2024 SCC Vol. 9 Part 2
Civil Procedure Code, 1908 — S. 20 — Civil suit — Maintainability — Issue of territorial jurisdiction — Adjudication of, as preliminary issue
Income Tax Act 1961
2024 SCC Vol. 7 Part 5
Evidence Act, 1872 — S. 112 — Provision under, regarding birth during marriage, conclusive proof of legitimacy — Invocation: Direction issued for
‘Transaction stood grandfathered by virtue of Article 13(3A) of India-Mauritius DTAA’; Delhi HC quashes AAR order holding Tiger Global-Flipkart transaction as ‘aimed at tax avoidance’
Merely because a parent entity may exercise shareholder influence over its subsidiary that would not lead to an assumption that the subsidiary in question was operating as a mere puppet or that it was wholly subservient to the parent entity.
No exemption from faceless procedure for notices issued under S. 148 of Income Tax Act, 1961 for international tax charges: Telangana HC
The taxpayer is nowhere distinguished between NRIs and Indian Citizens. The notice issued under Section 148 of the Income Tax Act, 1961 must comply with the requirement of the Scheme whether or not the taxpayer is NRI/Indian Citizen.
Colourable devices cannot be part of tax planning; obligation of every citizen to pay taxes honestly: Telangana HC
The Court stated that due to the non-obstante clause in Chapter X-A i.e., the General Anti-Avoidance Rules (‘GAAR’), its provisions get an overriding effect over and above the other existing provisions of law.
Long term capital gains exempted from income tax; non-disclosure will not cause prejudice to interest of revenue or loss of revenue: Gauhati HC
The twin conditions, i.e., firstly, the order being erroneous and secondly, the order being prejudicial to the interest of revenue, must exist before power under Section 263 of the Income Tax Act, 1961 is exercised.
“Alleged non-receipt of notice warrants another opportunity”; Calcutta High Court grants Assessee opportunity to show-cause despite failure to respond
Calcutta High Court explicitly stated that if the appellant failed to comply with the court’s directive, the benefit of the order would not apply, and the appeal would be dismissed without further reference to the court.
Merely writing the expression “Yes” cannot be considered a valid approval u/s 151 of Income Tax Act 1961: Delhi High Court
“The satisfaction arrived at by the prescribed authority under Section 151 of the Income Tax Act, 1961 (‘the Act’) must be clearly discernible from the expression used at the time of affixing its signature while according approval for reassessment under Section 148 of the Act.”
Section 10(10-AA) of Income Tax Act 1961 differentiating tax on leave encashment between State and Central Government employees, not violative of Article 14: Patna High Court
“If there is equality and uniformity in each group, the law will not become discriminatory, though due to some fortuitous circumstance arising out of peculiar situation, some included in a class get an advantage over others so long as they are not singled out for special treatment.”
Income Tax| Calcutta High Court dismisses appeal challenging Re-assessment Order; Says same can be challenged before Appellate authority
Calcutta High Court held that the dismissal of the writ petition does not bar the appellant from pursuing these issues in the appellate process.
Notification under Section 90(1) of Income Tax Act mandatory for giving effect to a DTAA or protocol: Supreme Court
“Upon India entering into a treaty or protocol does not result in its automatic enforceability in courts and tribunals; the provisions of such treaties and protocols do not therefore, confer rights upon parties, till such time, as appropriate notifications are issued, in terms of Section 90(1).”
Constitutional Courts to tread with caution while dealing with challenges to Orders of Specialised Tribunals: Meghalaya HC
The Constitutional Courts would not interfere with a view expressed on interpretation unless it appears to be grossly inappropriate and outlandish.
Reasonable and Adequate opportunity required to file reply to Income Tax Notice; Gujarat HC quashes Assessment Order
A show cause notice-cum-draft assessment order was issued on 29-03-2022 to the petitioner at 11:41 a.m. and the petitioner was asked to submit a reply before 23:59 p.m. on the very same day.
Income Tax| Power of reopening of assessment should be sparingly used for adequate reason: Calcutta High Court
The principles of natural justice get violated if the opportunity afforded to submit reply is not an effective opportunity.
Jurisdictional Issues — Challenges before CESTAT
by Suvendu Kumar Pati†
[Harmonious Construction] Section 529A of Companies Act, 1956 would prevail over Income Tax Act, 1961: Madhya Pradesh High Court
“…the Act of 1956 is a special Act which govern the law regarding companies only whereas IT Act is a general Act which percolates in just about every sphere of life and is applicable to all the citizen of India when it comes to payment of Income Tax.”
Reopening of completed assessments if Income Tax searches unearth ‘incriminating material’: Supreme Court resolves conundrum
The Revenue had submitted that the Assessing Officer is competent to consider all the material that is available on record, including that found during the search, and make an assessment of ‘total income’. While some of the High Courts agreed with the said proposition, some disagreed. The Supreme Court was, hence, called upon to resolve the conundrum.
Amended Section 153C of the Income Tax Act, 1961 applicable retrospectively to searches conducted prior to 2015 Amendment: Supreme Court
The amendment in Section 153-C of the Income Tax, 1961 was brought and the words “belongs or belong to” were substituted by the words “pertains or pertain to” after a ruling by Delhi High Court in Pepsico India Holdings Private Limited v. ACIT, 2014 SCC OnLine Del 4155.
Online Gaming Budget Proposals – Challenges during Transition Phase
by S. Vasudevan†, Karanjot Singh Khurana†† and Harshit Khurana†††
Online Gaming Budget Proposals – Challenges during Transition Phase
Cite as: 2023 SCC OnLine Blog Exp 27
Availability of Alternative Remedy is not an absolute Bar to challenge re-opening of assessment: Madhya Pradesh High Court
The Madhya Pradesh High Court held that alternative remedy is not absolute bar for examining conditions to issue reassessment notice and admitted the petitions for the final hearing.