Shed Of 500 Mtr. On Agricultural Land Can't Be Considered As Residential House, Section 54F Exemption Not Allowable: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has denied the exemption under Section 54F of the Income Tax Act on the 500-meter shed made on agricultural land that cannot be considered a residential house.The bench of Kul Bharat (Judicial Member) and B. R. R. Kumar (Accountant Member) has observed that the size of the residential house is not a criteria for claiming exemption under Section 54F. The very fact that there existed any residential house and whether the assessee constructed...

Non-Compete Fee To Be Treated As “Revenue Receipt” From 01.04.2003: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the non-competitive fee received by the assessee is treated as 'revenue receipt' in the hands of the assessee but only post-amendment, i.e., w.e.f. 01.04.2003.The bench of Kavitha Rajagopal (Judicial Member) and Om Prakash Kant (Accountant Member) has observed that the amendment to Section 28(va) of the Finance Act, 2002 is only w.e.f. 01.04.2003 relevant to A.Y. 2004-05 onwards and does not have a retrospective effect for...

Section 80G Deduction Allowable On CSR Expenditure: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the deduction under Section 80G of the Income Tax Act is allowable on the expenditure in respect of corporate social responsibility (CSR).The bench of Kavitha Rajagopal (Judicial Member) and Om Prakash Kant (Accountant Member) has observed that the amendment brought about by the Finance Act, 2015, to Section 80G of the Act, which inserted the subclauses (iiihk) and (iiihl) to be the exception for qualifying a donation for...

Cash Deposits Made From Assessee's Parents Accumulated Savings And Income From Agricultural Activities; ITAT Deletes Addition

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition made by the department as the cash deposits made from the assessee's parents accumulated savings and income from agricultural activities.The bench of Suchitra Kamble (Judicial Member) and Makarand V. Mahadeokar (Accountant Member) has observed that when the assessee provides a plausible explanation supported by affidavits, it is the duty of the revenue to conduct proper verification before making any adverse...

Computation Of 6 Assessment Years For Search Assessments U/S 153C Starts From Date Of Receiving Seized Documents: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the computation of six assessment years for search assessments under Section 153C of the Income Tax Act starts from the date of receiving seized documents.The bench of Saktijit Dey (Vice President) and Naveen Chandra (Accountant Member) has relied on the decision of the Supreme Court in the case of CIT vs. Jasjit Singh, in which it was held that under Section 153C, a third party would only have to furnish income tax returns...

No Disallowance Under Section 14A Of Income Tax Act Is Warranted In Respect Of Investments Not Yielding Tax Free Income: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that disallowance has to be worked out on the basis of investment which yielded dividend during the year and not by factoring in the total amount of investment.The bench of Amit Shukla (Judicial Member) and Renu Jauhri (Accountant Member) has observed that no disallowance under section 14A of the Income Tax Act is warranted in respect of investments not yielding tax free income for the appellant. As per Section 14A, the...

ITAT Quashes Assessment Order Against Bret Lee As Reassessment Notice Not Served Within Limitation Period

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the royalty is not included in the transaction value of the imported raw materials to demand any differential customs duty.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the royalty payment is only for providing technical assistance for the manufacture and sale of licensed products, and the import of raw materials is incidental to such...

Salary Reimbursements Of Seconded Employees Is Not Taxable As Fees For Technical Services: ITAT

The Bangalore Bench of Income Tax Appellate Tribunal (ITAT) has held that salary reimbursements of seconded employees are not taxable as fees for technical services.The bench of Beena Pillai (Judicial Member) and Chandra Poojari (Accountant Member) has observed that the conduct of assessees is bona fide, though it was not agreed upon by the department, and it is also noted that assessees have all material time to disclosing these secondment receipts in their Form 3CB filed with the department...

ITAT Cases Weekly Round-Up: 26 May To 01 June 2024

Date Of Possession Of New Property To Be Considered As Date Of Acquisition; ITAT Allows DeductionCase Title: Sunil Amritlal Shah Versus The Income Tax Officer(IT)The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the date of possession of new property to be considered as date of acquisition and the assessee is entitled to deduction under Section 54 of the Income Tax Act on the purchase of new property.Receipts From CRM Services Not Taxable In India As Royalty Or FTS: ITATCase...

ITAT Cases Monthly Round Up: May 2024

Bonafide Mistake Committed By Assessee While Applying For Registration In Form 10AB Instead Of Form 10A, Merits To Be Condoned: Hyderabad ITATCase Title: Mandava Foundation verses Income Tax OfficerOn finding that it is proper to condone the mistake committed by the assessee while applying for registration in Form 10AB instead of Form 10A of the Income Tax Act, the Hyderabad ITAT directed the CIT(E) to hear and dispose of the request of the assessee by allowing it to apply under Form...

Approving Authority Has Acted As Mere Rubber Stamp While Granting Approval U/s 153D: Delhi ITAT Quashes Assessment Passed Without Application Of Mind

On finding that the approval granted u/s 153D is not in accordance with the provisions of the Income Tax Act, the New Delhi ITAT held the approval granted u/s 153D is invalid and set aside the order passed by the First Appellate Authority as he acted as a mere rubber stamp. Section 153D of the Income Tax Act, mandates that no order of assessment or reassessment shall be passed by an AO below the rank of Joint Commissioner without the prior approval of the Joint Commissioner or a...

Claim As Residential House, No Basic Amenities For Habitation Found; Delhi ITAT Upholds Disallowance Of Deduction U/s 54

On finding that all the basic amenities desired for a living, were not available in the subjected property rendering it to be non-habitable, the New Delhi ITAT held that the assessee had not constructed the residential house, and hence, deduction u/s 54 of the Income Tax Act, was rightly denied by the AO. Section 54 of the Income Tax Act, indicates that an individual or HUF selling a residential property can avail tax exemptions from Capital Gains if the capital gains are invested...