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592 orders · Page 3 of 12
The High Court held that the Assessee is entitled to confine the settlement of disputes under the DTVSV Act to the issues raised in its own appeal before the ITAT. The Court reasoned that the unit of settlement under the DTVSV Act is an appeal, and the Assessee had filed a declaration specifically for its appeal (ITA No.5958/Del/2014) concerning the disallowance of ₹50,12,337/-. The Revenue's appeal (ITA No.5411/Del/2014) dealt with a separate issue of ₹3,50,00,000/- under Section 68, and these issues were not interlinked. The Court relied on CBDT Circular No. 9/2020, Question 36, which clarifies that an assessee has the option to file a declaration for their appeal, the department's appeal, or both. Therefore, the Assessee was within its rights to settle only its appeal. The Court directed that the certificate issued by the designated authority be confined to the declaration made by the Assessee, and the respondents were directed to issue a modified certificate under Section 5(1) of the DTVSV Act accordingly. The petition was allowed.
The High Court of Delhi dismissed the appeal filed by the Revenue. The decision was based on the submission made by the Revenue's counsel that the tax effect involved in the appeal was below the threshold limit of ₹2,00,00,000/- as stipulated in the Circular dated 17.09.2024. Since the matter did not fall under any of the exceptions provided in the circular, the appeal was deemed not maintainable on grounds of low tax effect. The Tribunal's order dated 12.11.2021 was not adjudicated on its merits. The operative direction was the dismissal of the appeal.
The High Court held that the ITAT was justified in deleting the penalty because the notice issued under Section 274 was vague and did not specify the exact charge, thus violating principles of natural justice. The court found no substantial question of law.
The High Court dismissed the appeal filed by the Revenue. The Court noted the submission by the Revenue's counsel that the tax effect in the appeal was below the threshold limit of ₹2,00,00,000/- as stipulated in the Circular dated 17.09.2024 and was not covered by any exceptions. Based on this submission, the Court found no reason to proceed with the appeal on merits. The operative direction was to dismiss the appeal. No issues were expressly left undecided.
The High Court found that the ITAT's conclusion that the assessee had failed to supply material to substantiate its claim for business loss was unsustainable. The assessee had presented documents during the assessment proceedings to support its alternate claim for loss arising from HTM securities as a business loss. The Revenue's counsel could not controvert that these documents were filed. Consequently, the Court decided to remand the proceedings to the Assessing Officer (AO) to consider the assessee's alternate claim for loss under the head ‘income from business and profession’. The Court noted that the assessee accepted the ITAT's decision regarding the treatment of profits from HTM securities as capital gains. Therefore, other projected questions of law did not require adjudication. The operative direction is to remand the matter to the AO.
The High Court found that the impugned ITAT order did not reflect any adjudication of the grounds raised by the Assessee concerning the transfer pricing adjustment for the purchase of finished goods. The Court noted that the ITAT proceeded on the basis that the remand to the TPO would cover all issues, including the challenge to the adjustment on account of the purchase of finished goods. However, the Court considered it inappropriate to assume that the adjudication of AMP expenses would automatically entail the determination of transfer pricing adjustments for the purchase of finished goods. Therefore, the High Court remanded the matter back to the learned ITAT to consider the grounds raised by the Assessee specifically regarding the transfer pricing adjustment in respect of transactions pertaining to the purchase of finished goods. The Court clarified that it had not expressed any opinion on the merits of the transfer pricing adjustment and that the ITAT should consider these issues and pass a reasoned order. The appeal was disposed of in these terms.
The High Court allowed the Revenue's appeal, holding that the ITAT erred in its conclusion. The Court reasoned that the jurisdictional conditions for invoking Section 153C of the Act were not satisfied in this case. Specifically, no satisfaction note was recorded by the AO of the searched person or forwarded to the AO of the Assessee. Furthermore, at the time the AO received information from the Investigation Wing (stated as 12.03.2013), reassessment under Section 153C was impermissible as the seized documents did not 'belong to' the Assessee. The amendment to Section 153C(1) by the Finance Act, 2015, which broadened its scope, was noted, but the primary issue was the lack of satisfaction note and the nature of the information. The Court relied on the Supreme Court's decision in Principal Commissioner of Income Tax v. Abhisar Buildwell (P.) Ltd., which held that the jurisdictional condition for the AO of the Assessee to assume jurisdiction under Section 153C was not satisfied. Consequently, the recourse to Section 147 of the Act was not precluded. The appeal was allowed, and the Assessee's appeal was restored to the ITAT for consideration on other grounds.
The Delhi High Court adjourned the hearing for the entire batch of cases. The adjournment was granted due to the unavailability of the learned Additional Solicitor General. The matters are to be relisted on a future date.
