High Courts
Kingfisher Airlines Employee Cannot Be Denied TDS Credit For Employer's Default: Delhi High Court
The Delhi High Court has held that an employee can't be penalised for the failure of its employer to deposit tax deducted at source (TDS) with the Revenue.The bench of Justices Dinesh Mehta and Vinod Kumar was dealing with a writ petition filed by a former employee of Kingfisher Airlines, whose salary had suffered TDS deductions, but the employer failed to deposit the deducted amount with the Income Tax Department. As a result, the department denied TDS credit to the petitioner and raised a tax...
Tax Authority Must Consider 'Genuine Hardship' to Condone Filing Delays: Orissa High Court
The Orissa High Court has reiterated that tax authorities must exercise their power to condone a delay in filing income tax returns to address "genuine hardship" and not reject such requests mechanically. A Division Bench comprising Chief Justice Harish Tandon and Justice Murahari Sri Raman set aside an order of the Principal Chief Commissioner of Income Tax (PCCIT), Odisha Region, which had refused to condone the delay in filing income tax returns by The Reserve Bank Employees Co-operative...
Ease Of Doing Business Must Reflect In Tax Orders: Delhi High Court Quashes 10% TDS Certificate For Irish Entity
The Delhi High Court has criticised the Income Tax Department for adopting a revenue-driven approach while issuing tax deduction at source (TDS) certificates, holding that the government's “ease of doing business” policy must translate into fair and reasoned tax orders.A Division Bench of Justices Dinesh Mehta and Vinod Kumar observed,“Ease of doing business cannot be confined to slogans and Government policies; it has to percolate down in executive actions and quasi judicial orders. Passing...
Bombay High Court Grants Relief to Y-NOT Films, Disallows Income Tax Refund Adjustment Beyond 20% Of Disputed Demand
Granting relief to Y-NOT Films LLP, the Bombay High Court reiterated that the Income Tax Department could not take the entire tax refund of a later year to recover an earlier tax demand that is still under appeal. The court said that in such situations, the tax department can normally adjust only 20% of the disputed amount, unless senior tax authorities specifically approve a higher recovery. A Division Bench of Justices B.P. Colabawalla and Firdosh P. Pooniwalla was hearing a petition filed...
Live Cricket Broadcast Fees Not Royalty: Delhi High Court Dismisses Revenue Appeal Against Sri Lanka Cricket
The Delhi High Court has reiterated that payments received for granting the right to live telecast international cricket matches in a specific series do not constitute “royalty” under the Income Tax Act, 1961.A Division Bench of Justices Dinesh Mehta and Vinod Kumar thus upheld the orders of the Income Tax Appellate Tribunal (ITAT) in favour of Sri Lanka Cricket, ruling that consideration received for providing live broadcast feeds of cricket matches cannot be taxed as royalty under Section...
Realty Company's Sale of Long-Held Freehold Land Is Capital Gains Not Business Income: Madras Court
The Madras High Court has held that profits earned from the sale of decades-old freehold land must be taxed as capital gains and not as business income, rejecting the income tax department's attempt to treat the transaction as part of a real estate business. A division bench of Justices Anita Sumanth and Mummineni Sudheer Kumar said the record clearly showed that the land was held as a long-term asset and was sold without any development or trading activity. "The accounts reveal that the...
