Direct Tax Cases Weekly Round-Up: 10 To 16 March 2024

Delhi High Court Expression “Yes” By PCIT Couldn't Be Considered A Valid Approval U/s 151 Of Income Tax Act: Delhi High Court Case Title: The Pr. Commissioner Of Income Tax -7 Versus Pioneer Town Planners Pvt. Ltd. The Delhi High Court has held that the expression “yes” could not be considered to be a valid approval under Section 151 of the Income Tax Act. Assessment Order Passed Beyond Time Limit Prescribed U/s 153 Merits To Be Quashed: Delhi High Court Case Title: Readers Digest Book and Home Entertainment (India) Pvt Ltd vs DCIT Finding that no valid demand stood raised against the Petitioner / assessee prior to Sep 30, 2021, the Delhi High Court directed the Respondents / Revenue to re-compute the refund payable to the petitioner along with statutory interest which shall run up to the date of remittance in accordance with law. ITAT Must Recall Its Order U/s 254 To Correct Manifest Error Apparent On Record: Delhi High Court Case Title: PCIT vs Fiserv India Private Ltd. While condoning the delay of 86 days by Revenue in filing the appeal, the Delhi High Court dismisses Revenue's appeal filed against the Tribunal's order in miscellaneous application filed by assessee to review its earlier order u/s. 254(2) of the Income tax Act. Upward Adjustments Of Income As Proposed By TPO Stands Withdrawn: Delhi High Court Applies Rule Of Consistency To Adopt TNMM Case Title: Pr. CIT vs Oriflame India Pvt Ltd Finding that the matter has been resolved and Modicare Limited has been excluded from the list of comparable to determine the ALP, the Delhi High Court dismisses Revenue's appeal against ITAT's decision in case of assessee engaged in sale of a wide variety of skin care and cosmetic products Services Provided By Irish Company To Its Indian Counterpart Not Technical Services: Delhi High Court Quashes Order Denying Nil/Lower TDS certificate Case Title: SFDC Ireland Limited Versus Commissioner Of Income Tax The Delhi High Court has quashed the order denying Nil or lower TDS certificates and held that the services provided by the assessee, Irish Company, to its Indian counterpart were not technical services. ITO Can't Retain Amount Deposited By Taxpayer Without Framing Final Assessment Order During Period Of Stay: Delhi High Court Case Title: Navisite India Pvt Ltd vs CIT The Delhi High Court allowed assessee's petition seeking refund of amounts which was deposited towards part payment of demand raised in pursuance of assessment order for AYs 2008-09 and 2009-10. Bombay High Court Exgratia Bonus Paid By Indian Express To Employees Over And Above Eligible Bonus Is Allowable As Business Expenditure: Bombay High Court Case Title: Indian Express Newspapers (Bombay) Ltd. Versus CIT The Bombay High Court has held that exgratia bonuses paid to employees over and above the eligible bonus under the Payment of Bonus Act are allowable as business expenditures. Harshad Mehta Scam: AO Can't Assess Additions Again If Deleted By CIT(A) In First Round Of Proceedings; Bombay High Court Case Title: CCIT(OSD)/Pr. Commissioner of Income Tax, Central Versus Bhupendra Champaklal Dalal The Bombay High Court in the Harshad Mehta Scam case, while upholding the ITAT's ruling, held that the Assessing Officer could not have assessed additions again since the CIT (A) had deleted the same in the first round of proceedings and the concerned matters have attained finality. Interest Paid On Borrowed Funds For Investment In Shares Is Hit By Sec 14A If Dividend Received On Shares Was Not Part Of Total Income: Bombay HC Case Title: Mahesh K. Mehta Vs Deputy Commissioner of Income Tax The Bombay High Court recently held that the interest paid on borrowed funds in respect of investment in shares of two companies was hit by Section 14A of the Act inasmuch as the dividend received on such shares did not form part of the total income. Madras High Court CBDT's Digital Evidence Investigation Manual Is Mandatory For Income Tax Dept. While Conducting Searches, Seizing Electronic Evidence: Madras High Court Case Title: M/s.Saravana Selvarathnam Retails Private Limited Versus Commissioner of Income Tax Appeals Citation: 2024 LiveLaw (Mad) 101 The Madras High Court has held that it is mandatory for the income tax department to follow the Digital Evidence Investigation Manual issued by the Central Board of Direct Taxes (CBDT) while conducting searches and seizing electronic evidence. Internal Arrangement W/r/t Transfer Of Assessment Proceedings Not Material For Ascertaining Limitation: Madras High Court Case Title: Taeyang Metal India Private Limited vs DCIT Citation: 2024 LiveLaw (Mad) 107 Finding that the period of one month expired on July 31, 2022, whereas the assessment order came to be issued on Mar 25, 2023, the Madras High Court Held the assessment order...

Direct Tax Cases Weekly Round-Up: 10 To 16 March 2024

Mariya Paliwala

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