ITAT Weekly Round-Up: 18 To 24 August 2024

Case Title: Potheri Village Weaning Food Manufacturing Womens Development Industrial Coop Versus ITO

The Chennai bench of Income Tax Appellate Tribunal (ITAT) has held that the income tax deduction allowable to interest income 'attributable' to cottage industry business.

Gift Received From Non-Resident Brother Is Exempt From Taxation In India : Mumbai ITAT

Case Title: Abul Wais Abdus Salam versus ITO

Finding that Assessee has proved identity, creditworthiness and genuineness of the gift received as well as relationship with donor, the Mumbai ITAT held that gift from brother is not chargeable to tax in the hands of the assessee being relative of the donor.

Software Expenses Are 'Revenue In Nature' If Fixed Capital Did Not Undergo Any Change Consequent To Acquisition Of Licensed Software: Mumbai ITAT

Case Title: ACIT versus First Advantage Pvt Ltd

Referring to the decision in case of DCIT v/s M/s First Advantage Private Limited [ITA No. 6659/Mum/2013], the Mumbai ITAT held that software license expenses incurred by assessee to carry out its routine operations in a more efficient manner, has to be treated as revenue expenditure.

Rehabilitation Allowance received On Account Of Re-Development Of Society Can't Be Treated As Income: Mumbai ITAT

Case Title: Sonal Samit Vartak versus ITO

Referring to the decision of the Bombay High Court in case of Sarfaraz S. Furniturewall [Writ Petion No. 4958 of 2024], the Mumbai ITAT held that rehabilitation allowance paid by the developer to its resident customer who had suffered hardship due to dispossession on account of re-development, cannot be treated as income in hands of recipient.

Reasons To Believe Of Income Escaping Assessment Must Have Nexus With Information Before AO Which Led To Formation Of Such Belief: Ahmedabad ITAT

Case Title: Pareshkumar Punamchand Shah versus ITO

The Ahmedabad ITAT held that at the stage of reopening, conclusive proof of income escaping assessment is not required rather a prima-facie formation of a belief that income of assessee has escaped assessment of the AO is required based on tangible material.

Inadequate Enquiry By AO Would Not By Itself Give Occasion To CIT To Pass Order U/s 263 Merely Based On Difference Of Opinion: Ahmedabad ITAT

Case Title: Kaivan Jitendrakumar Shah HUF versus PCIT

The Ahmedabad ITAT held that the PCIT cannot impose his own view in the proceedings u/s 263 by overriding the view taken by the AO, without bringing any new fact or anything adverse on record.