Direct Tax
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Empty Liquor Bottles Are Not Scrap: Madras High Court
The Madras High Court in a recent decision[1] held that empty liquor bottles do not constitute scrap under Section 206C, IT Act, 1961. Accordingly, it held that the petitioner, M/s Tamil Nadu State Marketing Corporation Ltd (‘TASMAC’),…
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Citing DIN in Communication is Necessary: ITAT, Chandigarh
Income Tax Appellate Tribunal, Chandigarh (ITAT) in its recent decision[1] followed the decisions pronounced by the Delhi High Court and the Bombay High Court which had held that quoting DIN in the body of communication issued by the Income Tax Department…
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CSR Expenses Can be Claimed under Section 80G: ITAT Mumbai
The ITAT Mumbai in a recent decision[1] clearly enunciated the tax treatment to CSR expenses under the IT Act, 1961. The ITAT held that while Explanation 2 to Section 37 disallows CSR expenses by way of business…
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Quoting DIN in Body of Communication is Mandatory: ITAT Chennai
The Income Tax Appellate Tribunal, Chennai (‘ITAT’) recently pronounced a decision[1] that strictly interpreted the CBDT’s Circular that all communication issued by the Income Tax Department relating to assessment, appeals, orders, statutory or otherwise issued on or after 1.10.2019…
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‘Prima facie’ Section 69A of IT Act, 1961 Inapplicable to Non-Residents: Delhi HC
In a recent decision[1], the Delhi High Court heard an appeal from an order of the Income Tax Appellate Tribunal (‘Tribunal’) where the Tribunal had held that Section 69A, IT Act, 1961 was not applicable to…
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Delhi HC Clarifies Powers of AO Under Section 142(2C), IT Act, 1961
In a recent decision[1], the Delhi High Court clarified that the power granted to the Assessing Officer (‘AO’) under Proviso to Section 142(2C), IT Act, 1961 cannot be abdicated to a superior officer. Thus, the decision…
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Delhi High Court Reiterates the Law on Interface of IBC and Tax
The Delhi High Court in a recent case[1] reiterated the legal position relating to outstanding tax of an entity which has or is undergoing the insolvency process under IBC, 2016. In the impugned case, the Revenue Department…
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Delhi High Court Holds Explanations 6 and 7 Added to Section 9 in 2015 are Retrospective in Nature
In a recent decision[1], the Delhi High Court has held that the Explanations 6 and 7 added to Section 9, IT Act, 1961 via Finance Act, 2015 are retrospective in nature despite the amendment not expressly…
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Bombay High Court Upholds Amendment to Definition of Income under IT Act, 1961
In a significant decision[1], the Bombay High Court upheld the amendment made to definition of income in Income Tax Act, 1961 (IT Act, 1961) via which all forms of subsidy granted by the Central or State…
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High Court Quashes Tax Notice Citing ‘Clean Slate’ Principle under IBC, 2016
In a recent judgment, the Delhi High Court[1] emphasised and reiterated the ‘clean slate’ principle under the Insolvency and Bankruptcy Code, 2016 (‘IBC, 2016’). The High Court held that the notices issued by the Revenue Department after…
