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Direct Tax Quick Weekly Flashback: 8 To 14 September 2024

Income Tax

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Supreme Court

Hexaware Technologies Case | Income Tax Dept. Files SLP Before Supreme Court Against Bombay High Court Judgement: Know Key Developments

Case Title: PCIT Versus Hexaware Technologies Limited  

Case No.: Special Leave Petition (Civil) Diary No.37843/2024

The Income Tax Department has recently filed the special leave petition (SLP) against the Bombay High Court Order quashing notices issued by  jurisdictional Assessing Officer (JAO) instead of faceless AO as per the faceless scheme, before the Supreme Court.

Income Tax Reassessment Initiated On Factually Incorrect Information: Supreme Court Deletes Cost Worth Rs. 5 Lakh On Dept.

Case Title: Union Of India & Ors. Versus S.R. Cold Storage   

Case No.: Special Leave Petition (Civil) Diary No.19953/2023

The Supreme Court has deleted the cost of Rs. 5 Lakh imposed by the Allahabad High Court for initiating income tax reassessment on factually incorrect information.

Delhi High Court

Completed Income Tax Assessments Can’t Be Reopened Without New Material: Delhi High Court

Case Title: Genpact India Private Limited Versus ACIT

Case No.: W.P.(C) 17364/2022

The Delhi High Court has held that completed income tax assessments cannot be reopened without new material or grounds.

Delhi High Court Quashes Income Tax Reassessment Based On Valuation Officer Report: Delhi High Court

Case Title: Divine Infracon Private Limited Versus DCIT

Case No.: W.P.(C) 2516/2016

The Delhi High Court has quashed income tax reassessment based on AO’s estimation.

Ao Failed To Examine Material Found During Search; Delhi High Court Quashes S.153C Notices

Case Title: Mukesh Chandra Agarwal Versus DCIT

Case No.:  W.P.(C) 6162/2023 & CM APPL. 24246/2023 (Stay)

The Delhi High Court has quashed the notices issued pursuant to the search action undertaken by Revenue on the fundament error on the part of Assessing Officer to notice, examine and consider the alleged material which were found during the course of search, in the satisfaction note i.e. before assuming the jurisdiction while issuing the notice under Section 153C of the Income Tax Act. 

Income Tax Act | SCN Alleging Escaped Assessment Issued Without Any Change In Facts And Figures Is Void: Delhi High Court

Case Title: Satish Chand Jain Versus ACIT

Case No.: W.P.(C) 12044/2022

The Delhi High Court has held that the issuance of Show Cause Notice under Section 148-A(b) of the Income Tax Act that income chargeable to tax has escaped assessment on the same set of reasons without any change in facts and figures for re-initiation of reassessment proceeding is invalid and void ab initio.

Delhi High Court Quashes Income Tax Reassessment Of Completed Assessment On Same Facts

Case Title: Jaswant Singh Juneja Versus ITO

Case No.: W.P.(C) 2062/2023

The Delhi High Court has quashed the income tax reassessment of completed assessment on the same facts.

Bombay High Court

Faceless Assessment | SLP Against ‘Hexaware Decision’ Pending Before Supreme Court: Bombay High Court Stays Notice & Proceedings

Case Title: JD Printers Pvt. Ltd. Versus The Income Tax Officer

Case No.: Writ Petition No. 12187 Of 2024

The Bombay High Court has stayed its own decision in the case of Hexaware Technologies Versus PCIT citing that the Special Leave Petition is pending before the Supreme Court.

Requirement Of KYC Does Not Qualify As ‘information’ For Income Tax Reassessment: Bombay High Court

Case Title: Sete Mares Global Forex Private Limited v. Union of India

Case No.: Writ Petition No. 194 Of 2022

The Bombay High Court, Goa Bench has held that the requirement of KYC does not qualify as ‘information’ for income tax reassessment under section 148 of the Income Tax Act.

Bombay High Court Condones Delay In Filing ITR Citing CA’s Personal Difficulties

Case Title:  Jyotsna M. Mehta Versus Principal Commissioner of Income-tax-19 & Ors.

Case No.: Writ Petition (L) No. 17939 Of 2024

The Bombay High Court has condoned the delay in filing Income Tax Return (ITR) citing CA’s personal difficulties.

Karnataka High Court

Income Tax Deduction Allowable On Cost Of Trademark Acquired For Use: Karnataka High Court

Case Title: Bosch Limited Versus DCIT

Case No.: I.T.A. No.72 OF 2017

The Karnataka High Court has held that the income tax deduction is allowable on the cost of trademarks acquired for use.

Kerala High Court

Income Tax Deduction Allowable On Interest Income Received On Deposits Of Surplus Profits: Kerala High Court

Case Title: PCIT Versus Sahyadri Co-Operative Credit Society Ltd.

Case No.: I.T.A. No. 68 Of 2017

The Kerala High Court has held that income tax deduction is allowable on interest income received on deposits of surplus profits earned by society.

Madhya Pradesh High Court

Exigibility Of Tax On Royalty Payments Is Still Pending Before Supreme Court; Madhya Pradesh High Court Permits Dept. To Proceed With SCN

Case Title: M/S Anand Mining Corporation Vs Union Of India And Others

Case No.: WP/6084/2017

The Madhya Pradesh High court, Jabalpur Bench, while hearing the writ petitions stated that the issue with regard to exigibility of tax on royalty payments is still pending before the Supreme Court and likely to be listed shortly.

Read More: Direct Tax Quick Weekly Flashback: 1 To 7 September, 2024

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