ITAT, Delhi: Sudhir Aggarwal v. DCIT, Central Circle-28 New Delhi Background: A search under Section 132 was conducted on the Alankit Group on 18.10.2019, pursuant to which proceedings under Section 153C were initiated against the assessee on the basis of seized material alleged to pertain to him. The assessee’s case was transferred to the …

Supreme Court: Director of Income Tax (IT)-I v. Superstar Libra Ltd. BACKGROUND The assessee, acting as an agent of Superstar Libra Ltd. (SLL), a non-resident shipping company, sought a certificate under Section 195 by claiming that the income of SLL was taxable under Section 44B at the presumptive rate of 7.5% of the gross …

ITAT Bangalore: Arakere Channappa Vishwanath v. ITO The Tribunal allowed the assessee’s appeal, holding that the Assessing Officer erred in taxing the entire gross gaming receipts of Rs 2.33 crore under Section 115BB. The assessment was initiated on the basis of information received from the Compliance Risk Information Unit and details furnished by Gameskraft …

Karnataka High Court: Pr. Commissioner of Income Tax, Koramangala, Bangalore & Anr. v. Shri Ravi Shankar Shetty The Court dismissed the Revenue’s appeal, holding that Section 56(2)(ix) was inapplicable where the advances were received for procuring land as stock-in-trade and there was no forfeiture of such advances. The assessee, engaged in the business of …

Delhi High Court: Pr. Commissioner of Income Tax v. SpiceJet Ltd. The Court dismissed the Revenue appeals, holding that expenditure incurred in connection with the issue of Foreign Currency Convertible Bonds (FCCB’s) is allowable as revenue expenditure under Section 37(1) of the Income Tax Act, 1961. The Assessee had claimed deduction of expenditure incurred …

Delhi High Court: PCIT v. M/s Globe Capital Market Ltd. The controversy arose from the assessment proceedings for Assessment Year 2018–19, wherein the Assessing Officer invoked Section 56(2)(x) of the Income-tax Act, 1961, which taxes the receipt of property for inadequate consideration. The Assessing Officer treated the company’s buyback of its own shares at …

M/s Schwing Setter (India) Pvt. Ltd. v. Assistant Commissioner of Income Tax/Income Tax Officer The Madras High Court has set aside the reassessment proceedings initiated against an engineering equipment manufacturer after finding that the IT Deptt. reopened the assessment based on material that had already been disclosed and examined during the original assessment. Schwing …

Bombay High Court: Accost Media LLP v. DCIT The High  Court has set aside ITAT Order, holding that the tribunal failed to adjudicate a taxpayer’s jurisdictional objection alleging non-compliance with the mandatory assessment procedure. The  Court ruled that the issue went to the root of the matter and required adjudication by the Tribunal. The …

Bombay High Court: CIT v. Impact Foundation  The Court dismissed the Deptt. Appeal against Impact Foundation holding that revisionary proceedings under the IT Act could not be sustained merely because the Commissioner believed the AO should have conducted further enquiry. The Court held that where the AO has examined an issue and taken a …

Chattisgarh High Court: Maa Harsiddhi Infra Developers P. Ltd. v. ACIT The Hon’ble High Court held that the Income Tax Department cannot invoke the limited powers under Section 143(1)(a) of the Income Tax Act to disallow claims involving debatable legal issues, such as delayed deposit of employees’ contributions towards ESI and EPF under Section …