Interest Income Earned On Deposits Placed With Co-Operative Society Is Duly Eligible For Deduction U/s 80P(2)(D): Chandigarh ITAT

Case Title: Balduhak Co-operative Agriculture Service Society verses ITO

Finding that that the assessee is a Cooperative Society (and not a co-operative bank) which was engaged in providing short term credit facility to its members, the Chandigarh ITAT ruled that interest income has been earned on deposits placed with a co-operative society and duly eligible for deduction under section 80P(2)(d) of the Income tax Act.

Firm Can't Disown Ownership Over Land Simply Because Consideration For Purchase Of Land Was Paid Through Its Directors: Indore ITAT

The Indore ITAT upheld the assessment framed u/s 144 r.w.s 147 of the Income tax Act as the assessee did not cooperate during the assessment proceedings.

Explanation 3 To Sec 147 Can't Be Resorted To Make Addition On Any Other Issue Which Is Not Included In Reasons For Reopening: New Delhi ITAT

Case Title: Vishram Sahakari Awas Samiti Limited verses ITO

On finding that no addition is made based on the reasons to believe recorded by the AO for reopening the assessment, the New Delhi ITAT quashed the order passed by the AO u/s 147 of the Income tax Act, 1961

Filing Of Return U/s 139(1) Within Due Date Is Mandatory For Claiming Deduction U/s 80IB: Ahmedabad ITAT

Emphasizing that the condition of filing the return of income within the due date is mandatory in nature for claiming deduction u/s 80IB(10) of the Income tax Act, the Ahmedabad ITAT confirmed the disallowance made by the AO under the said provision.

If Purchases Are Treated As Genuine And Stock Is Also Accepted, Then Treating Sales As Bogus Is Not Logical: New Delhi ITAT

Case Title: Bharat Agro Industries verses DCIT

The New Delhi ITAT ruled that once AO has accepted the sales made in cash, then source of cash deposits ought to have been treated as explained, and no addition is permitted u/s 68 of the Income tax Act.

Agreement With Principal Must Be Examined To Ascertain Nature Of Work Executed By Civil Contractor And Deciding Sec 80IA Deduction: Chennai ITAT

The Chennai ITAT has remanded the matter to the AO for reconsideration of disallowance u/s 80IA(4), after finding that the AO has not examined the agreement entered into by the assessee with various government and semi-government departments before invoking such disallowance.

AO Must Make Independent Enquiry To Verify Veracity Of Identity, Genuineness & Credit-Worthiness Of Lenders Before Making Addition U/s 68: Kolkata ITAT

Finding that the AO without examining any of the documents, simply made the addition u/s 68 on account of failure of assessee to produce share subscribers, the Kolkata ITAT held that AO cannot take adverse inference without pointing out discrepancies or insufficiency in the evidences and without examining statement of the directors of the subscriber companies.

No TDS Liability Can Be Fastened For Earlier Year If Taxpayer Was Not Aware Of Subsequent TDS Certificate Issued By Depositor: Mumbai ITAT

The Mumbai ITAT restored the matter back to the file of AO to consider the lower deduction of TDS certificates and give opportunity to the assessee to explain the case.

Contribution Collected From Employees If Not Deposited Within Due Dates Prescribed As Per PF & ESIC Act, Is Dis-Allowable: Mumbai ITAT

The Mumbai ITAT recently clarified that mere deposit of employee's contribution before due date of filing return of income as per Section 139 of Income tax Act, will not make it eligible for deduction.

Disallowance Of Claim U/s 80P By CPC Prior To Apr 01, 2021 Is Beyond Its Jurisdiction: Kolkata ITAT

On finding that the alleged disallowance by CPC is beyond its jurisdiction as the adjustment towards deduction u/s. 80P of the Income Tax Act came to CPC only from Apr 01, 2021, the Kolkata ITAT interfered with the action of CPC in denying the deduction u/s 80P of the Income Tax Act, 1961.

