INCOME TAX
Interest On Delayed Agricultural Income Tax Not Deductible U/S 37 Income Tax Act: Kerala High Court
The Kerala High Court has held that interest on delayed agricultural income tax is not deductible under Section 37 Income Tax Act. Section 37 of the Income Tax Act provides deductions on expenses which are directly related to a business's operations. Justices A. Muhamed Mustaque and Harisankar V. Menon examined whether the interest paid on account of the delayed payment...
Income From Public Religious/Charitable Trusts Not Eligible For Exemption U/S 10(23BBA) Income Tax Act: Kerala High Court
The Kerala High Court has held that income derived from public religious/charitable trusts is not eligible for exemption under Section 10(23BBA) of the Income Tax Act. Section 10(23BBA) of the Income Tax Act, 1961, provides a complete exemption from income tax for the income of a body or authority that has been established, constituted, or appointed under any Central,...
Income Tax Act | Documents Seized From Actor Yash's Residence Make Him 'Searched Person': Karnataka High Court Quashes Order U/S 153C
The Karnataka High Court has held that the search conducted at Actor Yash's residence makes him a 'searched person' under the Income Tax Act, as documents were seized from him, during the search and a panchanama was drawn. Hence, the order under Section 153C of the Act, which applies to persons other than the one originally searched, is without jurisdiction. Section 153C of the...
Income Tax | ITAT Mumbai Deletes ₹10.84 Cr Addition Against Preity Zinta; Holds Loans Were Genuine, Not Unexplained Cash Credits
The Income Tax Appellate Tribunal (ITAT) Mumbai has set aside a ₹10.84 crore addition made under Section 68 of the Income Tax Act in the case of actress Preity G. Zinta, holding that the Assessing Officer failed to appreciate the documentary evidence establishing identity, creditworthiness and genuineness of the loan transactions routed through entities of the Danish Merchant...
S. 148 Income Tax Act | Reassessment Based On Mere Change Of Opinion Without Concrete Evidence Not Justified: Gujarat High Court
The Gujarat High Court has reiterated that reopening of income tax assessment under Section 148 of Income Tax Act based on mere change of opinion without concrete material is not justified, when the return has been threadbare examined during initial assessment and approved without failure of disclosure.It noted that as per the AO's own findings he was unsure about the actual escaped income...
Serious Medical Condition Preventing Assessee From Timely Filing ITR Is 'Genuine Hardship' For Delay Condonation: Delhi High Court
The Delhi High Court recently condoned the delay by an assessee in filing his Income Tax Return, citing his health condition as 'genuine hardship' under Section 119(2)(b) of the Income Tax Act 1961.A division bench of Justices V. Kameswar Rao and Vinod Kumar observed, “petitioner has highlighted the medical reasons, which prevented him from filing the ITR timely. The medical condition...
Assessment Order Passed Without Awaiting DVD Report Violates S. 50C(2) Income Tax Act: ITAT Ahmedabad
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that an assessment order passed without awaiting the DVD (Departmental Valuation Officer) report violates Section 50C(2) of the Income Tax Act.Section 50C(2) of the Income Tax Act provides a mechanism for a taxpayer (seller) to dispute the stamp duty valuation of their immovable property if they believe it is higher than...
S. 153C Income Tax Act | Public Info, Unrelated Data Seized From Searched Person Not Enough To Issue Show Cause Notice: Gujarat High Court
The Gujarat High Court has observed that information available in public domain or any unrelated information seized from the searched person without a connection to the assessee is not enough to be the basis of issuing a show cause notice under Section 153C of the Income Tax Act. The court was hearing a plea challenging notice dated 13.10.2021 by the Assessing Officer (AO) for the...
Income Tax Act | S. 153C Proceedings Unsustainable Without Incriminating Material Found In Search: Calcutta High Court
The Calcutta High Court has held that proceedings under Section 153C of the Income Tax Act cannot be initiated unless incriminating material relating to the assessee is found during a search and both the assessing officers (the Assessing Officer of the searched person as well as the Assessing Officer of the person other than the searched person) record the necessary satisfaction.Section 153C...
Revisional Power U/S 263 Income Tax Act Cannot Be Upheld By Tribunal On Grounds Not Taken By Commissioner: Kerala High Court
The Kerala High Court has held that a tribunal cannot travel beyond the grounds not cited by the commissioner while exercising jurisdiction under Section 263 Income Tax Act.Justices A. Muhamed Mustaque and Harisankar V. Menon stated that only one reason was highlighted by the Commissioner for exercising the power under Section 263 of the Act and the Tribunal having found the said reason as not...
Income Tax Act | Payment For IPLC Services Not 'Royalty' U/S 9; Assessee Entitled To Deduction U/S 40(a)(i): Madras High Court
The Madras High Court has held that payment for IPLC (International Private Leased Circuits) Services does not constitute 'royalty' under Section 9 of the Income Tax Act, and that the assessee is entitled to a deduction under Section 40(a)(i) of the Income Tax Act. Chief Justice Manindra Mohan Shrivastava and Justice Sunder Mohan examined whether the payment made by the assessee for...
Income Tax Act | Refund Can't Be Withheld U/S 245 Unless Department Establishes Tax Liability: Calcutta High Court
The Calcutta High Court stated that the Income Tax Department cannot withhold a refund under Section 245 of the Income Tax Act, 1961, unless it establishes tax liability. The Bench of Justice Raja Basu Chowdhury observed that it is true that Section 245 of the said Act authorises the Income Tax Department to set off a refund against remaining tax payable. Unfortunately, in this...