Stay informed about the latest case laws on Income Tax with this comprehensive overview as we delve into the latest cases reported in the Income Tax Reports (ITR), focusing on critical issues such as Assessment, Notice, Business or Revenue expenditure, Double taxation, Return of Income, Revision, Search and Seizure and Faceless assessment.
(2025) 482 ITR
Income Tax — Assessment — Notice of demand — Faceless Assessment — Mandatory Condition — Opportunity of requested personal hearing — Mere creation of video conference meeting ID or link, does not absolve faceless assessment unit from discharging its responsibility of offering personal hearing — Held, failure to provide and share effective link — Assessment order and consequent demand notice set aside [Phari Projects (P) Ltd. v. CIT, (2025) 482 ITR 253]
Income Tax — Assessment — Resident or non-resident — Eligible assessee — Definition of eligible assessee includes only non-residents and those affected by transfer pricing orders — Assessee originally filing return of income as resident and later filing revised return as non-resident — Held, assessing officer cannot propose draft assessment order to vary income or loss in return of resident assessee — Not eligible under Section 144C (15) b — Proceedings under Section 144 C against non-eligible assessee incompetent [Aldrin Alberto Araujo Soares v. CIT, (2025) 482 ITR 257]
Income Tax — Reassessment — Notice — Validity — Notice issued after approval of resolution plan under IBC Code, 2016 — Held, not valid [Asian Colour Coated Ispat Ltd. v. CIT, (2025) 482 ITR 264]
Income Tax — Business or Revenue Expenditure — Disallowance — Employee welfare expenses — Core ingredient for disallowance — Payment made as employer — Scope of Section 40A(9) — Held, payment under memorandum of settlement for benefit of entire locality — Finding that payment had been made for puposes of business — Payment deductible [CIT v. Tata Engineering & Locomotive Co. Ltd., (2025) 482 ITR 296]
Income Tax — Reassessment — Faceless assessment — New Procedure — Mandatory condition — Opportunity of personal hearing — Providing of opportunity of personal hearing is an integral component of opportunity of being heard granted — Held, failure to provide personal hearing — Violation of statutory condition and principles of natural justice [CIT v. Asamannoor Service Coop. Bank Ltd., (2025) 482 ITR 305]
Income Tax — Double Taxation — Business profits — Effect of article 7 and protocol to Agreement with Japan — Interest received by Indian permanent establishment and deposit maintained with head office or overseas branch of bank — Held, branch office not separate legal personality — Interest not taxable in India [CIT v. Bank of Tokyo-Mitsubishi UFJ Ltd., (2025) 482 ITR 312]
Income Tax — Return of Income — Delay in filing return — Condonation of delay — Guidelines to be followed in condoning delay — Held, rejection of application for condonation of delay without following guidelines — Not valid [Abhilash Panda v. CIT, (2025) 482 ITR 326]
Income Tax — Search and seizure — Block assessment — Finding that particular income did not fall within the period of block assessment — Held, amount not assessable under Section 158BB [Vijay Sehgal v. CIT, (2025) 482 ITR 331]
Income Tax — Revision — Order of assessment which is erroneous and also prejudicial to Revenue can be revised — Held, assessment officer erred in making the assessments — [Harjot Singh v. CIT, (2025) 482 ITR 335]
Income Tax — Business or Revenue Expenditure — Interest on borrowed capital — Assessee in business of providing asset management services — Held, finding that borrowed capital had been used for purchase of agricultural land and land not used for purpose of business — Interest not deductible [Mini Muthoottu Credit India (P) Ltd. v. CIT, (2025) 482 ITR 338]