Mentioning Of Wrong Clause In Application For Registration U/s 80G Out Of Inadvertence, Is No Basis To Deny Deduction: Kolkata ITAT

Case title: Sarda Mission Sevasram verses CIT

Irrespective of the delay occurred in filing fresh application for final approval u/s 80G(5) of Income tax Act, the Kolkata ITAT directed the CIT(E) to treat the application of assessee for final registration as 'filed within the time limit prescribed' and also pointed that the time consumed by the assessee in filing the revised application will not be taken into consideration.

I-T Authorities Must Prove Authenticity Of Entries And Its Nexus With Dealer, Before Making Addition U/s 69: New Delhi ITAT

On finding that the person from who's possession seized document is recovered, was not subject to cross examination of assessee and no opportunity of cross examination was given to assessee, theNew Delhi ITAT deleted the addition made u/s 69 of the Income Tax Act.

Payee Who Has Considered Amounts Received By Payer In Its Return & Paid Taxes On Same, Can't Be Treated As In Default U/s 201(1): New Delhi ITAT

On finding that CIT(A) has failed to consider all submission of assessee and evidences placed on record, the New Delhi ITAT restored the matter back to file of AO for fresh adjudication regarding the TDS deduction u/s 194J or u/s 194C of the Income Tax Act, 1961 on the payments made towards maintenance of X-Ray machine and CVC machine.

Filing Of Audit Report In Form 10CCB Before Due Date As Per Sec 139(1) Is Only Directory And Not Mandatory: New Delhi ITAT

While holding that filing of audit report in Form 10CCB before the due date for filing of return of income u/s 139(1) of the Income Tax Act, 1961 is only directory and not mandatory for the year under consideration, the New Delhi ITAT directed the AO to allow deduction claimed u/s 80IA of the Income Tax Act, 1961.

Application For Registration In Form No. 10AB Should Be Construed As If Filed U/s 12A(1)(Ac)(I): Kolkata ITAT

Pointing that applications are to be considered on merit for grant of registration, the Kolkata ITAT relegate the issue to the file of CIT(E) with a direction that application in Form No. 10AB should be construed as if filed under section 12A(1)(ac)(i) of Income Tax Act, 1961.

PLR Rates Are Not Applicable To Loans To Be Re-Paid In Foreign Currency Vis-À-Vis Interest On Delayed Realization: Mumbai ITAT

Case Title: Tata International Ltd vs ACIT

The Mumbai ITAT clarified that interest rates on FCNR accounts maintained in foreign currency are different and dependent upon the currency in question. They are not dependent upon the PLR rate, which is applicable to loans in Indian rupee.

Cash Deposits By Members Of Society During Demonetization Not Verified In Absence Of PAN & KYC: Bangalore ITAT Asks To Reconsider Relief U/s 80P(2)(A)

Case Title: Income-tax Officer verses Shri Chatrapati Shivaji Vividoddeshagala Sahakari Sangha Niyamita

While deleting the addition on account of unexplained investment, the New Delhi ITAT clarified that genuineness and veracity of the party cannot be doubted merely because the cold storage rent was received in cash, when the assessee is only a custodian of the goods received by it for storing in its storage.

Once Unsecured Loan Stands Repaid Along With Interest, Then Such Loan Transaction Can't Be Treated As Non-Genuine: Mumbai ITAT

The Mumbai ITAT pointed out that the AO and the CIT(A) has applied the concept of human probabilities to hold the scrip as penny stock without bringing on record as to how the assessee is involved in any of the scrupulous activities or directly linked to one of the persons who has involved in manipulation/rigging of share prices, entry operator or exit provider.

Filing Of Return U/s 139(1) Within Due Date Is Mandatory For Claiming Deduction U/s 80IB: Ahmedabad ITAT

Emphasizing that the condition of filing the return of income within the due date is mandatory in nature for claiming deduction u/s 80IB(10) of the Income tax Act, the Ahmedabad ITAT confirmed the disallowance made by the AO under the said provision.

No Addition Can Be Made U/s 69 If Difference In Stock Found During Survey And As Recorded In Books Stands Reconciled: New Delhi ITAT

Finding that no defects were pointed out and the books of accounts have been accepted, the New Delhi ITAT ruled that the assessee having given the explanation which was plausible explanation which stands verified in inquiry by the Assessing Officer, the same cannot be rejected arbitrarily by indulging into surmises.

