Direct Tax Cases Weekly Round-Up: 21 April To 27 April 2024

Update: 2024-04-29 13:30 GMT
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Bombay High Court Tata Steel Entitled To Treat Contribution Of Rs. 212.52 Crores To CAF As Revenue Expenditure: Bombay High Court Case Title: PCIT Versus Tata Steel The Bombay High Court has held that Tata Steel is entitled to treat the contribution of Rs. 212.52 crores to the Compensatory Afforestation Fund (CAF) as revenue expenditure. Error On Part Of Auditor Should...

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Bombay High Court

Tata Steel Entitled To Treat Contribution Of Rs. 212.52 Crores To CAF As Revenue Expenditure: Bombay High Court

Case Title: PCIT Versus Tata Steel

The Bombay High Court has held that Tata Steel is entitled to treat the contribution of Rs. 212.52 crores to the Compensatory Afforestation Fund (CAF) as revenue expenditure.

Error On Part Of Auditor Should Be Accepted As Reasonable Cause Shown By Trust Management For Delay Condonation: Bombay High Court

Case Title: Al Jamia Mohammediyah Education Society Versus Commissioner Of Income Tax (Exemptions)

The Bombay High Court has held that the error on the part of the auditor cannot be rejected but should be accepted as a reasonable cause shown by the trust management.

Rajasthan High Court

For Establishing Offence Of Filing Delayed ITR, “Mens Rea” Is A Necessary Ingredient: Rajasthan High Court

Case Title: The Income Tax Officer Versus Rajendra Prasad Vaish

The Rajasthan High Court has held that for holding an assessee guilty of the offence of filing delayed income tax returns, “mens rea“ is a necessary ingredient.

Calcutta High Court

Assessee's Failure To Establish Genuineness Of Transaction With Cogent And Credible Evidence, Calcutta High Court Upholds Addition

Case Title: The Principal Commissioner Of Income Tax, (Central) -2, Kolkata Versus M/S. BST Infratech Limited

The Calcutta High Court has held that merely proving the identity of the investors does not discharge the onus on the assessee if the capacity or credit worthiness has not been established.

Punjab & Haryana High Court

No Addition Is Permitted On Account Of Estimated Profit U/s 41(1) Simply Based On Assumptions: Punjab & Haryana High Court

Case Title: M/s Shree Digvijaya Woollen Mills Ltd Versus Commissioner of Income-Tax

The Punjab & Haryana High Court deleted the addition made by the AO u/s 41(1) of the Income tax Act on account of sale of copper wire, finding that the AO had made additions under the said provision simply on basis of presumption regarding the said sale, even after finding no stock in the premises.

ITAT

Manual Cash Book Contains Entries Related To Cash Withdrawals, Income Tax Additions Not Sustainable: ITAT

Case Title: Bijender Singh Lohia Versus JCIT (OSD)

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the manual cash book contained entries related to cash withdrawals and expenses of the company, which were duly recorded and reconciled with its books of account, as well as cash introduced, withdrawn, and expenses on behalf of the assessee.

Primary Agricultural Credit Society Entitled To Benefit Section 80P(2)(i) For Providing Credit Facilities For Non-Agricultural Purposes To Its Members: ITAT

Case Title: Enayetpur S K U S Ltd Vs. ACIT

The Kolkata Bench of Income Tax Appellate Tribunal (ITAT) has held that Primary Agricultural Credit Society is entitled to benefit under Section 80P(2)(i) of the Income Tax Act for providing credit facilities for non-agricultural purposes to its members.

Case Title: Jignesh Chimanlal Jobanputra Versus ITO

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the addition cannot be deleted for the sole reason that the section under which the addition is made is mentioned erroneously and that it is necessary to look into the merits of the case.

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