RNM Tax Alert – Direct Tax Part for January 2025
Clarification Regarding Orders under Section 201 Of The Income-Tax Act, 1961 Under E-Appeal Scheme, 2023
The CBDT vide Order F. NO. 225/17/2025-ITA-II, dated 28-1-2025 clarified that Orders passed u/s 201 in pursuance of action u/s 133A are appealable before CIT(A) under e-Appeal Scheme, 2023.
NOTIFICATION G.S.R. 67(E) [NO. 9/2025/F.NO.370142/18/2024-TPL], DATED 21-1-2025
The CBDT vide insertion of new Rule 6GB – prescribes conditions for NRs engaged in business of operation of cruise ships for Sec. 44BBC
ORDER SO. 348(E) [NO. 8/2025/ F. NO. 370153/01/2025-TPL], DATED 20-1-2025
The CBDT clarifies that appeals filed post 22-07-2024 without condonation request will be eligible for Vivad se Vishwas Scheme, 2024.
Important Judicial Precedents
SLP dismissed; notice issued after approval of resolution plan was invalid
[2025] 170 taxmann.com 752 (SC) PCIT Central 4 vs. Patanjali Foods Ltd
SLP dismissed against order of High Court that notice under section 148 issued by revenue to assessee-company after approval of resolution plan by NCLT for a period prior to closing date, was invalid and bad in law.
Co-accused can apply separately for compounding of offences committed by Co. as per CBDT’s fresh guidelines
[2025] 170 taxmann.com 382 (Delhi-HC) Sumit Bharana vs. Union of India
Where assessee-director was considered as principal officer of accused-company, which defaulted in making TDS payment, and prosecution against assessee was initiated under section 276B for said default, in view of CBDT’s guidelines that co-accused were entitled to apply separately for compounding of offences, assessee’s application for compounding couldnot be rejected on ground that main accused-company had not filed any application for compounding of offences.
Reassessment notice quashed due to lack of fresh material to reopen concluded assessment: SC dismissed SLP
[2025] 170 taxmann.com 669 (SC) DCIT vs. Gokul Agro Resources Ltd.
SLP dismissed against order of High Court that where on basis of survey conducted in case of Jammu & Kashmir Bank, wherein assessee transacted, Assessing Officer observed that there was difference between remittance-sheet and account statement and Assessing Officer reopened assessment on ground that assessee’s case was not selected for scrutiny, since on same material reopening notices for previous assessment years were set aside, impugned reopening notice couldnot be issued merely on ground that scope of reassessment was enlarged by amended provisions for reopening after 1-4-2021.
HC quashed reassessment notice relying solely on info from insight portal
[2025] 170 taxmann.com 473 (Gujarat-HC) Raajratna Stockholdings (P.) Ltd. vs. ACIT
Where Assessing Officer issued a reopening notice on basis of information received from insight portal regarding coordinated and premeditated trading on BSE by engaging in reversal trade and illiquid stock options resulting in non-genuine business loss/gain to beneficiary assessee and assessee was a party to such manipulation, since reopening notice was issued on borrowed satisfaction as no independent opinion was formed and notice was issued merely on basis of information from insight portal, and further, amount of said non-genuine profit was already offered to tax in return of income during regular scrutiny assessment, impugned reopening notice was to be quashed and set aside
SC dismissed SLP against HC’s order quashing reassessment based on info received from NSEL
[2025] 170 taxmann.com 9 (SC) ACIT vs. N.K. Industries Ltd
SLP dismissed against order of High Court that where Assessing Officer issued notice under section 148 only on basis of information received from NSEL that certain amount was outstanding to be payable by assessee as for termination of liability of NSEL and, thus, having belief that such amount was assessee’s income which escaped assessment, since such belief of Assessing Officer was without considering fact on record that there was no sale or purchase transaction carried by assessee-company on NSEL during relevant assessment year, impugned notice was without jurisdiction and was to be quashed.
No disallowance of exp. without verifying books of a/c for bogus purchases allegations: HC
[2025] 170 taxmann.com 462 (Kerala-HC) Diamond Food Products vs. CIT
Where Assessing Officer did not verify books of account including Stock Register, Ledger, Cash Purchase Register, etc., to see whether allegation regarding bogus purchases of raw material (paddy) was correct or not, disallowing expenses claimed by assessee under section 37(1) and making additions on ground that there was no purchase of paddy from unregistered farmers was not justified.
HC set aside reassessment notice issued solely based on info received from CGST Dept. regarding bogus ITC
[2025] 170 taxmann.com 541 (Bombay-HC) C. C. Dangi & Associates vs. ACIT
Where Assessing Officer issued reopening notice on basis of information received from CGST authorities that assessee was beneficiary of bogus input tax credit (ITC) received from an entity engaged in providing fake/bogus invoices for passing of fraudulent ITC without supply of goods, since Assessing Officer had not verified nature of assessee’s professional activities with said entity, and further, amounts were received by assessee from said entity only qua invoices issued by assessee to said entity and no other amounts were received, impugned reopening notice was to be set aside.
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