Direct Tax Weekly Round-Up: 4 To 10 August 2024

Delhi High CourtAmendment In Section 153C Income Tax Act Can't Be Interpreted For Revival Of Already Time Barred Proceedings: Delhi High CourtCase Title: PCIT Versus Karina Airlines International Ltd.The Delhi High Court has held that the power to assess the block period of ten years would clearly not be attracted in the case of a search that had taken place prior to April 1, 2017.Section 80-IA(7) Requirement Deems Fulfilled When Audit Report Filed At Any Time Before Framing Of Assessment: Delhi High CourtCase Title: The Associated Chambers Of Commerce And Industry Of India Versus Deputy Commissioner Of Income Tax & Ors.The Delhi High Court has held that the assessee to be eligible and entitled to exemptions under Section 11(1) and 11(2) of the Income Tax Act and the alleged ground of non-filing of audit report along with return of income, which was at the best procedural omission, could never be an impediment in law in claiming the exemption.Reopening Based On Entirely New Material Deprives Taxpayer's Right To Object To Re-Assessment: Delhi High CourtCase Title: Banyan Real Estate Fund Mauritius Verses Assistant Commissioner Of Income Tax Circle International TaxThe Delhi High Court held that a decision to reopen or reassess cannot be based or sought to be justified either on additional reasons or those which may be supplied subsequently while disposing of objections preferred by an assessee.Resolution Plan Approved Under IBC, Income Tax Reassessment Not Sustainable: Delhi High CourtCase Title: Asian Colour Coated Ispat Limited Versus ACITThe Delhi High Court has quashed the income tax assessment order and held that the statutory injunct which would operate in respect of any claim which may pertain to a period prior to the Resolution Plan being approved.Revenue Department Can't Take Fresh Ground Which Was Not Disclosed To Taxpayer, While Passing Re-assessment U/s 148A(D): Delhi HCCase Title: Tosca Master vs. Deputy CITFinding major flaw in the fundamental premise of the Revenue Department that the investment made by the taxpayer in shares amounted to “income” which has escaped assessment, the Delhi High Court quashed the reopening proceeding initiated u/s 148A.Settlement Consideration Liable To Be Recognized As “Capital Gains” And Not “Profits In Lieu Of Salary”: Delhi High CourtCase Title: Akash Poddar Versus ACITThe Delhi High Court has held that the settlement consideration is liable to be recognized as capital gains and not “profits in lieu of salary.”.Bombay High CourtIncome Tax Additions Can't Be Made On The Basis Of Superficial Inquiry: Bombay High CourtCase Title: Pr. Commissioner Of Income Tax-1 Versus SVD Resins & Plastics Pvt. Ltd.The Bombay High Court has directed to constitute a committee to decide the declaration that was filed by the petitioner on 30th December 2019 and, on or before 30th September 2024, dispose of the declaration in accordance with law.Chhattisgarh High CourtUnexplained Cash Credited To Assessee's Book Would Be Treated As Taxable Income Under Income Tax Act, 1961: Chhattisgarh High CourtCase Details: M/s. Sumit Global Pvt. Ltd Versus The Income Tax Officer-1 Raigarh, TAXC No. 120 of 2024 Citation: 2024 LiveLaw (CH) 16The Chhattisgarh High Court reiterated a settled position of law that the assessee would be liable to pay the income tax on the unexplained cash credited into its books if the assessee fails to prove the source of a sum of money found to have been received by an assessee.Decision Of Reassessment At Dictation Of Higher Authorities Leads To Biased Outcome: Chhattisgarh High CourtCase Title: Deputy Commissioner of Income Tax (Assessment) Special Range Bhilai District Durg Chhattisgarh Versus Surendra Kumar JainThe Chhattisgarh High Court has held that decisions of reassessment at the dictation of higher authorities lead to biased outcomes. Karnataka High CourtSettlement Commission's Order Accepting Explanation 'In The Spirit Of Settlement' Doesn't Require Interference: Karnataka High CourtCase Title: PCIT Versus Smt. Umah AgarwalThe Karnataka High Court has held that the Settlement Commission, by accepting the explanation 'in the spirit of settlement', cannot be faulted for calling for interference in exercise of the limited jurisdiction.Punjab & Haryana High CourtConstruction Of Public Library Forms Part Of Charitable Function, Eligible For Section 80G Exemption: Punjab & Haryana High CourtCase Title: Mumukshu Mandal (Regd.) Shri Geeta Mandir, Panipat Versus Commissioner of Income Tax, Karnal and anotherThe Punjab and Haryana High Court has held that the construction of public libraries forms part of a charitable function and is eligible for the exemption under Section 80G of the Income Tax Act.

Direct Tax Weekly Round-Up: 4 To 10 August 2024

Mariya Paliwala

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