court Case Title: Pace Setters Business Solutions Pvt. Ltd. Versus Union Of India And Ors. The Delhi High Court has held that the rationale to deny input tax credit (ITC) to service providers who are not liable to pay tax on output services is obvious. Bombay High Court Bombay High Court Quashes Reassessment Order Against Housewife When Property Was Purchased By Her Husband Case Title: Kalpita Arun Lanjekar Versus Income Tax Officer The Bombay High Court has quashed a reassessment order against a housewife when the alleged investment was made by her husband. AO To Record Dissatisfaction With Correctness Of Claim Of Assessee In Respect Of Expenditure: Bombay High Court Case Title: PCIT Versus M/s. Tata Capital Ltd. The Bombay High Court has held that the Assessing Officer should record his dissatisfaction with the correctness of the claim of the assessee in respect of the expenditure, and to arrive at such dissatisfaction, he should give cogent reasons. Approval To Reopen Assessment Against Vodafone Granted By The Dept. In A Most Casual Manner: Bombay High Court Case Title: Vodafone India Ltd. Versus Deputy Commissioner of Income Tax The Bombay High Court has held that the approval has been granted in a most casual manner. The power vested in the authorities under Section 151 to grant or not grant approval to the AO to reopen the assessment is coupled with a duty. The authorities were duty-bound to apply their minds to the proposal put up for approval in light of material relied upon by the AO. No Order Passed On Rectification Application Filed By Assessee For Six Years: Bombay High Court Directs Disciplinary Action Against AO The Bombay High Court has directed the disciplinary action against AO as no order has been passed on the rectification application filed by the assessee for six years. Madras High Court CBDT Circular Not Extending Time To File Application For Regular Registration Of New Provisionally Registered Trusts U/S 80G Violative Of Constitution: Madras High Court Case Title: Sri Nrisimha Priya Charitable Trust versus Central Board of Direct Taxes Citation: 2024 LiveLaw (Mad) 156 The Madras High Court has held that the Circular dated May 24, 2023, issued by the Central Board of Direct Taxes (CBDT) not extending time to file applications for regular registration of new provisionally registered trusts under Section 80G of the Income Tax Act is violative of the Constitution of India. Jharkhand High Court Decision On A Question Of Law That Is Later Overturned Or Modified By The Superior Court In Another Case Does Not Form A Ground For Review: Jharkhand High Court Case Title: Adarsh Sahkari Grih Nirman Swawlambi Samiti Limited Vs Commissioner of Income Tax, Jamshedpur LL Citation: 2024 LiveLaw (Jha) 55 The Jharkhand High Court ...

Direct Tax Cases Weekly Round-Up: 7 April To 13 April 2024

Mariya Paliwala

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