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II. Direct Taxes Case Laws:
1. Vodafone
Essar Mobile Services Limited Vs. Union of India and Tata Teleservices
Ltd. Vs. ACIT, W.P.(C) 8641/2011 & CM APPLS 19537/2011, 10666/2013
& others, Date of Judgment: 09.03.2016, High Court of Delhi
Issue
Whether
the CBDT Circular 5 of 2010 has to be harmoniously construed with
Section 201(3) of the Act to glean an intention to permit the Department
to initiate cases four years earlier than 31st March, 2011?
Held: No
Brief Facts
The common question that arises for consideration in writ petitions
concerns the validity of the action initiated by the Income Tax
Department against the Petitioners under Sections 201(1) and 201(1A) of
the Income Tax Act, 1961 for non-deduction of tax at source (‘TDS’) for
periods earlier than four years prior to 31st March, 2011. These
petitions involve the interpretation of the proviso to sub-section (3)
of Section 201 of the Act, which was inserted with effect from 1st
April, 2010.
Held:
Circular 5 of 2010 of CBDT clarifying that the proviso to Section
201(3) of the Act was meant to expand the time limit for completing the
proceedings and passing orders in relation to 'pending cases'. The said
proviso cannot be interpreted, as is sought to be done by the
Department, to enable it to initiate proceedings for declaring an
Assessee to be an Assessee in default under Section 201 of the Act for a
period earlier than four years prior to 31st March, 2011. Consequently,
the notices impugned in the present petitions issued by the Department
seeking to initiate proceedings against the Petitioners for declaring
them to be Assessees in default under Section 201(3) of the Act are
hereby quashed.
(Please click here for judgment)
2. Shri B. Kamaraj Vs. ITO, I.T.A. No. 2069/Mds/2015, AY: 2010-11, Date of Pronouncement: 21.03.2016, ITAT - Chennai
Issue
Whether
stay can be granted where the show cause notice issued by the Principal
Commissioner of Income-tax is on one ground and the order was revised
on the basis of another ground?
Held: Yes
Brief Facts
Assessing Officer completed the assessment u/s 143(3) of the Act on
28.3.2013. The Principal Commissioner of Income tax in the guise of
exercising his power u/s 263 of the Act, issued show cause notice
calling for the objection of the assessee and also revised the order of
the Assessing Officer and directed the Assessing Officer to reexamine
the matter. In response thereto the assessee filed the stay petition
praying for the stay of operation of the order of the Principal
Commissioner of Income-tax-2, Coimbatore, dated 30.3.2015, passed u/s
263 of the Income-tax Act, 1961.
Held
We find that the assessee is challenging before this Tribunal, the
order passed by the Principal Commissioner of Income-tax, in exercise of
his power u/s 263 of the Act. As rightly submitted by the ld. Counsel
for the assessee, the show cause notice issued by the Principal
Commissioner of Income-tax is on one ground and the order was revised on
the basis of another ground, therefore, this Tribunal is of the
considered opinion that there is a prima facie case for granting stay.
Accordingly, operation of the order of the Principal Commissioner of
Income-tax dated 30.3.2015 is hereby stayed.
(Please click here for judgment)
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