The Direct Tax Weekly Flashback for the period from 06 to 12 April 2025
Supreme Court
Supreme Court Order On AY 2015-16 Post Rajeev Bansal Case
The Supreme Court comprising Justice B.V. Nagarathna and Justice Prasanna B. Varale has dismissed a Special Leave Petition (SLP) filed by the Income Tax Department, citing the earlier concession made by the Department in the case of Union of India vs. Rajeev Bansal.
Delhi High Court
Delhi High Court Quashes 2nd Reassessment Notice Issued Beyond 4 Years
The Delhi High Court has quashed the 2nd Assessment Notice which was issued beyond 4 years i.e. beyond the limitation period.
The bench of Justice Vibhu Bakhru and Justice Tejas Karia has observed that the period of limitation for issuance of notice under Section 148 of the Income Tax Act was four years from the end of the relevant assessment year.
Bombay High Court
Bombay High Court Raps ITAT For Casual Approach; Holds Entire Bogus Purchases Should Be Disallowed, Not Just 3%
The Bombay High Court has rapped Income Tax Appellate Tribunal (ITAT) for a casual approach and held that entire bogus purchases should be disallowed, not just 3%.
Rajasthan High Court
Rajasthan High Court Upholds Validity of Section 153C Proceedings Based on WhatsApp Chats
The Rajasthan High Court has upheld the validity of search assessment proceedings under section 153C of the Income Tax Act based on WhatsApp chats.
The bench of Justice Pushpendra Singh Bhati and Justice Chandra Prakash Shrimali has observed that the big size plots were purchased by the petitioner. The unaccounted money paid are reflected in the chats. The purchase of the plots was also found from the extracted digital data. The on-money etc. are reflected in the WhatsApp chats and images. The unaccounted cash transactions were found as reflected in the pictures.
Kerala High Court
Kerala High Court Condones Delay In Filing Audit Report
The Kerala High Court has condoned the delay in filing the audit report for the assessment year 2021-2022.
The bench of Justice Bechu Kurian Thomas has observed that the Central board of Direct Taxes (CBDT) had extended the time to file returns till 15.03.2022, and therefore, the petitioner should have filed the audit report 30 days before the returns. Since the change in dates has caused confusion to many persons and the delay is very minimal. A rigid stance ought not to have been adopted.
Once Tax Is Assessed, Entire Amount Has To Be Paid In Absence Of Amnesty Schemes: Kerala High Court
The Kerala High Court has held that once tax has been assessed, the entire amount has to be paid, unless there are amnesty schemes.
The bench of Justice Bechu Kurian Thomas has observed that petitioner had even acquiesced into the order by paying the first instalment and thereafter he has turned around and now requests for acceptance of a portion of the amount in satisfaction of the entire tax assessed. Such a procedure is unheard in law.
Chhattisgarh High Court
S. 271(1)(c) Penalty Not Applicable On Voluntary Surrender, Bonafide Mistake: Chhattisgarh High Court
The Chhattisgarh High Court has issued the clarification on the penalty under Section 271(1)(c) while emphasizing on voluntary surrender and bonafide mistake.
The bench of Justice Sanjay K. Agrawal and Justice Deepak Kumar Tiwari has observed that once the Tax Audit Report conducted under Section 44AB of the IT Act was filed and it was uploaded in the Income Tax Portal along with the return of income, there is no question of submission of any inaccurate particulars and no question of concealment of income by the assessee.
ITAT
ESOP Valuation By Merchant Banker Under Income Tax Act Can’t Be Overridden By FEMA Valuation: ITAT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that (ESOP) valuation by merchant bankers under income tax act cannot be overridden by FEMA valuation.
Surcharge On Private Discretionary Trusts To Be Computed As Per Slab Rates Prescribed In Finance Act: ITAT
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that surcharge on private discretionary trusts to be computed as per slab rates prescribed in Finance Act.
The bench of Saktijit Dey (Vice President) and B R Baskaran (Accountant Member) has observed that in case of Private Discretionary Trusts, whose income is chargeable to tax at maximum marginal rate, surcharge has to be computed on the income tax having reference to the slab rates prescribed in the Finance Act under the heading ‘surcharge on income tax’.
Read More: Real Estate Business To Pay 18% GST On Consideration Received From Home Buyers: AAR
