ITAT Mumbai: Sale Of TDRs Does Not Attract Capital Gains Tax

The ITAT Bench of Mumbai, consisting of members Pavan Kumar Gadale (Judicial Member) and Prashant Maharishi (Accountant Member), has ruled that sale of transferable development rights does not attract capital gains tax since the cost of acquisition for the same does not exist. The Assessing Officer (AO) had issued a notice under Section 147 of Income Tax Act, 1961, reopening assessment. The AO had ruled that since transferable development rights (TDRs) arising out of an existing land...

Income Tax Notice, Revisionary Proceedings Against A Dead Person Is Void: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the notice issued against a dead person is null and void and all consequent proceedings or orders being equally tainted are liable to be set aside.The two-member bench of Amit Shukla (Judicial Member) and Pradip Kumar Kedia (Accountant Member) has observed that the entire proceedings beginning from issue of show cause notice and culminating in revisional order under Section 263 of the Act is a nonest exercise and cannot...

ITAT Disallows 'Mixed Used Charges' For Regularising Usage Of Residential Premises For Commercial Purposes Against House Property Income

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has disallowed the 'Mixed Used Charges' for regularising usage of residential premises for commercial purposes against house property income. The two-member bench of N.K.Billaiya (Accountant Member) and Yogesh Kumar US (Judicial Member) held that the collection of the annual mixed used charge will not make any difference in the annual let out value of the property, therefore the same is not allowable as per the proviso under...

Denying Carry Forward Of Business Loss Based On Non-Completion Of Tax Audit Within Prescribed Time Not Justified: ITAT

The Cochin Bench of Income Tax Appellate Tribunal (ITAT) has ruled that denying the carry forward of business loss based on non-completion of tax audit/ statutory audit within prescribed time is not justified.The two-member bench of George Mathan (Judicial Member) and Ramit Kochar (Accountant Member) said, "there could be several reasons for not getting the statutory audit/tax-audit done within prescribed time, but unless there is specific/express provision which stipulates that if the...

ITAT Delhi: Income Tax Act Does Not Prohibit HRA Exemption On Rent Paid To Wife

The Delhi Bench of ITAT, consisting of members A. D. Jain (Vice President) and Dr. B. R. R. Kumar (Accountant Member), has ruled that HRA exemption under Income Tax Act, 1961 cannot be denied on the ground that the Assessee pays rent to its spouse. The Assessing Officer (AO), while making assessment, clubbed the rental income earned by Assessee's wife in the hands of the Assessee on the ground that she had no independent source of income to purchase the house property. The Commissioner...

Employee Contribution To PF/ESI Before ITR Filing Eligible For Income Tax Deduction: ITAT

The Banglore Bench of Income Tax Appellate Tribunal (ITAT) has ruled that an Employee contribution to Provident Fund (PF)/ Employee State Insurance (ESI) before ITR filing is eligible for income tax deduction. The single member bench of Vice President, N.V.Vasudevan in the light of the decision of the Karnataka High Court in the case of M/s Essae Teraoka (P.) Ltd vs DCIT observed that employee's contribution under section 36(1)(va) of the Income Tax Act would also be covered under...

Inspection And Examination Of Goods Before Shipment Not Taxable As Technical And Managerial Services: ITAT Delhi

The Delhi Bench of ITAT, consisting of members Amit Shukla (Judicial Member) and Dr. B. R. R. Kumar (Accountant Member), ruled that inspection and examination of goods before shipment cannot be treated as technical and managerial services under Section 9 (1) of the Income Tax Act, 1961. The Commissioner of Income Tax (Appeals) (CIT (A)) had confirmed the additions made to Assessee's taxable income under Section 40 (a) (i) of the Act on the ground that the Assessee had not deducted tax at...

Invalid Re-Assessment By AO Cannot Be Subject Matter Of Revision Under Section 263 Of Income Tax Act: ITAT Mumbai

The Bench of ITAT Mumbai, consisting of members Kuldip Singh (Judicial Member) and M. Balaganesh (Accountant Member), held that when an assessment framed by the Assessing Officer is invalid in law, the said invalid order cannot be the subject matter of revision under Section 263 of the Income Tax Act ,1961. The Assessing Officer (AO) had reopened assessment for the relevant years on the ground that the Assessee had failed to disclose true and full facts necessary for the purpose of...

Reassessment Proceedings Not Time Barred When Time Limit Increased Retrospectively Under Income Tax Act: ITAT

The Mumbai Bench of ITAT, comprising of members Pramod Kumar (Vice President) and Suchitra Kamble (Judicial Member), has held that reassessment proceeding cannot be held time barred when an amendment increasing limitation of time is expressly stated to be retrospective. The court added that it was not open to the ITAT and Commissioner of Income Tax (Appeals), to contest the validity of a retrospective amendment in law.During search and seizure operations by revenue authorities, the...

Loss On Investment In Subsidiary, Made To Boost Sales, Deductible As Revenue Expenditure, Rules ITAT

The ITAT Bench of Chennai, consisting of members V. Durga Rao (Judicial Member) and Manoj Kumar Aggarwal (Accountant Member), allowed the loss on investment made in subsidiary company for increasing business expediency to be written off as business loss. Allowing deduction of legal fee and due diligence expenditure incurred in acquiring a foreign entity, the ITAT ruled that the loss on acquisition made to boost trading results could not be ruled as capital in nature. The Assessee, an...

AOP Running Educational Institution Eligible For Exemption Under Section 10 (23C) (VI) Of The Income Tax Act, Rules ITAT

The ITAT Bench of Mumbai, consisting of members Kuldip Singh (Judicial Member) and Prashant Maharishi (Accountant Member), ruled that an unregistered Association of Persons (AOP), formed by an agreement merging two charitable Trusts, is eligible for exemption under section 10 (23C) (vi) of the Income Tax Act, 1961. The Assessee, an educational institution, formed as an AOP, filed an application seeking approval for exemption under section 10 (23C) (vi) of the Income Tax Act for the...

Supreme Court Allows Adjustment Of Installments Made Under Income Declaration Scheme For Computing Tax Liability

A Bench of Supreme Court, consisting of Justices U.U. Lalit and P.S. Narasimha, allowed the adjustment of installments made under the "Income Declaration Scheme, 2016" in computing the tax liability of the Assessee for the relevant assessment years. The Assessee, having made a declaration under the "Income Declaration Scheme, 2016", had made two installments of tax with respect to the income disclosed under the Scheme, but defaulted in the payment of the final installment. The...