Direct Tax Weekly Flashback for the period 20 to 26 October 2024.
Table of Contents
Bombay High Court – Direct Tax Weekly Flashback
SECTION 12AA REGISTRATION CAN’T BE DEEMED TO BE GRANTED, IF APPLICATION NOT DISPOSED WITHIN 6 MONTHS: BOMBAY HIGH COURT
Case Title: The Commissioner of Income Tax Versus Dr. Kasliwal Medical Care & Research Foundation
The Bombay High court has held that Section 12AA of the Income Tax Act does not recognize any deeming fiction, that an application for registration is deemed to be granted, if it is not disposed of within six months.
The bench of Justice G. S. Kulkarni and Justice Firdosh P. Pooniwalla has relied on the decision of Supreme Court in the case of Harshit Foundation Sehmalpur in which the clear position in law is to the effect that Section 12AA(2) of the Income Tax Act does not recognize any deeming fiction, that an application for registration is deemed to be granted, if it is not disposed of within six months, as succinctly held by the Full Bench of the Allahabad High Court in Muzafar Nagar Development Authority when it observed that the Parliament has carefully and advisedly not provided for such deeming fiction and as approved by the Supreme Court in Harshit Foundation Sehmalpur.
RENTAL INCOME FROM LEASING OF PROPERTIES ASSESSABLE AS INCOME FROM PROFITS AND GAINS OF BUSINESS: BOMBAY HIGH COURT
The Bombay High Court has held that the rental income from leasing of its properties was assessable as income from profits and gains of business.
The bench of Justice G. S. Kulkarni and Justice Firdosh P. Pooniwalla has observed that the Assessing Officer, for almost 11 Assessment Years has consistently held that income of the assessee is required to be treated as “income from business” and not the “income from house property”. This has been the consistent approach of the department, therefore, the principles of consistency, as the law recognizes, are required to be accepted.
GUJARAT HIGH COURT – Direct Tax Weekly Flashback
GUJARAT HIGH COURT RESTRAINTS INCOME TAX DEPT. FROM INITIATING RECOVERY PROCEEDINGS DURING PENDENCY OF APPEALS BEFORE CIT(A)
Case Title: Om Vision Infraspace Private Limited Versus Income Tax Officer, Ward 3(1)(4) & Ors
The Gujarat High Court has restrained the income tax department from initiating recovery proceedings during pendency of appeals before Commissioner Of Income Tax (Appeals) (CIT(A)).
The bench of Justice Bhargav D. Karia and Justice D.N.Ray has observed that if the department is not interested in resolution of the issue of pendency of the Appeals the manner in which it ought to have been resolved by classifying the Appeals as per the issues concerning the recurring issues, covered issues, etc., then no recovery should be made from the assessees during the pendency of the Appeals.
ITAT – Direct Tax Weekly Flashback
SECTION 115 BAC DOESN’T BAR CARRY FORWARD AND SET OFF OF LOSSES UNDER CAPITAL GAINS: ITAT
Case Title: Jaynt Vasudeo Aradhye v/s DCIT
The Pune Bench of Income Tax Appellate Tribunal (ITAT) has held that Section 115BAC of the Income Tax Act does not specifically bar carry forward and set off of Losses under Capital Gains.
