Tax
Any Order Passed By Referring To Sec 144(C)(1) Should Be Construed Only As Draft Assessment Order: Madras High Court
While dismissing assessee's petition, the Madras High Court held that the impugned assessment order passed by the respondent/ AO is only a draft assessment order in which case, the petitioner/ assessee should approach the appropriate forum and address their grievance in terms of Section 144 (C) of the Income Tax Act.The Single bench of Justice Krishnan Ramasamy observed that “Though the...
No Addition Can Be Made U/s 69 If Difference In Stock Found During Survey And As Recorded In Books Stands Reconciled: New Delhi ITAT
Finding that no defects were pointed out and the books of accounts have been accepted, the New Delhi ITAT ruled that the assessee having given the explanation which was plausible explanation which stands verified in inquiry by the Assessing Officer, the same cannot be rejected arbitrarily by indulging into surmises.The Bench of Dr. B.R.R Kumar (Accountant Member) and Yogesh Kumar US...
Filing Of Return U/s 139(1) Within Due Date Is Mandatory For Claiming Deduction U/s 80IB: Ahmedabad ITAT
Emphasizing that the condition of filing the return of income within the due date is mandatory in nature for claiming deduction u/s 80IB(10) of the Income tax Act, the Ahmedabad ITAT confirmed the disallowance made by the AO under the said provision.Referring to the decision of Apex Court in Wipro Ltd. vs. Pr. CIT (2022) 142 taxmann.com 562 (SC), the Bench of Suchitra Kamble (Judicial Member)...
Once Unsecured Loan Stands Repaid Along With Interest, Then Such Loan Transaction Can't Be Treated As Non-Genuine: Mumbai ITAT
The Mumbai ITAT pointed out that the AO and the CIT(A) has applied the concept of human probabilities to hold the scrip as penny stock without bringing on record as to how the assessee is involved in any of the scrupulous activities or directly linked to one of the persons who has involved in manipulation/rigging of share prices, entry operator or exit provider.The ITAT therefore held that...
Genuineness & Veracity Of Party Can't Be Doubted To Make Addition U/s 69 Merely Because Rent Was Received In Cash: Delhi ITAT
While deleting the addition on account of unexplained investment, the New Delhi ITAT clarified that genuineness and veracity of the party cannot be doubted merely because the cold storage rent was received in cash, when the assessee is only a custodian of the goods received by it for storing in its storage.The Bench of Challa Nagendra Prasad (Judicial Member) and Dr. BRR Kumar (Accountant...
Investments Yielding Tax Exempt Income Can Only Be Considered For Computing Disallowance Under Rule 8D(2)(iii): Kolkata ITAT
Abiding by the principle of judicial hierarchy and binding precedent, the Kolkata ITAT directed the AO to consider only the investments yielding tax exempt income for computation of disallowance under Rule 8D(2)(iii) of the Income Tax Rules 1962.The Bench of the ITAT comprising of Sanjay Garg (Judicial Member) and Girish Agrawal (Accountant Member) observed while referring to the decision...
Capital Gains On Silver Articles Wrongly Estimated By I-T Authorities: Chennai ITAT Deletes Addition & Penalty Levied U/s 271(1)(C)
On finding that lower authorities had erred in computing the estimated gain on silver articles, the Chennai ITAT deleted the addition made by CIT(A) and levy of penalty u/s 271(1)(c) of the Income Tax Act, 1961.The Bench of the ITAT comprising V. Durga Rao (Judicial Member) and Manoj Kumar Aggarwal (Accountant Member) observed that, “the shortage of 693.85 grams in gold jewellery is...
Internal Arrangement W/r/t Transfer Of Assessment Proceedings Not Material For Ascertaining Limitation: Madras High Court
Finding that the period of one month expired on July 31, 2022, whereas the assessment order came to be issued on Mar 25, 2023, the Madras High Court Held the assessment order issued beyond time-limit specified in Sec.144C(13) as unsustainable.A Single Judge Bench of Justice Senthilkumar Ramamoorthy observed that “the directions of the DRP were forwarded to the assessing officer, i.e....
Cash Deposits By Members Of Society During Demonetization Not Verified In Absence Of PAN & KYC: Bangalore ITAT Asks To Reconsider Relief U/s 80P(2)(A)
The Bangalore ITAT set aside the order passed by CIT(A) for providing relief u/s 80P(2)(a)(i) and 115BBE of Income Tax Act, 1961 and redirect the case back to the file of AO for reconsideration of the genuineness of the deposit during demonetization by the assessee.At the same time, the ITAT also made it clear that in the event, the assessee does not co-operate with the revenue officer, the...
PLR Rates Are Not Applicable To Loans To Be Re-Paid In Foreign Currency Vis-À-Vis Interest On Delayed Realization: Mumbai ITAT
The Mumbai ITAT clarified that interest rates on FCNR accounts maintained in foreign currency are different and dependent upon the currency in question. They are not dependent upon the PLR rate, which is applicable to loans in Indian rupee.The ITAT therefore deleted the ALP adjustments qua Letter of Comfort and interest on delayed realization of sale proceeds from the AEs.Referring to decision...
Exgratia Bonus Paid By Indian Express To Employees Over And Above Eligible Bonus Is Allowable As Business Expenditure: Bombay High Court
The Bombay High Court has held that exgratia bonuses paid to employees over and above the eligible bonus under the Payment of Bonus Act are allowable as business expenditures.The bench of Justice K. R. Shriram and Justice Dr. Neela Gokhale has observed that the ITAT was not right in law in holding that the liability for salary and wages arising out of the Justice Palekar Award is not allowable...
Assessment Order Passed Beyond Time Limit Prescribed U/s 153 Merits To Be Quashed: Delhi High Court
Finding that no valid demand stood raised against the Petitioner / assessee prior to Sep 30, 2021, the Delhi High Court directed the Respondents / Revenue to re-compute the refund payable to the petitioner along with statutory interest which shall run up to the date of remittance in accordance with law.The High Court therefore quashes the assessment order passed beyond time limit...