Category: High Courts

Amendment to section 32(2) is not prospective. Unabsorbed depreciation can be carried forward beyond 8 years-High Court

Amendment to section 32(2) is not prospective. Unabsorbed depreciation can be carried forward beyond 8 years, prior to amendment-High Court Prelude: Section 32(2) of the Income Tax Act, 1961 (“the Act”) provides that where due to loss or inadequate profits in any year, full depreciation allowance could not …

Addition for accommodation entries merely based on statement of investors ignoring documents furnished invalid-High Court

Addition for accommodation entries merely based on statement of investors and without controverting the documents furnished invalid-High Court Prelude: The additions on account of accommodation entries have been a common feature in income tax proceedings which have attracted litigation. A typical modus operandi adopted by the receiver of the such …

Constitutional Validity of second proviso of section 5(1) of PMLA upheld by High Court

Constitutional Validity of second proviso of section 5(1) of PMLA upheld.  Failure to disclose “reasons to believe” would be the entire proceedings illegal-High Court  Prelude: The offence of money-laundering is defined under Section 3 PMLA. The punishment is prescribed under Section 4 PMLA. The expression “proceeds of crime” …

Special Audit u/s 142-2A relying upon the audit Reports of CAG without recording detailed reasons not sustainable-HC

Special Audit u/s142-2A relying upon the audit Reports of CAG without recording detailed reasons not sustainable.  Order passed must show independent application of mind to the material on record-High Court Prelude: Section 142(2A) of the Income tax Act, 1961 (the Act) contains the provisions regarding powers of the …