Tax
Cash Sales Already Offered As Income Can't Be Taxed In Garb Of Inflation Sales To Cover Up Demonetization Currency: Delhi ITAT
The New Delhi ITAT recently clarified that the cash sales already been offered as income, cannot be taxed in the garb of inflation sales to cover up demonetization currency. The Bench of N.K. Billaiya (Accountant Member) and Astha Chandra (Judicial Member) observed that “Merely because there was a minor variation in the cash sales during the alleged period compared to previous...
Money Received As Security Deposit If Subsequently Refunded To Developer, Is Irrelevant For Determining Taxability U/s 56(2)(Vii)(A): Mumbai ITAT
While deleting the enhancement made u/s 56(2)(vii)(a) of the Income Tax Act, the Mumbai ITAT explained that as per the provisions of section 56(2)(vii)(a), any sum of money, the aggregate of which exceeds Rs.50,000, received by an individual without consideration is taxable as income from other sources, and thus, u/s 56(2)(vii)(a), the incidence of taxation is at the stage of receipt...
Commission Expenses Can Be Allowed If Taxpayer Satisfies Rendering Of Services By Commission Agents And Income From Same Is Shown In Return: Mumbai ITAT
While deleting the addition made u/s 68 of the Income Tax Act, the Mumbai ITAT directed the assessee to file the details of the services rendered by the commission agents for availing the commission payment from the assessee. The ITAT clarified that if the assessee satisfies the AO about the services rendered by these commission agents and that they had shown their income as...
Action Can Be Initiated U/s 153C Based On Seizure Made During Course Of Search And Not Based On Material Impounded In Course Of Survey: Mumbai ITAT
While quashing the proceedings initiated u/s 153C of the Income Tax Act based on the material impounded in course of survey action, the Mumbai ITAT clarified that the material considered for initiating action u/s 153C in the case of assessee was not seized in the course of search action but was impounded in the course of the survey action, and hence assessment u/s 153C is not as...
No Addition Permitted U/s 68 Once Taxpayer Establishes Genuineness & Creditworthiness Of Share Subscribers: Mumbai ITAT
The Mumbai ITAT upheld the order of CIT(A) in deleting the addition made by the AO u/s 68 of the Income Tax Act, since the assessee has successfully established the genuineness and creditworthiness of the share subscribers alleged for the bogus transactions. The Bench of the ITAT comprising of Aby T. Varkey (Judicial Member) and B R Baskaran (Accountant Member) observed that...
No Deduction Can Be Claimed If Employees' Contribution Deducted From Employee's Salary was Not Paid To Respective PF & ESI A/c: Kolkata ITAT
Finding that the returns of the assessee have been processed in the Computer Processing Centre, the Kolkata ITAT ruled that if the Auditors have reported in the Audit Report that employees' contribution have been deducted by the assessee from the salaries of the employees but not deposited within due date provided under PF&ESI Act then no deduction can be claimed by assessee. The...
Income Of Co-Operative Society By Way Of Interest Derived From Investment With Any Other Cooperative Society, Is Allowable U/s 80P: Mumbai ITAT
Finding that assessee in the present case is not a cooperative bank, since the office of Central registrar of cooperative societies, New Delhi has issued a certificate of registration to the assessee registering it u/s 11 of Multistate Cooperative Societies Act, 2002, the Mumbai ITAT ruled that the income earned by a co-operative society by way of interest derived by from its investment...
Extension Of Timeline For Filing Form No.10AB For Recognition U/s.12A Is Deemed Extension For Renewal Of Approval Under Clause (Iii) Of First Proviso To Sec 80G: Chennai ITAT
The Chennai ITAT recently clarified that once the timeline prescribed for filing Form No.10AB for recognition u/s.12A has been extended, the same may be treated as extended for Form No.10AB for renewal of approval/recognition/registration under clause (iii) of the first proviso to section 80G of the Income Tax Act. The ITAT held so while agreeing with the contention of the...
Direct Tax Cases Weekly Round-Up: 7 April To 13 April 2024
Delhi High Court Delhi High Court Interprets Rule 11UA For Determination FMV Of Shares U/S 56(2)(viib) Case Title: Agra Portfolio Pvt. Ltd. Versus Pr. Commissioner Of Income Tax The Delhi High Court has held that it has interpreted Rule 11UA of the Income Tax Rules, 1962, for determining the fair market value (FMV) of shares under Section 56(2)(viib) of the Income Tax...
Actual Expenditure, Source Of Which Was Not Explained, Attracts Deeming Provisions Of Sec 69: Ahmedabad ITAT
The Ahmedabad ITAT recently ruled that actual expenditure, the source of which has not been explained, attracted the deeming provisions provided u/s 69 of the Income tax Act. The ITAT at the same time clarified that no addition can be made in the hands of the assessee merely on the reason that the assessee got the property transferred through registered sale without making...
Filing Delayed Returns, Power To Condone Delay Is Conferred On CBDT To Ensure Substantial Justice; Bombay High Court
Explaining the scope of powers u/s 119(2)(b) of the Income tax Act, the Bombay High Court recently clarified that the legislature has conferred power on the Principal Commissioner of Income Tax (respondent no.3) to condone the delay to enable the authorities to do substantive justice to the parties by disposing the matter on merits. Hence, the High Court observed that routinely...
Indirect Tax Cases Weekly Round-Up: 7 April To 13 April 2024
Supreme Court Supreme Court Expunges Gujarat HC's Adverse Observation Against GST Officials Case Title: The State Of Gujarat & Anr. V. Paresh Nathalal Chauhan Citation : 2024 LiveLaw (SC) 295 The Supreme Court (on March 12) expunged the observations made by the Gujarat High Court in an interim order that statutory protection of the good faith clause under Section 157...