Delay In Final Approval Filing Not Adverse Where Caused By Confusion In Amended Law: ITAT Ahmedabad

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT), has held that delay in filing an application for final approval cannot be held against a taxpayer where such delay arises due to genuine confusion created by newly amended statutory provisions and procedural uncertainty during the transition period.The Bench comprising Judicial Member Sanjay Garg and Accountant Member Annapurna Gupta while dealing with the case of Navsarjan Education Trust, observed that both taxpayers and tax...

ITAT Mumbai Sets Aside CIT(A) Enhancement Of Taxable Income On Issue Not Examined By AO

The Income Tax Appellate Tribunal (ITAT) at Mumbai has held that the Commissioner of Income Tax (Appeals) cannot enhance an assessment by introducing a fresh issue that was never examined by the Assessing Officer, setting aside an addition made through adjustment of work in progress in the case of Skyline Greathills, a real estate company. A Bench of Vice President Saktijit Dey and Accountant Member Arun Khodpia observed, “Section 251(1) of the Act restricts the CIT(A) to assume...

Jio Infocomm USA's Receipts For Voice Termination Services Not Taxable As Royalty Or FTS In India: ITAT Mumbai

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that Rs. 23.20 crore received by Reliance Jio Infocomm USA Inc. for providing voice termination services to Reliance Jio Infocomm Ltd. cannot be treated as royalty or fees for technical services (FTS) under Indian tax law or the India–US tax treaty. It said the income is in the nature of business profits and therefore not taxable in India. The decision was delivered by Judicial Member Beena Pillai and Accountant Member...

No Separate Tax Addition On Cash Already Owned By Group Company: ITAT New Delhi

On 16 April, the New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) held that once cash seized during search proceedings has already been owned and taxed in the hands of a group company before the Settlement Commission, authorities cannot again add the same amount in the hands of an individual, even if it was found in a locker held in his name. The Bench comprising Accountant Member S. Rifaur Rahman and Judicial Member Vimal Kumar dismissed the Revenue's appeal against Lalit Kumar...

Final Assessment Without Draft Order Under Section 144C Invalid: ITAT New Delhi

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 10 April, held that the Assessing Officer's failure to issue a draft assessment order under Section 144C(1) of the Income Tax Act renders the final order void. The Bench comprising Judicial Member C N Prasad and Accountant Member M Balaganesh allowed the appeals filed by Sumitomo Corporation India Pvt. Ltd. against the assessment orders passed by the Deputy Commissioner of Income Tax. The Tribunal held: “the Final...

No Penalty If High Court Admits Quantum Issue As Substantial Question Of Law: Mumbai ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 15 April held that “penalty” under Section 271(1)(c) of the Income Tax Act cannot be sustained where the quantum issue has already been admitted by the High Court as a substantial question of law. A Bench comprising Judicial Member Sandeep Singh Karhail and Accountant Member Bijayananda Pruseth quashed the penalty imposed on the Small Industries Development Bank of India, holding that admission of a substantial question...

ITAT Mumbai Allows Co-operative Society Tax Deduction On Interest Income From Co-op Banks

The Mumbai Bench of the Income Tax Appellate Tribunal has granted relief to a co-operative society by holding that deduction under Section 80P(2)(d) is allowable on interest income earned from deposits with co-operative banks, noting that the issue is already covered by judicial precedents including Pathare Prabhu Cooperative Housing Society Ltd. v. ITO. “As the issue is squarely covered in favour of the Assessee by the aforesaid judgment referred to above, thus, the addition under...

Revenue Cannot Disallow Trademark Depreciation Once Accepted In Initial Year: ITAT Mumbai

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 10 April held that depreciation on a trademark arising out of an amalgamation, once allowed in the initial year, cannot be disallowed in subsequent years in the absence of any change in facts. A Bench comprising Accountant Member Om Prakash Kant and Judicial Member Sandeep Singh Karhail delivered the ruling while deciding Revenue's appeals and Transworld Furtichem Private Limited's cross-objections for multiple assessment years. It...

ITAT New Delhi Dismisses Revenue Appeal Against Bharat Kalia, Finds No 50CA Violation In Share Sale

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 10 April dismissed the Revenue's appeal against Bharat Kalia and held that no addition under Section 50CA of the Income Tax Act, 1961 can be made where the sale consideration of unquoted shares exceeds the fair market value determined under the prescribed rules. Section 50CA applies when a taxpayer transfers unquoted shares at a price lower than their fair market value (FMV), triggering substitution of the consideration for tax...

ITAT Mumbai Grants Relief To Sachin Khedekar, Holds Delay In Filing Form 67 Not Fatal For FTC Claim

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 10 April allowed an appeal filed by actor Sachin Shrikant Khedekar and held that delay in filing Form No. 67 is a procedural lapse and cannot justify denial of foreign tax credit under Section 90 of the Income Tax Act, 1961. A Bench of Judicial Member Sandeep Singh Karhail and Accountant Member Bijayananda Pruseth held: “.....mere delay in filing Form No. 67 as per the provisions of Rule 128(9), as they stood during the year...

ITAT Kolkata Remands DIC Fine Chemicals' Transfer Pricing, Book Profit, Interest Adjustments Per APA

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) on 6 April, held that when a company enters into an Advance Pricing Agreement (APA) with the Central Board of Direct Taxes (CBDT) covering the relevant assessment year, transfer pricing disputes must be reconsidered in accordance with the APA.A Bench of Judicial Member Sonjoy Sarma and Accountant Member Rakesh Mishra remanded the arm's length price determination for AY 2021-22 in favour of DIC Fine Chemicals, observing that the APA...

ITAT Kolkata Deletes ₹43.98 Lakh Addition Against Disha Eye Hospitals For Genuine SBN Receipts

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) on 6 April deleted a Rs. 43.98 lakh addition made against Disha Eye Hospitals Pvt. Ltd., holding that receipts from a genuine source, even if in demonetised notes (SBNs), cannot be treated as unexplained money under Section 69A of the Income Tax Act. A Bench comprising Judicial Member George Mathan and Accountant Member Rakesh Mishra observed: “Only on account of the fact that the receipts were in SBNs, the same could not be added...