Reopening of the assessment on a mere change of opinion is impermissible in law : Bom HC

In a recent decision, Hon’ble Bombay High Court held that: “We find similar response at item Nos.13.3, 13.4, so also 13.5. The legal position has been summarised that the capital gains earned by the assessee should be assessed as such and not as business income. Thus, each of the queries which have been raised came […]

Mandatory pre-conditions were not abided by, the notice u/s 148 cannot be sustained : Bom HC

In a recent decision, Hon’ble Bombay High Court held that: “Upon hearing both sides and perusing the Writ Petition and all annexures thereto so also the affidavit in reply, we fail to understand as to how the Respondents justify the issuance of the notice u/s 148 of the IT Act and by referring to such […]

Wheeling Charges are not rent nor fees for technical services : Bom HC

In a recent decision, Hon’ble Bombay High Court held that: “In our view the Transmission Charges and/or Wheeling Charges are not amount paid under any arrangement for use of land, building, plant & machinery, equipment, furniture, fitting etc. and, therefore, not rent. Equally, the amounts are not fees for technical services. In the facts and […]

AO is not empowered to comment on the correctness of the certificate granted u/s 12A : Del HC

In a recent decision Hon’ble Delhi High Court held that: “Whilst there can be quarrel with the ITAT’s generalization that the Director of Income Tax (DIT), in order to hold that the exemption certificate u/s 12A has to be revoked, is to base himself or herself on material & cogent reasoning, at the same time, […]

Current Yr Profit not part of accumulated Profit for 2(22)(e) : Guj HC

In a recent decision, the Hon’ble Gujarat High Court has laid down that Profit for the year till the date of giving of advance in question can not be considered for level of accumulated Profits for the purposes of taxation of deemed dividend u/s 2(22)(e). For this, the Hon’ble Gujarat HC has relied upon the […]

CIT(A) has inherent power to Grant Stay : P&H HC

The Hon’ble Punjab & Haryana High Court in a landmark judgement has laid down that CIT(A) has power to Grant stay of demand. In this case, even the demand had already been recovered from the appellant. But still the court went on to hold so. While disposing off this issue, the Court relied upon the […]

Himachal HC lays important law on what amounts to manufacture in Income Tax

The issue that what amounts to manufacture came up for hearing before the Hon’ble Himachal High Court and the court held as under : “18. From the perusal of the factual aspects, it is evident that the qualitative changes effected in the raw material by various means like annealing, quenching, acid pickling and flux application, […]

Sec 292BB only cures defect in service of notice but not defect in issuance – ALL HC

The Hon’ble Allahabad High Court has recently laid down that Section 292BB comes to the rescue of the Income Tax Department only when there is defect in service of a notice. But the said section does not cure the defect in issuance of notice. While disposing off this appeal, the Hon’ble Court relied upon the […]

Kar HC overrules ITAT SB decision in All Cargo Logistics on s. 153A

The Hon’ble Karnataka HC holds that : 1. CIT cannot invoke revisional powers u/s 263 to review AO’s order once proceedings u/s 153A are initiated. 2. AO is entrusted with duty of bringing “total income” to tax u/s 153A by making reassessments even, means there can be only one assessment order in which both disclosed […]

Madras HC confirms penalty u/s 271(1)(c) even when only Book profit u/s 115JB is enhanced.

In a recent decision, the Hon’ble Madras HC has confirmed levy of penalty u/s 271(1)(c) even when only the book profit computed under section 115JB was enhanced and the taxable income remained NIL only. For complete text of judgement, click here Madras HC on Penalty on MAT