Here’s an Income Tax weekly flashback from 18 To 24 January 2026.
Supreme Court
Supreme Court Directs PIL Petitioner to ‘Place on Record Income-Tax Returns for the Last 5 Years’ Before Considering Costs
In a significant order underscoring its intolerance towards frivolous public interest litigations (PILs), the Supreme Court on Thursday directed a petitioner-in-person to “place on record Income-Tax Returns for the last five years” before the Court considers imposing exemplary costs for filing what it prima facie viewed as a publicity-driven petition.
Supreme Court Quashes HC’s Direction to CBDT to Modify Income Tax Software for TDS Demands
The Supreme Court has clarified the limits of judicial intervention in tax administration by setting aside a direction issued by the Gujarat High Court that required the Central Board of Direct Taxes (CBDT) to modify its income tax software to prevent future tax demands in cases involving credit for Tax Deducted at Source (TDS).
Delhi High Court
Rs. 2 Lakh Cost Imposed On Income Tax Dept.: Delhi HC Quashes Reassessment Notices Against NDTV Founders
The Delhi High Court quashed reassessment notices issued against NDTV founders Prannoy Roy and Radhika Roy, while also imposing costs of Rs. 2 lakh on the tax authorities for initiating what the Court termed as unwarranted proceedings.
Live Telecast Fees Are Not “Royalty”: Delhi HC Dismisses Tax Appeal Against Sri Lanka Cricket
The Delhi High Court has dismissed an appeal filed by the Income Tax Department against Sri Lanka Cricket (SLC), holding that payments received for live telecast of cricket matches do not constitute “royalty” under Section 9(1)(vi) of the Income Tax Act, 1961.
ICAI’s Disciplinary Action Confirmed; Delhi HC Upholds 3 Month Removal of CA for Audit Lapses
The Delhi High Court has affirmed the disciplinary action taken by the Council of the Institute of Chartered Accountants of India (ICAI) against a chartered accountant, upholding the punishment of removal of his name from the register of members for a period of three months.
Order Mandating 10% TDS Deduction On Payments Made To Foreign Company Without Change in Facts Quashed: Delhi High Court
The Delhi High Court has set aside an order issued under Section 197 of the Income Tax Act, 1961, which mandated deduction of tax at source (TDS) at 10% on payments made to a foreign company, holding that the action was arbitrary, revenue-driven, and unsupported by any change in facts or law.
Delhi HC Allows Income Tax Assessment to Proceed Despite Dual PAN Dispute
The Delhi High Court has permitted the Income Tax Department to proceed with assessment and reassessment proceedings against an assessee notwithstanding the existence of two Permanent Account Numbers (PANs), while directing the authorities to cancel the duplicate PAN to prevent further administrative confusion.
Refund Income Tax Recovered Without Supplying Assessment Order: Delhi HC
The Delhi High Court has held that recovery of income tax dues without supplying a copy of the underlying assessment order amounts to recovery “without authority of law”, and directed the Income Tax Department to refund Rs. 11.14 lakh along with interest to the assessee.
Reassessment Invalid Without Tangible Material: Delhi High Court Rejects Income Tax Dept’s Appeal
The Delhi High Court has dismissed an appeal filed by the Income Tax Department, holding that reassessment proceedings initiated under the Income Tax Act, 1961 were without jurisdiction, based on non-existent and erroneous foundational facts, and lacking tangible material.
Faceless Assessment Framework Combined With Rigid Procedural Presumptions Has Potential To Create Confusion: Delhi HC Directs CBDT To Plug Procedural Gaps
The Delhi High Court has held that the faceless assessment framework, combined with rigid procedural presumptions, has the potential to create confusion and injustice. It held that the consequence of not forwarding objections to an unknown and faceless AO “cannot and should not be so drastic” as to deny the assessee a fair hearing and issued directions to Central Board of Direct Taxes (CBDT) to plug procedural gaps under faceless proceedings.
