Direct Tax Half Yearly Digest: January To June 2024 - PART II

Kerala High CourtAssessee Can't Indefinitely Seek Time In Response To SCN: Kerala High CourtCase Title: Shaju Pachelil Pathrose Versus Additional/Joint/Deputy/Assistant Commissioner Of Income TaxCitation: 2023 LiveLaw (Ker) 12The Kerala High Court has held that the assessee cannot indefinitely seek time in response to a show cause notice.Writ Petition Challenging Orders Of Tamil Nadu Assessing Authority Not Maintainable Merely For Having A Bank Account In Kerala: Kerala High CourtCitation: 2024 LiveLaw (Ker) 218Case Title: Manaf Ali Hassan Versus The National Faceless Assessment CentreThe 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.Assessment Can Be Reopened Based On Audit Objections Under New Reassessment Regime: Kerala High CourtCase Citation: 2024 LiveLaw (Ker) 219Case Title: M/S Sree Narayana Guru Memorial Educational And Cultural Trust Versus The Assistant Commissioner Of Income TaxThe Kerala High Court has held that assessments can be reopened based on audit objections under a new reassessment regime.Affording Personal Hearing Is Mandatory In An Enquiry Under Section 148A(B) Of Income Tax Act: Kerala High CourtCase Citation: 2024 LiveLaw (Ker) 222Case Title: The Income Tax Officer Ward Versus Vazhakkulam Block Rural Co-Operative Society Ltd.The Kerala High Court has held that affording a personal hearing to the assessee is mandatory in an inquiry under Section 148A(b) of the Income Tax Act.Land Used For Agricultural Purposes Yielding Agricultural Income Is Exempted From Income Tax: Kerala High CourtCitation: 2024 LiveLaw (Ker) 230Case Title: Mini Muthoottu Credit India (P) Ltd. Versus Commissioner Of Income TaxThe Kerala High Court has held that the land in question was used for agricultural purposes, which yielded agricultural income, which in turn was exempt from income tax under Section 10(1) of the Income Tax Act.Counter Sales Permission Of Alcoholic Liquor Was Concession Given To Bar Attached Hotel Owners For Carrying On Business During Covid-19: Kerala High CourtCase Title: Lukose. K.C. Versus Deputy CommissionerThe Kerala High Court has held that the permission to effect over-the-counter sales of alcoholic liquor was a concession given to bar-attached hotel owners to permit them to carry on business and tide over the COVID lockdown period. The assessee cannot now contend that the tax on such transactions should not be levied on him because he did not originally have permission to effect such sales.Financial Activity Can't Glissade Into Situation Where Its Operations Become Impossible: Kerala HC Issues Directions On Status Of Nidhi CompaniesCase Title: Annamanada Gramakshemam Nidhi Limited verses UOIThe Kerala High Court recently held that any financial activity ought to be regulated reasonably within the ambit of law, and it cannot glissade into a situation where its operations become impossible, or are defeated by oppressive or impossible restrictions and regulations.Additional Income Can't Be Treated As Concealed Income: Kerala High CourtCase Title: The Principal Commissioner Of Income Tax Versus Shri. Ambady Krishna MenonThe Kerala High Court has held that additional income cannot be treated as concealed income for the purposes of Section 271(1)(c) of the Income Tax Act.Expenditure Incurred By Way Of Addition To Buildings, Electrical Fittings On Leasehold Premises Is Capital Expenditure: Kerala High CourtCitation: 2024 LiveLaw Ker 312Case Title: Hotel Allied Trades Pvt. Ltd Versus The Additional Commissioner Of Income-TaxThe Kerala High Court has held that the expenditure that was incurred by the appellant/assessee by way of addition to buildings and electrical fittings on leasehold premises was in the nature of capital expenditure and not revenue expenditure.Opening And Closing Stock Of The Year Is To Be Valued By Applying Same Methodology: Kerala High CourtCitation: 2024 LiveLaw Ker 311Case Title: P. A. JOSE Versus UOIThe Kerala High Court has held that the stipulation under Clause 16 of the Income Computation and Disclosure Standards (ICDS) for the adoption of first-in, first-out (FIFO) or weighted average cost for valuation of the stock or inventory cannot be applied in the Assessment Year 2017-2018 for the valuation of the opening stock, as the opening and closing stock of the year are to be valued by applying the same methodology.Gujarat High CourtS. 80IA(4) Deduction Available To Assessee Engaged In Developing Infrastructure Projects Like Roads, Canals: Gujarat High CourtCase Title: The Principal Commissioner Of Income Tax (Central), Versus Montecarlo Construction Ltd.LL Citation: 2024 LiveLaw (Guj) 3The Gujarat High Court has allowed the deduction under Section 80IA(4) of the Income Tax Act to the assessee engaged in developing infrastructure projects like roads, canals, etc.Income Tax Act | Gujarat High Court Invalidates Income Tax Assessment Order Due To...

Direct Tax Half Yearly Digest: January To June 2024 - PART II

Mariya Paliwala

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