Explanation 3 To Sec 147 Can't Be Resorted To Make Addition On Any Other Issue Which Is Not Included In Reasons For Reopening: New Delhi ITAT

On finding that no addition is made based on the reasons to believe recorded by the AO for reopening the assessment, the New Delhi ITAT quashed the order passed by the AO u/s 147 of the Income tax Act, 1961.

Once Working Capital Adjustments Is Factored In Pricing, No Separate Adjustment On Outstanding Receivables Is Required: Visakhapatnam ITAT

Case Title: Brandix Apparel India Private Limited vs ACIT

The Visakhapatnam ITAT directed the TPO to consider the impact of working capital adjustments of the assessee company and appropriate material differences with that of the comparable companies.

Benefit Test Must Be Considered For Determining ALP Adjustment Qua Notional Interest On Outstanding Receivables: Bangalore ITAT

Emphasizing on the necessity of credit period, the Bangalore ITAT remitted the matter of ALP adjustment made towards notional interest on outstanding receivables in case of assessee company engaged in software development and IT enabled services.

Hyderabad ITAT Dismisses Assessee's MA Qua Interest On Receivables Since Invoice-Wise Details Were Not Filed Earlier

Case Title: Aurobindo Pharma Limited verses ACIT

The Hyderabad ITAT dismissed the Miscellaneous Application filed by assessee for modifying Tribunal's order on TP adjustment qua interest on trade receivables for AY 2015-16.

Taxpayer Is Entitled To Deduction On Capital Gains U/s 54 Once It Satisfies Conditions Prescribed By Said Provision: Mumbai ITAT

While overturning the findings of CIT(A) that the assessee does not satisfy the condition laid down u/s 54 of the Income tax Act, 1961 for claiming deduction, the Mumbai ITAT directed the AO to re-compute the capital gains, if any, after allowing deduction u/s 54 as claimed by the assessee.

Compensation Received Under Mutual Agreement For Non-Renewal Of Contract Can't Form Basis Of Addition U/s 28(Ii)(E): Delhi ITAT

While clarifying the difference between profession and business, the Delhi ITAT reiterated that compensation received under mutual agreement for non-renewal of contract cannot form basis of addition u/s 28(ii)(e) of the Income Tax Act, 1961

AO Is Required To Apply His Mind To Facts Of Case And Then Pass Reasoned Assessment: Ahmedabad ITAT Calls For Adjudication Afresh

Case Title: MSK Project (India) JV Ltd. verses ACIT

On finding that the order of the AO is not a simple order giving effect to the order of the CIT passed u/s 263, the Ahmedabad ITAT restored the issue back to the AO to verify the facts of the case and thereafter pass an order in accordance with the directions of the CIT in his order passed u/s 263 of the Income Tax Act, 1961.

Retracted Statement Of Person Without Any Nexus With Taxpayer Can't Form Basis For Addition U/s 69A: Mumbai ITAT

Case Title: Mayur Kanjibhai Shah verses Income Tax Officer

The Mumbai ITAT deleted the addition made by AO u/s 69A of the Income Tax Act, 1961, on finding that retracted statement of the person representing the said firm, who otherwise neither named nor specified the role and also not connected the assessee specifically.

Once Safe Harbour Rule Of 5% Is Held As Applicable, No Addition Can Be Made By Invoking Sec 50C, Reiterates Kolkata ITAT

On finding that CIT(A) was justified in adopting the valuation given by the DVO and has rightly considered the safe harbour rule of 5% as per third proviso to section 50C of the Income Tax Act, 1961, the Kolkata ITAT upheld the CIT(A)'s decision to delete the addition made under the head of “Capital gains”.

Once Reassessment Framed By AO Is Not Sustainable,Order U/s 263 Seeking To Revise Reassessment Is Not Acceptable: Delhi ITAT

While allowing the appeal of assessee in respect of the fact that whether the PCIT had validly assumed his revision jurisdiction u/s 263 of the Income Tax Act, 1961, both in law and on facts, theNew Delhi ITAT held that the PCIT erred in assumption of jurisdiction u/s 263 of the Income Tax Act, 1961.

