ITAT Cases Weekly Round-Up: 26 May To 01 June 2024
Mariya Paliwala
2 Jun 2024 10:15 AM IST
Date Of Possession Of New Property To Be Considered As Date Of Acquisition; ITAT Allows DeductionCase Title: Sunil Amritlal Shah Versus The Income Tax Officer(IT)The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the date of possession of new property to be considered as date of acquisition and the assessee is entitled to deduction under Section 54 of the Income Tax Act on...
Date Of Possession Of New Property To Be Considered As Date Of Acquisition; ITAT Allows Deduction
Case Title: Sunil Amritlal Shah Versus The Income Tax Officer(IT)
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the date of possession of new property to be considered as date of acquisition and the assessee is entitled to deduction under Section 54 of the Income Tax Act on the purchase of new property.
Receipts From CRM Services Not Taxable In India As Royalty Or FTS: ITAT
Case Title: Salesforce.com Singapore Pte Ltd. Versus ACIT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that receipts from Customer Relationship Management (CRM) services are not taxable in India as royalty or Fee for Technical Services (FTS).
CSR Expenditure Is Mandatory, Does Not Justify Disallowance Of Section 80G Deduction: ITAT
Case Title: Interglobe Technology Quotient Private Limited Versus ACIT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that expenditures under corporate social responsibility (CSR) are mandatory and does not justify disallowance of these expenditures under Section 80G of the Income Tax Act if other conditions of Section 80G are fulfilled.
Case Title: Computer Modelling Group Ltd. Versus ACIT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that since the assessee was a non-resident, the entire tax was to be deducted at source on payment made by the payer to it, and there was no question of advance tax payment by the assessee; accordingly, no interest under Section 234B could be levied upon the assessee.
Case Title: Shree Bipin Biharidas Charitable Foundation verses CIT (Exemption)
Referring to the decision of the Calcutta Bench in ITA No. 994/Kol/2023, the Ahmedabad ITATreiterated that the assessee, who has been granted provisional registration, is eligible to apply for final registration irrespective of the fact that the assessee had already commenced its activity even prior to the date of grant of provisional approval.
Case Title: Shree Jay Limbach Co. Op. Credit Society Ltd. verses ITO
Observing that the assessee was all along, from the beginning since it became aware of some intimation having been made u/s 143(1) of the Income tax Act, seeking rectification in the same, the Ahmedabad ITAT held that rejection of said rectification application as being time barred is not in conformity with law.
Case Title: Kankaria Maninagar Nagarik Sahakari Bank Ltd. Versus Deputy Commissioner of Income Tax
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that loss due to the sale of government securities by banks is a “business loss” and the income tax deduction is allowable under Section 37 of the Income Tax Act.
SBI Not Liable To Deduct TDS On Transactions Related To Assignment Of Loans By NBFC: ITAT
Case Title: State Bank of India Versus DCIT(TDS)
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the State Bank of India (SBI) is not liable to deduct tax at source (TDS) on transactions related to the assignment of loans by non-banking financial companies (NBFC).
Case Title: DCIT Versus J. K. Techno soft Ltd.
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has deleted the income tax addition and held that mark-to-market losses, losses on forward contracts, and losses on forward premium accounts are not speculative in nature.
Case Title: Computer Modelling Group Ltd Vs ACIT
The Delhi ITAT held that receipts by a foreign entity from provision of software services to oil companies in India being in the nature of business profits are not taxable in India in the absence of its Permanent Establishment (PE) during the relevant AYs.
Case Title: Devki Nandan Maheshwari Vs ACIT
The Delhi ITAT deleted the addition made u/s 68 being unsecured loan obtained from a firm by the Assessee for further investment in a company on the ground that the identity, creditworthiness, and genuineness of the transaction stands proved.
Case Title: Conferencecall Services India Pvt. Ltd Vs Dy. Commissioner of Income Tax
The Chennai ITAT recently held that the final assessment order dated Nov 21, 2017 passed after expiry of one month from the end of the month in which the DRP directions were received by the Revenue is barred by limitation and hence, “passed wholly without jurisdiction and therefore, null in the eyes of law”.
