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Supreme Court Dismisses Revenue Appeal in Wealth Tax Case Concerning Leasehold Interest in Salt Pans. Precarious Lease Terminable Annually Held Not to Be an 'Asset' Under Section 2(e)(v) of Wealth-tax Act, 1957, as Interest is Available for Period Not Exceeding Six Years from Valuation Date.

The case arose from a wealth tax assessment for the year 1959-60 where the Wealth-tax Officer computed the value of the respondent-assessee's leasehol...

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Supreme Court Allows Appeal in Income Tax Case: Subscriptions Received Under Collective Investment Schemes Held to be Capital Receipts Not Income. Peerless General Finance's Subscriptions Not Forfeited During Assessment Years, Hence Not Taxable as Income.

The appeal arose from a dispute between The Peerless General Finance and Investment Company Ltd. (appellant) and the Commissioner of Income Tax (respo...

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Bombay High Court Allows Deduction for Transit Quarter Maintenance in Favor of Assessee — Premises Used for Business Purposes Not a Guest House Under Section 37(4) of Income Tax Act, 1961. Expenditure on Accommodating Employees on Business Visits is Allowable as Business Expenditure Under Section 37(1).

The case involved a reference under Section 256(1) of the Income Tax Act, 1961, at the instance of the assessee, M/s. Greaves Cotton & Co. Ltd., arisi...

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Supreme Court Dismisses Revenue's Appeal in Income Tax Act Case Upholding Revisional Jurisdiction. Commissioner Validly Set Aside Assessment Order as Payment to Shareholders Was Not 'Cost of Improvement' Under Capital Gains Computation Under Sections 48 and 263 of Income Tax Act, 1961.

The dispute arose from an income tax assessment concerning the sale of a property named 'Paville House' by the respondent assessee, a company engaged ...

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Supreme Court Allows Deduction Under Section 80HH on Gross Profits Without Deducting Depreciation and Investment Allowance. The Court Overruled Motilal Pesticides and Held That Section 80HH Deduction Is Computed on 'Profits and Gains' Not 'Income'.

The Supreme Court considered a batch of civil appeals concerning the interpretation of Section 80HH of the Income Tax Act, 1961, for the Assessment Ye...

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Bombay High Court Quashes Reassessment Proceedings Against Company Resolved Under IBC — Clean Slate Principle Applies to Past Tax Claims. Section 31 of IBC binds tax authorities, and no reassessment can be initiated for pre-resolution period.

The petitioners, Uttam Galva Metallics Ltd. (the corporate debtor) and its director, challenged reassessment proceedings initiated by the Income Tax D...

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High Court of Karnataka Quashes Reassessment Notice for Lack of Jurisdiction — Dell India Pvt. Ltd. v. Joint Commissioner of Income Tax. Notice under Section 148 of Income Tax Act, 1961 issued without proper sanction and by officer lacking territorial jurisdiction over assessee.

The petitioner, Dell India Pvt. Ltd., is a company engaged in the manufacture and sale of computer hardware and related products. For the Assessment Y...

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Bombay High Court Allows Writ Petition Challenging Eligibility Condition for Settlement Commission Applications Under Income Tax Act, 1961. The court held that a press release and notification imposing a cut-off date for eligibility to file settlement applications were ultra vires the Act.

The petitioner, a company engaged in sugar and ethanol business, was subjected to a search under Section 132 of the Income Tax Act, 1961 on 25.07.2019...