Income From Sale & Subscription Of Journals Is No Basis To Deny Exemption U/s 11 If Such Activities Are Not Main Objects Of Trust: Mumbai ITAT

On finding that the assessee trust is not into the business of publishing, printing, and subscription of the books as the same is not the main object of the assessee trust, the Mumbai ITAT upheld the decision of CIT(A) that the assessee's trust is eligible for exemption u/s. 11 of Income Tax Act, 1961.

Addition Made U/s 69C Based On Time Barred Assessment Is Not Sustainable: Kolkata ITAT

Case Title: Dhanterash Sales Pvt. Ltd verses ITO

On finding that there is no evidence on the file either direct or indirect or even circumstantial to show that the order was passed by the AO on or before the last date of limitation for the same, the Kolkata ITAT held that the assessment order passed by the AO is time-barred and deleted the addition made u/s 69C of the Income Tax Act, 1961.

Business Restructuring Amongst Foreign Group Entities To Eliminate Duplicate Corporate Procedure Is 'International Transaction' U/s 92B: Mumbai ITAT

The Mumbai ITAT ruled that as per Explanation to section 92B of the Income tax Act, the transaction of business restructuring shall be considered an international transaction, irrespective of the fact whether it has a bearing on the profit, income, losses, or assets of such enterprises.

Inconsistency In Treatment Of Forex Loss Without Plausible Reason For Deviation, Justifies Revisionary Interference: Hyderabad ITAT

The Hyderabad ITAT upheld the CIT's revision order citing inconsistency in treatment of forex loss without plausible reason for deviation in case of Corteva Agriscience Services India Pvt. Ltd engaged in providing sourcing, finance including evaluation of prospective customers and various other services to group companies.

Foreign AE Can Be Accepted As Tested Party: Mumbai ITAT Deletes ALP Adjustment Qua Export Of Formulations

While deciding on ALP adjustments qua export of goods to AEs and guarantee commission in case of a pharma company, engaged in manufacturing and marketing of formulations in India, the Mumbai ITAT accepted foreign AE as tested party.

Foreign-AEs Being Least Complex Entities Can Be Accepted As Tested Party, Confirms Kolkata ITAT

The Kolkata ITAT accepted foreign AE as tested party, and deleted the ALP adjustments qua export of software services and receipt of account management charges in case of assessee, engaged in providing a wide range of IT solutions.

Warranty Costs Are Not Part Of AMP Expenditure, Clarifies Bangalore ITAT

The Bangalore ITAT ruled on treatment of share-based compensation (SBC), depreciation & amortization as operating expense and inclusion of delivery charges & warranty expenses in AMP expenditure.

AO Must Follow Mandate Of Sec 50C If Values Adopted By Stamp Value Authorities Exceeds FMV Of Property: Mumbai ITAT

On finding that AO has not computed capital gains by adopting the stamp duty value, the Mumbai ITAT restored the matter back to the file of the AO to follow the mandate of provision u/s 50(C)(2) of the Income Tax Act, 1961, and decide the issue afresh after giving the assessee an adequate opportunity of hearing.

Additions Based On Altogether Different Issue On Which No Reasons Were Recorded, Dents Proceedings U/s 147 / 148: Mumbai ITAT

Case Title: M/s Manu Stock Broking Private Limited verses ACIT

On finding that addition which is not based on the reasons for reopening is un-sustainable, the Mumbai ITAT deleted the addition made by AO u/s 69C of the Income Tax Act, 1961.

Taxpayer Failed To Duly Substantiate Question Of Identity & Source Of Fund: Kolkata ITAT Remits Matter For Re-adjudication

Finding that the issue in question has been agitated for the first time before the Bench and the same has been covered by a previous decision under homogenous facts, the Kolkata ITAT remitted back the matter to the file of AO for further adjudication de-novo both in legal as well as factual aspect of the assessee.

