ITAT Cases Monthly Round Up: June 2024
Mariya Paliwala
1 July 2024 3:00 AM GMT
Salary Reimbursements Of Seconded Employees Is Not Taxable As Fees For Technical Services: ITAT
Case Title: IBM Canada Limited Versus DCIT
The Bangalore Bench of Income Tax Appellate Tribunal (ITAT) has held that salary reimbursements of seconded employees are not taxable as fees for technical services.
Case Title: M/s. Valeo Friction Materials India Ltd. Versus Commissioner of Customs
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the royalty is not included in the transaction value of the imported raw materials to demand any differential customs duty.
Case Title: DCIT Versus Paranjapee Schemes Construction Ltd.
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that disallowance has to be worked out on the basis of investment which yielded dividend during the year and not by factoring in the total amount of investment.
Case Title: M/s Esha Securities Pvt Ltd Versus Dy. CIT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the computation of six assessment years for search assessments under Section 153C of the Income Tax Act starts from the date of receiving seized documents.
Case Title: Vivek Prahladbhai Patel Versus ITO
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition made by the department as the cash deposits made from the assessee's parents accumulated savings and income from agricultural activities.
Section 80G Deduction Allowable On CSR Expenditure: ITAT
Case Title: M/s. Alubound Dacs India Private Limited Versus Dy. CIT
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the deduction under Section 80G of the Income Tax Act is allowable on the expenditure in respect of corporate social responsibility (CSR).
Non-Compete Fee To Be Treated As “Revenue Receipt” From 01.04.2003: ITAT
Case Title: ACIT-2(2)(1) Versus Lyka Labs Ltd.
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the non-competitive fee received by the assessee is treated as 'revenue receipt' in the hands of the assessee but only post-amendment, i.e., w.e.f. 01.04.2003.
Case Title: ACIT Versus Himanshu Garg
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has denied the exemption under Section 54F of the Income Tax Act on the 500-meter shed made on agricultural land that cannot be considered a residential house.
Income From Reselling Of Subscription Based Product Is Royalty: ITAT
Case Title: Gartner Ireland Ltd. Versus DCIT
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the income from the reselling of subscription-based products is royalty.
Income Tax Deduction Allowable On Expenditure Incurred On Warranty Claim: ITAT
Case Title: Grey Orange India Pvt. Ltd. Versus ACIT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the income tax deduction is allowable on expenditures incurred on warranty claims.
RPM Is Most Appropriate Method To Benchmark Transaction Of Purchase Of Solar Goods: ITAT
Case Title: D Light Energy P. Ltd. Versus Assessing Officer
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the Resale Price Method (RPM) is the most appropriate method to benchmark the transaction of the purchase of solar goods.
ITAT Kolkotha Allows Exemption Registration To Income Tax Bar Association, Sets Aside CIT Order
Case Title: Income Tax Bar Association Calcutta Versus Commissioner of Income Tax (Exemption)
The Calcutta Bench of Income Tax Appellate Tribunal (ITAT) has allowed the exemption registration to the income tax bar association as the registration application was not time-barred.
Case Title: Denso (Thailand) Co. Ltd Vs ACIT
The Delhi ITAT ruled that though income received by a non-resident entity towards services provided to Indian associate enterprises (AE) are in nature of 'fees for technical service' (FTS), but same cannot be taxed in India simply in absence of FTS clause under respect treaty provisions.
Assessments Concluded U/s 153A Without Mandatory Approval U/s 153D Would Be Void: Delhi ITAT
Case Title: Emaar MGF Land Limited Vs ACIT
The Delhi ITAT allowed the Assessee's appeal challenging assessments completed u/s 153A r/w Section 143(3) as void, in absence of mandatory approval u/s 153D.
Case Title: ITO Versus M/s. Ramachandra Setty & Sons SRS Building
The Banglore Bench of Income Tax Appellate Tribunal (ITAT) has deleted the income tax addition of Rs. 1.36 crore on alleged unaccounted sales and purchases that were solely based on loose slips.
Submission Of Form-67 Is Not Mandatory For Availing Foreign Tax Credit: Delhi ITAT
Case Title: Suchi Agrawal Versus ITO
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that submission of Form-67 is not mandatory for availing foreign tax credit (FTC).
Purchasing Of Agricultural Land Is Outside Definition Of Capital Asset; Delhi ITAT Deletes Addition
Case Title: Mr. Ramnarayan Versus ITO
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessee has purchased agricultural land, which is outside the definition of a capital asset; therefore, the deeming provision under Section 56(2)(x) of the Income Tax Act cannot be invoked.
Case Title: Zodiac Ventures Ltd. Versus ITO
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that income tax disallowance based on presumptions of earning dividend income in the future is not sustainable.
