Income Tax | Serving SCN On Old Email After Updation Is Invalid, Despite Earlier Acknowledgement: Kerala High Court

The Kerala High Court stated that reply to one SCN on old email cannot justify non-service of subsequent notice on updated email. Justice Ziyad Rahman A.A. stated that “one of the notices issued under Section 142(1) of the Income Tax Act was indeed served to the assessee in the old email ID, which was after updating the email ID. The assessee also submitted a response to the...

Kerala High Court Quashes Proceedings U/S 148 Of Income Tax Act Initiated Against Cancelled PAN Number

The Kerala High Court quashed Income Tax proceedings under Section 148 against co-operative society initiated on cancelled PAN. Justice Ziyad Rahman A.A. observed that the transactions pertain to the relevant assessment year were carried out based on the PAN card that was then in existence, which was later cancelled. By the time the proceedings of assessment were initiated by issuing...

Proceedings U/S 148A Of Income Tax Act Unsustainable If Escaped Income Is Below ₹50 Lakhs & Notice Is Issued After 3 Years: Kerala High Court

The Kerala High Court held that proceedings under Section 148A of Income Tax Act not sustainable if escaped income is below Rs. 50 lakhs and notice issued after 3-years. Justice Ziyad Rahman A.A. stated that “when the order of the assessing authority is found to be without jurisdiction and hit by the period of limitation, it is not necessary to relegate the party concerned to...

Income Tax | Sales Tax Incentive Under Govt Scheme For Industrial Promotion Is Capital Receipt, Not Taxable: Bombay High Court

The Bombay High Court has stated that sales tax incentive under a government scheme for industrial promotion is a capital receipt, not taxable.Chief Justice Alok Aradhe and Justice Sandeep V. Marne were addressing the issue of whether an incentive received in sales tax liability under a Scheme formulated by the State Government would be on the capital account, exempt from taxation, or on...

Delhi High Court Rejects Income Tax Department's Appeal Against Thomson Press Over Alleged Transaction Of Property Below Circle Rate

The Delhi High Court has dismissed an appeal preferred by the Income Tax Department against Thomson Press (India) over the sale of a property in Noida back in 2013, allegedly at a price much lower than the prevailing circle rate.A division bench of Justices Vibhu Bakhru and Tejas Karia noted that the registered agreement to sell and payment of stamp duty with respect to the property...

Delhi HC Sets Aside Income Tax Action Against Rajat Sharma-Owned India TV's Parent Company Over Alleged Unaccounted Foreign Remittances

The Delhi High Court on Wednesday set aside the reassessment action initiated against journalist Rajat Sharma's company, M/S Independent News Service Pvt. Ltd., which owns and runs the India TV channel, over alleged foreign remittances.The notice was issued following a survey conducted by the Income Tax Department at the J&K Bank back in 2019, revealing that the company had made...

S. 245A Income Tax Act | Kerala High Court Allows Settlement Application Filed Beyond Cutoff Date, Citing SC's COVID Limitation Order

The Kerala High Court has allowed the settlement application under Section 245A of the Income Tax Act filed beyond cutoff date, while citing Supreme Court's COVID limitation order. Justices A.K. Jayasankaran Nambiar and P.M. Manoj referred to the order of Supreme Court in MA. Nos.665 of 2021 [In Re Cognizance For Extension Of Limitation] and stated that the assessee had filed...

DTAA Prevails Over S.206AA Of Income Tax Act For TDS On Payments To Non-Residents Without PAN: Gujarat High Court

The Gujarat High Court stated that DTAA (Double Taxation Avoidance Agreement) prevails over Section 206AA of Income Tax Act for TDS on payments to non-residents without PAN. Justices Bhargav D. Karia and Pranav Trivedi was addressing the appeals pertains to alleged short deduction of TDS and raising demand by invoking provisions of section 206AA of the Income Tax...

Assessment Based On DVO's Valuation Cannot Be Revised U/S 263 Of Income Tax Act In Absence Of Concrete Material: Kerala High Court

The Kerala High Court held that assessment based on DVO's (Department Valuation Officer) valuation cannot be revised under Section 263 of Income Tax Act in absence of concrete material. Justices A.K. Jayasankaran Nambiar and P.M. Manoj observed that “as on the date of invoking his power under Section 263 of the IT Act, the Commissioner could not have had a 'reason to believe' that...

S.245C Income Tax Act Does Not Require Prior Cut-Off Date, Pending S.153A/153C Notice Sufficient For Settlement Application: Kerala HC

The Kerala High Court stated that Section 245C of Income Tax Act does not require prior cut-off date; pending 153A/153C notice sufficient for settlement application. Justices A.K. Jayasankaran Nambiar and P.M. Manoj opined that “when Section 245C does not prescribe any prior cut-off date for an assessee to satisfy the requirements for filing an application before the Interim Board...

Assessee Cannot Be Penalised U/S 271(1)(c) Of Income Tax Act For Merely Raising A Plausible Claim: Bombay High Court

The Bombay High Court stated that the assessee cannot be penalised under Section 271(1) (c) of income tax act for merely raising a plausible claim. The Division Bench consists of Chief Justice Alok Aradhe and Justice Sandeep V. Marne opined that “the claim raised by the Assessee for claiming deduction in respect of the crystalised liability towards additional bonus was a...

Once AO Scrutinises Identity & Creditworthiness Of Shareholders, No Reassessment Action Without 'Additional Info' About Income Escapement: Delhi HC

The Delhi High Court recently rejected Revenue's appeal against deletion of additions made to the income of an assessee-company alleged to have evaded tax, observing that the AO had already scrutinised the identity and creditworthiness of the shareholders and in the absence of any additional material coming to light, reassessment action could not have been initiated.A division bench of...