ITAT Delhi Holds TDS Applicable On CAM Charges As They Are Maintenance Payments, Not Rent

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 26 May held that Common Area Maintenance (CAM) charges paid by tenants in shopping malls constitute payments for maintenance services and not rent, and therefore attract Tax Deducted at Source (TDS) under Section 194C of the Income Tax Act and not under Section 194-I. Judicial Member Raj Kumar Chauhan and Accountant Member Renu Jauhri dismissed Revenue's appeals against Biba Apparels Pvt. Ltd. for Assessment Years 2013–14,...

ITAT Ahmedabad Deletes ₹3.88 Crore Transfer Pricing Adjustment, Upholds TNMM Consistency

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 27 May held that in the absence of any change in facts or functional profile, tax authorities must consistently follow transfer pricing positions accepted in earlier years, and deleted a transfer pricing adjustment of Rs.3.88 crore in the case of Inductotherm (India) Pvt. Ltd. Vice-President Dr. B.R.R. Kumar and Judicial Member T.R. Senthil Kumar rejected the Revenue's attempt to replace the Transactional Net Margin Method...

ALP Of Intra-Group Services Cannot Be Fixed At Nil Once Receipt Of Services Is Proven: ITAT Ahmedabad

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 27 May held that tax authorities cannot determine the arm's length price (ALP) of intra-group services at nil merely on a subjective perception of benefit once the taxpayer proves receipt of services and substantiates them with evidence. Vice-President Dr. B.R.R. Kumar and Judicial Member T.R. Senthil Kumar allowed an appeal by Roquette India Pvt. Ltd. and deleted transfer pricing adjustments for Assessment Years 2017–18 and...

ITAT Ahmedabad Grants Relief To Milacron India, Says CSR Donations May Qualify For Section 80G Deduction

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 27 May held that tax authorities cannot deny a deduction under Section 80G of the Income Tax Act merely because a company made the donation to fulfil its Corporate Social Responsibility (CSR) obligations. Vice-President Dr. B.R.R. Kumar and Judicial Member T.R. Senthil Kumar partly allowed an appeal filed by Milacron India Private Limited for Assessment Year 2020-21 and remanding the matter to the Assessing Officer for fresh...

ITAT Delhi Allows PNB Housing Finance's CSR Deduction Claim, Deletes ₹3.36 Crore Penalty On Cash EMI Repayments

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has granted relief to PNB Housing Finance Ltd. by allowing its claim for deduction in respect of eligible CSR-related donations and deleting a ₹3.36 crore penalty imposed for accepting cash EMI repayments from borrowers. A bench of Judicial Member Satbeer Singh Godara and Accountant Member Naveen Chandra passed the order while deciding a batch of appeals filed by the housing finance company for assessment years 2017-18 to 2020-21. The...

Per Diem Received By EY Employee During UK Assignment Taxable Only In UK, Not India: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted a ₹17.25 lakh addition made in the hands of an employee deputed to the United Kingdom, holding that ₹16.17 lakh received as per-diem during the overseas assignment was taxable, if at all, in the UK and not in India. Per diem is a daily allowance received by the employee during the his UK assignment. A bench of Judicial Member Vikas Awasthy and Accountant Member Brajesh Kumar Singh allowed the appeal filed by Sachin Saxena...

FTS Receipts Of Thai Company Not Taxable Under India-Thailand DTAA's Residuary Clause: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that Fee for Technical Services (FTS) received by Thailand-based Denso International Asia Co. Ltd. from its Indian group companies cannot be taxed in India under the residuary clause of the India-Thailand Double Taxation Avoidance Agreement (DTAA). A bench comprising Judicial Member Vikas Awasthy and Accountant Member Renu Jauhri allowed the assessee's appeal for AY 2021-22 and deleted an addition of ₹17.28 crore made by the...

ITAT Ahmedabad Deletes ₹20 Crore+ 14A Disallowance Against Axis Bank, Bars Mechanical Use of Rule 8D

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 20 May held that disallowance under Section 14A of the Income Tax Act cannot be made by mechanically invoking Rule 8D unless the Assessing Officer first records dissatisfaction with the taxpayer's own computation of expenditure relatable to exempt income. Judicial Member Sanjay Garg and Accountant Member Annapurna Gupta allowed the appeal filed by Axis Bank Limited and directed deletion of the disallowance made under Section...

ITAT Bangalore Allows 80P Deduction On Interest Income Earned From Co-Operative Bank Deposits

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) on 20 May held that a co-operative credit society is entitled to deduction under Section 80P of the Income Tax Act on interest income earned from deposits placed with co-operative banks, as the income remains attributable to its business of providing credit facilities to members. A single-member Bench comprising Vice-President Shri Prashant Maharishi also held that transactions with nominal members do not disentitle the society...

ITAT Delhi Deletes ₹99.50 Crore Addition Against Baker Hughes, Finds No Permanent Establishment In India

On 27 May, the New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) held that Section 44BB of the Income Tax Act could not be invoked to tax offshore supply receipts in the absence of a Permanent Establishment (PE) in India and deleted an addition of Rs.99.50 crore made against Baker Hughes Energy Technology UK Ltd. Judicial Member Vikas Awasthy and Accountant Member Renu Jauhri observed: “The burden of establishing existence of a PE rests upon the Revenue. Not a single piece of...

ITAT Delhi Remands Cargill India's Intra-Group Services TP Dispute To TPO

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has remanded transfer pricing adjustments relating to intra-group services received by Cargill India Pvt. Ltd., after observing that the Arm's Length Price (ALP) of various services had been determined at nil without discussing the evidence produced by the taxpayer. A bench comprising Judicial Member Vimal Kumar and Accountant Member S. Rifaur Rahman and partly allowed cross-appeals filed by Cargill India Pvt. Ltd. and the Revenue for...

Trust Eligible For 80G Approval For Religious Activities If Expenditure Stays Within 5% Cap: ITAT Delhi

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 26 May held that authorities cannot deny approval under Section 80G of the Income Tax Act to a trust or institution merely because it undertakes religious activities, so long as its expenditure on such activities does not exceed five per cent of its total income in the relevant year. Judicial Member Raj Kumar Chauhan and Accountant Member Brajesh Kumar Singh allowed the appeal filed by Shri 108 Gupti Sagar Dham Jain Trust and...