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...
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...
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Law – Review Jurisdiction – The Court held that the review jurisdiction exercised by the Assessing Authority under the repealed PGST Act was impermissible.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...
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...
Entertainment Tax – Refund – Petitioner, a performance arts centre, sought refund of entertainment tax paid on unsold tickets for a music concert conducted within the jurisdiction of the Maradu Municipality – Petitioner remitted the entire tax amount but sold only a portion of the tickets, requesting refund for unsold tickets – Municipality refused refund, appropriating amo...
PIL - Tax Governance – Challenging modifications in the utility for e-filing income tax returns - Filing Utilities – Section 87A Rebate – Modifications to the e-filing utility restricted assessees from claiming a rebate under Section 87A of the Income-tax Act, 1961, during the assessment year 2024-25 – Petitioners argued that such restrictions violated Articles 265 and 300A...
Income Tax – Revisional Jurisdiction – Section 263 of the Income Tax Act – The power of revision can be exercised by the CIT only if the assessment order is both erroneous and prejudicial to the interests of the Revenue – Held: Since the Assessing Officer (AO) had not examined the issue of computation of book profits under Section 115J, the CIT was justified in invoking rev...
Taxation Law - Income Tax – Reassessment – Issuance of Notice to a Non-Existent Company – Violation of Legal Principles – Petitioner challenged notices under Section 148 issued by the Income Tax Department to Amanora Future Towers Pvt. Ltd. (AFTPL), which had ceased to exist post-merger with City Corporation Limited (CCL) under an NCLT order—Held: The issuance of reas...
