Direct Tax
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Shimla HC Decodes Scope of Sec 43-B, IT Act, 1961
In a recent judgment, the Shimla High Court had to adjudicate on the conditions prescribed in Section 43-B, IT Act, 1961 for an assessee to claim deductions. The issue related to Section 43-B(f) which envisages deductions to…
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Issuance of Shares under Amalgamation Scheme is Not Transfer of Property: ITAT
The Rajkot Bench of ITAT recently ruled that issuance of shares under a scheme of amalgamation does not amount to transfer of capital assets under IT Act, 1961. The Assessing Officer had applied Sec 56(2)(vii)(c)(ii) of the IT…
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Section 71(3A), IT Act, 1961 is Constitutional: Delhi HC
In a recent judgment, the Delhi High Court held that Section 71(3A), IT Act, 1961 was constitutional and did not violate Art 14 and/or Art 19(1)(g) of the Constitution. The High Court’s primary reasoning was that the…
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Taxation of Perquisites: SC Rules on Constitutionality
Challenge In a recent judgment, the Supreme Court ruled on constitutionality of Section 17(2)(viii), IT Act, 1961 and Rule 3(7)(i), IT Rules, 1962 which include concession loans under perquisites and provided for their valuation respectively. Section 17(2)…
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Not Providing Opportunity of Being Heard Vitiates Order Imposing Penalty: Raj HC
In a recent decision, the Rajasthan High Court held that the petitioner’s representation – filed under Section 270AA, IT Act, 1961 - for waiving the penalty imposed under Section 270A, IT Act, 1961 was wrongly rejected without…
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Delhi HC Disallows Disclosure of PM Cares Fund Documents Under RTI Act, 2005
The Delhi High Court in a recent judgment allowed the Income Tax Department’s appeal against the Central Information Commission’s (‘CIC’) order directing the respondent be provided copies of all documents submitted by PM Cares Fund to obtain exemption…
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Fee Attributable to Transmission of Non-Live Feed Not Royalty: Delhi HC
The Delhi High Court in a recent decision[1] held that the fee attributable to ‘non-live’ feed cannot be categorized as royalty under Section 9(1)(vi) of the IT Act, 1961. The High Court relied on the observations in Delhi…
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Section 194N of IT Act, 1961 is Constitutional: Madras HC
The Madras High Court recently[1] upheld constitutionality of Section 194N of the IT Act, 1961. Section 194N inserted via Finance Act, 2019 was argued by the petitioners to be unconstitutional on the grounds of it being illegal, arbitrary, and…
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Employment Includes Self-Employment: ITAT Interprets Section 6, IT Act, 1961
ITAT, Mumbai recently[1] interpreted the term ‘employment’ used in Explanation 1(a), Section 6, IT Act, 1961 and held that the term includes within its remit self-employment such as business or profession. ITAT relied on CBDT’s Circular and the Kerala…
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Issuance of Share Capital Not Taxable: Delhi High Court cites Precedents
The Delhi High Court recently pronounced a decision[1] wherein it adhered to the ratio of Vodafone and Nestlecases that investment by a foreign company via shares in its Indian subsidiary company is not income of the latter and not taxable…
