INCOME TAX
ITAT Allows Income Tax Deduction On The Interest Income Received From The Co-Operative Bank
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the income tax deduction under Section 80P(2)(d) of the Income Tax Act on the entire amount of interest income received from the Co-operative Bank.The bench of Sandeep Singh Karhail (Judicial Member) and S. Rifaur Rahman (Accountant Member) found that CIT(A) granted the relief to the assessee, allowing deduction under Section 80P(2)(d) on the entire interest income received by the assessee from the Co-operative Bank,...
No Requirement Of Disallowing Part Of Director’s Remuneration And Depreciation When The Business Was Stopped Due To Temporary Lull: ITAT
The Jodhpur bench of the Income Tax Appellate Tribunal (ITAT) has held that there is no requirement for disallowing part of the director’s remuneration and depreciation when the business is stopped due to a temporary lull.The bench of Dr. S. Seethalakshmi (Judicial Member) and B. R. Baskaran (Accountant Member) has observed that the only condition for allowability of depreciation is that the business should not have been closed out once and for all and that the assessee should demonstrate that...
Tax Cases Weekly Round-Up: 30 April to 6 May, 2023
Supreme Court Section 16-B Of Himachal Pradesh General Sales Tax Act Is Not Ultra Vires Any Provision Of Law: Supreme Court Reiterates Case Title: State of Himachal Pradesh & Ors. vs M/s A.J. Infrastructures Pvt Ltd & Anr. Citation : 2023 LiveLaw (SC) 366 The Supreme Court has ruled that Section 16-B of the Himachal Pradesh General Sales Tax Act, 1968 (HPGST Act) is not ultra vires any provision of law. The bench comprising Justices S. Ravindra Bhat and Dipankar...
Customary Amongst Married Women To Keep On Changing The Jewellery As And When New Designs Come In The Market: ITAT Deletes Income Tax Addition
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition and held that it is customary amongst married women to keep on changing the jewelleryas and when new designs come on the market.The bench of Anubhav Sharma (Judicial Member) and N. K. Billaiya (Accountant Member) has observed that the assessee has given an item-wise reconciliation of Wealth Tax Return items with the valuation report prepared during the search. The AO has not pointed out any specific defect...
Co-Operative Banks Are Also Registered Co-Operative Societies: ITAT Allows Section 80P(2)(d) Deduction
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the income tax deduction under Section 80P(2)(d) of the Income Tax Act on the grounds that cooperative banks are also registered cooperative societies.The bench of Suchitra Kamble (Judicial Member) has observed that the provision of Section 80P(2)(d) does not make any distinction in regard to the source of the investment because this Section envisages deduction in respect of any income derived by the co-operative society...
Tax Cases Monthly Round Up: April 2023
Indirect Taxes Supreme Court Same Activity Can Be Taxed As ‘Goods’ & ‘Services’ : Supreme Court Upholds Levy Of Service Tax On “Engineering Design & Drawings” Case Title: Commissioner of Customs, Central Excise & Service Tax v M/S Suzlon Energy Citation : 202LiveLaw(SC) 298 The Supreme Court has held that the import of “Engineering Design & Drawings” falls under the category of “design services” under section 65(35b) read with Section 65(105)...
Tax Cases Weekly Round-Up: 23 April To 29 April, 2023
Bombay High Court Goa Value Added Tax (12th Amendment) Act, 2020 Defies The Doctrine Of Separation Of Powers: Bombay High Court Case Title: Rohan Lobo Versus State Of Goa The Bombay High Court has held that the Goa Value Added Tax (12th Amendment) Act, 2020, is an impermissible judicial override defying the doctrine of separation of powers. Material Triggering Reassessment Must Be Furnished To The Assessee: Bombay High Court Case Title: Anurag Gupta Versus ITO The...
ITAT Directs AO To Charge 6.5% Gross Profit Rate On Bogus Purchases
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has directed the AO to charge a 6.5% gross profit rate on bogus purchases.The bench of Kuldip Singh (Judicial Member) and Gagan Goyal (Accountant Member) has observed that the entire addition has been made by the AO as well as CIT (A) on the basis of guesswork and estimation on the basis of some alleged information received from the Sales Tax Department of Maharashtra and from DGIT (Inv.), Mumbai.The assessee is an individual running a...
Employee Remuneration, Legal Expenses, Board Meeting Expenses etc. , Can’t Be Attributable To Interest From FDs: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT), while refusing to allow the income tax deduction, has held that employee remuneration, salary, legal expenses, board meeting expenses, and director sitting fees cannot be attributable to the interest earned from the fixed deposits.The bench of C. M. Garg (Judicial Member) and Dr. B. R. R. Kumar (Accountant Member) has observed that as per the provisions of Section 57(iii), all the expenditure laid out or expended wholly and exclusively...
Amount Declared As Turnover Can’t Be Concealed Income: ITAT
The Amritsar Bench of the Income Tax Appellate Tribunal (ITAT) has held that once the amount is declared as turn-over, it cannot be called concealed income and be taxed twice on the same amount.The bench of Anikesh Banerjee (a judicial member) has observed that the AO has no right to calculate sales on a hypothetical basis, ignoring the evidence submitted during the course of assessment proceedings in the form of VAT returns, purchase bills, and quantitative details.The appellant/assessee...
Assessee Explained The Source Of The Excess Stock Found During The Course Of Survey: ITAT Deletes Addition
The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee has explained the source of the excess stock found during the course of the survey.The bench of Aby T. Varkey (Judicial Member) and Manjunatha (Accountant Member) has observed that when the assessee has explained that the source of excess stock found during the course of the survey is income generated from current-year business and the explanation offered by the assessee is plausible, then income offered...
Section 10AA Deduction Can’t Be Denied Merely Not Receiving Convertible Foreign Exchange On The Deemed Exports: ITAT
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Section 10AA deduction cannot be denied merely on the reasoning that the assessee did not receive the convertible foreign exchange on the deemed exports.The bench of Madhumita Roy (Judicial Member) and Waseem Ahmed (Accountant Member) has observed that there was no condition applicable for the Assessment Year 2015-16 to bring foreign exchange into India on account of the exports of sales.The respondent/assessee is...