TODAY'S CASE (DIRECT TAX)

October 15, 2024

++ I-T- Deduction u/s 80I is allowed to a private limited company which was earlier a partnership firm & later converted to its present status: HC

++ I-T- Relying on additional material seized from a laptop, while issuing SCN, invalidates proceedings u/s 153C, where such material is not included in the Satisfaction Note : HC

++ I-T- Re-assessment invalidated where commenced despite no failure of assessee to make full & true disclosure of relevant facts necessary for assessment: HC

++ I-T- CBDT Circular No. 10 allows for delay condonation when audit report is obtained before filing of ITR: HC

++ I-T- Law does not bar or prohibit a person from making a claim, when the person knows the matter is going to be examined by the Assessing Officer : ITAT

++ I-T- Threat of penalty cannot become a gag and/or haunt assessee for making a claim which may be erroneous or wrong, when it is made during the course of assessment proceedings: ITAT

++ I-T- Unexplained cash credit - additions framed following re-assessment - case remanded, as assessee-company unable to present its case adequately, due to change in management: ITAT

October 14, 2024

++ I-T - It is not open to Revenue to initiate reassessment on premise that it can simply form belief supported by its own reasons: HC

++ I-T - Cash seized from possession of another person cannot be adjusted against Assessee's tax liability as advance tax paid by him: HC

++ I-T - DRP must dispose off rectification application pending adjudication before him, before passing final Assessment Order: HC

++ I-T - Appeal to Writ Court from decision of Tribunal lies only when substantial question of law is involved: HC

++ I-T - Only when voluntary disallowance made by assessee u/s 14A is found to be unsatisfactory on examination of accounts, then AO is authorized to compute deduction under Rule 8D: ITAT

October 11, 2024

++ I-T - CBDT circular laying down procedure for selection of returns, does not take away power & jurisdiction of AO conferred upon it u/s 143(2)/ 143/ 144: HC

++ I-T - E-assessment order invalidated where passed without allowing opportunity of personal hearing despite assessee having asked for the same: HC

++ I-T - Continuation of assessment or reassessment proceedings after company cease to exist due to merger pursuant to Scheme of Arrangement, cannot be cured by applying Sec 292B: HC

++ I-T - Faceless mechanism would be applicable to all cases of Central Charges and International Taxation charges: HC

++ I-T- Exemption u/s 11 and 12 can be allowed as Revenue has not established that contributions received as corpus donation are utilized for purposes other than charitable purposes : ITAT

++ I-T- In absence of contrary proved issue raised can be decided in favour of assessee following order passed by Co–ordinate Bench of Tribunal in preceding AYs: ITAT

October 10, 2024

++ I-T- Writ remedy cannot be exercised where no significant breach of due process in made out & where assessee had sufficient prior knowledge of the pending proceedings: HC

++ I-T - Assessee cannot be deprived of lower rate of tax as prescribed u/s 115BAA for delay in filing of Form 10-IC: HC

++ I-T-Failure to communicate denial of adjournment request & lack of opportunity for personal hearing, is clear violation of legal provision governing faceless assessments: HC

++ I-T - If there is no effective representation on any matter by assessee, then matter should be readjudicated by Department after giving proper opportunity of being heard: ITAT

++ I-T- After passing of assessment order u/s 143(3), the intimation issued u/s 143(1) is not in existence : ITAT

++ I-T- If income from capital account the same is utilised for acquiring capital assets to be held by the assessee, then investment in such capital assets acquired shall be deemed to be application of the income for charitable purposes: ITAT

October 09, 2024

++ I-T- Compounding application rejected based on incorrect premise that assessee was habitual offender; case remanded for reconsidering application: HC

++ I-T- Condonation of delay in filing ITR should not be rejected mechanically, where genuine reasons beyond assessee's exist behind such delay, such as ill health of assessee's accountant : HC

