ITAT Kolkata Remands ₹92.67 Crore Addition Against Addhya Forex, Upholds Right To Fair Hearing

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) on 6 April remanded reassessment proceedings against Addhya Forex (P) Ltd., holding that the addition of Rs. 92.67 crore was based on ex parte orders and directing the Assessing Officer to give the taxpayer a fresh opportunity to present its case. A Bench comprising Judicial Member George Mathan and Accountant Member Rakesh Mishra set aside the order of the Commissioner of Income Tax (Appeals), observing: “Since no compliance was...

Persistent Loss Should Be Continuous Over 3 Years: ITAT Delhi Orders Rework Of TP Addition For Keysight

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has partly allowed the taxpayer's appeal, holding that companies cannot be excluded as comparables merely for incurring losses in two out of three years and that foreign exchange fluctuations arising from business transactions must be treated as operating in nature. A coram comprising Judicial Member Yogesh Kumar U.S. and Accountant Member Manish Agarwal held that “persistent loss filter can be applied only if there is loss in...

Unspent Accumulation Taxable After 5 Years For Charitable Trusts: ITAT Ahmedabad

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 1 April held that income accumulated by a charitable entity but not utilised within the permitted five-year period becomes taxable, and claiming exemption again on such amount amounts to double deduction. A Bench comprising Judicial Member Sanjay Garg and Accountant Member Annapurna Gupta, allowed the Revenue's appeal and restored the addition made by the Assessing Officer against State Examination Board, Nr. Government Library....

Reassessment Based On General Penny Stock Reports Alone Cannot Stand: ITAT Ahmedabad

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 1 April, held that reassessment cannot be based solely on general penny stock investigation reports without any material linking the taxpayer, and deleted additions made towards alleged bogus capital gains and commission. The Bench comprising Judicial Member Sanjay Garg and Accountant Member Annapurna Gupta allowed the appeal of Bhupesh Sajjansinh Rathod, an individual investor, against the order of the Commissioner of Income...

ITAT Ahmedabad Condones 153-Day Delay By Senior Citizen Unaware Of Tax Procedure, Orders Fresh Hearing

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 23 March, held that delay in filing an appeal by a lady senior citizen constituted a sufficient and reasonable cause, and restored the matter for fresh adjudication. A Bench comprising Judicial Member Suchitra Kamble and Accountant Member Annapurna Gupta condoned a delay of 153 days, observing that the taxpayer's unfamiliarity with income tax procedures and technology justified the delay. The Bench observed: “Considering the...

Notings In Seized Excel Sheet Alone Cannot Justify "Bogus" Expenditure Addition: ITAT Ahmedabad

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that transactions already recorded in regular books of account cannot be treated as “bogus” expenditure solely based on entries in a seized Excel sheet.A Bench comprising Vice President Dr. B.R.R. Kumar and Judicial Member Suchitra R. Kamble, on 18 March, upheld the deletion of additions made by the Assessing Officer, holding: “There is no reason for us to believe that a notation in a planning sheet represents a 'bogus'...

ITAT Ahmedabad Upholds Reopening of IT Assessment On Cash Deposits, Orders Peak Credit Taxation

The Ahmedabad Bench of the Income Tax Appellate Tribunal has upheld the reopening of the assessment of an individual for AY 2016–17 based on cash deposit information but directed that only the peak credit in his bank account be taxed, noting that taxing the entire deposits would be excessive.A coram comprising Judicial Member Siddhartha Nautiyal and Accountant Member Narendra Prasad Sinha held that the reopening was valid as it was based on tangible material, observing that “such information...

ITAT Ahmedabad Remands ₹97.35 Lakh Addition To Income For Cash Deposits, Imposes ₹10 thousand Cost On Taxpayer

A motorcycle sub-dealer from the Panchmahal district, Gujarat, has secured a fresh opportunity before tax authorities after the Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) set aside an addition of ₹97.35 lakh towards unexplained cash deposits, while imposing a cost of Rs 10,000 for earlier non-compliance. A coram of Judicial Member Siddhartha Nautiyal and Accountant Member Narendra Prasad Sinha observed that the addition was made largely due to non-compliance and lack of...

No TDS Under Section 194-IA On Rural Agricultural Land Transactions: ITAT Ahmedabad

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) 26 March, held that buyers of rural agricultural land are not required to deduct TDS under Section 194-IA of the Income Tax Act, and interest under Section 201(1A) is not leviable. The Bench, comprising Vice-President Dr. B.R.R. Kumar and Judicial Member Suchitra Kamble, dismissed the Revenue's appeal while confirming that Tarun Santramdas Varma (taxpayer) did not owe TDS on certain rural agricultural land transactions. The...

Disallowance Irrelevant Where Tax Liability Arises Under MAT: ITAT Ahmedabad

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 26 March, reiterated that a disallowance computed under Rule 8D of the Income Tax Rules cannot be imported into the computation of book profit under the Minimum Alternate Tax (MAT) provisions. The Bench, comprising Judicial Member Suchitra Kamble and Accountant Member Narendra Prasad Sinha, allowed the appeal filed by Shalby Ltd., observing that even if the alleged disallowance were made, it would not impact the taxpayer's...

Reassessment Beyond Three Years Without PCCIT Approval Invalid: ITAT Chennai

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) on 25 March held that reassessment proceedings initiated beyond three years from the end of the relevant assessment year are invalid if the Assessing Officer does not obtain prior approval from the Principal Chief Commissioner of Income Tax (PCCIT), as mandated under the Income Tax Act. The Bench, comprising Judicial Member Aby T. Varkey and Accountant Member S.R. Raghunatha, set aside the reassessment notice issued against Vasanthi...

Overall Assessment Time Limit Applies Even In Dispute Resolution Panel Cases: ITAT New Delhi

The Delhi Bench of the Income Tax Appellate Tribunal has ruled that final assessment orders under Section 144C (DRP route) must comply with the overarching time limit under Section 153 (assessment deadline), holding that orders passed beyond this limit are time-barred.A coram comprising Judicial Member Vikas Awasthy and Accountant Member Sanjay Awasthy was dealing with appeals filed by BT India Pvt. Ltd. for Assessment Years 2017-18 and 2018-19, wherein the primary issue was whether the...