Seized Documents Lack Information About Receipt Of Money: Mumbai ITAT Deletes Addition
Case Title: Yash Synthetics Private Limited Versus Assistant Commissioner of Income Tax
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has deleted the income tax addition of Rs. 1.61 crores on the grounds that the seized documents lack information as to date and mode of receipt of “on money.”
Revisionary Power Can't Be Invoked On Allegation Of Improper Inquiry By AO: Delhi ITAT
Case Title: Sh. Dharam Singh Versus PCIT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessment order cannot be held to be erroneous and prejudicial to the interest of revenue merely on the allegation that the Assessing Officer has not made an inquiry and verification with regard to cash deposits as well as scrap sales.
Deeming Provisions Of Section 50C Can't Be Applied For Leasehold Rights: Delhi ITAT
Case Title: Shivdeep Tyagi Versus ITO
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that deeming provisions of Section 50C of the Income Tax Act cannot be applied for leasehold rights.
Orders Sent Through Email Went To Spam Folder; Cuttack ITAT Condones Delay Of 145 Days
Case Title: Tirupati Prasad Sahu Versus ITO
The Cuttack Bench of Income Tax Appellate Tribunal (ITAT) has condoned the delay of 145 days in filing an appeal by the assessee on the ground that the assessee mistakenly did not receive the orders sent through email, as many of these orders are going to spam folders.
Case Title: Carers World Wide Versus The Commissioner of Income Tax (Exemptions)
The Bangalore Bench of Income Tax Appellate Tribunal (ITAT) has quashed the order rejecting the approval under Section 80G of the Income Tax Act as the Central Board of Direct Taxes (CBDT) has extended the due date for filing Form 10A/10AB via press release dated April 25, 2024, to June 30, 2022.
Wrong Classification In ITR Can't Result Into Denial In Deduction: Chennai ITAT
Case Title: National Contracting Company Versus DCIT
The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has held that the claim of the assessee cannot be denied for the reason that a deduction was mentioned in the wrong classification in the ITR, especially in the circumstances where all other evidence is available on record suggesting the deduction in pursuance of the provisions of Section 43B is available.
Case Title: Grand Paradi Co-op Housing Vs. Society Ltd. Versus The Income Tax Officer
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has allowed the deduction under Section 80P(2)(d) of the Income Tax Act to the Grand Paradi Co-op Housing Society and held that cooperative banks are cooperative societies that are doing banking business.
Exhibition By Gem And Jewellery Export Promotion Council, Not Trade And Commerce: Mumbai ITAT
Case Title: Dy. Commissioner of Income-Tax Versus The Gem And Jewellery Export Promotion Council
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the exhibitions conducted by the assessee, the Gem and Jewellery Export Promotion Council, are not in the nature of trade and commerce.
Notice Sent On Incorrect Email Addresses Constitutes Improper Service: Ahmedabad ITAT
Case Title: LMP Motors Private Limited Versus ACIT
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the notices were sent to an incorrect email address, which led to the non-receipt of the notices by the assessee.
Non Service Of Hearing Notice Invalidates Ex-Parte Order: Kolkata ITAT
Case Title: M/s Littlestar Projects Pvt. Ltd vs. ITO
Finding that the hearing notices were not duly served by the CIT(A) or the AO and resultantly the assessment order was passed ex-parte, the Kolkata ITAT directed the assessee to furnish its correct address before the competent authority.
Case Title: Supreme & Co. Pvt. Ltd vs. DCIT
The Kolkata ITAT held that delayed deposit of amount collected towards employees' contribution to PF renders claim of deduction u/s 36(1)(va) ineligible.
Case Title: DN Solutions (India) Private Limited vs. ITO
The Bangalore ITAT held that once the Department has accepted the capital gain offered by the seller upon transfer of its business, then said transaction cannot be doubted in the hands of the purchaser.
Case Title: Herbalife International India vs. DCIT
The Bangalore ITAT held that payment made by Assessee (Indian entity) to its foreign AE (Parent entity) for obtaining administrative services will not be taxable as FTS/FIS in India in terms of Indo USA DTAA, in absence of 'make available' clause in the agreement between both the parties.
Case Title: Ares Diversified vs. ACIT
The New Delhi ITAT held that once the DRP has chosen to reject the objections of assessee on the ground of delay, its resultant effect is confirmation of merits of draft order passed by the AO.
Case Title: Bankula Jaga Reddy vs. ITO
Finding that the assessee has shown highest rate of net profit in its first year of business, the Cuttack ITAT directed for estimation of net profit @2.75% on the total turnover of the assessee after reduction of the airport rent cost, sheet cost and truck rent cost as there is no possibility of assessee earning any income out of the said expenses.
