Direct Tax/ Income Tax Archive

Supreme Court Clarifies Restriction Under S. 80-IA(9) On Claiming Cumulative Deductions Under S.80IA & 80-HHC.

Direct Tax/ Income Tax 0
7
Supreme Court: Shital Fibers Ltd. v. Commissioner of Income Tax (and connected cases) Background: In this case, the appellant had claimed deductions under Section 80-HHC (export profits) and Section 80-IA/80-IB (industrial profits). However, the Income Tax Department disallowed these claims, contending that Section 80-IA (9) prohibits availing double benefits on the same profits, a …
Continue  →

Bombay HC: RBI subsidy under the Export Credit Scheme is not taxable as “interest” under Section 2(7) of the Interest Tax Act, as it does not stem from any loan or advance

Direct Tax/ Income Tax 0
11
Bank of India v. DCIT Background: The assessee, a public sector bank, received ₹12.93 crore from the RBI under the Export Credit (Interest Subsidy) Scheme, 1968, as compensation for offering export credit to borrowers at concessional interest rates. While filing its return for AY 1992–93, the assessee excluded this subsidy from chargeable interest under …
Continue  →

Telangana HC: Payments made in the ordinary course of business to a parent company were held not to be deemed dividends under Section 2(22)(e)

Direct Tax/ Income Tax 0
6
M/s. Prasad Film Laboratories Pvt. Ltd. v. ACIT Background: The appellant made regular payments to its parent company during the course of business, which were treated by the Assessing Officer as deemed dividends under Section 2(22)(e) of the Income Tax Act. The ITAT remanded the matter back to assessees whether accumulated profits existed on …
Continue  →

Chhatisgarh HC: TCS under Section 206C(1C) is not applicable on compounding fees collected for illegal mining.

Direct Tax/ Income Tax 0
9
Deputy Director Jagdalpur Mining Officer v. The DCIT Background: A TDS survey revealed that the State Mining Department had not collected tax collected at source on compounding fees/fines recovered from persons involved in illegal mining and transportation of minerals. The Income Tax Department treated the State as an assessee-in-default under Section 206C(1C) of the …
Continue  →

Delhi HC: Separate Demands For Reversal of Availed ITC & Utilisation of ITC is Prima Facie Duplication of Demand

Direct Tax/ Income Tax 0
97
M/S Lala Shivnath Rai Sumerchand Confectioner Private Limited v. Additional Commissioner, Cgst Delhi-West, New Delhi Background: The Petitioner runs a sweetmeat shop and a restaurant. It had challenged an order raising demand of ineligible input tax credit amounting to Rs. 11,47,55,615/- used for discharging outward tax liability for the F.Y. 2017-18 to 2022-23 and …
Continue  →

Supreme Court: Reassessment based on borrowed satisfaction and without new tangible material amounts to a mere change of opinion and is therefore invalid.

Direct Tax/ Income Tax, Income Tax Act 1961 0
529
Deputy Commissioner of Income Tax v. Rakesh Ramamlal Shah Background: The Assessee (Rakesh Ramanlal Shah) filed his return of income for the A.Y. 2014-15 on 26.07.2014, declaring a total income of Rs. 39,61,071/-. The case was selected for scrutiny, and the Assessing Officer (AO) conducted an examination under Section 143(3) of the Income Tax …
Continue  →

Gujarat HC:Denial of adjournment and ignoring stay orders led the High Court to quash assessment and penalty orders for violation of natural justice and systemic administrative failure

Direct Tax/ Income Tax, Income Tax Act 1961 0
60
SHREE SARKHEJ KELAVANI MANDAL V. ADDITIONAL/JOINT/DY. ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER & ANR. Background: The Petitioner filed its return of income for the A.Y. 2018-19 om 30.03.2019 declaring Nil Income, claiming exemption under section 11 & 12 of the Income Tax Act. The Petitioner submitted an audit report in Form No. 10 but …
Continue  →

Delhi HC: Reassessment was quashed as time-barred due to absence of escaped income in the form of an asset and full disclosure by the assessee

Direct Tax/ Income Tax, Income Tax Act 1961 0
126
Delhi HC: RATNAGIRI GAS AND POWER PVT. LTD. V. ASSISTANT COMMISSIONER OF INCOME TAX Background: The Petitioner. Ratnagiri Gas and Power Pvt. Ltd. filed a Petition challenging a reassessment notice issued under Section 148 of the Income Tax Act, 1961 for the A.Y. 2013-14. Essentially, the Petitioner was aggrieved by the initiation of reassessment …
Continue  →

Rejection of application for nil withholding tax certificate. Hon’ble Delhi High Court found that the rejection lacked proper justification and directed the issuance of a nil withholding tax certificate while allowing the authorities to reassess the petitioner’s taxability independently.

Direct Tax/ Income Tax 0
117
Delhi HC: LUFTHANSA CARGO AG VERSUS ASSISTANT COMMISSIONER OF INCOME TAX & ORS. 2025 (4) TMI 89 Background: The case involves Lufthansa Cargo AG, a tax resident of Germany engaged in international cargo transportation, disputing the rejection of its application for nil withholding tax certificate under Section 195(3) of the Income Tax Act, 1961. The …
Continue  →