[Income Tax] Assessing Officer Not Only An Adjudicator But Also An Investigator, Cannot Remain Oblivious To Claim Without Enquiry: Kerala HC

The Kerala High Court stated that the Income Tax Commissioner can exercise Revisional Jurisdiction under Section 263 of the Income Tax Act, 1961. The Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S. observed that “The role of the assessing officer under the Income Tax Act, 1961 is not only that of an adjudicator but also of an investigator and he cannot...

Whether Entity Is 'Permanent Establishment' Is A Fact-Specific Issue, Must Be Examined Separately For Different Tax Periods: Delhi High Court

The Delhi High Court has held that whether an entity is a Permanent Establishment (PE) of a foreign company or not is a “fact-specific” issue which must be examined separately for different tax periods.A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar observed,“The position of a PE being a facts-specific issue and thus liable to be examined against the backdrop...

Delhi High Court Distinguishes From SC's Sky Light Judgment, Declines Assessment Issued In Wrong Name After Entity's Merger

The Delhi High Court on Friday declined the Income Tax Department's appeal to treat as 'curable', the error committed in naming the relevant entity while issuing reassessment notices.A division bench of Justices Yashwant Varma and Dharmesh Sharma refused to grant the benefit which the Supreme Court had given to the Department in Sky Light Hospitality LLP v. Assistant commissioner of...

[S.151 IT Act] SC Judgment In Rajeev Bansal Doesn't Affirm Authority Of Joint Commissioner To Accord Approvals For Reassessment: Delhi HC

The Delhi High Court has held that the Supreme Court's decision in Union of India and Ors. vs. Rajeev Bansal (2024) did not affirm the authority of a Joint Commissioner to grant approval under Section 151 of the Income Tax Act, 1961 for initiation of reassessment proceedings. The provision precludes the Assessing Officer from issuing notice for reassessment after the expiry of four...

[S.115JB Income Tax Act] Delhi HC Rejects Dept's Appeals Against Tata Power's Joint Venture With Delhi Govt For Supply Of Electricity

The Delhi High Court has held that Section 115JB of the Income Tax Act, 1961, as it stood prior to its amendment by virtue of Finance Act, 2012, would be inapplicable to an electricity generation company. A division bench of Acting Chief Justice Vibhu Bakhru and Justice Swarana Kanta Sharma thus dismissed the Department's appeals against Tata Power Delhi Distribution Limited, a...

ITAT Cannot Decide On Grounds Not Addressed By Commissioner Of Income Tax (Appeals): Delhi High Court

The Delhi High Court recently said aside an order passed by the Income Tax Appellate Tribunal, deciding grounds that did not arise from the impugned order passed by the Commissioner of Income Tax (Appeals). A division bench of Acting Chief Justice Vibhu Bakhru and Justice Tushar Rao Gedela observed, “The Assessee's challenge to the addition of ₹4,30,00,000/- under Section 68 of...

S.149 IT Act | Additions Made During Reassessment Don't Validate Proceedings Initiated For Income Escapement Below ₹50 Lakh Threshold: Delhi HC

The Delhi High Court has held that the benchmark of minimum Rs. 50 lakh income escapement prescribed under Section 149 of the Income Tax Act, 1961 must be met at the very initiation of reassessment proceedings. A division bench of Justices Yashwant Varma and Dharmesh Sharma observed, “Additions ultimately made in the course of reassessment would not validate the initiation...

Absence Of Formal Communication U/S 148A Of Income Tax Act Not Fatal When Opportunity To Question Reassessment Had Been Provided: Delhi HC

The Delhi High Court observed that absence of a formal notice under Section 148A of the Income Tax Act, 1961 was not fatal to reassessment proceedings initiated in the twilight zone when the inquiry provisions were introduced by the Finance Act, 2021. A division bench of Justices Yashwant Varma and Dharmesh Sharma noted that the Department had provided an opportunity...

[Income Tax] Allahabad HC To Examine Whether Proceedings U/S 148A(b) Initiated Prior To 01.09.2024 Would Be Saved After Enforcement Of The Finance (No.2) Act, 2024

The Lucknow Bench of the Allahabad High Court has sought state response on the question of maintainability of proceedings under Section 148A(b) of the Income Tax Act initiated prior to 01.09.2024, if at all, would be saved after enforcement of the Finance (No.2) Act, 2024 w.e.f. 01.09.2024 especially in view of sub-Section- (4) of Section 152 of the Income Tax Act, 1961 which has...

If Assessee Produces Accounts, AO Must Be Satisfied That Accommodation Entries Exist Before Proceeding U/S 148 Of Income Tax Act: Delhi HC

The Delhi High Court has held that an Assessing Officer is required to be satisfied that accommodation entries as alleged in show cause notice under Section 148A(b) of the Income Tax Act 1961 exist, particularly where the assessee produces its accounts. In doing so, a division bench of Acting Chief Justice Vibhu Bakhru and Justice Swarana Kanta Sharma heavily relied on its...

Compounding Of Offences Allowed Under IT Act, HC's Inherent Jurisdiction U/S 482 CrPC Cannot Be Invoked For Quashing: Orissa HC

The Orissa High Court has refused to entertain a petition filed for quashing the offence under Sections 276(B) of the Income Tax Act, 1961, stating that the Petitioner-accused should have sought compounding of the offence. Justice Sibo Sankar Mishra observed, “In the present regime, where the compounding of the offence is permissible, the jurisdiction of this Court under...

Income Tax Act | Reassessment Notice To Merged Entity U/S 148A(d) Not Invalid Merely Because SCN Was Issued In Name Of Ceased Entity: Delhi HC

The Delhi High Court has made it clear that merely because notice under Section 148A(b) of the Income Tax Act, 1961 is issued in the name of an amalgamating company which had ceased to exist, subsequent notice issued under Section 148A(d) in the name of merged entity cannot be declared invalid. A division bench of Acting Chief Justice Vibhu Bakhru and Justice Swarana Kanta...