In Faceless Assessment, Income Tax Revision Cannot Be Decided Without Inquiry: Gauhati High Court

The Gauhati High Court has held that the revisional authority cannot dispose of revision proceedings in a mechanical manner under the Income Tax Act (Section 264), which allows a taxpayer to seek revision of an order through a faceless process without making, or causing, an enquiry. This is especially so where the assessee claims difficulty in producing voluminous records and seeks verification at the place of business. The court referred to an earlier Division Bench ruling that held that...

Appellate Authorities Can Entertain New Claims As Estoppel Does Not Apply In Tax Proceedings: ITAT Chennai

The Chennai bench of the Income Tax Appellate Tribunal (ITAT) has recently reiterated that the principle of estoppel has no application in tax proceedings and appellate authorities can entertain new claims from taxpayers even if they were not made in the original return. “the law is well settled to the extent that the decision of Hon'ble Supreme Court in the Goetze India Ltd. Vs. CIT (2006) 284 ITR 323 (SC) is confined to the power of Assessing Officer alone. There are no fetters on the...

ITAT Chennai Expunges Direction To Reopen Assessments For Years Not Under Appeal

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has expunged a direction issued by the Commissioner of Income Tax (Appeals) to reopen the earlier assessments of individual taxpayer Chandanmal Nagaraj, holding that such directions are beyond its powers. The coram comprising Judicial Member Manu Kumar Giri and Accountant Member Inturi Rama Rao passed the order on April 30, 2026. The case related to Assessment Year 2017–18. While granting relief for this year, the CIT(A) had also...

Is India–UK DTAA Benefit Available On Dividend Distribution Tax? Bombay High Court Refers Issue To Larger Bench

The Bombay High Court has referred to a larger bench the question of whether companies paying Dividend Distribution Tax (DDT) can claim the benefit of lower tax rates under the India–UK tax treaty. The court was hearing appeals filed by Foseco India Ltd. challenging the denial of a refund of excess income tax paid. The issue, though arising in the context of the India–UK tax treaty, could also affect how similar provisions in other tax treaties are applied. A Division Bench of Justices G.S....

Husband's Income Tax Returns Are Personal Information, Not Disclosable Under RTI Act: Delhi High Court

The Delhi High Court has held that a husband's income tax returns constitute “personal information” and are exempt from disclosure under the Right to Information (RTI) Act unless a larger public interest justifies such disclosure. The court set aside a Central Information Commission (CIC) order directing their disclosure to his wife in a matrimonial dispute. Justice Purushaindra Kumar Kaurav ruled that income-related details sought by the wife did not fall within the “larger public interest”...

Deductions For Captive Power Profits Cannot Reduce Export Profit Deduction When Businesses Are Separate: Calcutta HC

The Calcutta High Court has ruled that deductions claimed on profits from captive power generation and export businesses must be computed independently and cannot be reduced against each other where the incomes arise from distinct sources. “The deduction granted under Section 80-IA cannot be reduced while computing profits eligible for deduction under Section 80HHC where the deductions arise from independent businesses,” the court held. A division bench of Justice Rajarshi Bharadwaj and...

Madras High Court Refuses To Quash Tax Evasion Case, Says Wilfulness Is Matter For Trial

The Madras High Court has refused to quash criminal proceedings against a taxpayer accused of failing to pay admitted income tax dues, noting that the issues raised had already been urged before the trial court and could not be re-agitated at a belated stage. A single-judge bench of Justice M. Niraml Kumar was dealing with a petition filed by Abdul Khader Mohammed Farook seeking to quash proceedings pending before the Additional Chief Metropolitan Magistrate (Economic Offences), Egmore, for...

ITAT Can't Grant Tax Benefits To Charitable Institution Without Proper Inquiry Delhi HC

The Delhi High Court has held that a tax appellate tribunal cannot directly grant tax exemption benefits to a charitable trust without first ensuring that a proper inquiry into its activities has been carried out. A division bench of Justices Dinesh Mehta and Vinod Kumar passed the ruling while setting aside an order of the Income Tax Appellate Tribunal (ITAT), which had directed the grant of registration and approval to Sukoon SP Foundation, a charitable trust.The trust had applied for...

Telangana High Court Quashes IT Reassessment On Issue Already Examined, Calls It Change of Opinion

The Telangana High Court has set aside income tax reassessment proceedings against Piramal Swasthya Management and Research Institute, holding that the tax department cannot reopen an issue it had already examined and accepted during the original assessment. “once the assessment proceedings are completed and assessment order is passed, the 1st respondent cannot reopen the assessment proceedings by issuing the impugned show-cause notice, dt.27.02.2023, alleging that Form 10 had not been...

Delhi High Court Says 100% Shareholding Not Enough To Tax Shareholders For Company's Income

The Delhi High Court has held that shareholders, even if holding all the shares of a company, are only owners of the shares and not of the company's assets, and therefore the company's income cannot be taxed in their hands. “Legally speaking, the respondents being shareholders of the company, even if holding all the shares (100%), are only owners of the shares of the company and not the owners of the property as such and similarly the income which that company has earned cannot ipso-facto be...

Telangana High Court Upholds 1% Royalty Cap On Export Sales, Dismisses Gulf Oil Appeals

The Telangana High Court on 26 March, upheld the restriction of royalty on export sales to 1% for Gulf Oil Corporation Ltd., holding that regulatory approvals permitting higher royalty rates do not determine arm's length price under transfer pricing provisions, which operate as a self-contained code under Sections 92 to 92F of the Income Tax Act. The Division Bench comprising Justices P. Sam Koshy and Suddala Chalapathi Rao held that no substantial question of law arose in the matter and...

Mumbai ITAT Allows ₹13.59 Cr Write-Off On Overseas Subsidiary Investment As Business Loss

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 17 April held that losses from investments and loans to a wholly owned foreign subsidiary, made for business expansion and commercial expediency, are deductible as business losses even if irrecoverable. A Bench comprising Judicial Member Narender Kumar Choudhry and Accountant Member Prabhash Shankar further held that no proof of recovery efforts is required once the amount is written off in the books. It held: “The investment was...