Supreme Court Annual Digest 2023 -Income Tax Act, 1961

2015 amendment to Section 153C of Income Tax Act will apply to searches conducted prior to the date of amendment. 2023 LiveLaw (SC) 274Amendment brought to Section 153C of the Act, 1961 vide Finance Act, 2015 shall be applicable to searches conducted under Section 132 of the Act, 1961 before 01.06.2015, i.e., the date of the amendment. (Para 11) 2023 LiveLaw (SC) 274Carrier of Goods not an 'Owner'; Bitumen not a 'valuable article' under S. 69A. 2023 LiveLaw (SC) 451Chapter X - Any determination of the arm's length price under Chapter X of the Act de hors the relevant guidelines stipulated under the Act and the Rules, can be considered as perverse, which may be considered as a substantial question of law. Thus, in each case, the High Court should examine whether the guidelines laid down in the Act and the Rules are followed while determining the arm's length price. 2023 LiveLaw (SC) 328Chapter XIVB is a complete code in itself providing for self-contained machinery for assessment of undisclosed income for the block period of 10 years or 6 years as the case may be- for assessment of undisclosed income for the block period, the normal assessment proceedings under Section 140 of the Income Tax Act would not be applicable. (Para 10.6) 2023 LiveLaw (SC) 54Date of the Panchnama last drawn can be said to be the relevant date and can be said to be the starting point of limitation of two years for completing the block assessment proceedings. 2023 LiveLaw (SC) 246Exclusion of 'Old Indian Settlers' from definition of Sikkimese in Section 10(26AAA) Income Tax Act unconstitutional. 2023 LiveLaw (SC) 28For a company to be a "resident" in India, domicile or registration irrelevant; test is where de facto control lies. 2023 LiveLaw (SC) 291For block assessment, normals procedure not applicable; Interest can be levied without Section 158BC notice. 2023 LiveLaw (SC) 54If an Indian Entity's Establishment is operating in Oman and has a 'Permanent Establishment' (PE) status under Double Taxation Avoidance Agreement (“DTAA”), then the dividend income received by the Indian Entity from such Establishment would not be taxable under Indian Taxation laws. (Para 16 - 18) 2023 LiveLaw (SC) 802Income Tax Appellate Tribunal Members (Recruitment and Conditions of Service) Rules, 1963; Rule 11 - Age of retirement of the Members of the Income Tax Appellate Tribunal (ITAT) - In terms of the provisions, a member of ITAT to continue in the post till the age of 62 years. 2023 LiveLaw (SC) 178Mere delay in remittance of TDS doesn't attract penalty under S. 271C Income Tax Act. 2023 LiveLaw (SC) 285Non-banking finance & leasing companies not liable to pay interest tax on instalments paid under hire purchase agreement. 2023 LiveLaw (SC) 7Revenue justified in levying interest under Section 158BFA(1) of the Income Tax Act for late filing of the return for the block period even in absence of any notice under Section 158BC of the Act and for the period prior to 01.06.1999. (Paras 10.3, 10.7) 2023 LiveLaw (SC) 54Section 10(26AAA) - Sikkim Subject Rules, 1961 - Sikkim Subjects Regulations, 1961 - All Indians/old Indian settlers, who have permanently settled in Sikkim prior to the merger of Sikkim with India on 26.04.1975, irrespective of whether his/her name is recorded in the register maintained under the Sikkim Subjects Regulations, 1961 read with Sikkim Subject Rules, 1961 or not, are entitled to the exemption under Section 10(26AAA) of the Income Tax Act. (Para 17) 2023 LiveLaw (SC) 28Section 10(26AAA) - The exclusion of Old Indian settlers, who have permanently settled in Sikkim prior to merger of Sikkim with India on 26.04.1975 from the definition of “Sikkimese” in Section 10(26AAA) is hereby held to be ultra vires to Article 14 of the Constitution of India and is hereby struck down. (Para 13- 17) 2023 LiveLaw (SC) 28Section 10(26AAA) Proviso - Proviso to Section 10(26AAA) inasmuch as it excludes from the provision of exemption a Sikkimese woman merely because she marries a non-Sikkimese after 01.04.2008 is totally discriminatory and violative of Articles 14, 15 and 21 of the Constitution of India - A woman is not a chattel and has an identity of her own, and the mere factum of being married ought not to take away that identity. (Para 15-17.1) 2023 LiveLaw (SC) 28Section 153A - Block assessment under Section 153A is linked with the search and requisition under Sections 132 and 132A, respectively. Further, the object of assessment under Section 153A is to bring under tax the undisclosed income which is found during the course of search or pursuant to search/requisition. Therefore, the jurisdiction of AO to make assessment is confined to the incriminating material found during the course of search or requisition. Income Tax Act, 1961 - Only in cases where the undisclosed income is found on the basis of incriminating material in search/ requisition, the AO would assume the jurisdiction to assess or reassess the total income for the entire six years...

Supreme Court Annual Digest 2023 -Income Tax Act, 1961

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