Quote for the Day

"Earning a relation is a reward of your trust,
maintaining the same is the result of your sacrifice
and strengthening the same is the result of your care"

Important Case Laws:

[Contributions by CA. A. K. Srivastava]

• Reopening of assessment:

TOSCA MASTER Vs. The Deputy Commissioner of Income Tax, Circle 3 (1)(1), (International Tax) New Delhi WP(C)10507/2003, Judgment dated 09.08.2024

Delhi high court vide judgment delivered - holds that Foundational material alone would be relevant for the purposes of evaluating whether reassessment powers were justifiably invoked. Revenue can not take a fresh ground while passing order under section 148A(d). We are clearly of the view that notice and reasons given, therefore do not conform to the principles of natural justice as the assessee did not get a proper and adequate opportunity to reply to the allegations.

Notice u/s 148A(b) and order u/s 148A(d) were quashed.

• An interesting judgment having far reaching relief to the assessee has been rendered by the Hon’ble Delhi High Court:

ESS Singapore Branch Vs. Deputy Commissioner of Income Tax, WP(C) 6589/2024, Judgment pronounced on 22 August 2024.

Issues before the Hon’ble court were whether the assessee who had made claim of say amount X in the return filed by him could make a claim for a larger amount as appearing in 26AS statement, which claim was made for the first time before the ITAT.

The ITAT while allowing the assessees’ appeal on merit holding that fee received for live broadcast did not amount  to royalty and allowed assessees’ appeal and had directed the AO to allow credit for the amount as reflected in 26AS.

The Hon’ble High Court held that there being unequivocal direct to the AO to verify and attend to the grievance of the assessee, with regard to credit for TDS, the AO was bound by the direction issued and the AO was required to allow credit for amount reflected in 26AS and later claimed by the assessee.

The Hon’ble court also held that the assessee was also entitled to interest on refund in terms of section 244A(1)(a) of the Act, from the 1st April of the assessment year and not from the date of direction given by ITAT, as contended by the AO.

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