Taxation Law - Admissibility of Additional Evidence – Rule 46A of the Income Tax Rules, 1962 – Tribunal's Action Justified – The appellant challenged the ITAT's refusal to admit additional evidence regarding a Will that was not presented during the assessment or CIT(A) stages – Held: Rule 46A conditions were not met, as no application for admitting new evidence was ...
Taxation Law – Withholding Tax under Section 197 Income Tax Act – Assessing Officer must consider previous years' tax treatment – The Court held that under Rule 28AA of the Income Tax Rules, the Assessing Officer (AO) is required to consider the past four years' tax history before issuing a withholding tax certificate – Since in the previous assessment y...
Income Tax – Penalty under Section 271AAA – Interpretation of "Undisclosed Income" – Partial Relief Granted – The appellant challenged the penalty imposed on his total assessed income under Section 271AAA – Held: The imposition of penalty is not automatic; the Assessing Officer must establish the existence of "undisclosed income" as defined in the ...
Taxation Law - Sales Tax – Exemption Under PSI 1993 – Whether Withdrawable After 2002 Amendment – Held: No – The State of Maharashtra granted tax exemption to the respondent under PSI 1993 based on Eligibility Certificate (1998) and Entitlement Certificate (1998) – The 2002 amendment to Section 8(5) of CST Act imposed a new requirement for submitting Form ‘C&rsq...
Taxation Law - Section 80IA of the Income Tax Act - Transfer Pricing – Use of Indian Energy Exchange (IEX) Rates as External CUP – IEX Rates Not Comparable to SEB Rates – The Revenue challenged the ITAT’s decision to reject IEX rates as a comparable uncontrolled price (CUP) for determining ALP under Section 80IA(8) of the Act for electricity transferred from the Asses...
Writ – Taxation Law - Exemption under Section 80G – Denial of Renewal – Non-Charitable Use of Funds Not Proven – The Commissioner of Income Tax rejected the petitioner-Trust’s application for continuation of exemption under Section 80G of the IT Act on grounds that the Trust allegedly did not engage in charitable activities and misused funds by making donations to unr...
Tax Law – Review Jurisdiction – The Court held that the review jurisdiction exercised by the Assessing Authority under the repealed PGST Act was impermissible. The PGST Act did not explicitly confer any review jurisdiction upon the authorities constituted under it, rendering the review of the initial assessment order without jurisdiction [Paras 6-10].
Limitation Period – Asses...
Taxation Law – Compounded Rate of Tax – Bakery Products and Beverages – Petitioners, dealers in bakery products and beverages, contested the denial of compounded tax rate under Section 8(c)(i) of the Kerala Value Added Tax Act for the turnover of packaged bakery items – Assessing Authorities applied regular tax rates under Section 6 for resale items – Appellate Author...
Income Tax – Search and Seizure – Section 153C Proceedings – Validity of Assessment Against Other Person – The Revenue initiated proceedings against the assessee under Section 153C without recording a satisfaction note in the file of the searched person – Held: Recording a satisfaction note by the Assessing Officer of the searched person is a sine qua non before invok...
Taxation Law – Income tax - Reassessment Notices – Limitation Period and Effect of TOLA – Section 149 of the Income Tax Act, 1961 – Petitioners challenged reassessment notices issued under Section 148 on the ground that they were beyond the permissible limitation period – Supreme Court in Rajeev Bansal v. Union of India, 2024 SCC OnLine SC 2693 held that the period fr...