Income Tax appellate Tribunal A Bench Delhi: we are inclined to sustain the ground holding that the disallowance in regard to delayed deposits of employees contribution could not have been made by way of rectification proceedings u/s 154 of the Act. The ground is sustained. The appeal is allowed. Read More ...

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Bombay High Court: S. 119 : Central Board of Direct Taxes- Circular-Condonation of delay -Filing of return of loss-Genuine hardship – Delay of 5 months in filing return due to bona fide professional advice by Chartered Accountant – Assessee should not suffer grave hardship for a professional’s mistake - Circular No. 9 of 2015 – Delay was condoned… Read More ...

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Mumbai Tribunal : Bharatiya Sakshya Adhiniyam, 2023 S. 132 : Professional communications-Advocate-Client Privilege-Summoning of Advocates-Investigating Officer cannot directly summon a lawyer appearing for a party to elicit facts of the case-Privileged communication protected under S. 132 of the Bharatiya Sakshya Adhiniyam, 2023-Summons valid only if it falls within statutory exceptions and approved by a superior officer-No need for… Read More ...

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Mumbai Tribunal : S. 147 : Reassessment-Information from third-party search-Accommodation entries-Cash credits -Section 153C not triggered, reopening u/s 147 is valid-On merits, addition based mainly on untested third-party statement without cross-examination requires fresh adjudication by CIT(A). [S. 68, 132(4), 133(6), 148, 151, 153C, ITAT Rule, 1963 ,R. 27] In a search on the Sushil Lahoti group, statements indicated… Read More ...

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ITAT Indore: CBDT Instruction No. 3/2017 dated 21.02.2017—which directs that no verification is required for cash deposits up to ₹2.5 lakh by individual taxpayers—is binding on the department. The ITAT observed that such deposits can reasonably be explained as household savings or small business receipts and that additions contrary to the Instruction are unjustified. Read More ...

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Delhi Tribunal : S. 115BAA : Tax on income of certain domestic companies – Determination of tax in certain cases- Option exercised under section 115BAA – Rate of tax applicable – Long term capital gains – Company opting for taxation under section 115BAA is liable to pay tax at 22% on total income including long-term capital gains and… Read More ...

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Mumbai Tribunal : S. 263 : Commissioner - Revision of orders prejudicial to revenue -Limited Scrutiny – Deemed rental income -Order passed after due enquiry cannot be treated as erroneous and prejudicial to the interests of revenue – PCIT cannot revise assessment to include issues beyond the scope of limited scrutiny (S.143(3), IND AS-115) The assessee, an individual… Read More ...

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Chennai Tribunal: S. 275 : Penalty-Bar of limitation- Recording of satisfaction-Cross objection- CBDT Circular binding on department -Period of limitation is to be reckoned from the date of recording of satisfaction by the AO in the assessment order and not from the date of notice issued by the Joint/Additional CIT. [S. 119, 269SS, 271D, 271E, 271AAA, 275(1)(c)]… Read More ...

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Delhi High Court : S. 278B : Offences by companies-Prosecution of directors without impleading company-Not maintainable-Arraignment of company is a condition precedent for prosecuting its directors-Company being the principal offender must first be made an accused-Proceedings against directors alone quashed. [S. 276, 281, Cr PC, 1973, S. 482 BNSS, Act, 2023, S. 528, Negotiable Instruments Act, 1881, S. 141]… Read More ...

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Mumbai Tribunal : S. 92C : Transfer Pricing–Arm’s length price-Avoidance of tax-International transaction-Characterisation of Indian Entity-Limited Risk Distributor-Entrepreneurial Service Provider- Transactional Net Margin Method (TNMM)-Other Method under Rule 10AB-Re-characterisation of Transactions-Royalty Computation-Transfer Pricing Adjustment of ₹444.93 Cr held to be unsustainable. [R. 10AB] The assessee, Netflix Entertainment Services India LLP, engaged in distribution of access to the global… Read More ...

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