INCOME TAX
Misplacing FD Is Not The Ground For Deleting Addition Of Interest: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the addition of interest on fixed deposits (FDs).The two-member bench of Anubhav Sharma (Judicial Member) and N.K. Billaiya (Accountant Member) has observed that the bank, in Form No. 26AS, has acknowledged the fixed deposits with it and has credited interest by deducting tax at source. Even if the fixed deposits are misplaced, the assessee can approach the bank and ask for duplicate fixed deposits.The appellant/assessee...
IBC Has Overriding Effect On All The Acts Including Income Tax Act: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Insolvency and Bankruptcy Code (IBC) has an overriding effect on all acts, including the Income Tax Act, as per Section 178(6) of the Income Tax Act, effective from November 1, 2016.The bench of Yogesh Kumar U.S. (Judicial Member) and Pradip Kumar Khedia (Accountant Member) has observed that no proceedings can be initiated against the corporate debtor, including proceedings before the Tribunal, income tax proceedings,...
Tax Cases Weekly Round-Up: 5 February to 11 February 2023
Supreme Court Exemption Of Newspaper’s Income Utilised For Charity: Supreme Court Remands The Matter To AO Case Title: PCIT Versus Servant of People Society The Supreme Court has remanded the appeal in respect of the exemption of newspaper income used for charity. Delhi High Court Department Can’t Go Behind TRC Issued By The Other Tax Jurisdictions: Delhi High Court Case Title: Blackstone Capital Partners (Singapore) VI FDI Three Pte. Ltd. Versus ACIT Citation: 2023...
Expenses Incurred During Regular Course Of Business Cannot Be Treated As Capital Expenses: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that expenses incurred during the regular course of business cannot be treated as capital expenses.The two-member bench of Yogesh Kumar US (Judicial Member) and Anil Chaturvedi (Accountant Member) has observed that the payment was made towards the professional fee, which includes monthly retainer fees for the professional services.The assessee/respondent is a company stated to be engaged in the business of software development....
Section 14A Disallowance Not Warranted If No Exempt Income Is Earned: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the disallowance under Section 14A of the Income Tax Act is not warranted if no exempt income is earned.The two-member bench of Anubhav Sharma (Judicial Member) and Anil Chaturvedi (Accountant Member) has observed that Section 14A envisages that there should be actual receipt of income, and hence Section 14A of the Act will not apply where no exempt income is received or receivable during the relevant previous year.The...
Exemption Of Newspaper’s Income Utilised For Charity: Supreme Court Remands The Matter To AO
The Supreme Court has remanded the appeal in respect of the exemption of newspaper income used for charity.The division bench of Justice S. Ravindra Bhat and Justice Dipankar Datta has relied on the decision of CIT vs. Ahmedabad Urban Development Authority and remitted the matter to the AO for fresh consideration of the nature of receipts in the hands of the assessee, which is engaged, inter alia, in publishing a newspaper, and to render fresh findings on the issue of whether the assessee is a...
Unmarried Daughter’s Jewllery And Mother’s Jewellery Can Be Kept In Family Home: ITAT Deletes Addition
The Allahabad Income Tax Appellate Tribunal (ITAT) has deleted the addition as the jewellery belonging to unmarried daughters will be kept along with the assessee’s jewellery in a family home where they are living together.The two-member bench of Vijay Pal Rao (Judicial Member) and Ramit Kochar (Accountant Member) has observed that the assessee has discharged her primary burden by explaining the jewellery found during search and explaining in a statement that 504 grams belonged to her mother,...
Credit For TCS Available To Assessee In Whose Hand Income Is Assessed To Tax: ITAT
The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has reiterated that credit for Tax Collected at Source (TCS) should be given to the assessee who is finally and lawfully assessed to tax in respect of the income on which TCS has been collected, irrespective of the person in whose name the TCS certificate has been issued. Referring to the decision of the Jaipur Bench of ITAT in Jai Ambey Wines vs. ACIT (2017), the bench of N.V. Vasudevan (Vice President) noted that what is...
S.153A Income Tax Act| Can Assessments Be Reopened If No Incriminating Material Is Found During Search? Supreme Court Reserves Judgment
The Supreme Court on Thursday reserved its judgment on whether in an assessment under section 153A of the Income Tax Act, besides the incriminating material found during search, such materials which the Assessing Officer has on hand and the third party records available can be relied on to assess total income, or whether the assessment has to confined only to the incriminating material seized during the search. The Court also discussed the issue whether there is no incriminating material seized...
Delay By State To Issue Necessary Certificates: ITAT Quashes Revision Order
The Calcutta Bench of Income Tax Appellate Tribunal (ITAT) has quashed the revision proceedings initiated in the name of the deceased person.The revenue department acted quickly after receiving the legal heir certificate, according to the two-member bench of George Mathan (Judicial Member) and Arun Khodpia (Accountant Member). However, there has been a delay at the level of the state government in issuing the necessary certificates. Fault cannot be placed on the revenue or the assessee.The...
Merely Making Unsustainable Claim Will Not Amount To Furnishing Of Inaccurate Particulars Of Income: ITAT
The Pune bench of the Income Tax Appellate Tribunal (ITAT) has held that the mere making of a claim, which is not sustainable by the law itself, will not amount to furnishing inaccurate particulars of income.The bench of S.S. Vishwanethra (Judicial Member) has observed that the appellant cannot be held guilty of furnishing inaccurate particulars of income, and, therefore, the Assessing Officer was not justified in levying a penalty under Section 271(1)(c) of the Income Tax Act.The...
Assessing Officer Not Justified In Rejecting Audited Books Of Accounts For Producing Photocopy Of Bills: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessing officer was not justified in taking drastic action and rejecting books of account that are audited solely on the basis of general remarks that photocopies of the bills have been produced instead of original bills.The two-member bench of Anubhav Sharma (Judicial Member) and Pradip Kumar Khedia (Accountant Member) has observed that an insignificant variation in the net profit ratio per se cannot lead to drastic...