ITAT Mumbai Quashes Reassessment In Nanne Gulzar Case, Holds Section 153C Mandatory In Search Matters

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) held on 15 June that the Revenue must assess additions arising from search material only under Section 153C of the Income Tax Act and cannot invoke the reassessment provisions under Sections 147/148. Vice President Saktijit Dey and Accountant Member Prabhash Shankar allowed the appeals filed by Nanne Gulzar & Company and set aside the reassessment proceedings initiated by the Department. The Bench held: “As per the scheme and...

ITAT Mumbai Allows Deduction Of ₹80 Crore Paid By Mumbai Port Authority To SBI Life For Leave Encashment

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that Mumbai Port Authority's ₹80 crore contribution to SBI Life Insurance Co. Ltd. under a leave encashment scheme is deductible, finding that the payment represented an actual outflow of funds rather than a mere provision for a future liability. A Bench of Judicial Member Anikesh Banerjee and Accountant Member Makarand Vasant Mahadeokar observed: “The amount of Rs.80,00,00,000/- stands actually paid to SBI Life Insurance...

Madras High Court Issues Notice On Plea Challenging Retrospective Amendments To Income Tax Act, 1961

The Madras High Court on Monday issued notice on a plea challenging several retrospective amendments to the Income-tax Act, 1961 introduced through the Finance Act, 2026, which are alleged to be unconstitutional and to impermissibly overturn judicial interpretations of tax provisions. A Division Bench of Chief Justice S.A. Dharmadhikari and Justice Arul Murugan issued notice on the petition and is likely to hear the matter next on July 21. The plea was filed by the Revenue Bar Association, a...

ITAT Delhi Deletes ₹5.60 Crore Demonetisation Addition, Says Recorded Business Receipts Not Unexplained

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted a ₹5.60 crore addition made against a Delhi jeweller over cash deposits during the demonetisation period. The bench found that the source of the deposits was recorded in the taxpayer's audited books of account and that the related business income had already been assessed. The bench comprising Vice President Mahavir Singh and Accountant Member S. Rifaur Rahman allowed the appeal filed by Rakesh Kumar, proprietor of R.V....

Following Earlier Rulings, ITAT Mumbai Allows DSIR-Unapproved R&D Expenditure As Business Deduction

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed Manugraph India Limited to claim ₹22 lakh in research and development (R&D) expenditure as a business deduction. The amount had not been approved by the Department of Scientific and Industrial Research (DSIR) for weighted deduction. The tribunal followed earlier decisions that permitted such claims under the Income Tax Act. A bench of Judicial Member Pawan Singh and Accountant Member Makarand Vasant Mahadeokar noted...

SBI Not In Default For Not Deducting Tax On Leave Travel Claims Under HC Directions: ITAT Ahmedabad

The Ahmedabad Bench of the Income Tax Appellate Tribunal on Friday held that the State Bank of India could not be treated as an assessee in default for failing to deduct tax at source on Leave Fare Concession payments made to employees. The tribunal found that the bank had acted in accordance with binding interim directions of the Madras High Court. A bench of Vice President Dr. B.R.R. Kumar and Judicial Member Rahul Chaudhary allowed four appeals filed by different SBI branches. The...

CCDs Cannot Be Treated As Equity For Disallowing Interest: ITAT Mumbai Deletes ₹76.45 Crore TP Addition

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has deleted a transfer pricing adjustment of ₹76.45 crore made on interest paid by EBIXCASH World Money Limited on compulsorily convertible debentures (CCDs). The tribunal held that precedents consistently recognise CCDs as debt instruments and that interest paid on them cannot be disallowed by treating them as equity. “We find that the grounds of appeal raised by assessee is in fact covered by a series of decisions of Tribunal and...

Non-Production Of Bills, Vouchers Not A Valid Reason To Deny Additional Depreciation On Tanks: ITAT Ahmedabad

The Income Tax Appellate Tribunal (ITAT) has held that non-production of bills and vouchers could not be a valid reason to deny additional depreciation where the tax department had accepted the asset as plant and machinery and allowed normal depreciation on it. A division bench of Judicial Member T.R. Senthil Kumar and Accountant Member Narendra Prasad Sinha upheld the relief granted to Gulbrandsen Private Limited while deciding the Revenue's appeals for Assessment Years 2012-13 and 2013-14. ...

Taxpayer Can't Be Absolved Of Earlier Lapses Because Final Notice Went To Different Email: ITAT Ahmedabad

The Income Tax Appellate Tribunal (ITAT) in Ahmedabad has held that a taxpayer who was aware of ongoing appellate proceedings cannot avoid the consequences of earlier non-compliance merely because the final notice was sent to a different email address. A division bench of Judicial Member T.R. Senthil Kumar and Accountant Member Narendra Prasad Sinha made the observation while allowing an appeal filed by Arvind Mevalal Panchal for statistical purposes against an order of the National Faceless...

Depreciation Cannot Be Claimed On Goodwill Arising From Unsigned & Unregistered Agreement: ITAT Delhi

On 10 June, the Delhi Bench of the Income Tax Appellate Tribunal (ITAT) held that depreciation cannot be claimed on goodwill arising from an unsigned and unregistered business transfer agreement. Judicial Member Madhumita Roy and Accountant Member Amitabh Shukla dismissed the appeal filed by Straumann Dental India LLP for Assessment Year 2017-18 and upheld the disallowance of depreciation of Rs 16.16 crore claimed on goodwill. The Tribunal examined the Business Transfer Agreement and observed...

Ten-Year Block For Non-Searched Person To Be Computed From Receipt Of Seized Material, Not Search Date: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that, in the case of a person who was not subjected to a search, the relevant assessment block must be computed with reference to the date on which the jurisdictional Assessing Officer records satisfaction after receiving the seized material and not with reference to the date of the search conducted on a third party. A bench of Judicial Member Sudhir Kumar and Accountant Member Naveen Chandra dismissed two appeals filed by the...

Indexed Cost Of Construction Must Be Allowed Where Building Details Form Part Of Sale Deed: ITAT Chennai

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has held that a taxpayer cannot be denied the benefit of indexation on the cost of construction where details relating to the building are already available in the registered sale deed and form part of the material on record. A coram of Judicial Member Manu Kumar Giri and Accountant Member Gagan Goyal allowed an appeal filed by Ramatas Revathi. "The benefit of indexation of cost is a statutory consequence flowing from section 48 of...