Direct Tax Cases Weekly Round-Up: 04 To 10 February 2024

Bombay High CourtHSBC Bank Carrying On Bona Fide Banking Business In Mauritius Exempt From Tax In India: Bombay High Court Case Title: Commissioner of Income Tax Versus M/s. HSBC Bank (Mauritius) Ltd. The Bombay High Court has held that HSBC Bank carrying on bona fide banking business in Mauritius is exempt from tax in India. Income Tax Deduction Available On Excise Duty Claim As It Does Not Amount To Double Deduction: Bombay High Court Case Title: M/s. Johnson and Johnson Ltd. Versus The Deputy Commissioner of Income Tax The Bombay High Court has held that excise duty paid and included in the closing stock has to be claimed separately as a deduction; otherwise, the appellant would not be claiming the entire excise duty paid in the year of its payment. AO Can't Take Recourse To Re-open Assessment To Remedy Error Resulting From His Oversight In Assessment Proceeding: Bombay High Court Case Title: Emkay Global Financial Services Limited Versus Assistant Commissioner of Income Tax The Bombay High Court has held that the assessing officer cannot take recourse to reopen the assessment to remedy the error resulting from his oversight in the assessment proceeding. Legal Services Provided By Individual Advocate, Partnership Firm Of Advocates Exempted From Service Tax: Bombay High Court Case Title: Adv. Pooja Patil Versus The Deputy Commissioner The Bombay High Court has held that the service provided by an individual advocate, a partnership firm of advocates, by way of legal services is exempt from levy of service tax. Madras High Court Madras High Court Quashes Assessment Proceedings Initiated In Violation Of Procedure Prescribed As Per Sec 144B Case Title: CPF (INDIA) Private Limited Verses Addl. CIT Citation: 2024 LiveLaw (Mad) 62 While holding that the draft assessment order suffers from non-application of mind, the Madras High Court sets aside the proceedings initiated in violation of procedure prescribed as per Section 144B(1)(vii) read with (xiv) and (xvi)(b) of the Income tax Act, 1961. Calcutta High Court Conduct Of Enquiry As Per Sec 148A Is Not Mandatory But Discretionary: Calcutta HC Upheld Reopening Proceeding Case Title: Champa Impex Private Limited Verses Union of India Pointing that the information which was furnished to the assessee though contained information pertaining to the three assessment years, the information called for in the notice dated Mar 31, 2023 pertained only to the assessment year 2016-17, the Calcutta High Court upheld the reassessment proceedings despite the fact that Section 148A(b) notice issued for AY 2016-17 was accompanied with annexure containing information for multiple AYs. Jharkhand High Court Jharkhand High Court Upholds Income Tax Addition On Failure To Prove Genuineness Of Creditors Who Gave Cash Loan Case Title: Rajmeet Singh Versus Income Tax Officer, Ward-2(3), Ranchi LL Citation: 2024 LiveLaw (Jha) 24 The Jharkhand High Court has upheld the income tax addition as the assessees have failed to prove the identity, creditworthiness, or genuineness of the creditors, who have given cash loans. ITAT Discrepancies In Maintaining KYC Documentation Does Not Constitute Incriminating Material: ITAT Deletes Income Tax Addition Case Title: Shri Renukamata Multi–State Co-operative Versus Asstt. Commissioner of Income Tax The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that income tax addition cannot be made for discrepancies in maintaining KYC documentation, account opening forms, and violation of society bye-laws. Consequent Generation Of DIN Subsequently & Handwritten In Body Of Order, Will Not Satisfy Conditions Of CBDT Circular No.19/2019: Chennai ITAT Case Title: Sutherland Global Services Inc verses ACIT The Chennai ITAT held that the orders passed by the DRP in violation of CBDT Circular No.19/2019 dated Aug 14, 2019, and without allotment of a valid computer-generated Document Identification Number (DIN) in the body of such order is invalid, non-est and shall be deemed to have never been issued. Depreciation Of Goodwill Acquired Pursuant To Slump Sale Under Business Transfer Agreement Is Allowable U/s 32(1): Mumbai ITAT Case Title: Vodafone India Services Pvt Ltd verses DCIT Emphasizing that although Section 32 of Income tax Act, 1961 was amended by the Finance Act, 2021 wherein it was stated that 'goodwill' is not an intangible asset eligible for depreciation was applicable prospectively with effect from AY 2021-22, the Mumbai ITAT held that claim of depreciation of goodwill acquired pursuant to slump sale under a Business transfer agreement is allowable under Section 32(1). Comparable Need Selection As Per Correct Market Segment: Delhi ITAT Remits Matter Following Earlier Order Case Title: American Express Services India Ltd...

Direct Tax Cases Weekly Round-Up: 04 To 10 February 2024

Mariya Paliwala

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