Income Tax Bill | An attempt to replace 6-decade old Income-tax Act, 1961 for the benefit of taxpayers
The Bill has been approved by the Union Cabinet and awaits to be tabled in the Houses.
Income Tax Act
Compounding of the offences permitted under IT Act; Orissa HC refuses to exercise power under S. 482 for quashing proceedings under S. 276(B) of Income Tax Act
The Circular dated 17-10-2024 issued by the Central Board of Direct Taxe provides fresh guidelines for compounding of offences under the Income Tax Act.
Penalty for delay in filing audit report before assessing authority under IT Act can be avoided by demonstrating reasonable cause: Kerala High Court
“It merits notice that the phraseology used in Section 273B of the IT Act is such that no penalty can be imposed on an assessee under Section 271B for breach of the provisions, if he proves that there was ‘reasonable cause’ for the said failure.”
2024 SCC Vol. 9 Part 3
Arbitration Act, 1940 — S. 29 — Interest on interest or compound interest: Post award interest on interest awarded is not grantable
Justice BV Nagarathna: Igniting Hope for the First Ever Woman Chief Justice of India
Justice B. V Nagarathna who is currently serving as a Judge of Supreme Court of India, formerly served as a Judge of Karnataka High Court until her elevation to the Supreme Court. Justice Nagarathna is also the potential contender for the first ever woman Chief Justice of India.
2024 SCC Vol. 8 Part 4
Energy, Power and Electricity — Electricity — Generation and Transmission/Supply/Distribution of electricity
Can income-tax reassessment notice under S. 148 be issued on ‘change of opinion’ for material scrutinised in previous assessment? Gujarat HC answers
Documents relating to proof of deduction under Section 54F of the Act; Bank statement showing payment for above deduction; Statement justifying sale consideration; Working of capital gain were all furnished by the assessee.
‘SC’s 2023 decision in Ashish Agarwal does not deprive assessee of the right to question initiation of reassessment based on S.149(1)’; Delhi HC quashes notice against Genpact India
‘Although Genpact had alluded to the amended statutory regime that had come into existence and had informed the AO of the obligation to follow the procedure under Section 148A, no legal challenge was instituted to impugn the action commenced by notice dated 30-06-2021.’
Cases Reported in HCC
Civil Procedure Code, 1908—Or. 7 R. 11—Rejection of plaint — Appeal against Trial Court’s decision allowing application for rejection
‘Revenue Audit Objections a valid ground under Section 148 of Income Tax Act for reopening concluded assessment’: Allahabad HC
“There is no dispute regarding explanation given under Section 148 regarding information that can be relied upon by the Assessing Officer to reopen assessment of escaped income.”
ITAT, Delhi quashes reassessment made on basis of notice issued u/s 148 of Income Tax Act by non-jurisdictional Assessing Officer which led to addition of 12.5 lakhs
“The reassessment notice was issued by ITO, Ward 69(1), New Delhi, under Section 148 and lacked jurisdiction as the jurisdiction was with ITO, Ward 4(1), Gurgaon. Hence, the subsequent assessment completed by ITO, Ward 4(1), Gurgaon, based on this notice was legally flawed.”
Delhi High Court sets aside Assessment Order passed against Bausch and Lomb for violation of natural justice principles
It is wholly insufficient to proceed to make an addition on the basis that CBIC is an apex body and information provided by it cannot be doubted, without even analyzing such information.
S. 269-SS of Income Tax Act not applicable to receipt of sale consideration of immovable property in cash but only on loan or deposit: ITAT, Delhi
“Section 269-SS of the Income Tax Act, 1961 has a specific bar on receiving a sum more than 20,000/- from any other persons by way of loan or deposit.”
2024 SCC Vol. 3 Part 3
Civil Procedure Code, 1908 — S. 75(c), Or. 26 Rr. 10-A, 9 and 10: Direction of trial court to Director of Archaeological
‘Discovery of material impacting assessment of total income not intended to set off a chain reaction’: Delhi HC quashes notices issued u/s Section 153C of the IT Act, 1961
“It is only once the Assessing Officer of the non-searched entity is satisfied that the material coming into its possession is likely to “have a bearing on the determination of the total income” that a notice under Section 153C would be issued.”
2024 SCC Vol. 2 Part 3
Arbitration and Conciliation Act, 1996 — S. 34: Objections to the award: Law summarised relating to Court’s power to review awards under
Franchise or Distributorship | Section 194-H of IT Act not applicable to Telecom Companies: Supreme Court
Supreme Court clarified that the legal position of a distributor and agent was not similar, for a distributor is an independent contractor, not being a communicator between principal and the third party unlike an agent, free from control of his employer.
Delhi HC sets aside CIC order allowing disclosure of exemption sought by Shri Ram Janmabhoomi Teerth Kshetra for its donations
“The information pertaining to an assessee cannot be granted under the Right to Information Act, 2005 in view of Section 138(1)(b) of the Income Tax Act, 1961.”
Delhi High Court: ‘Subscription Fee’ income not classified as ‘royalties’ or ‘included services’ under DTAA and IT Act
Delhi High Court elucidated the treatment of subscription fees vis-à-vis royalties and technical services under both the Double Taxation Avoidance Agreement (DTAA) and the Income Tax Act and clarified the distinction between income from subscription fees and payments for intellectual property rights or technical consultancy services.