INCOME TAX
Delhi High Court Allows Income Tax Assessment Despite Notice Under Unused PAN, Orders Its Cancellation
The Delhi High Court recently (January 13) allowed income tax assessment proceedings to continue against a taxpayer despite him holding more than one Permanent Account Number (PAN) and directed that the unused PAN be cancelled. A Division Bench of Justices Dinesh Mehta and Vinod Kumar was dealing with a writ petition wherein the taxpayer challenged the continuation of assessment proceedings on the ground that notices had been issued under a PAN different from the one currently claimed by...
Suppliers' Failure To File Income Tax Returns Alone Can't Render Purchases Bogus: ITAT Chandigarh
The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) has recently observed that purchases cannot be treated as bogus only because some suppliers failed to file income tax returns or did not respond to departmental notices when the transactions are otherwise supported by records. Explaining this, a bench of Vice President Rajpal Yadav and Accountant Member Manoj Kumar Aggarwal observed that in the fctas of the case, the tax department had accepted the taxpayer's sales and had not...
ITAT Sets Aside Penalty Against Taxpayer For Receiving Property Sale Price In Cash At Registration
The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) recently quashed a penalty of Rs. 7.41 lakh imposed on a Ludhiana resident for receiving the sale consideration of a plot in cash at the time the sale deed was registered. The order was passed by Accountant Member Manoj Kumar Aggarwal, who held that the penalty had been wrongly imposed, as the cash was received in a single transaction at the time of execution of a registered sale deed and not as an advance. On those facts, the...
No Tax Addition Where Charitable Trust Incurred Loss, Even If Some Receipts Treated As Business Income: ITAT Mumbai
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has recently held that no tax addition can be made where a Mumbai charitable trust has incurred an overall loss, even if the Assessing Officer treats some of its receipts as business income. The tribunal made it clear that tax can be levied only on real and net income, and where expenditure exceeds receipts, nothing survives to be taxed. The coram comprising President Justice (Retd.) C V Bhadang and Accountant Member Vikram...
Carry Forward Of Losses Can't Be Denied On Vague Grounds: ITAT Pune
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has held that statutory tax benefits cannot be denied on vague grounds. Such rejections such as in the present case, reflect a “sheer lack of application of mind,” the tribunal said. Applying this principle, the tribunal allowed a Maharashtra based tech company to carry forward business losses of Rs 1.09 crore and unabsorbed depreciation totalling Rs 1.03 crore. The tribunal, comprising Judicial Member Astha Chandra...
Waiver Of Liability To Redeem Debentures Not Taxable If Interest Deduction Was Not Claimed Earlier: ITAT Pune
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has held that the waiver of a company's liability to redeem debentures cannot be taxed as income when no deduction of interest on those debentures was claimed in earlier years.A coram comprising Judicial Member Astha Chandra and Accountant Member Dr. Dipak P. Ripote examined the applicability of Sections 28(iv) and 41(1) of the Income Tax Act on the action. Relying on apex court rulings, the tribunal held that Section 28(iv) applies...
Bombay High Court Quashes Tax Reassessment Against Hospital Over Unsigned Reopening Notice
The Bombay High Court has set aside reassessment and penalty proceedings against Ambernath City Hospital Pvt. Ltd., holding that the Income Tax Department lacked jurisdiction to reopen the assessment, as the mandatory notice issued under Section 148 of the Income Tax Act, 1961, was unsigned.Relying on its own decision in Prakash Krishnavtar Bhardwaj vs. Income Tax Officer,(2023), the court held, “the Notice issued under Section 148, having no signature affixed to it, either digitally or...