++ I-T - If Revenue has discharged its onus of unearthing evidence in form of whatsapp chat and has confronted assessee with incriminating material, then onus lay with assessee to prove such chat as wrong: ITAT

++ I-T- Failure of AO to ask VAT Return cannot be attributable to assessee: ITAT

October 08, 2024

++ I-T - AO has no jurisdiction to consider claim made by assessee in revised return filed after time prescribed by Sec 139(5) for filing revised return had already expired: SC

++ I-T-When the assessee has own funds and surplus is more than investments, then, the presumption is that own funds are used: ITAT

++ I-T- Penalty under Section 271(1)(c) is invalid where notice issued u/s 274 fails to specify the exact limb of penalty imposed: ITAT

++ I-T- CIT(A) empowered to consider additional evidence not furnished during assessment proceedings or which CIT(A) opines is necessary to admit for adjudicating matter; AO must necessarily have opportunity to examine such evidence: ITAT

++ I-T- Re-assessment proceedings are rightly quashed where found to be based on change of opinion : ITAT

October 07, 2024

++ I-T - Capital gains u/s 50 arising out of sale of long term capital assets, shall be taxable at 20% rate u/s 112: ITAT SB

++ I-T- Writ petition filed before exercising option of rectification petition, is premature: HC

++ I-T- If at all there is some disallowance/adjustment in a year, same should be adjusted with the available brought forward business loss of the assessee: ITAT

October 05, 2024

++ I-T- Re-assessment SCN issued within limitation by AO lacking jurisdiction & subsequent SCN issued by jurisdictional AO but beyond limitation period, are both invalid: ITAT

++ I-T- Additions framed u/s 68 are invalid, where assessee discharged primary onus of providing sufficient evidence to establish genuineness of transactions: ITAT

October 04, 2024

++ I-T - If assessee is not benefitted with delay caused in filing appeal before CIT (A), then lapse that occurred on behalf of representative cannot be attributed to assessee for which assessee can be punished: ITAT

++ I-T - Assessee is required to show income in year of receipt which was in-fact followed by him but he claimed deduction of full amount in name of expenses for which he does not have any evidence: ITAT

++ I-T- Revenue's appeal is maintainable where it is delayed by 425 days & where such delay is not adequately explained & tax amount is lower than threshold specified in CBDT Circular No 3/2018: ITAT

++ I-T - If assessees failed to discharge their onus that they have fulfilled necessary requirement u/s 54F or 54B, they can't claim benefit of Section 47 of Indian Registration Act: ITAT

++ I-T-Distance of land from municipal limits for capital gains tax exemption should be calculated based on municipal limits as per current limits at time of sale : ITAT

October 03, 2024

++ I-T - TOLA Act, 2021 will extend to time limit for issuing notices for re-assessment under Income Tax Act: SC LB

++ I-T- Educational trust could not have been denied the benefit of Section 12AA where its earnings are regularly utilised for advancement of education: HC

++ I-T- No appeal shall be filed where the tax effect is below the prescribed threshold : ITAT

++ I-T- The statement of surrender has got to be accepted in toto or has got to be ignored: ITAT

October 01, 2024

++ I-T- Provisions of Sections 234A, 234B & 234C apply to Settlement proceedings; however, interest is leviable only upto date of initial settlement order: HC

++ I-T- Construction up to plinth level does not constitute a building - Ergo, plinths cannot be construed as buildings for tax purposes - no depreciation allowable thereon: HC

++ I-T- Carried forward depreciation can only be set off against profits from business or profession, as explicitly stated in Section 72 : HC

++ I-T- Re-assessment cannot be commenced in respect of transactions from which assessee did not derive any income: HC

++ I-T- E-assessment - Assessee appeared for hearing through video conference, but nobody joined from Department's side; assessment order passed without giving proper hearing, hence invalid: HC

++ I-T- Reassessment proceedings u/s 148 commenced in context of prior proceedings u/s 153C against assessee's brother & which were subsequently dropped, are invalid: ITAT