Direct Tax
-
Interface of IBC and Tax: Supreme Court Clarifies
In a notable judgment[1], the Supreme Court has clarified the waterfall mechanism under Insolvency and Bankruptcy Code, 2016 (‘IBC’) vis-à-vis the claims of secured interests and the place of the Revenue Department in the pecking order. …
-
Revenue Mistakes Buying for Selling: Bombay High Court Quashes Order
Short Note In a recent judgment[1], the Delhi High Court provided a remedy to the assessee that should have ordinarily not required judicial intervention. The High Court reminded the Revenue that the assessee had purchased and…
-
Revenue Cannot Dispute Singapore Tax Certificate: Bombay High Court Interprets India-Singapore DTAA Correctly
Short Note In a recent judgment[1], the Bombay High Court interpreted the exemption condition under the India-Singapore DTAA and held that the limitation of benefit provision would not apply to the assessee. The Assessing Officer (‘AO’)…
-
No Whisper in Reasons to Believe: Bombay High Court Quashes Reassessment Notice
The Bombay High Court in a judgment[1] delivered on 09.06.2023, quashed a reassessment notice issued to the assessee. The High Court inter alia observed that the notice had been issued without any justification and the assessing officer…
-
Possession, Ownership and Valuable Articles: Supreme Court Opines on Section 69A, IT Act, 1961
On 16 May 2023, a Division Bench of the Supreme Court in M/s DN Singh case[1] delivered a well-reasoned judgment clarifying the scope of Section 69A, IT Act, 1961. The case required the Supreme Court to determine if a…
-
Winnings from Online Games: CBDT Clarifies Contours of Section 194BA, IT Act, 1961
Finance Act, 2023 inter alia introduced changes to withholding tax obligations for winnings from lottery, crossword puzzles and horse races under Sections 194B and 194BB, IT Act, 1961. Finance Act, 2023 also introduced a new provision,…
-
Supreme Court Interprets Section 153A, IT Act, 1961 Correctly & Provides ‘Remedy’ to the Revenue
Introduction On 24 April 2023, a Division Bench of the Supreme Court in Abhisar Buildwell case[1] interpreted the scope of Section 153A, IT Act, 1961. The specific question before the Supreme Court was: whether the jurisdiction of Assessing Officer…
-
Machinery Provisions Brook No Vested Rights: Supreme Court Holds that Amendment to Section 153C, IT Act, 1961 is Retrospective
On 6 April 2023, a Division Bench of the Supreme Court in Vikram Bhatia case[1], held that the amendment to Section 153C, IT Act, 1961 was retrospective in nature and would be applicable to searches conducted even before…
-
Supreme Court Opines on Residence Rule under IT Act, 1961: Traverses Familiar Path
In a judgment[1] delivered on 10 April 2023, a Division Bench of the Supreme Court opined on the residency principle of companies under Section 6(3)(ii) of IT Act, 1961. While there were a few other issues involved…
