Income Tax – Reassessment Notices – Applicability of Limitation Period – Assessment Years 2016-17 and 2017-18 – Notices issued under Section 148 of the Income Tax Act, 1961, post-enactment of Finance Act, 2021, treated as issued under Section 148A(b) – Validity of reassessment actions including orders under Section 148A(d) and consequent notices under Section 148 &nda...
Income Tax – Reassessment proceedings under Section 148 – Challenge against issuance of notice for reassessment – Impugned notice based on ‘reason to believe’ that income had escaped assessment – Writ petition filed against proceedings. [Paras 1-6] Income Tax Return – Filing and processing of return – Return for Assessment Year 2011-12 p...
Income Tax Appeal - Exemption for charitable activities - Appellant's challenge to reliance on High Court judgment - Issue of applicability of judgment in a similar case - Whether activities of the respondent qualify for tax exemption - Court's consideration of the nature of activities conducted by statutory corporations - Emphasis on excluding activities serving public purposes from busin...
Taxation Law - Tax Demand – Setting Aside of Arbitrary Tax Demand: Petitioner challenged tax demand of Rs. 21,50,150/- for AY 2012-13 raised by respondent – Employer deducted tax but failed to deposit with revenue – Reliance on Section 205 of the Income Tax Act and pertinent judgments – Held, demand set aside as petitioner cannot be penalized for employer’s non-compli...
Service Tax – Manpower Recruitment or Supply Agency – Appellant engaged FSE for the appearance of tennis player VA in the Chennai Open Tennis Tournament – Service tax demand raised under 'manpower recruitment or supply agency' – Supreme Court held that the definition under Section 65(68) does not require an employer-employee relationship between the agency and the p...
Income Tax – Charitable Trusts – Section 2(15) – Revenue sought clarification on judgment dated 19.10.2022 – Supreme Court clarified that the application of the law declared in the judgment is limited to the assessment years in question before the court – For future assessment years not before the court, authorities must apply the law declared in the judgment consider...
Income Tax – Leave Travel Concession (LTC) – TDS – The Supreme Court upheld the judgment of the Delhi High Court, affirming that the appellant, State Bank of India (SBI), was in default for not deducting tax at source on the LTC payments made to its employees. The Court ruled that LTC claims involving foreign travel are not exempt under Section 10(5) of the Income Tax Act, 1961. ...
Property Tax – Capital Value System – Amendments to MMC Act, 1888 – High Court upheld amendments but struck down Rules 20, 21, and 22 of 2010 and 2015 Capital Value Rules – Supreme Court reinstated these rules, holding them intra vires the MMC Act – Emphasized legislative competence and rational basis for amendments aimed at modernizing property tax assessment –...
Insolvency Law – Priority of Tax Claims – The State is a secured creditor under the GVAT Act – Section 48 of the GVAT Act provides for a first charge on the property of the dealer for tax dues – Supreme Court held that Section 48 is not contrary to or inconsistent with Section 53 of the IBC – Section 53(1)(b)(ii) of the IBC includes debts owed to a secured creditor, w...
Tax Deduction at Source (TDS) – Commission and Brokerage – Supplementary Commission – Travel agents earning amounts over the Net Fare set by airlines – Section 194H of IT Act mandates TDS on such amounts if principal-agent relationship exists – Supplementary Commission to be included for TDS deduction [Paras 1-19]. Principal-Agent Relationship – Ana...
