Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Uday Desai HUF v. NFAC (2021) 283 Taxman 570 (Bom.) (HC)

S. 144B : Faceless Assessment – Principle of natural justice – Order passed without providing due opportunity – Notice cum draft assessment order – Provided only one day time – Order was set aside [ Art , 226 ]

Chander Arjandas Manwani v. NFAC (2021) 283 Taxman 380 /(2022) 442 ITR 197 (Bom.) (HC )Edittorial:NFAC v . Chander Arjandas Manwani (2023)453 ITR 236 (SC), order of High Court set aside h

S. 144B : Faceless Assessment – Violation of principle of natural justice- Request for personal hearing had been was not granted – Draft assessment order was not issued – Order passed is held to be non-est and set aside . [ S. 143(3) , Art , 226 ]

Mantra Industries Ltd v. NFAC (2021) 283 Taxman 459/ 323 CTR 249/ 207 DTR 161/ ( 2022) 441 ITR 467 (Bom.) (HC).Editorial: Notice issue in SLP filed by Revenue , NFAC v . Mantra Ind. Ltd. (2022) 287 Taxman 219/114 CCH 252 (SC)/ NFAC v. Mantra Industries Ltd. (2023)453 ITR 239 (SC), matter reamnded, observation of the High Court was expunged .

S. 144B : Faceless Assessment – Violation of principle of natural justice -Order was not passed in accordance with procedure laid down under section 144B(9) Act – Order was set aside- Court also observed that such orders are continued to be passed, substantial costs will be imposed on concerned Assessing Officer which would be recovered from his/her salary and also department is to be directed to place such judicial orders in career records of such Assessing Officer [ S. 144B(9) , 156 270A, Art , 226 ]

Darshan Jitendra Jhaveri v. CIT (IT)(2021)439 ITR 514/( 2022) 285 Taxman 212 / 212 DTR 338/ 326 CTR 101 (Bom) (HC)

S. 127 : Power to transfer cases – Transfer from one Commissioner to another – Search and Seizure – Connected – Notice must be specific – Failure to deal with reply of assessee – Notice was quashed . [ S. 127 (1). 127(2) , 132, Art , 226 ]

PCIT v. Rediff.com India Ltd. (2021) 283 Taxman 552/ ( 2022) 441 ITR 195 (Bom.) (HC)

S.37(1): Business expenditure – Salary , professional fees etc – Allowable as revenue expenditure

PCIT v . Mahindra Engineering and Chemical Products Ltd. (2021)439 ITR 399 (Bom) (HC)

S. 36(1)(vii) :Bad debt – Advances made in the course of business – Interest income was assessed as business income in earlier year- Advances written off – Allowable as bad debt . [. S.36(2)(i), 37 (1) ]

ABU Dhabi Investment Authority v. AAR (2021) 439 ITR 437 / 323 CTR 369 / 207 DTR 209/ ( 2022) 284 Taxman 492 (Bom) (HC) Equity Trust (Jersey) Ltd. v. AAR (2021) 439 ITR 437 / 323 CTR 369 / 207 DTR 209 (Bom) (HC) Editorial : Ruling in Copal Partners Ltd , In re ( 2021 ) 431 ITR 379 ( AAR ) overruled .Editorial : Notice issued in SLP filed by Revenue , Dy. CIT (IT) v. Equity Trust (Jersey) Ltd. (2022) 288 Taxman 636 (SC)

S. 9(1)(i): Income deemed to accrue or arise in India – Representative assessee — Trustee – Business connection -British Virgin Islands by company registered in Jersey- Trust in Jercy becoming sole beneficiary – Power to make investment in in India – Foreign Trustees recognised by Indian Income-Tax Law — Arrangement for purposes of commercial expediency – Income that accrued to the trust would not be chargeable to tax in India either by virtue of application of section 61 read with section 63 or section 161 of the Act conjointly with the provisions of article 24 of the DTAA. Income accruing – Ruling of AAR was quashed – DTAA-India -UAE [ S. 5(2), 10(23FB) 61, 62, 63 , 90, 160 , 161, 245-0, Indian Trusts Act, 1882, S. 1,3 , Art , 4 (2)(d), 24 ]

Peninsula Land Ltd v .ACIT ( 2021 ) 439 ITR 582/ (2022) 134 taxmann.com 33 ( Bom ) (HC)

S. 147 : Reassessment – After the expiry of four years – Subsequent search and Seizure of another party – Loan activity not established – Recorded reasons must indicate the manner in which the Assessing Officer has come to the conclusion that income chargeable to tax has escaped assessment – Reason recorded cannot be substituted – Reassessment Notice was quashed .[S. 68 , 132, 133A, 148 , 153A, Art , 226 ]

Stride Multimedia Pvt Ltd v. ACIT ( 2021) 439 ITR 141 /(2022) 284 Taxman 684 ( Bom)(HC)

Direct Tax Vivad Se Vishwas Act , 2020 .

S. 2(1)(a)(i): Person – Pendency of appeal – Application for condonation of delay was pending before CIT(A)- Notice of hearing was issued – Rejection of application on the ground that the appeal was not admitted was held to be not justified -Order of rejection set aside [S. 2(1)(a) (n), ITAct, S. 246A, 250 Art , 226 ]

Lokhanwala Construction Industries v .Dy .CIT ( Bom)(HC) www.itatonline .org

S. 147: Reassessment – After the expiry of four years – Builder stock in trade- Notional income – Reassessment notice on the basis of Judgement of Delhi High Court in Ansal Housing Finance and Leasing Company Ltd ( 2013 ) 354 ITR 180 (Delhi)(HC) to assessee the income under section 23 of the Act was quashed [ S. 22, 23(5) , 148 , Art , 226 ]