ITAT Mumbai Upholds Denial Of Tax Deduction On ₹25 Lakh Donation To Kisan Party Of India

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the denial of a tax deduction claimed by a Mumbai chemical trader for a ₹25 lakh donation to the Kisan Party of India. The tribunal found several circumstances that cast doubt on whether the contribution was genuine. A bench of Judicial Member Sandeep Singh Karhail and Accountant Member Bijayananda Pruseth noted that the taxpayer was a chemical trader with no apparent connection to a Bihar-registered political party...

R&D Deduction Cannot Be Denied for Non-Filing of Form 3CL When Already Available With AO: ITAT Mumbai

Today, the Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) held that a taxpayer cannot be denied deduction for research and development (R&D) expenditure under Section 35(2AB) of the Income Tax Act merely for not separately filing Form 3CL during assessment proceedings, where the approval had already been transmitted to and was available with the Assessing Officer. Judicial Member Justice Sandeep Singh Karhai and Accountant Member Bijayananda Pruseth allowed the appeal filed by...

ITAT Mumbai Upholds Deletion Of ₹11.11 Crore Disallowance On Related-Party Business Expenses

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 7 May upheld deletion of a disallowance of Rs. 11.11 crore towards business development and business promotion expenses paid by a pharmaceutical company to related parties. A Bench of Judicial Member Pawan Singh and Accountant Member Makarand Vasant Mahadeokar dismissed the Revenue's appeal against Riverside Industries Private Limited for Assessment Year 2017-18, holding that it could not adopt an inconsistent stand when it had...

Supreme Court Dismisses Income Tax Appeal Against IDBI Bank Over Delay Of 275 Days

The Supreme Court on Monday dismissed the Income Tax Department's plea against IDBI Bank Ltd over a 275-day delay, refusing to interfere with the Bombay High Court's decision quashing reassessment proceedings for AY 2016-17.The High Court, in its order dated March 24, 2025 held that the reasons recorded by the Assessing Officer were factually incorrect, reflected non-application of mind, and amounted to an impermissible review based on change of opinion.A Bench of Justices Pamidighantam Sri...

SBI Cannot Be Treated As TDS Defaulter Over LTC Payments To Employees Who Travelled Overseas: ITAT Ahmedabad

The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has held that the State Bank of India could not be treated as an “assessee in default” for failing to deduct tax at source (TDS) on Leave Travel Concession payments made to employees whose LTC journeys included overseas travel. The tribunal held that SBI was acting under binding interim directions of the Madras High Court, which had clarified that such payments would not constitute income for TDS purposes. A bench of Judicial...

Bombay HC Waives Re-Verification Of Amended Pleadings Challenging Section 147A IT Act After SC Ruling

The Bombay High Court has waived re-verification of amended pleadings in pending writ petitions challenging income tax reassessment notices, where assessees now seek to challenge the newly inserted Section 147A following the Supreme Court's ruling in Income Tax Officer, Ward 2(1), Chandigarh v. Tej Pratap Singh. A Division Bench of Justice G.S. Kulkarni and Justice Aarti Sathe said re-verification need not be insisted upon, noting that a large number of similar reassessment matters were pending...

"Fishing Inquiry": Bombay High Court Upholds Quashing Of Income Tax Revision Against Impact Foundation

The Bombay High Court has dismissed the Income Tax Department's appeal against Impact Foundation (India), holding that revisionary proceedings under the Income Tax Act could not be sustained merely because the Commissioner believed the assessing officer should have conducted further enquiry. “The ITAT has therefore rightly come to the conclusion that the CIT (Exemptions), could not have initiated proceedings with a view to start de novo or a fishing inquiry in matters or orders which are...

Bombay High Court Condones 430-Day Delay By Charitable Trust In Filing Declaration For Tax Exemption

The Bombay High Court has condoned a 430-day delay by Bombay Prathana Samaj, a charitable trust, in submitting a mandatory declaration required for claiming a tax exemption benefit, after finding that the trust had shown reasonable cause for the delay and would otherwise suffer genuine hardship. “The approach of the authority ought to be equitious, balancing and judicious and availing of exemption should not be denied merely on the bar of limitation,” the Court observed while referring to the...

ITAT Mumbai Restores Fees Regulating Authority Matter Pending Section 10(46) Notification Outcome

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 30 April held that the taxability of the Fees Regulating Authority cannot be conclusively decided while its application for notification under Section 10(46) of the Income-tax Act, 1961 remains pending before the Central Board of Direct Taxes (CBDT). A Bench comprising Accountant Member Bijayananda Pruseth and Judicial Member Sandeep Singh Karhail allowed the appeal for statistical purposes and set aside the impugned order. It...

ITAT Mumbai Holds Section 68 Applies Only to Fresh Credits, Deletes ₹1.20 Crore Addition

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 4 May held that additions under Section 68 of the Income-tax Act, 1961 cannot be made in the absence of any fresh credit arising during the relevant previous year, and remanded the matter for fresh verification. A Bench comprising Accountant Member Bijayananda Pruseth and Judicial Member Sandeep Singh Karhail set aside the orders of the Assessing Officer and the Commissioner of Income Tax (Appeals), who had sustained an addition of...

ITAT Mumbai Allows Deduction For Donation To PM Relief Fund Despite Being Part Of CSR

The Income Tax Appellate Tribunal (ITAT), Mumbai, has allowed Landmark Worldwide Breakthrough Technologies Pvt. Ltd. to claim a deduction on its donation to the Prime Minister's National Relief Fund, even though the payment formed part of its CSR expenditure. The bench comprising Judicial Member Pawan Singh and Accountant Member Girish Agrawal held that such a claim cannot be denied merely because the donation was made to meet CSR obligations. The taxpayer had filed its return declaring a...

NFAC Must Decide Appeal on Merits, Cannot Dismiss for Non-Prosecution: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 30 April held that the National Faceless Appeal Centre (NFAC) cannot dismiss an appeal for non-prosecution and must decide it on merits under Section 250 of the Income Tax Act. A Bench comprising Judicial Member Sudhir Kumar and Accountant Member Manish Agarwal heard an appeal against the NFAC order dated 11 September 2025 for Assessment Year 2012-13 and condoned a delay of 53 days after accepting the taxpayer's explanation of...