Tax
Claim Seeking Application Of Income For Charitable Purpose U/s 11 & 12 Can't Be Denied To Trust On Mere Technicalities: Delhi ITAT
The New Delhi ITAT emphasized that the Revenue Authorities have to tax the right person in right manner and shall not disallow the eligible deductions on mere technicalities.The Bench of M. Balaganesh (Accountant Member) and Yogesh Kumar U.S (Judicial Member) observed that “the Revenue has rejected the plea of the Assessee based on mere technicalities and it is not the case of the Revenue...
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
Recently, the Delhi ITAT reiterated that object of deeming an unjustified premium charged on issue of share as taxable income u/s 56(2)(viib) of the Income tax Act is wholly inapplicable for transactions between holding and its subsidiary company where no income can be said to accrue to the ultimate beneficiary, i.e., holding company. The Bench of Kul Bharat (Judicial Member) and...
Addition Towards Purchases Should Be Restricted To Embedded Profit Once AO Has Not Disputed Sales Declared By Assessee: Mumbai ITAT
Referring to the decision of Bombay High Court in the case of Principal CIT vs Mohammed Haji Adam & Co (Income Tax Appeal No.1004 of 2016 dated 11/02/2019), the Mumbai ITAT reiterated that the additions should be limited to the extent of the G.P. rate on purchases at the same rate of other genuine purchases.The Bench of Aby T Varkey (Judicial Member) and MS Padmavathy S (Accountant...
CIT(A) Can't Simply Dismiss Any Appeal U/s 250 On Account Of Non-Prosecution, Without Discussing Merits Of Case: Ahmedabad ITAT
The Ahmedabad ITAT emphasized that as per Section 250 of the Income tax Act, it is incumbent on the CIT(A) to make necessary enquiry before passing the order and he is obliged to decide each of the points arising out of the appeal i.e. grounds on merits have to be discussed even in an ex-parte order.The Bench of Annapurna Gupta (Accountant Member) and Siddhartha Nautiyal (Judicial...
AO Fails To Demonstrate Live Link Between Tangible Material & Reason To Believe Escaped Income: Delhi ITAT Quashes Reopening
On finding that the requirement of application of mind is missing in the instant case, the Delhi ITAT held that the reassessment made in the section 143(3) read with section 147 of the Income Tax Act, 1961, is bad in law and hence, the re-assessment order is quashed.The ITAT pointed that there is no independent application of mind by the AO to tangible materials and reasons and the AO failed...
Taxpayer Possessing Tax Residency Certificate & Offering Taxes On Income In Other Contracting State, Deserves Treaty Benefit U/s 90: Kolkata ITAT
Finding that the Appellant/ Assessee has valid Tax Residency Certificate (TRC) for United Kingdom, the Kolkata ITAT reiterated that the salary income received by assessee for his work during stay at United Kingdom is exempt from tax on account of treaty benefit. The Bench of Dr. Manish Borad (Accountant Member) and Anikesh Banerjee (Judicial Member) observed that “the...
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
Finding that the book value of assets and liabilities adopted for the purposes of NAV method of valuation is in consonance with last audited balance-sheet items, the Delhi ITAT clarified that the AO has misdirected himself on seeking valuation report which requirement do not emanate from the law codified in this regard. The Bench of Kul Bharat (Judicial Member) and Pradip...
Prima Facie Adjustment Made By CPC Towards Deduction U/s 80P Prior To Apr 01, 2021 Is Beyond Its Jurisdiction: Kolkata ITAT
The Kolkata ITAT ruled that section 80AC of the Income tax Act puts a bar against claiming of deduction in respect of certain income provided under the head (C) of Chapter VIA which includes section 80P of the Act also if the return of income are not filed before the due date prescribed u/s. 139(1) of the Act.The Bench of Rajpal Yadav (Vice President) and Girish Agrawal (Accountant...
Mere Dismissal Of Appeal For Want Of Prosecution Is Not In Accordance With Mandate Of Sec 250(6): Kolkata ITAT
Since the AO as well as the CIT(A) has not examined the issue with the angle of section 69, rather they took the conditions of section 68 where unexplained cash credit is required to be explained by the assessee and applied on the issue of investment, the Kolkata ITAT remanded the matter for re-adjudication.Finding that the CIT(A) has merely followed the decision of the ITAT, whereby appeals...
Kolkata ITAT Deletes Addition Made By AO Upon Capital Gains By Adopting Value Of Property As Per DVO's Report
Upon not finding justification on the part of the Income Tax Authorities in computing the capital gains by adopting the sale value as per the value estimated by the Departmental Valuation Officer, the Kolkata ITAT deleted the addition made by the AO in respect of capital gains by adopting the value of the property as per the DVO report.The Bench of the ITAT comprising of Sanjay Garg...
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
Finding that the nature and source of unaccounted investment in the hospital building is arising out of assessee's professional receipts, the Chandigarh ITAT ruled that there was no justifiable basis on the part of the AO in applying the provisions of Section 69 r/w Section 115BBE of the Income tax Act to the surrendered business income of the assessee which has been duly offered...
Customs Act | Importer's Subsequent Import Bill Be Discarded If Undervalued To Previously Imported Identical Or Similar Goods: Supreme Court
Recently, the Supreme Court held that under the Customs Act, the Importer's Bill of Entry of subsequent imported goods can be discarded if the subsequent imported goods are undervalued to the previously imported identical or similar goods. Affirming the findings of the Central Customs, Excise & Service Tax Appellate Tribunal (“CESTAT”), the Bench comprising Justices Abhay S. Oka...