Interest Certificate Not Necessary For Claiming Section 24(B) Deduction: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the interest certificate is not necessary for claiming section 24(b) deduction.The bench of Aby T. Varkey (Judicial Member) and S. Rifaur Rahman (Accountant Member) has observed that PCIT erred in holding that the Assessee was ineligible for interest deduction as it did not furnish the certificates from the lender banks as per Section 24(b)-third proviso.The appellant/assessee is in the business of Commercial leasing which...

ITAT Allows Rs.1,094.14 Cr Loss To Standard Chartered Bank Arising From Securities Scam As Business Loss

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the loss of Rs. 1,094.14 crore to Standard Chartered Bank arising from a securities scam as a business loss.The bench of Rahul Chaudhary (Judicial Member) and Prashant Maharishi (Accountant Member) has observed that the loss suffered by the assessee was a result of both the nature of the arrangements the assessee had with the brokers and the misconduct on the part of the employees or ex-employees of the assessee. The loss...

ITAT Allows Capital Gains Exemption To NSE Investor Under India-Mauritius Tax Treaty

The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has allowed the capital gains exemption to NSE investors under the India-Mauritius tax treaty.The bench of G.S. Pannu (President) and Saktijit Dey (Vice President), while condemning the department, observed that when the assessee holds a valid Tax Residency Certificate (TRC) and Category 1 GBL and, moreover, the entire process relating to the acquisition of shares of NSE and its sale went through a process of scrutiny and approval by...

For Computing Holding Period For Capital Gain The Period To Be Taken From Date Of Allotment Of The Flat: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that for computing the holding period for capital gain, the period is to be taken from the date of allotment of the flat.The bench of Aby T. Varkey (Judicial Member) and Om Prakash Kant (Accountant Member) has observed that for computing the holding period for capital gain, the period should not be taken from the date of the application of the flat. The rights of the assessee arise in the said flat only on the allotment and...

Defects In Statement Of Reportable Account Rectified Within The Time Limit: ITAT Deletes Penalty

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the penalty as the defects in the statement of the reportable account were rectified within the time limit.The Bench of V. Durga Rao (Judicial Member) and Manjunatha, G. (Accountant Member) has observed that the provisions of sub-section (4) of Section 285BA of the Income Tax Act mandate that the defect be rectified within a period of one month from the date of intimation. The Reporting Entity has rectified the defects...

Tax Cases Weekly Round-Up: 6 August To 12 August, 2023

Delhi High Court Depreciation Allowable On Goodwill Though No Actual Cash Payment Made For Acquisition: Delhi High Court Case Title: PCIT Versus M/S Eltek Sgs Pvt. Ltd. Citation: 2023 LiveLaw (Del) 668 The Delhi High Court has held that depreciation is allowable on goodwill arising in a scheme of amalgamation even though no actual cash payment was made for the acquisition of goodwill. Bombay High Court Shifting Of Commissionerates, Re-Organisation Of Office, Not...

ITAT Imposes Cost Of Rs.10K On Foreign Portfolio Investor For Not Responding To Section 142(1) Notices

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has imposed a cost of Rs.10,000 on a foreign portfolio investor (FPI) for not responding to notices under Section 142(1) of the Income Tax Act.The bench of Vikas Awasthy (Judicial Member) and Padmavathy (Accountant Member) has observed that there is negligence on the part of the assessee in not responding to the notices issued by the AO. The assessee should have made reliable arrangements for the communication of notices....

Income Would Accrue Only When The Assessee Gets A Right To Receive The Income: ITAT

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that the income would be receivable only when the income accrues to the assessee, and the income would accrue to the assessee only when the assessee gets such a right to receive the income.The bench of George George K. (Vice President) and Laxmi Prasad Sahu (Accountant Member) has observed that the assessee would get a right to receive only when it is sanctioned to the assessee by the customs authorities and not when...

ITAT Quashes Income Tax Addition In Respect Of Immovable Property Warranting Revision By The PCIT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the income tax addition in respect of immovable property, warranting revision by the PCIT.The bench of Anubhav Sharma (Judicial Member) and M. Balaganesh (Accountant Member) has observed that AO, after making adequate inquiries, proceeded to make an addition for alleged money receipts on a protective basis in the hands of the assessee. When adequate inquiries were made, they could not be subjected to revision by the PCIT...

Section 68 Of The Income Tax Act Is Not Applicable On Share Premium: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that Section 68 of the Income Tax Act, which relates to the taxability of unexplained cash credits, is not applicable to share premiums.The bench of Narender Kumar Choudhry (Judicial Member) and B.R. Baskaran (Accountant Member) has observed that the provisions of Section 68 would be attracted when the assessee fails to prove the identity of the creditor, credit worthiness of the creditor, and genuineness of transactions. The...

Treatment Of Shares In Books Of Accounts Determines Taxation, JM Financial’s Set-off Not Colourable Device: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the treatment of shares in books of accounts determines taxation under capital gain or business income, and the method adopted for arriving at the sale consideration does not determine the nature of the transaction.The bench of Aby T. Varkey (Judicial Member) and Padmavathy S. (Accountant Member) has observed that shares reflected as investments in financials, held for a long time and earning dividend income, are...

Income Tax Department Introduces Young Professional Scheme to Assist Officers in Income Tax Appellate Tribunal (ITAT)

In a bid to bolster its resources and streamline tax litigation management, the Income Tax Department, under the Ministry of Finance, Government of India, has launched the Young Professional Scheme. This scheme aims to engage young graduates in Law and Accountancy on a full-time basis, providing valuable support to Departmental Officers across various benches of the Income Tax Appellate Tribunal (ITAT) nationwide.The Young Professional Scheme is designed to leverage the expertise and domain...