INCOME TAX
Violation of RBI Notification Prohibiting Deposit Of Demonetized Notes Does not attract Addition On Account of Unexplained Cash Credits: ITAT
The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) consisting of B.R. Baskaran (Accountant Member) held that violation of the RBI notification prohibiting deposit of demonetized notes does not attract addition on account of unexplained cash credits. The appellant/assessee is a primary agricultural credit co-operative society providing credit facilities to its members. The AO noticed that the assessee had deposited a sum of Rs. 36,36,000 in the form of Specified Bank Notes...
Notice Imposing Penalty For Concealment Of Income Can't Be Issued Without Specifying The Limb: ITAT
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the notice imposing a penalty for concealment of income cannot be issued without specifying the relevant limb. The two-member bench of Suchitra Kamble (Judicial Member) and Waseem Ahmed (Accountant Member) has observed that the Assessing Officer and the CIT (A) have simply imposed a penalty on concealment of income under Section 271(1)(c) of the Income Tax Act without giving any opportunity to the assessee...
Failure Of Assessee To Give Proper Reasons For Not Appearing Before The Tax Authorities: ITAT Imposes Cost
The Banglore Bench of the Income Tax Appellate Tribunal (ITAT) consisting of B.R. Baskaran (Accountant Member) has imposed a cost of Rs.10,000 on the assessee for the failure to give proper reasons for not appearing before the tax authorities.The assessee/appellant is the director of the group company named M/s. Panama Nature Fresh Pvt. Ltd. It was the understanding of the assessee that the purchase of jewellery as well as deposits of money into the bank account were being assessed in the...
ITAT Deletes Addition Of Cash Deposited During demonetisation period by Retired Army Officer
The Banglore Bench of the Income Tax Appellate Tribunal (ITAT) consisting of B.R. Baskaran (Accountant Member) deleted the addition of cash deposits during the demonetisation period on the ground that the retired army officer had withdrawn the cash to meet medical emergencies. The assessee is a retired army officer and is drawing a pension. During the demonetisation period, the assessee deposited a sum of Rs. 7,01,000 in aggregate in two bank accounts. Asked about the sources, the ...
Consideration For Resale Of Computer Software Is Not The Payment Of Royalty For Use Of Copyright In Computer Software: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Chandra Mohan Garg (Judicial Member) and Shamim Yahya (Accountant Member) has held that consideration for the resale of the computer software through End User Licence Agreement (EULA)/distribution agreements is not the payment of royalty for the use of copyright in the computer software and, therefore, not taxable in India. The assessee, M/s. Kony Inc., is in the business of being a multichannel application...
Assessee Discharges Primary Onus Submitting Documentary Evidence: ITAT Deletes Addition of Unexplained Cash Credits
The Raipur Bench of the Income Tax Appellate Tribunal (ITAT), consisting of Ravish Sood (Judicial Member) and Jamlappa D Battull (Accountant Member), has deleted the addition made on account of unexplained cash credits. The respondent/assessee is in the business of manufacturing M.S. ingots. The assessee had filed its return of income for the assessment year 2012-13 on September 26, 2012, declaring an income. Subsequently, the case of the assessee was selected for scrutiny assessment....
Monthly Digest Of Tax Cases: May 2022
Indirect Taxes Supreme Court GST Council Recommendations Not Binding On Centre & States; Both Parliament & State Legislatures Can Legislate On GST : Supreme Court Case Title : Union of India and Anr versus M/s Mohit Minerals Through Director Citation : 2022 LiveLaw (SC) 500 In a significant verdict, the Supreme Court held that the recommendations of the GST council are not binding on the Union and the State Governments. A bench led by Justice DY Chandrachud held...
Assessee Entitled To Additional Depreciation On The Power Plant And Installed Windmill: Delhi ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Yogesh Kumar U.S. (Judicial Member) and B.R.R. Kumar (Accountant Member) has ruled that assessees are entitled to additional depreciation on the power plant and the installed windmill. The assessee/appellant is engaged in the fields of manufacturing and selling of sponge iron, billets, wire rod, TMT, and generation of power, etc. The assessee filed its e-return declaring total income and the return was revised by...
Onus To Prove Identity, Creditworthiness And Genuineness Of Transaction Lies On Assessee: Pune ITAT
The Pune Bench of the Income Tax Appellate Tribunal (ITAT), consisting of Partha Artha Sarathi Chaudhury (Judicial Member) and Inturi Rama Rao (Accountant Member), has ruled that the onus to prove identity, creditworthiness, and genuineness of a transaction lies with the assessee. The assessing officer found that during the year under consideration, the share capital of the company was increased, showing an increase of Rs. 9,30,00,000/-. On being asked to explain, it was contended that...
Tax Cases Weekly Round-Up: 22 May To 28 May 2022
Supreme Court Case Name: Union of India And Anr. v. M/s. Mohit Minerals Through Director Citation: 2022 LiveLaw (SC) 500 Separate IGST On Indian Importers For Ocean Freight Against Concept Of "Composite Supply", Violates Section 8 CGST Act : Supreme Court The Supreme Court has held when the Indian importer is liable to pay Integrated Goods and Services Tax (GST) on the 'composite supply', which includes supply of goods and supply of services of transportation, insurance, etc. in...
Loss Arising Out Of Sale Of Government Securities Is A Trading Loss: ITAT
The Visakhapatnam Bench of the Income Tax Appellate Tribunal (ITAT) held that the loss arising out of the sale of government securities is a trading loss. The two-member bench of Duvvuru Rl Reddy (Judicial Member) and S. Balakrishnan (Accountant Member) observed that the treatment of securities of the AFS (available for sale) categories has to be seen in contradiction and contrast with securities of the HTM (held to maturity) categories, which are purchased and held for the purpose of ...
Income Tax Penalty Can't Be Imposed For Committing Unintentional Error In Form-16: ITAT
The Pune bench of the Income Tax Appellate Tribunal (ITAT) consisting of S.S. Viswanethra Ravi (Judicial Member) and Inturi Rama Rao (Accountant Member) has ruled that the income tax penalty cannot be imposed for committing an unintentional error on Form-16. The appellant/assessee is an individual who filed a return declaring a total income of Rs. 5,39,360. A notice under section 143(2) of the Income Tax Act was issued seeking an explanation regarding the return of income. According to...