Tax
Ascertained Liability Can't Be Added Back As Per Clause (C) Of Explanation-1 To Sec 115JB(2): Mumbai ITAT
On finding that the liability of payment to Core SGF by the assessee is ascertained, the Mumbai ITAT held that it cannot be added back as per clause (c) of Explanation-1 to section 115JB(2) of the Income Tax Act. The Bench of the ITAT comprising of Aby T. Varkey (Judicial Member) and S Rifaur Rahman (Accountant Member) observed that “in assessee's own case for AY 2016-17 this...
Addition U/s 68 Should Be Restricted To Extent Of Gross Profit At Same Rate Of Genuine Purchases If Sales Are Not Disputed: Mumbai ITAT
While deleting the addition made u/s 68 of the Income Tax Act, the Mumbai ITAT held that in the absence of any dispute and discrepancy in the sales, the addition should be restricted to the extent of gross profit at the same rate of the genuine purchases. The Bench of the ITAT comprising of Rahul Chaudhary (Judicial Member) and Prashant Maharishi (Accountant Member) observed...
Pune ITAT Grants Additional Opportunity To 'Lady Of Hope Church' To Establish Genuineness Of Its Charitable Activity
While allowing the appeal challenging the cancellation of provisional registration of the applicant trust u/s 12AB of the Income Tax Act, the Pune ITAT set aside the order of CIT(E) and remanded the matter back to specifically examine the genuineness of the charitable activities performed by the trust as per his satisfaction. The ITAT directed the applicant to file all the...
No Adhoc Disallowance Is Permitted Without Rejecting Books Of Account: Mumbai ITAT
On finding that the AO had audited and still not rejected the books of account, the Mumbai ITAT held that the ad hoc disallowance made by the AO was not justified and needed to be deleted. The Bench of the ITAT comprising of Kuldip Singh (Judicial Member) and S. Rifaur Rahman (Accountant Member) reiterated while considering the findings of the CIT(A) that “because the books of...
Section 54F Does Not Envisage That Sale Consideration Obtained From Original Capital Asset Is Mandatorily Utilized For Meeting Cost Of New Asset: Delhi ITAT
While allowing deduction u/s 54 of the Income tax Act, the New Delhi ITAT explained that under the light of section 54, exemption of capital gain from being charged to income tax as income of the previous year is attracted when another residential house has been purchased within one year before or two years after the date of transfer or has been constructed within three years after the...
Deduction U/s 43B Shall Be Allowed If Assessee Has Claimed Such Deduction On Payment Basis: Rajkot ITAT
The Rajkot ITAT held that the claim of the assessee cannot be denied as it was not reported in the tax audit report, especially in the circumstances where other evidence is available on record suggesting the deduction in pursuance to the provisions of section 43B on payment basis is available. The Bench of the ITAT comprising of TR Senthil Kumar (Judicial Member) and...
Bonafide Mistake Committed By Assessee While Applying For Registration In Form 10AB Instead Of Form 10A, Merits To Be Condoned: Hyderabad ITAT
On finding that it is proper to condone the mistake committed by the assessee while applying for registration in Form 10AB instead of Form 10A of the Income Tax Act, the Hyderabad ITAT directed the CIT(E) to hear and dispose of the request of the assessee by allowing it to apply under Form 10A. The Bench of the ITAT comprising of Rama Kanta Panda (Vice President) and...
[United Provinces Excise Act 1910] Cancellation Of License Can't Be Due To Suspicion, Must Be Based On Cogent Material: Allahabad High Court
The Allahabad High Court has held that the cancellation of license under Section 34(2) of the United Provinces Excise Act, 1910 cannot be based on suspicion. The Court held that without there being any cogent material or evidence such harsh penalty of cancellation of license must not be invoked.Section 34(2) of the United Provinces Excise Act, 1910 provides for cancellation of any license...
Mere Disallowance Of Expenditure Or Enhancement Of Returned Income Does Not Ipso Facto Call For Penalty U/s 271(1)(C): Delhi ITAT
While holding that mere disallowance of expenditure or enhancement of returned income does not ipso facto call for the imposition of penalty u/s 271(1)(c) of Income Tax Act, the Delhi ITAT deleted the said penalty. The Bench comprising of Kul Bharat (Judicial Member) and Pradip Kumar Kedia (Accountant Member) observed that “No allegation towards the nature of default...
Payment Of Excessive Or Unreasonable Salary Is Sine Qua Non For Invoking Provision Of Sec 40A(2)(B): Ahmedabad ITAT
On finding that none of the orders passed by I-T Authorities doubted the services so rendered by the administrative head nor alleged to have been paid salary excessive or unreasonable which is sine qua non in invoking the provision of Section 40A(2)(b) of the Income Tax Act, the Ahmedabad ITAT allowed the deduction u/s 40A(2)(b). The Bench of the ITAT comprising of Madhumita...
Time Barred Appeal Is Not Maintainable In Absence Of Sufficient Cause For Condonation: Vishakhapatnam ITAT
On finding that the assessee had neither substantiated his case before the Tribunal or before the CIT(A), the Visakhapatnam ITAT rejected the condonation and dismissed the appeal filed by the assessee in-limine. The Bench of the ITAT comprising of Duvvuru Rl Reddy (Judicial Member) and S Balakrishnan (Accountant Member) observed that “Even though the CIT(A) and the Tribunal has...
Reassessment Can't Be Based On Reasons Borrowed From Other Dept. Or Justice M.B. Shah Commission Report: Bombay High Court
The Bombay High Court has held that the reasons for reopening clearly show that the assessing officer, except borrowing the information from the third report of the Justice M.B. Shah Commission, failed to record independently to his own satisfaction any reason so as to direct the reopening of the assessment. The bench of Justice Bharat P. Deshpande and Justice Valmiki Menezes did not see...