INCOME TAX
No TDS Under Section 194-IA On Rural Agricultural Land Transactions: ITAT Ahmedabad
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) 26 March, held that buyers of rural agricultural land are not required to deduct TDS under Section 194-IA of the Income Tax Act, and interest under Section 201(1A) is not leviable. The Bench, comprising Vice-President Dr. B.R.R. Kumar and Judicial Member Suchitra Kamble, dismissed the Revenue's appeal while confirming that Tarun Santramdas Varma (taxpayer) did not owe TDS on certain rural agricultural land transactions. The...
Disallowance Irrelevant Where Tax Liability Arises Under MAT: ITAT Ahmedabad
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 26 March, reiterated that a disallowance computed under Rule 8D of the Income Tax Rules cannot be imported into the computation of book profit under the Minimum Alternate Tax (MAT) provisions. The Bench, comprising Judicial Member Suchitra Kamble and Accountant Member Narendra Prasad Sinha, allowed the appeal filed by Shalby Ltd., observing that even if the alleged disallowance were made, it would not impact the taxpayer's...
Reassessment Beyond Three Years Without PCCIT Approval Invalid: ITAT Chennai
The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) on 25 March held that reassessment proceedings initiated beyond three years from the end of the relevant assessment year are invalid if the Assessing Officer does not obtain prior approval from the Principal Chief Commissioner of Income Tax (PCCIT), as mandated under the Income Tax Act. The Bench, comprising Judicial Member Aby T. Varkey and Accountant Member S.R. Raghunatha, set aside the reassessment notice issued against Vasanthi...
Overall Assessment Time Limit Applies Even In Dispute Resolution Panel Cases: ITAT New Delhi
The Delhi Bench of the Income Tax Appellate Tribunal has ruled that final assessment orders under Section 144C (DRP route) must comply with the overarching time limit under Section 153 (assessment deadline), holding that orders passed beyond this limit are time-barred.A coram comprising Judicial Member Vikas Awasthy and Accountant Member Sanjay Awasthy was dealing with appeals filed by BT India Pvt. Ltd. for Assessment Years 2017-18 and 2018-19, wherein the primary issue was whether the...
ITAT Delhi Dismisses Multiple Revenue Appeals Against Make My Trip Across TP, TDS Issues
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has dismissed a batch of appeals filed by the Revenue against MakeMyTrip India Pvt. Ltd. It held that advertisement, marketing, and promotion (AMP) expenditure cannot be treated as an international transaction where the Indian entity owns the brand and upheld deletion of a Rs. 31.81 crore transfer pricing adjustment. The bench comprising Judicial Member C.N. Prasad and Accountant Member M. Balaganesh was dealing with appeals arising...
Gujarat High Court Quashes Reassessment Based On GST Proceedings Set Aside, Finds No Independent Material
The Gujarat High Court has quashed reassessment proceedings initiated against an individual taxpayer, holding that reopening of assessment was uncalled for where it was based on GST proceedings that had already been set aside by the appellate authority and where no independent material existed to indicate escapement of income. “Apart from this, there is no other material which is in possession of the respondent No.1, which could prove that there has been an escapement of income and hence the...
SBI Not In Default For Not Deducting TDS On Employees' LFC In View Of Madras HC Order: ITAT Ahmedabad
The Ahmedabad Income Tax Appellate Tribunal (ITAT) has held that State Bank of India (SBI) cannot be treated as an “assessee in default” for failure to deduct tax at source on Leave Fare Concession (LFC) payments made to its employees, where such non-deduction was in compliance with binding interim orders of a High Court. A coam of Judicial Member Siddhartha Nautiyal and Accountant Member Narendra Prasad Sinha observed that, during the relevant period, the bank was bound by interim orders of...
60% Tax On Unexplained Income Prospective From April 2017, Not Applicable To AY 2017–18: ITAT Ahmedabad
The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has dismissed the Department's appeal in a dispute over the applicable tax rate on unexplained income, holding that the enhanced 60% tax under Section 115BBE cannot be applied to Assessment Year 2017–18 and that such a change cannot be made through rectification under Section 154.Section 115BBE of the Income Tax Act, 1961, imposes a steep penal tax rate on unexplained income, such as cash credits, investments, or assets found during...
ITAT Mumbai Deletes ₹48.97 Lakh Tax Addition Against Zee Entertainment For Failing To Record Reasons
The Income Tax Appellate Tribunal (ITAT) at Mumbai has recently given relief to Zee Entertainment Enterprises Ltd by deleting a Rs 48.97 lakh tax addition under Section 14A of the Income Tax Act, 1961, which deals with expenses linked to earning tax-free income. The Tribunal held that tax officers cannot recalculate such expenses without first clearly explaining why they disagree with the company's own calculation. A coram comprising Judicial Member Anikesh Banerjee and Accountant Member Arun...
Finance Bill 2026: 12% Surcharge on Buybacks Applies Only to Additional Tax on Promoters'; Income Tax Dept. Clarifies
The Income Tax Department has clarified that the proposed 12% surcharge in the Finance Bill, 2026 will apply only to the additional income-tax payable by promoters on capital gains arising from buybacks, and not on the entire gains. In a clarification issued on March 26, 2026, the Department explained that the amendment relates to taxation of capital gains earned by promoters when companies buy back their own shares under section 68 of the Companies Act, 2013, which governs share...
Cash Deposits During Demonetisation Cannot Be Treated As Unexplained If Recorded In Books: ITAT Chennai
The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) on 3 March 2026 held that cash deposits made during the demonetisation period cannot be treated as unexplained under Section 68 of the Income Tax Act, 1961, if corresponding sales are accepted and recorded in the books of account. A Bench comprising Judicial Member S.S. Viswanethra Ravi and Accountant Member S.R. Raghunatha allowed an appeal by Vinayaga Fireworks, a Sivakasi-based cracker manufacturer, against an order of the...
Gujarat High Court Condones Delay In Filing Income Tax Return, Finds Accountant's Error Caused Genuine Hardship
The Gujarat High Court has held that a taxpayer's delay in filing its income tax return due to a bona fide misunderstanding of audit requirements under Section 44AB of the Income Tax Act, resulting in denial of a tax deduction under Section 80-IAB for Special Economic Zone developers, constitutes “genuine hardship” warranting condonation.The case arose from the petitioner firm's failure to file its return of income for Assessment Year 2023–24 within the prescribed due date of 31 July 2023. The...