Ahmedabad ITAT Quashes Reopening In Absence Of Tangible Material With AO To Form Reason To Believe Escaped Assessment

The Ahmedabad ITAT quashed reopening proceedings finding that there was no tangible material available with the AO to form a reason to believe that the income of assessee has escaped assessment.

Even If Organisation Is Not Entitled To Benefit U/s 11, It Is Entitled To Claim Expenses Incurred During Year Against Gross Receipts: Kolkata ITAT

On perusal of the audited balance sheet and profit and loss account, the Kolkata ITAT opined that if the assessee is given deduction of expenditure incurred during the year, which it is entitled to, then there will be a net loss against gross receipts during the year, which interalia included receipt of membership and donation from members.

Advance Filing Of Form 10B Along With I-T Return Is Not Mandatory Requirement For Claiming Exemption U/s 11 & 12: Ahmedabad ITAT

Referring to the decision in case of Association of Indian Panel board Manufacturer v Deputy Commissioner of Income Tax [2023] 157, the Ahmedabad ITAT reiterated that filing of Form 10B along with the return of income is only a procedural requirement and cannot be treated as mandatory requirement for the purpose of claiming exemption u/s 11 & 12 of the Income tax Act and even if filed at a later stage the assessee is entitled to exemption claimed.

Once ITO Accepted Income Earned Which Is Totally Based Upon Depreciation Plus 15% Markup, There Is No Reason To Deny Cost: Delhi ITAT

Finding that the assessee had arrangement with its AE for billing cost plus 15%, which has been duly billed during the year and entire depreciation cost plus 15% has been billed to the AE, the New Delhi ITAT allowed the depreciation claimed by assessee.

Interest & Dividend Derived By One Cooperative Society From Its Investment Held With Another One Is Eligible For Deduction U/s 80P(2)(D): Pune ITAT

On finding that the views adopted by the tax authorities are not in conformity with legal position and binding judicial precedents, the Pune ITAT set-aside the impugned order passed by the AO and reversed the denial of deduction u/s 80P(2)(d) of the Income Tax Act, 1961.

Taxpayer Can't Be Penalised For Failure To Get Its Books Of Accounts Audited If There Exists Reasonable Cause For Such Failure: Jaipur ITAT

While allowing the appeal against the order passed u/s 271B of the Income tax Act, the Jaipur ITAT held that provision of section 273B gives power to the taxing authority not to impose the penalty if the assessee proves that there was a reasonable cause for failure to get the books of accounts audited and directed the AO to delete such addition.

Deeming Provisions Of Sec 69B Can't Be Invoked Once Nexus Of Source Of Unrecorded Transactions With Assessee's Business Is Proved: Chandigarh ITAT

Proceeding Upon Intimation Passed U/s 143(1) Without Granting Reasonable Opportunity Of Hearing To Assessee, Is Bad In Law: Kolkata ITAT

Belief Of AO Regarding Escapement Of Income Should Be Based On Some Tangible Information: Kolkata ITAT Quashes Reassessment

Accepting Submissions Of Assessee Cannot Be Said As Faulty If Assessment Was Made By National E-Assessment Centre: Indore ITAT Quashes Sec 263 Order

Rights Held By Taxpayer As Confirming Party In Sale Deed Is Capital Asset As Per Sec 2(14) And Liable For LTCG: Ahmedabad ITAT

Failure To Produce Share Certificate Is No Basis To Doubt Share Purchase Transaction: Mumbai ITAT Refers Art 265 Of Constitution

Trading Income From Sale Of Scrips Can't Be Conferred As 'Unaccounted Income' If Trading Activity Is Not Disputed At Any Time: Ahmedabad ITAT

If Period Of Holding Of Plant & Machinery Is More Than 36 Months, it Qualifies As Long-Term Capital Asset As Per Sec 2(42A): Ahmedabad ITAT

Deeming Provisions Of Sec 2(22)(E) Gets Attracted To Beneficial Shareholder Only Who Has Controlling Interest: Kolkata ITAT

Ahmedabad ITAT Quashes Sec 263 Order Absent Twin Conditions For Exercise Of Power Under Said Provision

AO Can't Apply Sec 69 R/w/S 115BBE To Surrendered Business Income Of Assessee Which Was Duly Offered In I-T Return: Chandigarh ITAT

