Insights & Resources

Special Bench of ITAT rules in favour of Mashreq Bank, allowing full PE expense deductions under pre-2008 India–UAE tax treaty.

The Delhi High Court clarifies reassessment timelines, approvals, and JAO powers under the faceless regime post Finance Act, 2021.

ITAT rules that TCS credit on a minor’s income, clubbed under Section 64(1A), must be granted to the parent, even before 01.01.2025.

Kerala HC holds GST officers cannot seize cash unless it’s stock-in-trade, reaffirming constitutional limits on tax enforcement powers.

Madras HC quashes Section 153C assessments, holding absence of separate satisfaction note renders the proceedings void ab initio.

SC upholds HC’s ruling that s. 153C reassessments must be backed by specific incriminating material for each assessment year.

The Bombay High Court in Jitendra M. Doshi v. CCIT reaffirmed that a waiver of interest under Section 220(2A) of the Income-tax Act requires strict compliance with all three statutory conditions. The Court rejected the petitioner’s claim of financial hardship, citing lack of documentary evidence, inconsistent conduct, and non-cooperation. The judgment underscores the evidentiary threshold and taxpayer accountability under this discretionary relief provision.

Delhi HC quashes reassessment of a non-resident entity, affirming that tax authorities must rely on specific, relevant, and timely evidence.

This write-up analyses the Delhi High Court's ruling in Rohit Kumar v. ITO, which invalidated a reassessment under the Income-tax Act due to procedural non-compliance post-Finance Act, 2021. The judgment affirms the binding nature of Sections 148A and 151, reiterating that digital signature dates determine notice validity and reassessment thresholds must be adhered to strictly.

CBDT’s latest amendment prescribes conditions for VC Funds & IFSC Finance Companies under Sections 10(23FB) & 94B of the Income-Tax Act.

Delhi HC reinforces adherence to Delhi HC rules reassessment notices issued beyond statutory limitation invalid.

In Minal Shroff v. ITO, the ITAT quashed a reassessment under Section 147 for relying solely on third-party alerts, without any fresh inquiry or tangible material. This case reaffirms critical safeguards for taxpayers and clarifies that the ‘reason to believe’ must be the AO’s own, not borrowed.

The Supreme Court rules that the MFN clause in DTAAs is not automatic and requires government notification under the Income-tax Act, 1961.

Orissa HC rules that assessees facing TDS prosecution under s. 276B can seek compounding under s. 320 CrPC per CBDT Circular guidelines.

In a key ruling, the Kerala High Court upheld the revisional powers of the Principal Commissioner of Income Tax under Section 263 of the Income-tax Act, 1961. The Court affirmed that failure by the Assessing Officer to conduct proper inquiries or provide reasoning for allowing deductions renders the assessment both erroneous and prejudicial to Revenue, thereby justifying intervention.

The Ahmedabad ITAT, in Mukesh Rasiklal Shah v. ACIT, ruled that income acquired through fraudulent means remains taxable in the year of accrual, even if recovered later by the government. The Tribunal rejected the assessee’s claim for deduction under Section 57, reinforcing the principle that illegality does not shield income from taxation. The ruling exposes gaps in prosecution efforts and raises policy questions around double taxation and restitution.

The Supreme Court rules that share capital reduction qualifies as a ‘transfer’ under tax law, impacting capital gains taxation.

The Bombay High Court quashes reassessment proceedings, highlighting that reopening assessments without fresh evidence is unlawful.

This case clarifies the interplay between LTCG exemptions under Section 10(38) and MAT computations under Section 115JB of the IT Act.

Delhi ITAT rules that digital service receipts under the India-Singapore DTAA are not ‘royalty’ or ‘FTS’, offering clarity on taxability.