Date Of Possession Of New Property To Be Considered As Date Of Acquisition; ITAT Allows Deduction
Case Title: Sunil Amritlal Shah Versus The Income Tax Officer(IT)
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the date of possession of new property to be considered as date of acquisition and the assessee is entitled to deduction under Section 54 of the Income Tax Act on the purchase of new property.
Receipts From CRM Services Not Taxable In India As Royalty Or FTS: ITAT
Case Title: Salesforce.com Singapore Pte Ltd. Versus ACIT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that receipts from Customer Relationship Management (CRM) services are not taxable in India as royalty or Fee for Technical Services (FTS).
CSR Expenditure Is Mandatory, Does Not Justify Disallowance Of Section 80G Deduction: ITAT
Case Title: Interglobe Technology Quotient Private Limited Versus ACIT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that expenditures under corporate social responsibility (CSR) are mandatory and does not justify disallowance of these expenditures under Section 80G of the Income Tax Act if other conditions of Section 80G are fulfilled.
Case Title: BNP Paribas Vs Assistant Commissioner of Income Tax (IT)
Referring to the provision of Article 12 and 7 of the India-France DTAA which demonstrate that interest payment made by the permanent establishment to the head office are not taxable in the hands of the head office, the Mumbai ITAT held that interest received by the overseas head office (HO) from its Permanent Establishment (PE) is not taxable under beneficial provision of DTAA.
Case Title: Pr. CIT vs. Mahagun Realtors (P.) Ltd.
The Mumbai ITAT held that the rectification order passed in the name of a non-existent entity, despite informing Revenue regarding its merger, is non-est in the eyes of law.
Case Title: ACIT Vs Lx Pantos India Private Limited
The New Delhi ITAT held that no tax is deductible at source u/s 195 on payments made to overseas logistics company for rendition of logistics services, as such services cannot be treated as fees for technical services (FTS) as defined in Explanation 2 to Section 9(1)(vii).
Case Title: Mullanpur Garibdas Co-operative Multipurpose Society Vs The PCIT
The Chandigarh ITAT quashed the revision order u/s 263 holding that application of mind is discernible from examination of the record and that “the power under Section 263 of the Act was exercised on the basis of a mere difference in opinion with the AO, rendering such exercise of revisionary power to be invalid”.
Case Title: ITO verses Mangalvani Commercial Pvt. Ltd.
Noticing that against the alleged credits in the form of share capital & share premium, an equal amount of investment in equity of other entity has been made, the Kolkata ITAT confirmed the addition made u/s 68 of the Income Tax Act.
Case Title: Dream Valley Barter Pvt. Ltd verses ITO
On finding that the CIT(A) has failed to point out any defect and discrepancy in the evidence and details furnished by the assessee but simply upheld the order of the AO in a mechanical manner, theKolkata ITAT held that once the assessee has proved the identity and creditworthiness of the share subscribers, the burden shifts upon the AO to examine the evidence and made independent inquiries.
Case Title: Ambience Private Limited verses ITO
On finding that the assessee has a valid reason to consider the payments on account of 'transactional charges' to be not covered by section 194J(1)(ba) of the Income Tax Act, the New Delhi ITAT ordered to delete the penalty order passed by the CIT(A) u/s 271C.
Case Title: Majhaulia Sugar Industries Pvt. Ltd verses ITO
Finding that the AO has nowhere examined the order of the Pollution Control Board asking the assessee to make the payment, the Kolkata ITAT held that every payment made by the assessee to the Board for violation of environmental norms would not be penal, and hence, deleted the addition made by AO.
Case Title: Purnasons Pvt. Ltd verses ITO
While referring to the provisions of section 80M of the Income Tax Act, that the assessee company would be allowed a deduction of an amount equal to and not exceeding the amount of dividend “distributed” on or before the due date, the Kolkata ITAT held that assessee is rightly within law to claim deduction u/s 80M.
Case Title: Pilani Industrial Corporation Limited verses ACIT
On finding that Department had acted without any evidence to make disallowance u/s 69 r.w.s 115BBE of the Income Tax Act, the New Delhi ITAT held that treating the cash deposit as unexplained cash without rejecting the books of account, is legally not permissible.