TDS Credit Can’t Be Denied to Employee Due to Kingfisher Airlines’ Failure to Deposit Tax: Delhi High Court
The Delhi High Court has ruled that an assessee cannot be denied credit of Tax Deducted at Source (TDS) merely because the employer, Kingfisher Airlines has failed to deposit the deducted tax with the Income Tax Department. Setting aside a demand raised more than a decade ago, the Court directed the Income Tax Department to refund the recovered amount along with statutory interest.
No Error Apparent on Record: Delhi High Court Rejects Income Tax Dept’s Review Pleas on Processing of Returns
The Delhi High Court has dismissed a batch of review petitions filed by the Income Tax Department, holding that there was no error apparent on the face of the record in its earlier judgment directing the Revenue to process income tax returns in accordance with law. The Court reiterated that review jurisdiction is extremely limited and cannot be invoked to reargue matters already adjudicated.
Bombay High Court
Faceless Assessment Remanded Back To JAO Instead Of FAO: Bombay HC
The Bombay High Court has quashed an assessment order passed under Section 143(3) of the Income-tax Act, 1961, along with the consequential demand notice, after finding a violation of the principles of natural justice arising from denial of an effective personal hearing.
Bombay High Court Quashes Income Tax Reassessment Notice for Failure to Prove Jurisdiction Transfer
The Nagpur Bench of the Bombay High Court has quashed a reassessment notice issued under Section 148 of the Income Tax Act, 1961, holding that the Income Tax Department failed to establish a valid transfer of jurisdiction under Section 127 of the Act. The Court also imposed costs on the Revenue authorities for their inability to produce the jurisdiction transfer order despite repeated opportunities.
Kerala High Court
Manually Issue SVLDRS Discharge Certificate Despite Closure of Online Portal: Kerala HC
The Kerala High Court has held that the tax department cannot deny issuance of a discharge certificate merely because the online portal for the scheme is no longer operational and directed the Central Tax authorities to issue a manual discharge certificate in Form SVLDRS-4 to a taxpayer who had already settled its dues within the prescribed time.
Audit Delay Beyond Assessee’s Control Must Be Considered While Deciding Delay Condonation: Orissa High Court
The Orissa High Court has set aside an order passed by the Principal Chief Commissioner of Income Tax (PCCIT), Odisha Region, refusing to condone delay in filing income tax returns by the Reserve Bank Employees Co-operative Credit Society Limited for Assessment Years 2018-19 to 2022-23.
Employee’s Income Tax Liability Can’t Be Waived For Employer’s Failure To Remit TDS To Income Tax Dept: Kerala HC
The Kerala High Court dismissed a batch of writ appeals filed by employees of Attinad Software Pvt. Ltd., ruling that income tax liability cannot be waived merely because the employer failed to remit Tax Deducted at Source (TDS) to the Income Tax Department.
Punjab and Haryana High Court
Interest Can Be Reduced from Dividend Income Only If Linked to Borrowed Funds: Punjab & Haryana HC
The Punjab and Haryana High Court has ruled that interest expenditure can be reduced from dividend income only when a clear and direct nexus is established between borrowed funds and the investments generating such income, dismissing a long-pending tax appeal and reaffirming settled principles of income tax law.
Calcutta High Court
Penny Stock Loss Disallowance Can’t Rest on General Investigation Inputs Without Direct Evidence: Calcutta High Court
The Calcutta High Court has dismissed an income tax appeal filed by the department, holding that losses claimed from trading in listed equity shares cannot be disallowed merely on the basis of general investigation reports or suspicion surrounding so-called penny stocks, in the absence of direct and cogent evidence against the assessee.
ITAT
Faceless Appeal Authority Can’t Avoid Merits by Citing Lack of Facts: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that faceless appeal authority cannot avoid merits by citing lack of facts.
Read More: Exporter-Importer Weekly Flashback: 18 To 24 January 2026
