ITAT Mumbai ruled that a penalty cannot be imposed on estimated additions from bogus purchases. Tribunal affirmed that without cogent evidence, estimated profits don’t warrant a penalty.
The ITAT in Mumbai has quashed a revisionary order under Section 263 of the Income Tax Act against law firm AZB & Partners. The tribunal ruled that the PCIT’s order was not justified, as the Assessing Officer had already conducted a proper enquiry and applied his mind to the issue, making it a “change of opinion,” not a “lack of enquiry.”
The ITAT Mumbai has ruled that Delta Air Lines’ income from code-sharing agreements with third-party carriers is exempt from tax in India under Article 8 of the India-USA DTAA, as it qualifies as “profits from the operation of aircrafts in international traffic.”
The Delhi High Court has ruled that Jurisdictional Assessing Officers can still issue reassessment notices despite the faceless scheme. Other High Courts differ.
The ITAT Mumbai has deleted a Rs. 184.75 crore transfer pricing adjustment related to advertising and marketing expenses (AMP). The tribunal ruled that these expenses were not an international transaction, aligning with consistent past judgments and emphasizing that the Revenue failed to prove a formal arrangement between the assessee and its Associated Enterprise (AE).
In a pragmatic ruling, the Karnataka High Court has allowed B.V. Sreenivasa Reddy to use a portion of the revenue from his attached windmills to cover maintenance costs, ensuring the assets remain operational to maximize tax recovery for the Income Tax Department.
Delhi High Court rules that a tax refund cannot be blocked by system limitations, directing the tax department to issue a manual refund in a demerger case.
Bombay High Court confirms tax penalties cannot be imposed solely on additions made through ad hoc estimations, dismissing a revenue appeal against Colo Colour Pvt. Ltd.
The ITAT Visakhapatnam has partly allowed the appeal of Vallabhai Patel Kottapalli, an agriculturist, by restricting the tax rate on an unexplained cash deposit to 30% in-stead of 60%.
Karnataka High Court has ruled that reassessment notices issued after April 1, 2021 for AY 2015-16 are invalid, following a Supreme Court precedent.