The High Court of Delhi, comprising Justices Vibhu Bakhru and Swarana Kanta Sharma, decided to dismiss the appeal filed by the Revenue. The reasoning was based on the submission made by the Revenue's counsel that the tax effect involved in the appeal was below the monetary threshold prescribed by the Circular dated 17.09.2024, and no exceptions applied. Therefore, the appeal was dismissed on the ground of low tax effect, without delving into the merits of the ITAT's order. The operative direction was the dismissal of the appeal. No issues were left undecided; the appeal was disposed of on a preliminary procedural ground.
The Delhi High Court, in its order dated November 14, 2024, noted that the learned counsel for the appellant sought to withdraw the present appeals. Consequently, the Court ordered that the appeals and all pending applications be dismissed as withdrawn. No decision on the merits of the case was made, as the appeals were disposed of based on the appellant's request for withdrawal. The Court did not leave any issue undecided, as the matter was resolved by the withdrawal.
The ITAT disagreed with the CIT(A) and held that the ALV of unsold flats, even if stock-in-trade, is taxable under the head 'income from house property'. The Delhi High Court affirmed this view, citing its own prior decision in the assessee's case.
The Tribunal had previously held that the assessee did not have a PE in India for an earlier assessment year, a decision upheld by the High Court. The current appeal was dismissed as the issue was covered by prior rulings and the tax effect was below the CBDT threshold.
The High Court upheld the ITAT's decision, finding that the services provided by Ciena US did not involve making available technology, knowledge, or experience to Ciena India. The agreement's terms supported this conclusion, as services were primarily remote on-call support and physical repairs of equipment shipped overseas.
The High Court found that the appeal did not raise any substantial question of law. It noted that the ITAT's finding of no permanent establishment was supported by established Supreme Court and High Court precedents.
The Delhi High Court admitted the appeal for hearing on the questions of law raised by the Revenue. The court did not decide the merits of the case but framed the issues for further consideration.
The High Court upheld the ITAT's decision, finding that the services provided by Ciena US did not involve making available technology, knowledge, or experience to Ciena India. The agreement's terms supported this conclusion, as services were primarily remote on-call support and physical repairs of equipment shipped overseas.
The High Court held that the appeal did not raise any substantial question of law, as the issue was covered by Supreme Court and High Court precedents. Therefore, the appeal was disposed of.
The High Court held that a name change of a company does not render proceedings invalid, as it's a curable defect under Section 292B. However, the penalty order was indeed barred by limitation as it was passed beyond six months from the initiation of penalty proceedings.
The ITAT correctly quashed the addition as the reassessment proceedings were confined to the reasons for which the assessment was reopened. Since no addition was made on the grounds of accommodation entries, no other addition was permissible.
The ITAT allowed the Assessee's appeal, finding that the AO and CIT(A) lacked cogent material to prove the transactions were sham. The High Court agreed, stating that the transactions were executed on the stock exchange with STT paid, and mere price fluctuations or divergence from SENSEX are insufficient grounds for disallowance.
The High Court held that the ITAT erred in setting aside the PCIT's order. The Court found that the AO's order under Section 143(3) was indeed erroneous and prejudicial to the interest of revenue. The AO had accepted the assessee's claim of LTCG on agricultural land based on a Tehsildar's noting that merely stated the land was 'outside the border of Sohna Municipal Corporation'. This was not sufficient to establish that the land was beyond the prescribed distance (5 or 8 kms) from the municipal limits, which is the condition for exemption. The AO did not conduct any inquiry to verify this crucial fact, nor did the assessment order mention this aspect, indicating a complete lack of application of mind and a 'lack of inquiry' rather than 'inadequate inquiry'. The PCIT, therefore, correctly exercised jurisdiction under Section 263. The Court set aside the impugned ITAT order and held that the PCIT's action was legally sound.
The Tribunal held that the penalty proceedings were initiated when the Assessing Officer made a reference for penalty, not when the show cause notice was issued. Consequently, the penalty order was barred by limitation as per Section 275(1)(c) of the Act.
The High Court held that the question of whether a residential house existed on the land was a question of fact. The assessee sought to assail the factual findings of the AO and the ITAT as perverse. The Court found no merit in this contention and concluded that the ITAT's finding, based on the evidence on record, could not be held to be perverse. The ITAT had relied on the presence of a brick-kiln and sheds, the description in the registered sale deed as 'makaan' (not 'rihayasi makaan'), and the revenue records classifying the property as agricultural land. Consequently, the ITAT's decision to deny the exemption under Section 54F was upheld. The appeal was dismissed as it did not raise any substantial question of law.
