Absence Of Diligence On Part Of Applicant Would Disentitle It To Benefit Of Condonation Of Delay As Per Sec 249(2): Pune ITAT

Finding that the assessee has not shown any action or vigilance for a period of more than five years after the assessment order was served upon it, the Pune ITAT held that such inaction and want of diligence on part of applicant would disentitle it to the benefit of Sec 249(2) in condoning the delay. As per Section 249(4) of Income tax Act, in a case where no return of income has been filed by the assessee, then his appeal shall be maintainable before the CIT(A) only if he had paid an...

Interest Income Earned From Deposits With Co-Operative Banks Shall Be Allowed As Deduction U/s 80P(2)(D): Ahmedabad ITAT

The Ahmedabad ITAT allowed deduction u/s 80P(2)(d) on interest income earned from deposits with Co-operative Banks. Section 80P of Income tax Act is applicable solely to primary agricultural credit societies or rural development and primary cooperative agricultural banks. The Division Bench of TR Senthil Kumar (Judicial Member) and Ramit Kochar (Accountant Member) reiterated that “it is only the interest derived from the credit provided to its members which is deductible u/s...

Bangalore ITAT Grants TCS Credit To IMFL Dealer Even Though License Was In Name Of Another Person

Referring to the case of Million Traders Bhopal Pvt. Ltd. vs. ADIT [ITA Nos. 124 & 125/Ind/2023], the Bangalore ITAT allowed TCS credit to the entity conducting the business of IMFL, irrespective of the fact that the license was in the name of another person. The ITAT maintained the status quo observing that identical issue was decided in similar fashion in all previous assessment years. The Division Bench of Beena Pillai (Judicial Member) and Chandra Poojari (Accountant...

Additions U/s 69C On Account Of Excess Stock Can't Be Based On Third Party Statements Alone Without Any Corroboration: Delhi ITAT

The New Delhi ITAT deleted the additions made u/s 69C on account of excess stock found during survey, after finding that those additions were solely based on the statements recorded of third parties, without any corroborative evidence of unaccounted sales. As per Section 69C of Income Tax Act, where in any financial year an assessee has incurred any expenditure and he offers no explanation about the source of such expenditure or part thereof, or the explanation, if any, offered by him...

Contribution Towards NPS Made Prior To Filing Of Return: ITAT Deletes Addition

The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition of employees contribution towards the National Pension System (NPS) as the contribution towards NPS made prior to filing of the return.The bench of T.R. Senthil Kumar (Judicial Member) and Annapurna Gupta (Accountant Member) has observed that NPS is regulated by the Pension Fund Regulatory and Development Authority Act, 2013 (PFRDA Act). There is no due date prescribed by the PFRDA as to when the payment is...

ITAT Weekly Round-Up: 28 July To 3 August 2024

Even If STT Not Paid At Time Of Acquisition, Trust Entitled To Claim LTCG Exemption: ITATCase Title: Dy. Commissioner of Income Tax- 23(1) Versus Business Excellence TrustThe Mumbai Bench Income Tax Appellate Tribunal (ITAT) has held that even if the Securities Transaction Tax (STT) was not paid at the time of acquisition, the assessee-trust would be entitled to claim exemption of long-term capital gain (LTCG) under Section 10(38) of the Income Tax Act.Price Paid By Donor As Well As Holding...

ITAT Tax Cases Monthly Round Up: July 2024

ITAT Allows Depreciation Claim On Non Compete Fee, Deletes PenaltyCase Title: Metro Tyres Limited Versus ACITThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has allowed the claim of depreciation on non-competing fees.Long Term Capital Gain On Sale Of Shares By Mauritius Company Is Not Liable To Be Taxed In India: ITATCase Title: M/s. Superb Mind Holdings Ltd. Versus Assistant Commissioner of Income TaxThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that long-term capital...

Price Paid By Donor As Well As Holding Period Of Previous Owner Is Required For Purpose Of Computing Capital Gain In Case Of 'Gift': Delhi ITAT

The New Delhi ITAT held that that date of acquisition of property has to be reckoned from the date of its allotment, for purposes of computing short-term capital gain or loss. The ITAT while holding so, accepted the submissions of assessee that where an asset is acquired by gift, the period of long-term capital asset shall be reckoned from the date when the previous owner acquired such asset and the indexation shall be allowed accordingly from the year of acquisition by the previous ...

Tamil Nadu Advocates Welfare Fund Entitled For Income Tax Exemption: ITAT

The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has held that the Central Act is not applicable to the Tamil Nadu Advocates Welfare Fund and is eligible for Income Tax exemption.The bench of Manu Kumar Giri (Judicial Member) and S. R. Raghunatha (Accountant Member) has observed that since the assessee fund is enacted prior to the formation of the Central Act, namely the Advocate's Welfare Fund Act, 2001, and the saving clause is provided u/s. 38 by the Advocate's Welfare Fund Act,...

ITAT Allows Deduction To Credit Cooperative Society On Interest Earned/Dividend From Investment Made With Cooperative Bank

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has allowed the deduction under Section 80P of the Income Tax Act to the cooperative bank, which continued to be a cooperative society.The bench of Rahul Chaudhary (Judicial Member) and Amarjit Singh (Accountant Member) has observed that though the cooperative bank, pursuant to the insertion of Section 80P(4), is no longer entitled to a claim of deduction under Section 80P of the Income Tax Act, as a cooperative bank continued to be a...

Even If STT Not Paid At Time Of Acquisition, Trust Entitled To Claim LTCG Exemption: ITAT

The Mumbai Bench Income Tax Appellate Tribunal (ITAT) has held that even if the Securities Transaction Tax (STT) was not paid at the time of acquisition, the assessee-trust would be entitled to claim exemption of long-term capital gain (LTCG) under Section 10(38) of the Income Tax Act. The bench of C.V. Bhadang (President) and B.R. Baskaran (Accountant Member) has observed that as per the notification issued by the Central Government as per the third proviso to Section 10(38) of the Income Tax...

ITAT & AAR Weekly Round-Up: 21 To 27 July 2024

ITATITAT Allows Depreciation Claim On Non Compete Fee, Deletes PenaltyCase Title: Metro Tyres Limited Versus ACITThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has allowed the claim of depreciation on non-competing fees.Long Term Capital Gain On Sale Of Shares By Mauritius Company Is Not Liable To Be Taxed In India: ITATCase Title: M/s. Superb Mind Holdings Ltd. Versus Assistant Commissioner of Income TaxThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that long-term...