#IT Act

The Gujarat HC ruled that mere shareholding in a public limited company does not attract Section 179 IT Act liability without proof of gross neglect in tax non-recovery. Directors are shielded from vicarious tax liability absent such evidence.

Bombay HC grants anticipatory bail to an applicant accused of unauthorized crypto wallet transactions under IT Act and BNS, citing three-month delay in FIR registration and absence of evidence of wrongful gain. Court imposes weekly police station attendance conditions to ensure cooperation.

Bombay HC's Nagpur Bench granted bail to an accused in a Rs. 1.58 crore Ponzi scheme, recognizing his minor role and victim-like status in the fraudulent network marketing scheme. The court held that mere signatory status without active involvement in the primary fraud does not justify prolonged detention under BNS, MPID Act, and IT Act.

The Karnataka High Court granted bail in a case under BNS Section 64 and IT Act Section 66E, holding that voluntary physical contact between consenting adults, without coercion or corroboration of non-consent, does not establish rape or digital voyeurism. The ruling reinforces that absence of criminal antecedents and completed investigation weigh heavily in bail decisions, even for non-bailable offences, when the core allegation hinges on disputed consent.

Madhya Pradesh High Court granted anticipatory bail to an applicant accused of biometric fraud in the MP Police Constable Exam, despite charges under BNS, IT Act, and Aadhaar Act. The court emphasized judicial discretion over the gravity of the offence, setting a precedent for bail in identity fraud cases involving competitive exams.

Jharkhand High Court grants anticipatory bail to a housewife framed in a cyber fraud scheme, holding that mere account usage without criminal intent or knowledge of fraudulent transactions does not justify detention. The ruling underscores the need for prima facie evidence of active participation in cyber offences under Bharatiya Nyaya Sanhita and IT Act.

ITAT Delhi ruled that taxpayers cannot claim interest deductions under Section 36(1)(iii) if they fail to prove borrowed funds were exclusively used for business purposes, especially when those funds were also deployed in exempt income-generating assets. The ruling reinforces that Section 14A disallowance cannot be assumed - it must be substantiated with clear allocation evidence, impacting all businesses with mixed-use borrowings and exempt income streams.

Madhya Pradesh High Court ruled that passive mule account holders cannot be denied bail under BNSS Section 483 if no active participation in fraud is proven. The decision underscores that mere account ownership, without evidence of direct involvement, does not justify pre-trial detention in financial fraud cases.

Karnataka High Court grants bail to accused in cyber fraud case involving Rs.65,900 transfer, holding no custodial interrogation required where evidence is bank-based and role is marginal.

ITAT Delhi has ruled that reassessment notices issued under Section 148 after 1 April 2021 for assessment years prior to 2017-18 are time-barred if the original assessment was never completed under Section 143(3), reinforcing that the amended limitation period applies retroactively to protect taxpayers from stale reassessments. This decision impacts thousands of pending cases where notices were issued based on old procedural norms.

The Rajasthan High Court ruled that offences under Sections 66-C and 66-D of the IT Act, involving identity theft and cheating by personation, are not merely private disputes but crimes against public order and digital integrity. Even if parties reach a compromise, such offences cannot be quashed under Section 482 BNSS because they strike at the foundation of trust in digital transactions and affect societal interests beyond the complainant.

Allahabad High Court refuses to quash proceedings under BNSS Section 528 where the accused was never arrested, emphasizing that mere filing of a charge-sheet does not entitle automatic quashing. The court directs bail consideration under Satender Kumar Antil guidelines, reinforcing that procedural compliance alone does not override judicial discretion in criminal proceedings.

Madhya Pradesh High Court grants bail under Section 483 BNSS in a cyber fraud case, conditioning release on the deposit of Rs. 61,500 allegedly received by the accused. The ruling underscores that prolonged detention alone may justify bail even in organized cyber crimes, provided the accused complies with financial restitution and furnishes adequate surety.

Patna High Court rules that seizure of electronic devices without forensic validation and reliance on uncorroborated confessions cannot justify bail denial, especially when co-accused have been released. The judgment reinforces that parity in bail outcomes is a legal right, not discretionary relief, for accused facing identical charges without material evidence.

ITAT Delhi quashes reassessment proceedings where the Section 148 notice was generated on the ITBA portal before 31.03.2021 but dispatched post-deadline, reinforcing that mere portal generation is insufficient without actual dispatch. The ruling sets a critical precedent for procedural compliance in reassessment cases under the pre-2021 regime, impacting taxpayers and revenue authorities alike.