The High Court of Delhi dismissed the appeal filed by the Revenue. The Court noted the submission made by the Revenue's counsel that the tax effect involved in the present appeal is below the threshold limit of ₹2,00,00,000/- as stipulated in the Circular dated 17.09.2024 and is not covered by any exceptions. Based on this submission, the Court found the appeal to be not maintainable due to low tax effect. The ratio decidendi is that appeals with a tax effect below the prescribed monetary limit, without falling under any exceptions, are liable to be dismissed. The pending applications were also disposed of accordingly.
The High Court of Delhi dismissed the appeal filed by the Revenue. The primary reason for dismissal was the low tax effect involved in the appeal. The learned counsel for the Revenue conceded that the tax effect was below the threshold limit of ₹2,00,00,000/- as prescribed by the Circular dated 17.09.2024 and was not covered by any of the exceptions outlined in the circular. Consequently, the appeal was dismissed on this preliminary ground. The pending applications were also disposed of as a consequence of the dismissal of the main appeal. The Tribunal's order dated 13.03.2024 was not adjudicated on its merits.
The High Court held that no substantial question of law arises from the ITAT's order. Regarding the exclusion of Infosys Limited, the Court noted that this issue was covered in favour of the assessee by previous decisions of the Court for earlier AYs and by the ITAT's reliance on CIT v. Agnity India Technologies Pvt. Ltd. The Court found Infosys functionally dissimilar due to its varied services and significantly higher turnover compared to the assessee, a reasoning consistent with the decision in Principal Commissioner of Income Tax v. Alcatel Lucent India Ltd. Similarly, Zylog Systems India Limited was found functionally dissimilar because it owned substantial intangibles and had a high proportion of on-site revenue, unlike the assessee. The exclusion of Larsen & Toubro Private Limited was upheld as it was engaged in diversified business, a finding not interfered with by the Court in similar circumstances as per Principal Commissioner of Income Tax v. Alcatel Lucent India Ltd. Acropetal Technologies Limited was also correctly excluded due to its distinct business segments (engineering design, IT, healthcare) and significant sales increase from acquisitions, making its functional differences consequential. The ITAT's acceptance of foreign exchange currency fluctuation and operating revenue was also upheld, being covered by the decision in Rampgreen Solutions Pvt. Ltd. v. CIT. Consequently, the appeal was dismissed.
The High Court held that the question of whether the source of cash has been explained is essentially a question of fact. The Court found no perversity in the findings of the learned ITAT. The assessee's explanation for the cash in hand, particularly concerning cash withdrawn five to six years prior to the search, was considered far-fetched and lacked credible explanation. The cash flow statements provided for Mrs. Neelam Sood (assessee's mother) did not adequately explain the large cash balances retained, especially when household drawings were significantly lower. The Court also noted that the assessee had not produced bank accounts of his wife to establish the source of funds claimed to belong to her. Consequently, the Court concluded that no substantial question of law arose for consideration.
The Delhi High Court upheld the ITAT's decision, stating that the failure to issue a valid notice under Section 143(2) within the prescribed time is fatal to the assessment proceedings. The court found no substantial question of law arising from the ITAT's order.
The Delhi High Court upheld the ITAT's decision, stating that the failure to issue a valid notice under Section 143(2) within the prescribed time is fatal to the assessment proceedings. The court found no substantial question of law arising from the ITAT's order.
The High Court held that the challenge to the reassessment notices issued by the JAO is not sustainable. The Court interpreted the Faceless Reassessment Scheme, 2022, as a two-stage process. The initial stage involves the JAO utilizing information from the RMS and Insight Portal to conduct preliminary inquiries, form an opinion on escaped income, and issue a show-cause notice under Section 148A. This stage, including the consideration of objections and the decision to proceed with reassessment, is within the JAO's purview. Subsequently, if reassessment is warranted, the record is transmitted to the National Faceless Assessment Centre (NFAC) for the actual assessment to be conducted in a faceless manner. The Court found this interpretation to strike a balance between the JAO's role in scrutinizing information and the faceless conduct of the assessment itself. The Court disagreed with the contrarian view expressed in Hexaware Technologies, finding that the JAO is not entirely deprived of jurisdiction to evaluate data. The ratio is that the JAO has a role in the initial formation of opinion for reassessment, which is then followed by a faceless assessment by the NFAC, ensuring a harmonious integration of both mechanisms. The writ petitions were dismissed, with a clarification that other objections to the reassessment proceedings can be raised in independent proceedings.
The High Court found no reason to interfere with the Family Court's findings regarding the appellant's income concealment and his monthly income being at least Rs. 1,00,000/-. The appellant's claim of earning only Rs. 10,000/- as a labourer was not believed.
The High Court held that the appeal filed by the Revenue was to be dismissed on account of low tax effect. The Court noted the submission by the Revenue's counsel that the tax effect involved in the appeal was below the threshold limit of ₹2,00,00,000/- as stipulated in the Circular dated 17.09.2024. Based on this submission and the circular, the Court found no reason to proceed with the appeal on merits. The operative direction was the dismissal of the appeal.
