Tax
Profit Element Embedded In Unexplained Sales Can Only Be Treated As Undisclosed: Rajkot ITAT
While rejecting the estimation of profit at 12.5% deduced by AO on account of undisclosed sales, the Rajkot ITAT held that there has to be a reasonable basis for applying a particular net profit rate in each case.The Bench of Annapurna Gupta (Accountant Member) & Madhumita Roy (Judicial Member) observed that “It is basic common sense that net profit to be applied is to be at...
Requirement Of 'Commencement Of Activity' Does Not Apply To Trusts Already Started Charitable Activity Before Obtaining Provisional Registration: Pune ITAT
Finding that the Assessee Trust had applied for registration within the time allowed under the Income Tax Act, the Pune ITAT directed the CIT(E) to treat the application being filed within statutory time after verifying assessee's eligibility for deduction u/s 80IA(4) as per act.The Bench comprising of Satbeer Singh Godara (Judicial Member) And Dipak P. Ripote (Accountant Member) observed...
Proviso To Sec 80IA(12) Applies Only In Case Of Transfer Of Operation & Maintenance Of Industrial Park, Clarifies Chennai ITAT
Referring to CBDT Circular no. 10/2014, the Chennai ITAT emphasized that if an undertaking is transferred to another undertaking other than by way of amalgamation and demerger and in other cases, the transferee undertaking shall be eligible for deduction for remaining unexpired period u/s 80IA(4)(iii) of the Income Tax Act.The Bench comprising of Manomohan Das (Judicial Member) and Manjunatha....
Funds Received By Charitable Trust Under Swachh Bharat Abhiyan In Fiduciary Capacity Is Not Their Income: New Delhi ITAT
On finding that the assessee society is not the owner of the funds but holding the same in fiduciary capacity, the New Delhi ITAT upheld the CIT(A)'s decision in deleting the addition made by AO of the funds received by assessee under “Swach Bharat Abhiyan”.The Bench comprising of Challa Nagendra Prasad (Judicial Member) and B.R.R. Kumar (Accountant Member) referred to CIT(A)'s...
A Trust Is Not Barred From Getting Approval U/S 80G In Future Because It Has Not Opted For It Previously: Kolkata ITAT
The Kolkata ITAT ruled that simply because a trust/charitable institution has not opted for getting benefits under the Income-tax Act, then such institution is not barred in future from applying from registration/approval under the relevant provisions.The Bench of Sanjay Garg (Judicial Member) & Girish Agrawal (Accountant Member) found that the assessee for the first time started its...
Merely Making Incorrect Claim Does Not Tantamount To Furnishing Inaccurate Particulars: Mumbai ITAT Deletes Penalty U/s 271(1)(C)
Referring to the decision of Apex Court in the case of CIT vs. Reliance Petro Products Pvt Ltd, the Mumbai ITAT reiterated that for the purpose of levying penalty, the provisions of the Income tax Act to be strictly covered and that merely making an incorrect claim does not tantamount to furnishing of inaccurate particulars.The Bench of S Rifaur Rahman (Accountant Member) & Kavitha...
Nature Of Business Alone Is No Justification For Disallowance On Ad Hoc Basis, Without Pointing Any Deficiency In Books: New Delhi ITAT
On finding that without pointing out anything specific defect on wholesome basis, certain part of the expenses has been discarded on estimate basis, the New Delhi ITAT deleted the addition made by AO.The Bench comprising Anubhav Sharma (Judicial Member) and Shamim Yahya (Accountant Member) observed that, “However, Tax Authorities were supposed to consider the nature of the business of...
CIT(A) Merely Upholding AO's Action Without Considering Merits Of Case, Amounts To Non-Compliance Of Sec 250(6): Mumbai ITAT
In the interest of natural justice, the Mumbai ITAT restored the appeal of assessee back to the CIT with a direction to the assessee that as soon as the window is available for submission of details by the CIT(A), assessee must submit the detail within the prescribed time which is to be decided on merits of addition under section 56 (2) (x) (b) of the Income tax Act, 1961.The Bench of...
Sec 68 Can Be Invoked Only If Taxpayer Fails To Explain Amount Found Credited In Its Books: Mumbai ITAT
The Mumbai ITAT upheld the CIT(A)'s order to delete the addition made u/s 68 of the Income Tax Act, 1961 finding no unexplained cash credit in the books of assessee.The Bench of Pavan Kumar Gadale (Judicial Member) and Prashant Maharishi (Accountant Member) observed that, “It is not disputed that the assessee has not received any share application money in the financial year 2011-12...
ITR Reflecting PAN, Bank Statement & Confirmation Of Creditors Duly Adduced: Delhi ITAT Deletes Addition Based On Unsecured Loan
On finding that AO has rejected the evidences furnished by the assessee relating to bank statement and confirmation of the creditors, without establishing any falsity in the same, the Delhi ITAT deleted the addition made by AO u/s 68 of the Income Tax Act, 1961.The Bench of Challa Nagendra Prasad (Judicial Member) and B.R.R. Kumar (Accountant Member) observed that, “The AO has disregarded...
No Question Of Invoking Sec 201(1)/201(1A) if Taxpayer Has Deducted TDS At Appropriate Rates: Rajkot ITAT
Noting that assessee has also furnished tabular chart along with supporting documents to demonstrate that TDS at appropriate rates has been deducted on such trade discount / commission given to it's agents, the Rajkot ITAT held that assessee cannot be held as in default for not deducting TDS.The Division Bench of Waseem Ahmed (Accountant Member) & Siddhartha Nautiyal (Judicial...
Cash Deposit During Demonetization Can't Be Taxed As Unexplained U/S 69A If Source Is Explained: Ahmedabad ITAT
The Ahmedabad ITAT held that the AO as well as the CIT(A) was not right in making the addition of cash deposits amounting to Rs. 49,80,000/- in bank account during the demonetization period by invoking section 69A of the Income tax Act, as the assessee has fully explained the cash deposits and thus the same cannot be treated as unexplained money.The Bench of Suchitra Kamble (Judicial...