Article
When Judges disagree: The Shelf Drilling case and the road ahead By Karanjot Singh Khurana, Tanmay Bhatnagar and Shivam Gupta
The computation of period of limitation for completion of assessment process in cases involving review by DRP has been a subject matter of debate and dispute. At the core of this controversy are the differing interpretations sought to be given by the Income-tax Department and the taxpayers to the provisions of Sections 144C and 153 of the Income Tax Act. The article notes that following the Supreme Court’s split verdict in Shelf Drilling, the controversy surrounding the interplay between Sections 153 and 144C has reverted to the status quo ante. According to the authors, till the time the Supreme Court definitively decides the issue of limitation under Section 144C read with Section 153, the road ahead remains uncertain for the taxpayers, the Department and the tax practitioners.
Notifications & Circulars
- Demand under Section 156 – Inclusion of Block Period in Form No. 7
- Perquisite – Prescription of thresholds of ‘Salary’ and ‘Gross Total Income’ under Section 17(2)
- Computation of income of International Financial Services Centre (‘IFSC’) Insurance Office for deduction under Section 80LA clarified
- Definition of ‘Specified Fund’ under Rule 21AIA revised to align with Section 10(4D)
- Extension of sunset clause under Section 10(23FE) – Consequential changes made in Rules and Guidelines
Ratio decidendi
- Prosecution under Income Tax Act cannot be continued when penalty has been set aside – Supreme Court
- Criminal prosecution dismissed as information received under DTAA not corroborated by any incriminating material – Delhi High Court
- No adverse inference can be drawn from non-signing of ‘consent waiver form’ – Delhi High Court
- Sale of vintage car when leads to capital gain tax, and should not be treated as personal effect under Section 2(14) – Bombay High Court
- Carry forward of long-term capital loss on post 2017 share sale under Section 74 allowed – ITAT clarifies DTAA and loss carry forward rules – ITAT Mumbai
- Disallowance under Section 40(a)(i) deleted since payment for business support services does not amount to fee for technical services – ITAT Hyderabad
