Tax Department Shouldn’t Exploit Taxpayers’ Lack of Knowledge: Delhi HC

CIT Vs Heidrick And Struggles Inc. (Delhi High Court)

Introduction: In the case of CIT Vs Heidrick And Struggles Inc., the Delhi High Court addressed a crucial aspect of taxpayer rights, emphasizing the duty of the tax department to assist taxpayers and refrain from exploiting their lack of knowledge. This article provides a detailed analysis of the judgment and its implications.

Detailed Analysis:

1. Background of the Case: The appellant, the revenue authority, sought condonation of delay in re-filing the appeal, which was granted. The case pertained to the imposition of tax on income received by the respondent for services rendered to an Indian company, Heidrick and Struggles India Pvt. Ltd. (HSIPL).

2. Rectification Application: The respondent initially reported the income under the head “Income from Other Sources” in their Return of Income (ROI). Despite a rectification application, the Centralized Processing Centre (CPC) did not alter its decision.

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