Know why Delhi High Court rejected Virtual Service PE to Clifford Chance under DTAA
“The words ‘within a Contracting State’ in Article 5(6) mandate a physical footprint and cannot be expanded to include virtual service permanent establishments.”
Income Tax Act 1961
Approval under Section 153D of the Income Tax Act must reflect application of mind: Bombay High Court dismisses Revenue’s appeal
“An order, which does not reflect even minimum application of mind, cannot be saved by filing an affidavit claiming that there was material based upon which such approval could have been granted.”
Delhi High Court: Company must be a party for Directors to face prosecution
“Section 278B of the Income Tax Act, 1961 creates a deeming fiction whereby both the Company and every person in charge are deemed guilty of the offence. The legislative intent is clear that the Company must first be arraigned, only then can its officers be fastened with vicarious liability.”
Assessee not ‘eligible’ under S. 144-C Income Tax Act, if no income variation made by Transfer Pricing Officer: Bombay HC
In the present case, there was no variation in the petitioner’s income by the order of the Transfer Pricing Officer. The petitioner contended that since no income variation was made, there was no occasion for assessing officer to pass any draft assessment order and serve it to petitioner.
‘ED not restricted to access information placed on record before Magistrate by the IT Department for investigation’: Punjab and Haryana High Court
‘Information regarding the foreign assets has been placed on record in the form of documents before the Magistrate by the IT Department which has been sought by another government Department for the purpose of investigation. It is not a case that the information has been demanded for public dissemination.’
Notice to deceased assessee must first be served on legal heirs; once on record, legal heirs represent deceased assessee: ITAT
In the present case, notice under Section 148 of Income Tax Act, 1861 is not served on legal heir of the assessee. The said notice is served on the assessee, even after the knowledge that the assessee is deceased.
‘Defeats the ends of justice’; Bombay HC sets aside ITAT’s order treating income from same source differently for different assessment years
For the purposes of Income Tax Act, 1961, the business which is involved in letting out premises on hire, would be said to have commenced right from the stage of repairing and furnishing of property for being rented out and cannot be treated as commenced only when the premises are actually let out to tenants.
A New Era in Taxation: Income Tax Act, 2025 Replaces more than 60-Year-Old Law
The Income-tax Tax Act, 2025 is concise, lucid and easy to read and understand which will help in reducing disputes, litigations and provide clearer tax certainty to taxpayers.
Advance/Loan amount used for purposes other than business execution is taxable as deemed dividend: Bombay High Court
Mere maintenance of running account by the appellant with GPIL, having continuous business transactions with them or mere repayment of advance within same financial year cannot be the reasons to admit that the amount of advance is actually utilized for execution of business transaction.
Lok Sabha passes Income-tax (No. 2) Bill, 2025
The Bill attempts to replace 6-decade old law for the benefit of taxpayers.
Carried Interest — Identity Crisis or Identity in Abundance
by Shareen Gupta* and Rajan Mishra**
Supreme Court clarifies whether offence under S. 276CC of IT Act 1961 committed before show-cause notice is compoundable as ‘first offence’
The assessee’s case was that whether he had filed a belated return of income, after the expiry of the due date or not, was immaterial and the point in time when the offence under Section 276CC is committed is the date immediately following the due date for furnishing the return of income as prescribed under Section 139(1) of the Act.
2024 SCC Vol. 9 Part 2
Civil Procedure Code, 1908 — S. 20 — Civil suit — Maintainability — Issue of territorial jurisdiction — Adjudication of, as preliminary issue
2024 SCC Vol. 7 Part 5
Evidence Act, 1872 — S. 112 — Provision under, regarding birth during marriage, conclusive proof of legitimacy — Invocation: Direction issued for
‘Transaction stood grandfathered by virtue of Article 13(3A) of India-Mauritius DTAA’; Delhi HC quashes AAR order holding Tiger Global-Flipkart transaction as ‘aimed at tax avoidance’
Merely because a parent entity may exercise shareholder influence over its subsidiary that would not lead to an assumption that the subsidiary in question was operating as a mere puppet or that it was wholly subservient to the parent entity.
No exemption from faceless procedure for notices issued under S. 148 of Income Tax Act, 1961 for international tax charges: Telangana HC
The taxpayer is nowhere distinguished between NRIs and Indian Citizens. The notice issued under Section 148 of the Income Tax Act, 1961 must comply with the requirement of the Scheme whether or not the taxpayer is NRI/Indian Citizen.
Colourable devices cannot be part of tax planning; obligation of every citizen to pay taxes honestly: Telangana HC
The Court stated that due to the non-obstante clause in Chapter X-A i.e., the General Anti-Avoidance Rules (‘GAAR’), its provisions get an overriding effect over and above the other existing provisions of law.
Long term capital gains exempted from income tax; non-disclosure will not cause prejudice to interest of revenue or loss of revenue: Gauhati HC
The twin conditions, i.e., firstly, the order being erroneous and secondly, the order being prejudicial to the interest of revenue, must exist before power under Section 263 of the Income Tax Act, 1961 is exercised.
“Alleged non-receipt of notice warrants another opportunity”; Calcutta High Court grants Assessee opportunity to show-cause despite failure to respond
Calcutta High Court explicitly stated that if the appellant failed to comply with the court’s directive, the benefit of the order would not apply, and the appeal would be dismissed without further reference to the court.
Merely writing the expression “Yes” cannot be considered a valid approval u/s 151 of Income Tax Act 1961: Delhi High Court
“The satisfaction arrived at by the prescribed authority under Section 151 of the Income Tax Act, 1961 (‘the Act’) must be clearly discernible from the expression used at the time of affixing its signature while according approval for reassessment under Section 148 of the Act.”