Income Tax | ITAT Mumbai Allows Section 80P Deduction On Interest Earned From Co-operative Banks

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed a co-operative housing society to claim deduction under Section 80P(2)(d) of the Income Tax Act on interest income earned from deposits placed with co-operative banks. A Bench comprising Vikram Singh Yadav (Accountant Member) and Rahul Chaudhary (Judicial Member) allowed the appeal filed by the assessee, Clover Everest World Co-operative Housing Society Ltd. and set aside the denial of deduction by the tax...

Income Tax | Foreign Companies' Head Office Expenses For Indian Business Subject To Deduction Limit Under S. 44C : Supreme Court

In a set-back to foreign companies doing business operations in India, the Supreme Court on Monday (December 15) held that all head office expenditure incurred by them outside India, whether common or exclusively for their Indian business operations, must be subjected to the statutory ceiling prescribed under Section 44C of the Income Tax Act, 1961, thereby ruling out any claim for full deduction.A Bench comprising Justice JB Pardiwala and Justice KV Viswanathan allowed the Revenue's appeal and...

Income Tax Act | Mechanical Approval U/S 153D Vitiates Proceedings; Bombay High Court Dismisses Revenue's Appeal

The Bombay High Court has dismissed an income tax appeal filed by the Revenue, holding that an approval granted under Section 153D of the Act, which does not reflect even minimal application of mind, is vitiated in law and renders the consequential proceedings invalid. A Division Bench of Justice M.S. Sonak and Justice Advait M. Sethna, while deciding an appeal, answered the substantial question of law against the Revenue i.e. Whether an approval granted under Section 153D of the Income...

Income Tax Act | GST Would Not Form Part Of Gross Receipts Under Section 44BB: ITAT Mumbai

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that Goods and Services Tax (GST) collected by a non-resident assessee cannot be included in gross receipts for computing presumptive income under Section 44BB of the Income Tax Act, 1961. A Bench comprising Vikram Singh Yadav (Accountant Member) and Sandeep Singh Karhail (Judicial Member) allowed the appeal filed by the assessee, Oceaneering International GmbH for Assessment Year 2023–24 and directed the Assessing...

Bank Not 'Assessee In Default' For Not Deducting TDS On Interest After Accepting Form 15H From Senior Citizens: Kerala High Court

The Kerala High Court held that once a bank accepts valid Form 15H declarations from senior citizen depositors under Section 197A(1C) of the Income Tax Act, it cannot be treated as an “assessee in default” for non-deductions of TDS (deduct tax at source) on interest income. Justices A. Muhamed Mustaque and Harisankar V. Menon examined whether the bank (appellant) has to be treated as an assessee in default for failure to deduct TDS on interest income paid to senior citizens who have ...

Income Tax Act | Gross Receipts Cannot Be Taxed As Income Without Deducting Expenses: Bombay High Court

The Bombay High Court has stayed the entire income tax demand raised against a state-funded educational trust, holding that the tax authorities erred in bringing gross receipts to tax without accounting for expenditure. A Division Bench of Justice B.P. Colabawalla and Justice Amit S. Jamsandekar, while allowing a writ petition filed by the assessee, Godavari Shikshan Prasarak Mandal, Sindhi, set aside an order of the Commissioner of Income Tax (Exemption), Pune, which had directed the...

ITAT Mumbai Deletes Additions Based On HSBC Geneva 'Base Note' Against Anil Ambani

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has dismissed a batch of appeals filed by the Revenue against businessman Anil Dhirajlal Ambani, holding that additions made on the basis of alleged undisclosed foreign bank accounts with HSBC Bank, Geneva were unsustainable in law. A Bench comprising Anikesh Banerjee (Judicial Member) and Girish Agrawal (Accountant Member) upheld the order of the Commissioner of Income Tax (Appeals), which had deleted both substantive and ...

Income Tax | Reassessment Cannot Be Initiated On Identical Survey Material Already Accepted In Earlier Proceedings: Calcutta High Court

The Calcutta High Court held that reassessment under Section 148 of the Income Tax Act is impermissible when it is based on the same survey material that the Assessing Officer (AO) has already examined and accepted in earlier proceedings. Justice Om Narayan Rai stated that the reassessment proceeding is clearly impermissible………It would be a clear case of “change of opinion”. Indeed, the principle that assessment of a given assessee for a given assessment year cannot be reopened by the...

Income Tax Disputes Before HCs Doubled In Value Over Past Four Financial Years: Govt Tells Rajya Sabha

A sharp escalation in the value of income tax disputes pending before High Courts has emerged from fresh data placed before Parliament, with the total disputed amount nearly doubling between FY 2020-21 and FY 2024-25. The figures were disclosed in a reply tabled in the Rajya Sabha by the Minister of State in the Ministry of Finance Pankaj Chaudhary, capturing year-wise pendency and amounts locked at each appellate stage.The numbers paint a split-screen picture of India's tax dispute system. At...

Income Tax | Statutory Corporation Can Claim Deduction Under S 36(1)(viii) Only For Income Directly Derived From Long-Term Finance : Supreme Court

The Supreme Court on Wednesday (December 10) held that any income earned by a statutory corporation outside its core activity of providing long-term finance for industrial, agricultural, or infrastructure development in India cannot qualify for the 40% deduction available under Section 36(1)(viii) of the Income Tax Act, 1961 (“Act”). A bench of Justice P.S. Narasimha and Justice Atul S. Chandurkar dismissed National Cooperation Development Corporation's appeal, reiterating that only profits...

'Did Not Apply Mind': Gujarat High Court Quashes Tax Authority's Order Refusing To Condone Delay In Filing Return Due To COVID Pandemic

The Gujarat High Court quashed an order of the tax authorities rejecting a partnership firm's application seeking condonation of 13 day delay in filing income tax return on account of Covid pandemic, observing that authority "did not apply its mind" to the reasons given by the firm. The petitioner partnership firm engaged in real estate development business had challenged a 27.10.2023 rejecting its application for condonation of delay in filing income tax return for Assessment Year 2021-22 under...

Income Tax Act | No Addition U/S 153A Without Incriminating Material Found During Search: Bombay High Court

The Bombay High Court has held that no income addition can be made under Section 153A of the Income Tax Act, 1961 unless incriminating material is found during a search, even if the Revenue relies on information received from foreign authorities. A Division Bench of Justice G.S. Kulkarni and Justice Aarti Sathe dismissed an income tax appeal filed by the Revenue and upheld the order of the Income Tax Appellate Tribunal (ITAT), Mumbai, which had deleted additions of nearly ₹28 crore made...