Direct Tax Weekly Round-Up: 14 To 20 January 2024

Direct Tax Weekly Round-Up: 14 To 20 January 2024 Supreme Court Taxpayer Entitled To Hearing On Merits If Appeals Were Dismissed By HC For Delay In Filing Paper-Book: Supreme Court Case Title: Herbicides India Limited verses ACIT While setting aside the Rajasthan High Court orders, the Supreme Court restored the assessee's appeals by condoning the delay in filing the paper-book before High Court and observed that the assessee is entitled to have his appeals heard on merits. Delhi High Court Transactions Concerning Mutual Funds Not In The Nature Of Investment And Not Motivated By Trade: Delhi High Court Case Title: PCIT Versus M/S Wig Investment The Delhi High Court has held that transactions concerning mutual funds were in the nature of investment and not motivated by trade. Fees Received For Sub-Licensing Sports Broadcasting Rights Attributable To 'Live Feed', Not Taxable As Royalty: Delhi High Court Case Title: The Commissioner Of Income Tax - International Taxation -1 Versus Fox Network Group Singapore Pte Ltd. The Delhi High Court has held that fees received by assessees for sub-licensing sports broadcasting rights attributable to 'live feed' is not taxable as royalty. Bombay High Court Change Of Opinion Does Not Constitute Justification To Believe Income Chargeable To Tax Has Escaped Assessment: Bombay High Court Case Title: Geopreneur Realty Private Limited Versus UOI The Bombay High Court has held that a change of opinion does not constitute justification and/or reasons to believe that income chargeable to tax has escaped assessment. Madras High Court Income Tax Act | Penalty U/S 271E Cannot Be Levied On Repayment Of Loan In Absence Of Cash Transaction: Madras HC Case Title: Anamallais Bus Transports P Ltd verses The Principal Commissioner of Income Tax Citation: 2024 LiveLaw (Mad) 24 While observing that transaction pertaining to loan between two concerns wherein the liability of borrower stood reduced in the books of accounts to an extent of payment made to clear the liability of assessee appears to be in accordance with law, the Madras High Court ruled that penalty under Section 271E of Income tax Act, 1961 cannot be levied on repayment of loan in absence of cash transaction. Calcutta High Court Income From Sub-Letting Is 'Business Income' If Object Is Business Of Renting/Licensing Of Shops: Calcutta High Court Citation: 2023 LiveLaw (Cal) 19 Case Title: Oberoi Building & Investment (P) Limited verses CIT and Another Finding that assessee's income from sub-letting/sub-licensing the space in question, has always been accepted by Respondent / Income Tax Department as income from business, the Calcutta High Court held that assessee's income from sub-licensing/sub-letting is chargeable to tax as business income and not as income from house property. Assessee Attempted To Drag Matter Knowing Well That Assessment Will Be Time Barred: Calcutta High Court Upholds Reassessment Citation: 2023 LiveLaw (Cal) 22 Case Title: Champa Impex Private Limited Versus Union Of India And Others The Calcutta High Court has held that the assessee had repeatedly sought adjournments, which would show that the assessee attempted to drag the matter along, knowing well that the assessment would be time-barred. Karnataka High Court Revised Returns Filed Waiving Claim And Paid Taxes: Karnataka High Court Quashes Section 276C(1) Prosecution For Wilful Tax Evasion Case Title: Anurag Bagaria Versus The Income Tax Department The Karnataka High Court has quashed the prosecution under Section 276C(1) of the Income Tax Act for wilful tax evasion. ITAT S. 54F Exemption Not Available On Property Predominantly Being Used For Religious Purposes: ITAT Case Title: Asstt. CIT Versus Iqbal Ali Khan The Hyderabad Bench of Income Tax Appellate Tribunal (ITAT) has held that exemption under Section 54F of the Income Tax Act is not available on property predominantly being used for religious purposes. ITAT Deletes Addition Of Unexplained Investment In Stock Valuation Difference Case Title: Ethiraj Hotel Mart Versus DCIT The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition of unexplained investment in stock as a difference in the valuation of stock. Indian Chamber Of Commerce Entitled To Claim Exemption In Respect Of Receipts From Seminars And Conferences: ITAT Case Title: Indian Chamber of Commerce Versus DCIT The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Indian Chamber of Commerce (ICC) is entitled to claim exemption in respect of its entire receipts. Kolkata ITAT Deletes Addition Made Based On Third-Party Statement Who Was Not Allowed To Be Cross- Examined By Assessee Case Title: DCIT verses Alom Extrusions Ltd. Finding that assessee has discharged the burden of...

Direct Tax Weekly Round-Up: 14 To 20 January 2024

Mariya Paliwala

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