Karnataka High Court rules that Assessing Officers cannot revisit DSIR-approved R&D expenditure under Section 35(2AB) of the Income Tax Act. Introduction In an important ruling concerning tax incentives for scientific research and development, the Karnataka High Court has held that …
Bombay High Court quashes income tax assessment order passed without issuing a mandatory Draft Assessment Order under Section 144C, protecting taxpayers’ statutory rights. The Bombay High Court has reiterated that the Income Tax Department cannot bypass the mandatory procedure of …
Bombay High Court rules that the entire cost of a second flat cannot be added to taxable capital gains merely because Section 54F exemption is denied. Case Reference: Nilesh Ramesh Modi v. The Income Tax Officer, Ward 16(3)(1), Mumbai & …
The Court holds that collection of service charges and generation of surplus income do not automatically convert charitable activities into commercial operations. The actual relationship between service charges and the cost of providing services must be examined. Introduction In an …
ITAT Ahmedabad rules land sale gains taxable under capital gains, not business income, and allows exemption on qualifying REIT dividend income under the Income-tax Act. Introduction The classification of income arising from the sale of immovable property has significant implications …
Chhattisgarh High Court directs the Income Tax Department to refund amounts recovered from UltraTech Cement and Shree Cement after quashing of the tax demand against the State Mining Department. Introduction In an important ruling concerning tax recovery proceedings under the …
Gujarat High Court rules that commission paid to foreign agents for procuring export orders is not taxable in India if services are rendered abroad and no business connection exists in India. No TDS liability arises. Introduction In an important ruling …
Gujarat High Court holds that cash sales during demonetisation alone cannot justify additions under Section 68 and higher taxation under Section 115BBE. Read the Zinzuwadia and Sons ruling. The validity of cash sales recorded during the demonetisation period has …
The Supreme Court of India has reiterated that an Assessing Officer cannot reopen a completed income tax assessment merely because the officer subsequently wishes to take a different view. However, reassessment may be initiated when tangible material provides a rational …
Bombay High Court rules that limitation for an income tax appeal against an ITAT order begins from receipt, not mere pronouncement, and condones an 88-day delay. The Bombay High Court has clarified that the limitation period for filing an appeal …
The Supreme Court has agreed to examine EY US’s challenge to the Delhi High Court ruling treating employee secondment salary reimbursements as Fees for Technical Services under the India-US DTAA. Introduction The Supreme Court of India has agreed to examine …
Gujarat High Court quashes income tax reassessment, ruling that a timely notice cannot cure invalid approval under Section 151 of the Income-tax Act. Introduction The Gujarat High Court has reiterated an important principle of income tax law: issuing a reassessment …
ITAT Ahmedabad allows tax exemption under Section 10(10B) on eligible BSNL VRS-2019 compensation and directs reassessment of taxable income and refunds. Introduction The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, has delivered a significant ruling in favour of former employees …
Bombay High Court condones a 260-day delay in Form 10 filing by Cine Artist Welfare Trust and directs reconsideration of its ₹70 lakh tax exemption claim under Section 11(2). Introduction The Bombay High Court has provided significant relief to charitable …
The Bombay High Court has ruled that the difference between the subscription price and fair market value of proportionately allotted rights shares cannot, by itself, be taxed under Section 56(2)(x) of the Income-tax Act, 1961. The decision came in a …
The Orissa High Court examines a challenge to the retrospective insertion of Section 147A of the Income Tax Act, 1961, concerning jurisdictional Assessing Officers and faceless reassessment proceedings. Introduction The Orissa High Court has taken up a challenge to the …
ITAT Mumbai deletes ₹433.14 crore royalty addition in Novartis case, ruling that trademark assignment need not include corporate identity, house marks or packaging. Introduction The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has delivered an important ruling on …
ITAT Chennai upholds deletion of 75% cash receipt additions against IG3 Infra, highlighting the need for verification of seized Excel entries and transaction-wise identification. Introduction The Income Tax Appellate Tribunal (ITAT), Chennai, has delivered an important ruling on additions made …
ITAT Jaipur quashed a ₹3.99 lakh penalty under Section 270A despite non-filing of ITR. Learn why proper satisfaction and valid penalty notices matter. Introduction Failure to file an Income Tax Return (ITR) within the prescribed time can expose taxpayers to …
ITAT Jaipur grants relief to a Dubai-based NRI by deleting an unexplained money addition involving FCNR deposits. Learn how bank records, currency conversion errors and Section 69A influenced the decision. Introduction A major tax addition can collapse when the underlying …