INCOME TAX
Discrepancies In Maintaining KYC Documentation Does Not Constitute Incriminating Material: ITAT Deletes Income Tax Addition
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that income tax addition cannot be made for discrepancies in maintaining KYC documentation, account opening forms, and violation of society bye-laws.The bench of Sandeep Singh Karhail (Judicial Member) and B.R. Baskaran (Accountant Member) has observed that for discrepancies in maintaining KYC documentation, account opening form, and violation of society bye-laws, action can be taken against the assessee under the relevant statute...
LTCG Not Eligible For Exemption U/s 10(38) If Claimed On Bogus Scrips: Ahmedabad ITAT
On finding the scrips as non-genuine and bogus, the Ahmedabad ITAT confirms the Assessing Officer's and CIT(A)'s decision for denying the LTCG exemption under Section 10(38) of the Income Tax Act, 1961.The Member of the ITAT comprising Suchitra Kamble (Judicial Member) observed that “The assessee's claim for LTCG cannot be simply proved on the Demat statement but the very effect of the price purchased and price sold of the said scrip determined the same. In fact, the brokers' credibility was...
Careless Attitude Of AO: Kolkata ITAT Deletes Addition Made Without Examining Nature Of Expenditure
On finding that expenses were incurred for the business purposes during the course of business, for which assessee has submitted all basic details which was not cross verified by the AO, the Kolkata ITAT deleted the addition made by AO.The Member of the ITAT comprising Rajpal Yadav (Vice-President) and Girish Agrawal (Accountant Member) observed that “the inquiry at the end of the Assessing Officer is a flawed one. Apart from this observation, we find that he has nowhere examined how this...
If Identity, Credit Worthiness, And Genuineness Of Transaction Established, Loan Can't Be Treated As Unexplained U/s 68: Ahmedabad ITAT
On finding that the Revenue has grossly erred by treating the element of interest on the alleged loan as bogus in nature, the Ahmedabad ITAT held that the loan amount cannot be made subject to addition under the provisions of section 68 of the Income tax Act, 1961, since loan was taken through banking channel and was repaid in the next year along with interest through banking channel and TDS was deducted on the interest.The Member of the ITAT comprising Siddhartha Nautiyal (Judicial Member) and...
Industrial Undertaking Eligible For Deduction U/s 80IB On Compensation For Destruction Of Goods Before Sale Took Place: Mumbai ITAT
On finding profits and gains derived from an industrial undertaking within the meaning of an expression under section 80-IB, the Mumbai ITAT directed the Assessing Officer to allow deduction u/s 80-IB of the Income Tax Act, 1961The Member of the ITAT comprising of Kavitha Rajagopal (Judicial Member) and Prashant Maharishi (Accountant Member) observed that “the assessee is eligible for deduction u/s. 80IA/80IB of the Act on compensation received due to destruction of goods before sale had taken...
Reopening Initiated On Basis Of Wrong Reasons Renders Very Assessment As Invalid: Mumbai ITAT
On finding the reasoning behind the Assessment made by the Assessing Officer to be wrong, the Mumbai ITAT allowed the assessee's appeal against the order of Commissioner of Income Tax (Appeals) and National Faceless Appeal Centre.The Member of the ITAT comprising Aby T Varkey (Judicial Member) and S. Rifaur Rahman (Accountant Member) observed that “the reason for reopening itself fails in this case, prima facie the assessment was reopened with the wrong reasoning that assessee has not filed its...
Not Filing Audit Report Along With Return Is Procedural Omission And Not Impediment In Law In Claiming Exemption U/s 11: Ahmedabad ITAT
While following the order of Co-ordinate Bench, the Ahmedabad ITAT condoned the delay and restored the matter to the file of CIT(A) to allow exemption u/s 11 of the Income Tax Act, 1961 to the assessee as per the provisions of law.The ITAT Coram comprising Waseem Ahmed (Accountant Member) observed that “non filing of Audit Report along with return of income is a procedural omission and cannot be an impediment in law in claiming the exemption, we allow this appeal condoning the delay in filing...
No Additions Permitted U/s 68 Once Assessee Establishes Identity & Creditworthiness Of Lenders And Proved Genuineness Of Transactions: Kolkata ITAT
While finding that the assessee has substantiated all evidences concerning transactions to establish the identity and creditworthiness of the lenders and proved the genuineness of the transactions, the Kolkata ITAT directed the Assessing Officer to delete the addition made under section 68 of the Income Tax Act, 1961.The ITAT therefore allowed the appeal filed against the order passed by Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) u/s 143(3). The Member of the...
PCIT Can Grant Sanction U/s 151 For Issuing Reopening Notice U/s 148 Even After Expiry Of Four Years From End Of Relevant AY: Mumbai ITAT
The Mumbai ITAT recently reiterated that a notice can be issued u/s 148 of the Income Tax Act, 1961, even after the expiry of limitation period, if the sanction for same has been granted by the Principal Commissioner of Income Tax.The Member of the ITAT comprising of Sandeep Singh Karhail (Judicial Member) and B.R. Baskaran (Accountant Member) observed that “the sanction granted under section 151 of the Act was found to be improper as the sanction was not granted by the appropriate authority...
Subsequent Withdrawal Of Registration Is No Impediment In Denying Deduction U/s 35-AC On Donation Received By Charitable Trust: Mumbai ITAT
While relying on the previous order passed by the Co-ordinate Bench under Ravindra K. Reshamwala v/s DCIT in ITA No.2648/Mum/2022, the Mumbai ITAT directed Assessing Officer to allow the claim under Section 35-AC of the Income tax Act, 1961.The Member of the ITAT comprising Sandeep Singh Karhail (Judicial Member) and B.R. Baskaran (Accountant Member) observed that “except for statement of trustee of the society, we find that there is no positive evidence on record to substantiate the same. There...
Creditworthiness Of Share Subscribers To Make Investment In Capital Of Taxpayer Company Not Disputed: Kolkata ITAT Deletes Addition U/s 68
The Kolkata ITAT deleted the addition made under Section 68 of Income Tax, 1961 after finding that the assessee has established the onus placed upon him in respect of identity and creditworthiness of the share subscribers and also the genuineness of the transactions.The Member of the ITAT comprising Sanjay Garg (Judicial Member) and Girish Agrawal (Accountant Member) observed that “the AO has not made out his case with cogent material on record that the appellant could come under the purview of...
Furnishing Inaccurate Claim Of Expenditure Would Not Amount To Giving Inaccurate Particulars Of Income: Mumbai ITAT Quashes Penalty
While quashing the appeal filed by Revenue against the order passed u/s 250 by the National Faceless Appeal Centre, the Mumbai ITAT upheld the order passed by Commissioner of Income Tax (A) to delete the order of penalty issued under section 270A of the Income Tax Act, 1961.The Member of the ITAT comprising Kavitha Rajagopal (Judicial Member) and Om Prakash Kant (Accountant Member) observed while relying on the judgment of the case CIT vs. Reliance Petro Products Pvt. Ltd that, “furnishing...