INCOME TAX
ITAT Cases Monthly Round-Up: March 2024
Filing Return By Due Date U/s 139 Is Mandatory For Political Party To Claim Exemption U/s 13A: Delhi ITAT Refuses To Stay Recovery Against Congress Party Case Title: Indian National Congress Verses Deputy Commissioner of Income Tax While holding the argument that an assessee is entitled to a stay on the recovery proceedings on payment of 20% of the demand during the pendency of appeal before the Tribunal, as too general, the New Delhi ITAT dismisses the stay application of...
Ex-Parte Order Which Resulted Into Denial Of Proper Opportunity Of Being Heard, Merits Remand: Mumbai ITAT
On finding that the order passed by the Commissioner is an ex-parte order which resulted into denial of proper opportunity of being heard, the Mumbai ITAT set aside the order passed u/s 144 of the Income Tax Act, and remanded the case back to the file of the Commissioner for decision afresh. The ITAT also directed the assessee to deposit Rs.11,000/- in the Prime Minister's National Relief Fund (PMNRF) within 30 days of the order and to co-operate with the appellate proceedings and to...
Simple Disagreement With Plausible Views Of AO Is No Basis For CIT To Assume Jurisdiction U/s 263: Kolkata ITAT
While quashing the invalid exercise of jurisdiction by PCIT u/s 263 of the Income Tax Act, without satisfying the conditions precedent for such section, the Kolkata ITAT held that the PCIT cannot invoke the jurisdiction u/s 263 to substitute his view in place of AO on the ground that he does not agree with the view taken by the AO. The Bench of the ITAT comprising of Sanjay Garg (Judicial Member) and Rajesh Kumar (Accountant Member) observed that “it can be said to be plausible and ...
Bifurcated Details Of Income From Specified & Non-Specified Business Is Not Available: Indore ITAT Asks To Reconsider Deduction U/s 35AD
While setting aside the order of deduction passed u/s 35AD of the Income Tax Act in relation to investment on warehouse, the Indore ITAT has remitted back the issue to the AO for proper verification and consideration of the bifurcated details of income from specified and non-specified business after finding that such bifurcation of income was not presented earlier before the AO. The Bench of the ITAT comprising of Vijay Pal Rao (Judicial Member) and B.M. Biyani (Accountant Member)...
No Addition U/S 69 Is Permitted Without Examining & Finding Fault In Cash Book Produced By Taxpayer: Delhi ITAT
On finding that the CIT(A) has failed to examine the cash book presented by the assessee, the New Delhi ITAT deleted the addition sustained by CIT(A) u/s 69 of the Income Tax Act. The Bench of the ITAT comprising of Yogesh Kumar U.S. (Judicial Member) and N. K. Billaiya (Accountant Member) observed that “The assessee having been produced the cash book and explained the cash found during the search and seizure operation contending that the cash found during the search are belongs to...
Receipts By Taxpayer Can't Be Added To Its Income U/s 68 For Just Non-Compliance Of Summons Issued U/s 131: Kolkata ITAT
On finding that the addition is based upon conjecture and surmises and not on records which were available before the authorities, the Kolkata ITAT set aside the order passed by the CIT(A) and directed the AO to delete the addition made u/s 68 of the Income Tax Act. The ITAT held that besides the mere fact that the assessee has failed to produce the principals of the subscribing company due to which investment could not be verified, there was no other ground for making addition in the...
Litigant Is Not Allowed To Use Process Of Law To Achieve Ulterior Purpose In Under Hand Way By Filing Appeal Belatedly: Indore ITAT
On finding that the assessee has failed to make out a case of reasonable cause much less sufficient cause for an abnormal delay of more than six years in filing the appeal, the Indore ITAT declined to condone the inordinate delay in filing of appeal and consequently dismissed the appeal filed against the revision order passed u/s 263 of Income Tax Act, being barred by limitation. The Bench of the ITAT comprising of Vijay Pal Rao (Judicial Member) and B.M. Biyani (Accountant...
Additions U/s 69 Should Not Be Based Merely On Obtaining Surrender Statements: Chandigarh ITAT
On finding that the assessee in clear terms has surrendered the additional professional income covering the expenditure incurred on the building, the Chandigarh ITAT held that the invocation of Section 115BBE of the Income Tax Act, is not applicable and hence deleted the addition made by the AO on account of the addition in the value of building u/s 69. The Bench of the ITAT comprising of Sanjay Garg (Judicial Member) and Vikram Singh Yadav (Accountant Member) observed while...
Taxpayer Must Substantiate Form 26AS Or Form 16 So As To Claim Credit Over TDS: Mumbai ITAT
While remanding the case back for re-adjudication, the Mumbai ITAT held that the prima facie onus would be upon the Assessee to substantiate its claim of non-granting of TDS credit, by providing relevant documents, such as an appointment letter, salary slips or Form No.16 or bank statements, or any other corroborative evidence/ documents. The Bench of the ITAT comprising of Narender Kumar Choudhry (Judicial Member) and S. Rifaur Rahman (Accountant Member) observed that...
Cash Deposits Made During Demonetization Is No Basis For Addition U/s 68, Without Rejecting Audited Books Of Account: Delhi ITAT
On finding that the authorities have not considered the history of the assessee and not even rejected its books of accounts, the New Delhi ITAT deleted the addition sustained by the CIT(A) u/s 68 of the Income Tax Act. The ITAT found that the addition was made u/s 68 on account of huge cash deposits made during demonetization period. The Bench of the ITAT comprising of Yogesh Kumar U.S. (Judicial Member) and B.R.R. Kumar (Accountant Member) observed that “The audited books of...
Incorrect Assumption Of Facts Alone Is No Basis To Revoke Revisionary Jurisdiction U/s 263: Rajkot ITAT
On finding that the PCIT has held the assessment order passed by AO as erroneous and prejudicial to the interest of the Revenue simply based on incorrect assumption of facts, the Rajkot ITAT directed to set aside the order passed u/s 263 of the Income tax Act, 1963. The ITAT explained that the assessment order needs to be erroneous as well as prejudicial to the interest of Revenue, for purpose of initiating revision u/s 263. The Bench of the ITAT comprising of Siddhartha...
Jaipur ITAT Directs Dept. To Allow Taxpayer To File Revised Appeal Memo In Form No. 35 For Removal Of Deficiency
While relegating the taxpayer to file a revised appeal memo in Form No. 35 either on the e-filing portal of the department or physical form, the Jaipur ITAT restored the matter back to the file of the CIT(A) to adjudicate the matter of rectification application for removal of deficiency, afresh, as per law. The Bench of the ITAT comprising of Sandep Gosain (Judicial Member) And M. L. MEENA (Accountant Member) observed that “either the CIT(A) would have issued a deficiency letter to the...