Income Tax Addition Made Towards Unsubstantiated Share Capital Is Eligible For Section 80-IC Deduction: Delhi High Court

The Delhi High Court has held that income tax additions made towards unsubstantiated share capital are eligible for deduction under Section 80-IC of the Income Tax Act.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has refused to grant the reliefs as sought by the respondents-Department to set aside the Income Tax Settlement Commission's (ITSC) order insofar as...

Wireline Logging And Perforation For Drilling An Oil Well Is Covered Under Mining Service & Not TTA Services: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the services like wireline logging, perforation, and other wireline-related services involving mechanical jobs like cutting, puncture, plug/packer setting, cable splicing, etc. that were undertaken by the appellant at the time of drilling an oil well are integrally connected with the mining of oil or...

Once Busines Income Of Wife Accepted During Scrutiny, AO Can't Tax Husband Again Stating Wife Was Not The One Carrying Business: Rajkot ITAT

While accepting on one hand that the income found to be belonging to taxpayer's wife in scrutiny assessment was duly offered to tax, the Rajkot ITAT reprimanded the I-T Department from taking a contrary view and taxing it in the hands of the taxpayer on the ground that his wife was not actually carrying out any business. The Bench of the ITAT comprising of Suchitra R....

AO Fails To Scrutinize Cash Payments By Assessee Under Lens Of Sec 40A; Indore ITAT Upholds Revisional Interference U/s 263

On finding a lack of inquiry on the part of AO in allowing cash sales, which renders the assessment order erroneous so far as it is prejudicial to the interests of revenue, the Indore ITAT upheld the order of disallowance u/s 40A(3) of the Income Tax Act, passed by Pr. CIT by invoking Section 263. The Bench of the ITAT comprising of Vijay Pal Rao (Judicial Member) and...

Assessment Can Be Reopened Based On Audit Objections Under New Reassessment Regime: Kerala High Court

The Kerala High Court has held that assessments can be reopened based on audit objections under a new reassessment regime.The bench of Justice Dinesh Kumar Singh has observed that the provisions have been drastically changed with effect from April 1, 2022, and the audit objection is one of the reasons for re-opening the assessment. If the revenue audit raises an objection that the assessment...

Revenue Officers Bound By Decisions Of Appellate Authorities While Disposing Quasi-Judicial Issues: Bombay High Court

The Bombay High Court has held that the revenue officers are bound by the decisions of appellate authorities while disposing of quasi-judicial issues.The bench of Justice K. R. Shriram and Justice Dr. Neela Gokhale has observed that the mere fact that the order is not acceptable to the department, in itself an objectionable phrase, can furnish no ground for not following it, unless its...

Writ Petition Challenging Orders Of Tamil Nadu Assessing Authority Not Maintainable Merely For Having A Bank Account In Kerala: Kerala High Court

The Kerala High Court has held that the writ petition challenging orders of Tamil Nadu assessing authority is not maintainable merely for having a bank account in Kerala.The bench of Justice A. K. Jayasankaran Nambiar and Justice Syam Kumar V. M. has observed that merely because the appellant has a bank account within the State of Kerala, he cannot maintain a Writ Petition challenging the...

Indirect Tax Cases Monthly Round Up: March 2024

Supreme Court Customs Act | Importer's Subsequent Import Bill Be Discarded If Undervalued To Previously Imported Identical Or Similar Goods: Supreme Court Case Title: M/s Global Technologies and Research versus Principal Commissioner of Customs, New Delhi (Import) Citation : 2024 LiveLaw (SC) 239 Recently, the Supreme Court held that under the Customs Act, the...

Direct Tax Cases Monthly Round Up: March 2024

Delhi High Court Revisional Jurisdiction Can't Be Invoked For Inadequacy Of Enquiry By AO: Delhi High Court Case Title: PCIT Versus M/S Clix Finance India Pvt. Ltd. The Delhi High Court has held that the inadequacy of the inquiry by the AO with respect to certain claims would not in itself be a reason to invoke the powers enshrined in Section 263 of the Income...

Assessment By AO Can't Be Termed As Prejudicial To Interest Of Revenue If It Doesn't Result In Any Loss To Revenue: Indore ITAT

On finding that the facts of the case do not warrant application of section 263 of the Income Tax Act, the Indore ITAT set aside the revision order passed by PCIT and restored the original assessment-order passed by the AO. The ITAT explained that revocation of revisionary jurisdiction u/s 263 requires assessment to be erroneous as well as prejudicial to interest of...

Enhancement Made To Taxpayer's Income Without Following Procedures As Per Sec 154, Calls For Re-Adjudication: Bangalore ITAT

On finding that a vague order has been passed by the AO by reshuffling the addition under different heads of income and without discussing the issue under the provision of section 154(3) of the Income Tax Act, the Bangalore ITAT remitted back the issue to the file of the AO for fresh consideration. The ITAT explained that as per Section 154(3), an Amendment, which has the effect...

Making Deposit At One Go After Declaration Of Demonetization Is No Reason For Doubting Cash Sales: Indore ITAT

While deleting the addition made by the AO u/s 68 of the Income Tax Act, the Indore ITAT held that once the cash sales and availability of the cash with the assessee is duly supported by the books of account of the assessee, then making deposit at one go in the circumstances after declaration of demonetization cannot be a reason for doubting the availability of cash with the...