Rajasthan High Court Upholds Hindustan Zinc's ₹18.87 Crore Additional Depreciation Claim On Power Plant Machinery

The Rajasthan High Court has upheld Hindustan Zinc Ltd.'s claim for additional depreciation of ₹18.87 crore on new plant and machinery installed at its captive power plant and wind power plant. The court held that electricity generation falls within the scope of “production”, which has a wider connotation than “manufacture”. It also held that an assessee engaged in manufacturing or producing an article or thing can claim additional depreciation on qualifying power-generation machinery,...

Uttarakhand HC Seeks Review Of Income Tax Relief For Taxpayer Whose Cheque Was Cleared Late Despite Timely Deposit

The Uttarakhand High Court has recently directed the Income Tax Department to reconsider a taxpayer's claim for relief under the Income Declaration Scheme, 2016, after his final tax installment was credited after the deadline despite the cheque being deposited on time.Justice Manoj Kumar Tiwari was hearing a petition filed by Sachin Kumar Gupta, whose declaration under the scheme was treated as void because his final payment was credited on October 5, 2017, instead of by September 30,...

Cash Loan Violating Income Tax Provisions Still Enforceable Under Cheque Bounce Law: Bombay High Court

The Bombay High Court on 30 September held that a cash loan does not become unenforceable under Section 138 of the Negotiable Instruments Act, 1881, merely because it violates income tax provisions. Justice M.M. Sathaye dismissed Manoj Oswal's revision application challenging his conviction in a cheque dishonour case filed by businessman Vijay Gandhi over a Rs. 8.5 lakh loan. Referring to an earlier Division Bench ruling, he observed: “Violation of section 269SS and/or section 271AAD of the...

Sikkim High Court Quashes Zydus Healthcare Reassessments, Says Audit Objection Isn't New Evidence

The Sikkim High Court on 14 October quashed income tax reassessment proceedings against Zydus Healthcare Limited for three assessment years, holding that an audit objection expressing a contrary opinion on an issue examined during the original assessment cannot, by itself, justify reopening the assessment. Justice Bhaskar Raj Pradhan observed that the language used in Section 149(1)(b) of the Income Tax Act “clearly contemplates new evidence and not new opinion.” The Income Tax Department...

Single Business Transaction Cannot Justify Income Tax Case Transfer: Calcutta High Court

The Calcutta High Court on 13 October held that a single business transaction, without evidence establishing a link between a taxpayer's business activities and a group under investigation, cannot justify transferring an income tax case to another city. Justice Smita Das De allowed a petition filed by Loknath Prasad Gupta challenging the transfer of his income tax case from Kolkata to Delhi for a coordinated investigation into his alleged links with the NML Group. The Bench held: “...The...

Delhi High Court Calls Taxpayer's Absence From Cross-Examination Despite 10-Day Notice “Indolent And Negligent”

The Delhi High Court has observed that an assessee's failure to remain available for cross-examination of a witness despite receiving at least 10 days' prior notice reflects an indolent and negligent approach towards the proceedings.The Division Bench of Justices Dinesh Mehta and Aditi Choudhary made the observation while setting aside an income tax assessment order passed against Petitioner and directing the Assessing Officer to provide a fresh opportunity to cross-examine two witnesses.The...

Delhi High Court Quashes Income Tax Penalty Order Passed During Pendency Of ITAT Appeal

The Delhi High Court has quashed an income tax penalty order passed against a private company under Section 270A of the Income Tax Act, 1961, during the pendency of the company's appeal before the Income Tax Appellate Tribunal (ITAT).The Division Bench of Justices Dinesh Mehta and Aditi Choudhary held that Section 275(1)(a) of the Income Tax Act mandates that penalty proceedings remain in abeyance when an appeal against the relevant assessment order is pending before the ITAT.The Court allowed...

Vodafone Idea Tax Dispute: Bombay HC Directs Income Tax Dept To Pass Orders In 13 Matters In 6 Weeks

The court also continued its interim protection restraining the department from recovering ₹699.54 crore already refunded to Vodafone Idea.

Bombay High Court Upholds Tata Chemicals' Tax Deduction For Non-Compete Fee Paid To Former Employee

The Bombay High Court on 8 October held that payments made to a former employee under a non-compete agreement qualify as revenue expenditure for income tax purposes, even when paid in instalments across multiple financial years. A Division Bench comprising Justices Suman Shyam and Gautam A. Ankhad dismissed the Income Tax Department's appeal against Tata Chemicals Ltd., upholding deductions claimed by the company for non-compete compensation and expenditure on projects that were later written...

Calcutta High Court Allows Birla Corporation's Cross-Objections In Income Tax Appeal Under CPC

On 14 October, the Calcutta High Court allowed Birla Corporation Limited to maintain cross-objections in the Income Tax Department's appeal, subject to the requirement that they raise substantial questions of law. A Division Bench comprising Justices Rajarshi Bharadwaj and Sudip Deb held that Section 260A(7) of the Income Tax Act, 1961, incorporates the relevant provisions of the Code of Civil Procedure, 1908 (CPC), including the right to file cross-objections. The judges observed: “We are of...

PAN Misuse | Delhi High Court Quashes ₹3.91 Crore Income Tax Demand Against Security Guard

The Delhi High Court has quashed an income tax assessment order raising a demand of approximately ₹3.91 crore against a contractual security guard, observing that the assessment was based solely on portal data without any independent inquiry to establish his connection with the alleged transactions.The Division Bench of Justices Dinesh Mehta and Aditi Choudhary held that the assessment violated the principles of natural justice, as the Assessing Officer failed to provide the material relied upon...

Delhi High Court Refuses To Quash ₹8.12 Crore Income Tax Reassessment Notice Against Pernod Ricard

The Delhi High Court has refused to quash an income tax reassessment notice issued to Pernod Ricard India Private Limited, the maker of popular liquor brands Royal Stag and Blenders Pride, over an alleged discrepancy of more than ₹8 crore between its turnover declared in Value Added Tax (VAT) returns and its income tax records for the assessment year 2013-14.The Division Bench of Justices Dinesh Mehta and Aditi Choudhary dismissed the company's writ petition challenging the notice issued under...