INCOME TAX
Income From Nursery Activities Of Growing Various Types Of Lawns, Flower Plants And Vegetable Plants Is Agricultural In Nature: ITAT
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that income from nursery activities such as growing various types of lawns, flower plants, and vegetable plants is agricultural in nature.The bench of Suchitra Kamble (Judicial Member) and Annapurna Gupta (Accountant Member) has observed that the activity of an agricultural nature in respect of engaging in nursery activities of growing various types of lawns, flower plants, and vegetable plants cannot be considered a commercial...
ITAT Deletes Penalty Of Rs.132 Cr. For Misreported Income Against Jaypee Cement
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has deleted the penalty of Rs. 132 crore for misreported income against the assessee, Jaypee Cement.The bench of Saktijit Dey (Vice President) and M. Balaganesh (Accountant Member) has observed that there was absolutely no mala fide intention on the part of the assessee to claim an excess deduction under Section 32AC. In the facts, even after the withdrawal of the differential 85% claim of deduction in the sum of Rs. 191 crores, the...
Freight Inward Charges Are Part And Parcel Of Purchase Of Goods, TDS Not Deductible: ITAT
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has observed that freight inward charges were part and parcel of the purchase of the goods. It is settled law that the provisions of the TDS cannot be attracted to the transaction of the purchase and sale of the goods.The bench of Suchitra Kamble (Judicial Member) and Waseem Ahmed (Accountant Member) has observed that the assessee was not under the obligation to deduct TDS of inward freight expenses incurred for Rs. 16,15,291 under the...
Income With Respect To Contribution Received From Recognized Stock Exchange Is Eligible For Section 10 (23EC) Exemption: ITAT
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the income of the assessee with respect to contributions received from recognized stock exchanges and the members thereof is eligible for exemption under Section 10 (23EC) of the Income Tax Act.The bench of Rahul Chaudhary (Judicial Member) and Prashant Maharishi (Accountant Member) has noted that the assessee has received an income of Rs. 92,458,750 by way of statutory contributions received from National Commodity...
ITAT Excludes Infosys From The List Of Comparables Under Software Development Services Segment
The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has upheld the exclusion of Infosys from the list of comparables under the software development services segment.The bench of Saktijit Dey (Vice President) and Dr. Brr Kumar (Accountant Member) has observed that departmental authorities themselves have excluded Infosys for AYs 2014–15, 2015–16, and 2016–17.The respondent/assessee is a resident corporate entity that is primarily in the business of software programming and application...
Bogus Capital Gain By Sale Of Shares, Assessee Not A Beneficiary, ITAT Deletes Addition
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition on account of bogus capital gain by the sale of shares of a penny stock company in the absence of incriminating material.The bench of Siddhartha Nautiyal (Judicial Member) and Waseem Ahmed (Accountant Member) has held that no material has been brought on record to suggest that the assessee was involved in any price rigging and that the case of the assessee has not been mentioned in the list of beneficiaries by...
Presumptive Taxation, Income From Profession Can’t Be In Absence Of Notified Professional Qualification: ITAT
The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held that income from professions against which TDS is deducted cannot be taxed at 50% in the absence of notified professional qualification.The bench of Narender Kumar Choudhry (Judicial Member) and B.R. Baskaran (Accountant Member) has observed that the assessee is just a 10th grader who passed matriculation and does not fall under Section 44ADA, and therefore, the addition is liable to be deleted.Section 44ADA states that...
There Can Be No Protective Addition In Absence Of Substantive Addition: ITAT
The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has held that protective addition presupposes the existence of substantive additions; there can be no protective addition in the absence of substantive addition.The bench of Yogesh Kumar U.S. (Judicial Member) and Pradip Kumar Kedia (Accountant Member) has observed that the assessment order was passed against the assessee on December 28, 2016, by making additions in the hands of the assessee firm on a protective basis to protect the...
Tax Cases Weekly Round-Up: 17 September To 23 September, 2023
Delhi High Court Tax Authority Based In Delhi Lacks Jurisdiction On Withholding Tax Liability On Share Purchase Transaction: Delhi High Court Quashes Tax Demand Against Sumitomo Case Title: Sumitomo Mitsui Financial Group Inc. Versus CIT The Delhi High Court has deleted the tax demand against Sumitomo Mitsui Financial Group on the grounds of lack of jurisdiction. Delhi High Court Directs VAT Dept. To Refund Rs. 6.62 Crores To Flipkart Case Title: Flipkart India Private...
Fee Paid By TCS Towards The Brand To Tata And Sons Ltd. Is Not Capital In Nature, Royalty Not Chargeable: ITAT
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the fee paid by the assessee, Tata Consultancy Services (TCS), towards the brand to Tata and Sons Ltd. is not capital in nature for the reason that the brand is not owned by the assessee.The bench of Vikas Awasthy (Judicial Member) and Padmavathy S. (Accountant Member) has observed that there cannot be any royalty that needs to be charged on the brand since the assessee is not the owner of the brand, and there cannot be any...
ALP Adjustment Falls Within Tolerance Band Of +/- of 5%: ITAT Deletes TP-Adjustment On Payment For Consultancy, Professional Fees
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has deleted the TP adjustment on payment for consultancy and professional fees and other services by the assessee to its Associated Enterprises (AEs).The bench of Anubhav Sharma (Judicial Member) and M. Balaganesh (Accountant Member) has observed that ALP adjustment falls within the tolerance band of +/- of 5% as per the second proviso to section 92C(2) of the Income Tax Act, 1961.One of the viable solutions for regulating Transfer Pricing...