Direct Tax Cases Weekly Round-Up: 11 To 17 February 2024

Supreme Court Reopening Of Income Tax Assessments : Supreme Court Refuses To Interfere With Delhi High Court's Guidelines To Tax Dept. Case Title: Asst. Commissioner Of Income Tax Versus Sabh Infrastructure Ltd. The Supreme Court has refused to interfere with a 2017 Delhi High Court judgment which issued a set of guidelines to the Income Tax Department regarding the reopening of assessments. Calcutta High Court Provisions Of Section 148 Under Old Regime Including TOLA Can't Be Applied To New Regime: Calcutta High Court Case Title: M/s Arati Marketing Pvt. Ltd. Vs Union of India & Ors. The Calcutta High Court has held that if the provisions of the old regime of Section 148 of the Income Tax Act, including Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA), are read into or applied to the new regime applicable from 01.04.2021, it would also necessarily mean that a provision repealed by the Parliament without any savings and exception clause is applied by the department even after its life has come to an end, which is clearly not permissible in law. Gujarat High Court Gujarat High Court Upholds Income Tax Department's Search and Seizure, Condemns Misconduct Case Title: Maulikkumar Satishbhai Sheth vs Income Tax Officer, Assessment Unit, Ahmedabad LL Citation: 2024 LiveLaw (Guj) 8 The Gujarat High Court on Tuesday, upheld the search and seizures conducted by the Income Tax (I-T) department at a lawyer's residence and office last year over alleged income tax evasion as valid. Karnataka High Court After Amendment Mere Reason To Believe Can't Be Ground For Carrying Out Reassessment: Karnataka High Court Case Title: Smt. Vasanthi Ramdas Pai Versus Income Tax Officer The Karnataka High Court has held that the Assessing Officer has to be prima facie satisfied that there is “escapement of income”, unlike earlier law which permitted action based on mere reason to believe. Now mere reason to believe, cannot be a ground for carrying out assessment under section 147 of the Income Tax Act. Jharkhand High Court Three-Years Limitation Period For Tax Reassessment Assessment Notice on Concealed Income Below Rs. 50 Lakh: Jharkhand High Court Case Title: M/s Sevensea Vincom Private Limited vs The PCIT, Central Circle-I, Ranchi & Ors. LL Citation: 2024 LiveLaw (Jha) 29 The Jharkhand High Court has held that any notice under Section 148 of the Income Tax Act, 1961, is normally three years from the end of the relevant assessment year and extendable beyond three years to 10 years, provided the income that has escaped assessment is Rs. 50,00,000 or more. ITAT Income Tax Not Payable On Services Rendered Abroad By Non-Resident Deputed By Indian Employer: ITAT Case Title: Devi Dayal Versus The DCIT/ACIT The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the income tax is not payable on services rendered abroad by non-residents deputed by Indian employers. OYO Not Liable To Deduct TDS On Minimum Guarantee Payments Made To Hotels: ITAT Case Title: M/s Oravel Stays Pvt Ltd. Versus The A.C.I.T The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessee OYO is not liable for TDS under Section 194C of the Income Tax Act on the minimum guarantee payments made to hotels.

Direct Tax Cases Weekly Round-Up: 11 To 17 February 2024

Mariya Paliwala

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