Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Tiger Global International III Holdings v. AAR (2024)468 ITR 405/ 165 taxmann.com 850/341 CTR 713 (Delhi)(HC) Tiger Global International II Holdings v. AAR (2024)468 ITR 405/ 165 taxmann.com 850/341 CTR 713 (Delhi)(HC) Tiger Global International IV Holdings v. AAR (2024)468 ITR 405/ 165 taxmann.com 850/ 341 CTR 713 (Delhi)(HC) Editorial : Refer, Tiger Global International Ii Holdings, Mauritius, In Re (2020) 429 ITR 288 / 116 taxmann.com 878 / 189 DTR 90 / 315 CTR 160 (AAR)

S. 245R : Advance rulings-Non-Resident-Entitlement to benefits under double taxation avoidance agreement-Transfer of shares-Transfer of shares in foreign company by non-resident assessee to another non-resident company-Treat shopping-Mere routing of investments through Mauritius cannot result in drawing adverse inference or raise presumption of illegality or treaty abuse-Order of Authority for Advance Rulings denying benefits illegal and unsustainable-Instructions of Central Board Of Direct Taxes-Certificate of residence issued by Mauritius Authorities would constitute sufficient and valid evidence-Circular No. 682, Dated 30-3-1994 (1994) 207 ITR (St) 7, Circular No. 789, Dated 13-4-2000 (2000) 243 ITR (St) 57-Applicant is not liable to tax on capital gains on transfer of shares to another non-resident-Treaty will prevail over provisions of Act-Legal Fiction Comprised In Article 27A-Subsidiaries have distinct and independent persona-Order of Authority for Advance Rulings holding that Article 13(3A) applicable only to sale of shares of resident company assessee not covered by Article 13(3A) is unsustainable-Economic substance-Assessee Transferring shares on which investments were made from capital contributions of its shareholders-Extent of investments, holding period and dividend declared to shareholders proving that contention of revenue that assessee lacked economic substance erroneous-Beneficial owner-Concept of beneficial owner gets attracted only if recipient of income or holder of asset mere depository-No finding that income controlled and regulated by third party-Allegation of revenue that sum earned from transfer of shares being beneficially held by assessee is misconceived and untenable-Resolution of Board-Power conferred on certain individuals to operate bank accounts-No payments authorised without concurrence of members of Board Of Directors-Merely because two members of board were connected with larger conglomerate it could not be held that assessees were reduced to mere puppets-Avoidance of tax-Company-Corporate entity-Non-Resident-Lifting of corporate veil-Department must first establish treaty abuse-Share transaction duly grand fathered by virtue of Article 13(3A)-Order of Authority For Advance Rulings holding that share transaction aimed at tax avoidance arbitrary and illegal-Assessee is entitled to benefits under Article 13(3A) of Double Taxation Avoidance Agreement-Interpretation of taxing statutes-Domestic legislation cannot be interpreted in manner to be in direct conflict with Double Taxation Avoidance Agreement provision or with over-riding effect over provisions of Double Taxation Avoidance Agreement-DTAA-India-Mauritius.[S. 45 90, 119,245R(2) Art.13(3) 13(3A), 27A]

Vishwakarma Developers v. CBDT (2024)468 ITR 686 / 165 taxmann.com 391 (Bom)(HC)

S. 245C : Settlement Commission-Settlement of cases-Conditions-Additional conditions imposed by Central Board Of Direct Taxes through circular is not valid-Circulars cannot override provisions of Act.[S.119, 245D, Art.226]

Vetrivel Infrastructure v.Dy. CIT (2024)468 ITR 665 / 164 taxmann.com 123 (Guj)(HC)

S. 245C : Settlement Commission-Settlement of cases-Conditions-Case pending-Settlement Commission inoperative with effect from 1-2-2021-Establishment of Interim Board-Notification restricting filing of application before interim Board for settlement by assessees eligible on 31-1-2021-Settlement Commission legally existed till 31-3-2021-Last date mentioned in Notification should read as 31-3-2021-Orders rejecting applications quashed-Matters remanded to interim Board for consideration-Amendment in law-Legislative intent. [S.245A(b), Art.226]

Genpact India Pvt. Ltd. v. Dy. CIT (2024)468 ITR 378 / 160 taxmann.com 268 (Delhi)(HC)

S. 244A : Refunds-Interest on refunds-Non-Functionality of Department’s Portal-Amalgamation-Delay was not attributable to assessee-Entitled to additional interest-Interpretation of Taxing Statutes-Application of principles of equity. [S.153(5), 244A(1), 250, Art. 226]

Tia Enterprises Pvt. Ltd. v. ITO (2024) 468 ITR 5/ 158 taxmann.com 63 (Delhi)(HC) Editorial : SLP of Revenue is dismissed, ITO v. Tia Enterprises Pvt. Ltd(2024) 468 ITR 10(SC)

S. 151 : Reassessment-Sanction for issue of notice-Failure to furnish approval of Designated Authority along with reasons recorded-Non application of mind-Notice and order disposing of objections is set aside.[S. 147, 148, Art. 226]

Balkrishna Barsha Sutar v. ITO (2024)468 ITR 348 (Bom)(HC)

S. 151 : Reassessment-Sanction for issue of notice-Notice issued after four or three years-Specified Authority for approval-Approval granted by Joint Commissioner-The authority statutorily empowered to confer approval would be the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner-Notice and reassessment proceedings invalid.[S. 147, 148,148A(b), 148A(d), 151(ii)-Taxation And Other Laws (Relaxation And Amendment Of Certain Provisions) Act, 2020, S. 3. Art. 226]

Abhinav Jindal HUF v. ITO (2024)468 ITR 787/ 166 taxmann.com 536 (Delhi)(HC)

S. 151 : Reassessment-Sanction for issue of notice-Notice issued after four or three years-Specified Authority for approval-Approval granted by Joint Commissioner-The authority statutorily empowered to confer approval would be the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner-Notice and reassessment proceedings invalid.[S. 147, 148,-Taxation And Other Laws (Relaxation And Amendment Of Certain Provisions) Act, 2020, S. 3. Art. 226]

ITO v. Tia Enterprises Pvt. Ltd. (2024)468 ITR 10/301 Taxman 399 (SC) Editorial : Tia Enterprises Pvt. Ltd v. ITO (2024) 468 ITR 5/ 158 taxmann.com 63 (Delhi)(HC)

S. 151 : Reassessment-Sanction for issue of notice-Failure to furnish approval of designated authority Order of High Court quashing the proceedings is quashed-SLP of Revenue is dismissed. [S. 147, 148, Art. 136]

Vodafone Idea Ltd. v Dy. CIT (2024)468 ITR 346 (Bom)(HC)

S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Notice after three years-Sanction of Specified Authority-Approval to be obtained from Principal Chief Commissioner-Approval from Principal Commissioner-Sanction is invalid-Order and consequent notice is invalid. [S.147, 148,148A(b), 148A(d), 151(ii), Art.226]

Venkataramana Reddy Patloola v. Dy. CIT (2024)468 ITR 181 / 167 taxmann.com 411 (Telangana)(HC)

S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Faceless assessment-International tax charges-Notices issued by Jurisdictional Assessing Officers and consequent proceedings and orders set aside-Revenue is given liberty to proceed in accordance with new procedure. [S.144B, 147, 148, 148A, 151A, Art. 226]