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High Court of Karnataka considers power of Income Tax Appellate Tribunal to direct fresh enquiry under Section 254 of Income Tax Act, 1961 in a buy-back taxation case. The court formulates the substantial question of law regarding suo motu directions leading to potential enhancement of tax liability.

The appeal before the High Court of Karnataka arose from an order of the Income Tax Appellate Tribunal (ITAT) concerning the tax treatment of a buy-ba...

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Bombay High Court Quashes Reassessment Notice Under Section 148 of Income Tax Act, 1961 for Lack of Reasonable Belief and Change of Opinion. Reassessment Beyond Four Years Invalid Without Allegation of Failure to Disclose Material Facts.

The petitioner, Nivi Trading Limited, a private limited company, filed its return of income for Assessment Year 2010-11 on 15th September 2010 declari...

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Bombay High Court Dismisses Revenue's Appeal in Depreciation Claim Case. Depreciation Being Optional Cannot Be Thrust Upon Assessee When There Is Total Loss Under Section 80IB of Income Tax Act, 1961.

The Revenue appealed against the Income Tax Appellate Tribunal's order allowing the assessee's appeal. The assessee, a company engaged in hotel busine...

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Bombay High Court Quashes Reopening Notice Under Section 148 of Income Tax Act for Lack of Reasonable Belief of Income Escaping Assessment. Reopening Beyond Four Years Without Fresh Material Constitutes Change of Opinion on Same Set of Facts.

The petitioner, Gateway Leasing Pvt. Ltd., a non-banking financial company registered under the Companies Act, 1956, filed a writ petition under Artic...

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Bombay High Court Upholds Penalty for Concealment of Income in Income Tax Reference. Minimum penalty under Section 271(1)(c) of the Income Tax Act, 1961 sustained for suppression of net profit of Rs.9,11,521/-.

The case pertains to an Income Tax Reference under Section 256(1) of the Income Tax Act, 1961, arising from proceedings for the Assessment Year 1987-8...

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Supreme Court Allows Revenue's Appeal in Income Tax Case on Unexplained Investment in Silver Bullion. Section 69A of Income Tax Act, 1961 Applicable Where Assessee Fails to Explain Source of Acquisition of Silver Found in Possession.

The present appeals were filed by the Revenue against the judgment of the Rajasthan High Court which allowed the appeals of the assessee, Prakash Chan...

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High Court of Karnataka Upholds Exemption for Educational Society under Section 10(23C)(iiiad) of Income Tax Act, 1961 — Society Not Required to Be Solely an Educational Institution. Income from letting out auditorium and other properties used for educational purposes qualifies for exemption.

The case involves appeals by the Revenue against the order of the Income Tax Appellate Tribunal (ITAT) granting exemption under Section 10(23C)(iiiad)...

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Bombay High Court Quashes Reassessment Notices for Non-Resident Taxpayer Due to Lack of Jurisdictional Satisfaction. Section 148 notices under Income Tax Act, 1961 set aside as Assessing Officer failed to record reasons and obtain sanction before issuing notices beyond four years.

The petitioner, a non-resident Indian residing in Dubai, was regularly assessed to tax in India on income accruing or arising in India. He had investe...