Rejection Of Belated Objections By DRP Does Not Extend Limitation Of Passing Final Assessment U/s 144(4): Delhi ITAT

The New Delhi ITAT held that once the DRP has chosen to reject the objections of assessee on the ground of delay, its resultant effect is confirmation of merits of draft order passed by the AO. However, the ITAT clarified that such rejection by DRP on ground of delay in no way extends the limitation of passing the final assessment order u/s 144(4) of the Act. The ITAT held so while finding that though the DRP has rejected the objections, but did not issue any directions for the...

Reasonable Cause Excludes Operation Of Sec 271D: Bangalore ITAT Deletes Penalty

The Bangalore ITAT held that that Revenue Department cannot adopt the tactics of pick and choose while assessing the citizens of India, as it would be violative of Article 14 of the Constitution. Hence the ITAT deleted the penalty levied by AO u/s 271D on assessee for receiving excessive cash in contravention of taxation statute, upon sale of property. Section 271D of the Income Tax Act lays down the penalty to be imposed on a taxpayer for accepting or taking any loans,...

Payment By Indian Entity To Its AE Abroad Is Not 'FTS' If Technical Skill Is Not Made Available By AE: Bangalore ITAT

The Bangalore ITAT held that payment made by Assessee (Indian entity) to its foreign AE (Parent entity) for obtaining administrative services will not be taxable as FTS/FIS in India in terms of Indo USA DTAA, in absence of 'make available' clause in the agreement between both the parties. Article 12(4) of India USA DTAA states that 'fees for included services' means payments of any kind to any person in consideration for the rendering of any technical or consultancy services (including...

Purchaser Is Eligible To Claim Depreciation On Excess Amount Paid Over & Above Net Asset Value Of Seller's Business: Bangalore ITAT

The Bangalore ITAT held that once the Department has accepted the capital gain offered by the seller upon transfer of its business, then said transaction cannot be doubted in the hands of purchaser. The ITAT held so after finding that the AO not established that the main purpose of transfer of such asset was reduction of liability to income tax by claiming extra depreciation on enhanced cost. Hence, the ITAT allowed the depreciation on goodwill claimed by assessee company upon ...

Employer Can't Claim Benefit Of Sec 36(1)(Va) If He Fails To Deposit Employees' Contribution To PF Within Due Date: Kolkata ITAT

The Kolkata ITAT held that delayed deposit of amount collected towards employees' contribution to PF renders claim of deduction u/s 36(1)(va) ineligible. Section 36(1)(va) of Income tax Act states that if the amount received towards employees' contribution to PF is not deposited by the employer in the respective welfare account within the due date, then the same will be treated like income from business/profession. The Bench of Sanjay Garg (Judicial Member) and Sanjay Awasthi...

Non Service Of Hearing Notice Invalidates Ex-Parte Order: Kolkata ITAT

Finding that the hearing notices were not duly served by the CIT(A) or the AO and resultantly the assessment order was passed ex-parte, the Kolkata ITAT directed the assessee to furnish its correct address before the competent authority. The Bench of Sanjay Garg (Judicial Member) and Sanjay Awasthi (Accountant Member) observed that “the assessee has further changed its address and the assessee is required to duly brought to the knowledge of the Assessing Officer/CIT(A) regarding the...

Notice Sent On Incorrect Email Addresses Constitutes Improper Service: Ahmedabad ITAT

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the notices were sent to an incorrect email address, which led to the non-receipt of the notices by the assessee.The bench of Suchitra Kamble (Judicial Member) and Makarand V. Mahadeokar (Accountant Member) has observed that the judicial pronouncements consistently emphasize the importance of proper service of notices as a fundamental requirement for the validity of proceedings under the Income Tax Act, 1961. Extrapolating...

Exhibition By Gem And Jewellery Export Promotion Council, Not Trade And Commerce: Mumbai ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the exhibitions conducted by the assessee, the Gem and Jewellery Export Promotion Council, are not in the nature of trade and commerce.The bench of Anikesh Banerjee (Judicial Member) and B.R. Baskaran (Accountant Member) has observed that the assessee's transaction in the impugned assessment year exhibition in India and outside, after deleting the membership fees and the interest from investment, incurred a loss in...

Co. Op. Banks Are Co. Op. Societies In Banking Business; Delhi ITAT Allows Section 80P(2)(d) Deduction

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has allowed the deduction under Section 80P(2)(d) of the Income Tax Act to the Grand Paradi Co-op Housing Society and held that cooperative banks are cooperative societies that are doing banking business.The bench of Prashant Maharishi (Accountant Member) has observed that, as per Section 2(10) of the Maharashtra Cooperative Societies Act, “co-operative bank” means a co-operative society that is doing the business of banking as defined in...

Wrong Classification In ITR Can't Result Into Denial In Deduction: Chennai ITAT

The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has held that the claim of the assessee cannot be denied for the reason that a deduction was mentioned in the wrong classification in the ITR, especially in the circumstances where all other evidence is available on record suggesting the deduction in pursuance of the provisions of Section 43B is available.The bench of Manu Kumar Giri (Judicial Member) and Manoj Kumar Aggarwal (Accountant Member) has observed that the income of the...

Due Date For Filing Form 10AB Extended By CBDT; Bangalore ITAT Quashes Order Rejecting Section 80G Approval

The Bangalore Bench of Income Tax Appellate Tribunal (ITAT) has quashed the order rejecting the approval under Section 80G of the Income Tax Act as the Central Board of Direct Taxes (CBDT) has extended the due date for filing Form 10A/10AB via press release dated April 25, 2024, to June 30, 2022.The bench of Beena Pillai (Judicial Member) and Laxmi Prasad Sahu (Accountant Member) has observed that the CBDT, while considering the representations received by the CBDT requesting a further extension...

Orders Sent Through Email Went To Spam Folder; Cuttack ITAT Condones Delay Of 145 Days

The Cuttack Bench of Income Tax Appellate Tribunal (ITAT) has condoned the delay of 145 days in filing an appeal by the assessee on the ground that the assessee mistakenly did not receive the orders sent through email, as many of these orders are going to spam folders.The bench of George Mathan (Judicial Member) and Manish Agarwal (Accountant Member) has observed, “We are seized of many cases where the assessee mistakenly did not receive the orders sent through email, as many of these orders are...