Transferor Not Liable U/S 56(2) Of Income Tax Act For Undervalued Property Sale To Spouse: ITAT

The Income Tax Appellate Tribunal Chennai stated that transferor not liable under Section 56(2) Of Income Tax Act for undervalued property sale to spouse. The Bench of SS Viswanethra Ravi (Judicial Member) and Amitabh Shukla (Accountant Member) observed that “the hypothesis propounded by the Ld.AO is flawed and not supported by the statutory stipulations governing the matter. It...

Assessing Officer Can't Act As Prosecutor, Judge And Executor At The Same Time: Himachal Pradesh High Court

Himachal Pradesh High Court held that the Assessing officer must provide the university a fair opportunity to present its case and can't take law in his own hand by acting as a Prosecutor, Judge and Executor at the same time.Justice Tarlok Singh Chauhan & Justice Sushil Kukreja: “The Assessing officer took the law into his own hand and played as a Prosecutor, Judge and Executor at the...

Amount Of Subsidy Received By Assessee From RBI Cannot Be Treated As 'Interest' Chargeable U/S 4 Of Income Tax Act: Bombay High Court

The Bombay High Court held that the amount of subsidy received by the Assessee from RBI cannot be treated as 'interest' chargeable under Section 4 of Income Tax Act. The Division Bench of Chief Justice Alok Aradhe and Justice Sandeep V. Marne stated that “the amount of subsidy received by the Assessee is not relatable in loan or advance given by the assessee to the RBI and...

No Provision To Reject Appeal On Non-Appearance Of Assessee, Must Be Decided By Mandate U/S 250(6) Of Income Tax Act: Kerala High Court

The Kerala High Court stated that there is no provision of rejecting the appeal merely on non-appearance of assessee and the appellate authority must decide an appeal by strictly following the mandate contemplated under Section 250(6) of the Income Tax Act, 1961. The Bench of Justice Ziyad Rahman A.A. observed that “evidently, going by Subsection 6 of Section 250, no other meaning...

Notice U/S 148 Of Income Tax Act Can't Be Issued Without Giving Proper Reasons: Himachal Pradesh High Court

Himachal Pradesh High Court held that a notice under Section 148 of Income Tax 1961 for initiation of reassessment proceedings, can't be issued by the assessing officer without giving proper reasons.“Section 148 enables the Assessing Officer to initiate reassessment proceedings where income chargeable to tax is believed to have escaped assessment”. Justice Tarlok Singh Chauhan &...

[Income Tax] Delhi HC Larger Bench To Decide On Retrospective Applicability Of Extended Limitation For Reassessment In Cases Involving Foreign Assets

A larger bench of the Delhi High Court will decide whether Section 149(1)(c) of the Income Tax Act 1961, inserted vide a 2012 amendment to provide an extended period of reassessment for cases involving foreign assets, applies retrospectively.Section 149(1)(c) prescribes that reassessment notice in respect of any income in relation to any asset located outside India, which had escaped...

Open Terrace/Portico Excluded While Computing Built-Up Area To Determine Eligibility For Deduction U/S 80-IB Of IT Act: Telangana High Court

The Telangana High Court stated that open terrace/portico excluded while computing build-up area for determining eligibility for deduction under section 80-IB of Income Tax Act. The Bench consists of Justices P. Sam Koshy and Narsing Rao Nandikonda was addressing the issue of whether the terrace / balcony that is in the form of open to sky or portico / porch area without walls...

Disallowance U/S 143(1)(a) Of Income Tax Act Inapplicable When Issue Involved Is Pending Before Supreme Court: Chhattisgarh High Court

The Chhattisgarh High Court has held that an Assessing Officer (AO) cannot apply Section 143(1)(a) of the Income Tax Act, 1961 (the 1961 Act), to disallow a claim where the issue involved, such as the deductibility of employees' contributions to EPF/ESI under Section 36(1)(va), was pending consideration before the Supreme Court in Checkmate Services Pvt. Ltd. v. CIT [(2023) 6 SCC 451].In...

Indo-Swiss DTAA | Period Of Reference Can't Be Excluded From Limitation U/S 153B Income Tax Act If Reference Is Invalid: Delhi High Court

The Delhi High Court has made it clear that Clause (ix) of the Explanation to Section 153B of the Income Tax Act 1961 cannot be invoked to exclude the period of reference under the Indo-Swiss DTAA, if the reference itself is invalid.A division bench of Justices Vibhu Bakhru and Tejas Karia observed,“On a plain reading of Clause (ix) of the Explanation to Section 153B of the Act, the...

Income Tax Act Doesn't Contemplate Hiatus Between Handing Over & Receipt Of Documents By AO Of Non-Searched Entity: Delhi High Court

The Delhi High Court made it clear that Section 153C of the Income Tax Act, 1961 “does not contemplate a hiatus” between handing over and receipt of information or documents pertaining to a non-searched entity.For context, Section 153C allows the Revenue department to proceed against a party other than the person who is being searched, if incriminating articles belonging to the other...

Income Tax Act | Supreme Court Clarifies Restriction Under S.80-IA(9) On Claiming Cumulative Deductions Under S.80IA & 80-HHC

Answering a reference, the Supreme Court held that deductions under Sections 80-IA/80-IB of the Income Tax Act need not reduce the gross total income before computing deductions under other provisions like Section 80-HH for export profits.The bench comprising Justices Abhay S Oka, Ahsanuddin Amanullah and AG Masih delivered the verdict while answering a reference after a matter was referred...

Income Tax Act | Bona Fide Belief With Genuineness Of Transaction Constitutes Reasonable Cause U/S 273B; No Penalty Imposable U/S 271E: Chhattisgarh HC

The Chhattisgarh High Court held that bona fide belief coupled with genuineness of transactions constitutes a reasonable cause under section 273B of the Income Tax Act for not invoking Section 271E of the Act. The Division Bench of Justices Sanjay K. Agrawal and Deepak Kumar Tiwari referring to Section 273B of the Income Tax Act stated that the word 'reasonable cause' has not...