Direct Tax Weekly Flashback for the period 06 October To 12 October 2024.
Table of Contents
Delhi High Court – Direct Tax Weekly Flashback
Delhi High Court Upholds Income Tax Settlement Commission’s Action In Restricting Interest Liability To Application Admission Date
Case Title: CIT Versus Dalip Kumar Banthiya
The Delhi High Court has upheld the action of Income Tax Settlement Commission (ITSC) in restricting the interest liability to the date of admission of the application.
Gauhati High Court – Direct Tax Weekly Flashback
ITAT Discharging Judicial Functions Is Expected To Maintain Consistency In Its Views, Unjust Deviation Affect Credibility: Gauhati High Court
Case Title: Williamson Financial Services Limited Versus Commissioner Of Income Tax
The bench of Chief Justice Vijay Bishnoi and Justice N. Unni Krishnan Nair has observed that the ITAT held that the Explanation inserted to Section 14A is applicable prospectively. However, the same Bench subsequently has concluded that the Explanation inserted to Section 14A is not applicable prospectively.
Calcutta High Court – Direct Tax Weekly Flashback
Section 80IA Deduction Allowable On Port Infrastructure Development: Calcutta High Court
Case Title: Principal Commissioner Of Income Tax – 1, Kolkata Versus Bothra Shipping Services Private Limited
The bench of Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya has observed that the benefit of deduction provided for under Section 80IA(4) of the Act is for a beneficial purpose, the purpose being to promote industrial undertakings or enterprises engaged in infrastructural developments etc. Therefore, the interpretation to be given to the said provision should advance the object for which the provision was introduced and not to frustrate it.
Gujarat High Court – Direct Tax Weekly Flashback
AO Accepted Co-Owner’s Indexed Renovation Expenses, Assessee Not Required To Produce Documents: Gujarat High Court
Case Title: Surat Trade And Mercantile Limited versus Principal Commissioner Of Income Tax Surat
The Gujarat High Court has held that the assessing officer (AO) accepted the co-owner’s indexed renovation expenses, and the assessee is not required to produce documents.
Karnataka High Court – Direct Tax Weekly Flashback
Plea Challenging Genuineness Of Transaction Can’t Be Raised In Appeal Before High Court If Not Raised Before ITAT: Karnataka High Court
Case Title: PR. COMMISSIONER OF INCOME TAX v/s M/S JUPITER ENTERAINMENT VENTURES (P)LTD.
The Karnataka High Court while dismissing the appeal of the Department held that plea challenging genuineness of transaction cannot be raised in appeal before high court if not raised before Income Tax Appellate Tribunal (ITAT).
ITAT – Direct Tax Weekly Flashback
Penalty Under Section 270(A) Discretionary In Nature, ITAT Deletes Penalty For AO’s Failure To Prove Malafides
Case Title: IIFL Samasta Finance Limited v/s DCIT
The bench of Keshav Dubey (Judicial Member) And Waseem Ahmed (Accountant Member) has observed that the penalty by hereditary nature is always discretionary. The legislature has used the word ‘may’ in section 270A(1) of the Act which clearly says that it is discretionary on the part of the AO to levy a penalty or not.
No Addition Is Permissible Unabated Assessments Unless Based On Incriminating Material: ITAT
Case Title: M/s. KSJ Infrastructure Pvt. Ltd. Versus DCIT
The bench of Aby T. Varkey (Judicial Member) and Amitabh Shukla (Accountant Member) has observed that the usurpation of jurisdiction under section 153C of the Act to be invalid and also deleted the additions made under section 69 of the Income Tax Act for want of incriminating material found & seized in the course of search.
Capital Gains Computed On Depreciable Asset To Be Given Benefit Of Lower Tax Rate: ITAT’s Members Have Dissenting Views
Case Title: SKF India Limited Versus Dy. Commissioner of Income Tax Range
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) comprising of Amit Shukla (Judicial Member), Vikas Awasthy (Judicial Member) and Om Prakash Kant (Accountant Member) presided over a matter raising an issue whether capital gains computed on depreciable asset to be given benefit of lower tax rate.