Kolkata ITAT Deletes Addition Made By AO Upon Capital Gains By Adopting Value Of Property As Per DVO's Report

Mere Dismissal Of Appeal For Want Of Prosecution Is Not In Accordance With Mandate Of Sec 250(6): Kolkata ITAT

Prima Facie Adjustment Made By CPC Towards Deduction U/s 80P Prior To Apr 01, 2021 Is Beyond Its Jurisdiction: Kolkata ITAT

Rule 11UA(2)(A) R/w Explanation (A) To Sec 56(2)(Viib) Does Not Require Valuation Report For Substantiation Under NAV Method: Delhi ITAT

Taxpayer Possessing Tax Residency Certificate & Offering Taxes On Income In Other Contracting State, Deserves Treaty Benefit U/s 90: Kolkata ITAT

AO Fails To Demonstrate Live Link Between Tangible Material & Reason To Believe Escaped Income: Delhi ITAT Quashes Reopening

CIT(A) Can't Simply Dismiss Any Appeal U/s 250 On Account Of Non-Prosecution, Without Discussing Merits Of Case: Ahmedabad ITAT

Addition Towards Purchases Should Be Restricted To Embedded Profit Once AO Has Not Disputed Sales Declared By Assessee: Mumbai ITAT

Premium Charged On Issue Of Shares To Existing Shareholder Is Not Deemed Income U/s 56(2)(Viib) If No Income Accrues To Ultimate Beneficiary: Delhi ITAT

Claim Seeking Application Of Income For Charitable Purpose U/s 11 & 12 Can't Be Denied To Trust On Mere Technicalities: Delhi ITAT

Income Tax Exemptions Available To ST Individuals Can't Be Extended To Partnership Firm: ITAT

LTCG Tax Exemption Can't Be Denied Due To An Error Made By The Builder In Assigning Apartment: ITAT

CIT(A) Not Empowered To Dismiss An Appeal On Account Of Non-Prosecution: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the CIT(A) has no power to dismiss an appeal on account of non-prosecution.

Contribution Made By NSE To Core SGF Is Not In The Nature Of Any Deposit/Contingency/Reserve: ITAT

Case Title: National Stock Exchange of India Versus DCIT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the contribution made by the assessee stock exchange to Core SGF is not in the nature of any deposit, contingency, or reserve.

ITAT Quashes Pre-Drafted Performa Penalty Notice Containing Both Concealed And Inaccurate Particulars Of Income

Case Title: Jatin Enterprises Versus ACIT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has quashed a pre-drafted penalty notice containing both concealed particulars of income and furnished inaccurate particulars of income.

Payments Made To Doctors Would Be Covered By TDS Provisions U/S 194J Of Income Tax Act: ITAT

Case Title: ACIT verses Artemis Medicares Services Ltd.

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) consisting of M. Balaganesh (Accountant Member) and Anubhav Sharma (Judicial Member) has held that the payments made to doctors would be covered by TDS provisions under Section 194J and not Section 192 of the Income Tax Act.

Payment From Google Towards Marketing & Distribution Rights Of AdWords Is Not Royalty, Clarifies Bangalore ITAT

Case Title: Google Ireland Ltd verses DCIT

Following the Coordinate Bench ruling in IT(IT)A No.2845/Bang/2017, wherein it was held that the payment made by Google India to assessee was not in the nature of royalty/ FTS and consequently it could not be brought to tax in the hands of assessee, the Bangalore ITAT ruled that amount received by Google Ireland (Assessee) from Google India towards marketing & distribution rights of AdWords program is not royalty.

No Reference Can Be Made To DVO Once Value Of Capital Asset Declared By Taxpayer Is More Than FMV: Chennai ITAT

Case Title: Late Smt. Nirmala Venkatapathy verses ITO

Case Title: Mehsana Urban Co-op. Bank Ltd. verses ACIT

Case Title: Mihir Parikh verses ACIT

Case Details: Mukesh Trends Lifestyle Limited verses Dy CIT

Case Title: Manuj Jain HUF verses Pr. CIT