The High Court of Delhi considered the submission made by the learned counsel for the Revenue regarding the low tax effect. The Court noted that the tax effect involved in the present appeal was below the threshold limit of ₹2,00,00,000/- as stipulated in the Circular dated 17.09.2024. Consequently, the Court dismissed the present appeal on account of low tax effect. The reasoning is based on the administrative instructions and policy of the Revenue itself, which discourages pursuing appeals with insignificant tax implications. The ratio decidendi is that appeals falling below the prescribed monetary threshold, as per departmental circulars, are to be dismissed.
The ITAT correctly deleted the addition as the assessee had established that payments were made through banking channels and the material was received and recorded in stock registers. The Revenue failed to provide evidence of cash repayment or that the material was not used for business purposes.
The Tribunal held that the Resale Price Method (RPM) was the most appropriate method for benchmarking the import of finished goods, as the assessee was engaged in a pure trading business without significant value addition. The High Court found no substantial question of law and upheld the Tribunal's decision.
The Delhi High Court set aside the impugned order of the ITAT and restored the appeal to the ITAT for fresh consideration. The Court directed the ITAT to consider the appeal in light of the notifications referred to by the assessee, which provided extensions for depositing ESI/EPF contributions due to the COVID-19 pandemic. The High Court noted that the assessee's counsel conceded that these notifications may not have been brought to the ITAT's attention. The Revenue also agreed to a remand for considering the impact of these notifications. Therefore, the High Court did not decide on the merits of the disallowance but remanded the matter for a fresh adjudication by the ITAT, taking into account the newly presented documentary evidence.
The ITAT held that the assessee did not have a dependent agent PE in India. The tribunal also restored the issue of profit attribution to the TPO, directing a specific methodology based on prior rulings.
The High Court found that the ITAT erred in upholding the inclusion of the three companies as comparables. The court relied on its previous decisions which excluded entities with high brand value and significant brand-building expenses from ALP determination.
The High Court condoned the delay of 170 days in filing the appeal. The Court allowed the application for condonation of delay, subject to all just exceptions. The reasoning provided is that the application for condonation was allowed for the reasons mentioned therein. The High Court issued notice to the respondent (Revenue), who accepted notice and sought time to take instructions. The appeal was listed for further hearing. The finding on the substantive issues of the appeal, if any, is not addressed in this procedural order.
The Delhi High Court issued notice on the appeals filed by the Revenue. The matter is scheduled for further hearing on a future date.
The Delhi High Court dismissed the Revenue's appeal, following similar dismissals in related appeals for other assessment years. The court found no substantial question of law arising from the ITAT's order.
The Court directed the release of the remaining withheld retirement benefits to the petitioner. This was in addition to the amount already ordered to be released earlier.
The Delhi High Court held that the tax effect involved in the present appeal is below the threshold limit of ₹2,00,00,000/- as stipulated in the Circular dated 17.09.2024. Consequently, the Court dismissed the present appeal on account of low tax effect. The ratio decidendi is that appeals with a tax effect below the prescribed monetary limit, as per the relevant circular, are not to be pursued. The operative direction was the dismissal of the appeal and disposal of pending applications.
The Delhi High Court has decided to list these appeals for further consideration on a specific future date. This is because one of the key questions raised in these appeals is also a subject matter in the Vodafone Mobile Services Ltd. case.
The High Court held that the issue was covered by its earlier decision in Ranbaxy Laboratories Ltd. v. CIT. Therefore, no substantial questions of law arose for consideration.
The High Court dismissed the appeal, primarily due to an inordinate delay in re-filing and also on merits. The court found the issue covered by previous judgments, including Kabul Chawla and Abhisar Buildwell.
The Tribunal upheld the deletion of the Section 14A disallowance, agreeing with the CIT(A) that no disallowance can be made if the assessee has no exempt income. The Court found no substantial question of law.
The Delhi High Court dismissed the present appeal filed by the Revenue. The Court's reasoning was based on its prior decision in ITA 517/20214, concerning the same assessee and a similar impugned order. In that preceding case, the Court had found that no substantial question of law arose from the order being appealed. Therefore, applying the same principle, the present appeal was also dismissed. The operative direction was the dismissal of the appeal. No issues were expressly left undecided.
The High Court admitted the appeal for hearing, indicating that the ITAT's decision on the Assessee's entitlement to DTAA benefits is under review. The court will examine whether the ITAT correctly applied the provisions of the DTAA, including Article 27A.
The High Court found that no substantial question of law arose from the ITAT's decision. Therefore, the Revenue's appeal was dismissed, upholding the ITAT's deletion of the additions.