ITAT Delhi Quashes Revision Order, Says Tax Dept. Cannot Expand Limited Scrutiny Assessment

The Income Tax Appellate Tribunal, Delhi Bench, has quashed a revision order passed against an individual taxpayer, holding that the tax department cannot expand a limited scrutiny assessment by invoking its revisionary powers.A coram comprising Judicial Member Yogesh Kumar U.S. Accountant Member S. Rifa'ur Rahman held that the Principal Commissioner of Income Tax had wrongly invoked Section 263 of the Income Tax Act which allows revision of an assessment only if it is both erroneous and...

ITAT Upholds Deletion Of ₹25.55-Crore Income Tax Addition On Everest Food Over Alleged Bogus Purchases

The Mumbai Bench of the Income Tax Appellate Tribunal has recently upheld the deletion of a Rs 25.55 crore income tax addition against Everest Food Products Pvt. Ltd., a Mumbai-based company that manufactures and sells masala and spices under the popular “Everest” brand. A bench of Judicial Member Kavitha Rajagopal and Accountant Member Vikram Singh Yadav dismissed the revenue's appeal, agreeing with the Commissioner (Appeals) that purchases cannot be treated as non-genuine solely because...

Amendments To Income Tax Appellate Tribunal Rules Mandate Digital Signatures For Filing Appeals

The Ministry of Law and Justice has recently notified changes to the Income-tax (Appellate Tribunal) Rules, 1963, making the use of digital signatures compulsory for filing appeals before the Income Tax Appellate Tribunal (ITAT). The changes have been brought in through the Income-tax (Appellate Tribunal) Amendment Rules, 2025. Under the amended rules, appeals must now be filed electronically. Rule 6 has been substituted to state that a memorandum of appeal shall be filed by the appellant or...

ITAT Mumbai Sets Aside ₹2.28-Crore Capital Gains Tax on Housing Society For Developer Payments To Members

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has quashed a Rs 2.28 crore capital gains tax addition against Colombia Co-operative Housing Society, holding that redevelopment compensation paid directly to individual members cannot be taxed as the society's income.The ITAT held that amount paid by a developer directly to individual members of a co-operative housing society pursuant to redevelopment cannot be taxed as capital gains in the hands of the society, particularly when the...

ITAT Delhi Approved Amalgamation And Consistent Expense Allocation Cannot Be Used To Deny Section 80-IC Deduction

The Delhi Bench of Income Tax Appellate Tribunal has upheld substantial tax relief granted to Mahle Filters Systems (India) Ltd. for Assessment Year 2010–11, rejecting the Revenue's challenge to the company's deduction claimed under Section 80-IC of the Income Tax Act. A Bench comprising Vice President Mahavir Singh and Accountant Member Krinwant Sahay, while deciding cross-appeals filed by the assessee and the Revenue, held that the tax department was not justified in treating the...

Section 56(2)(x) Not Attracted If Property Held As Stock-in-Trade: ITAT Mumbai Remands ₹18.48 Cr Addition

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has set aside an income tax addition of over ₹18.48 crore made under Section 56(2)(x) of the Income Tax Act, 1961, and remanded the matter back to the Assessing Officer to verify whether the disputed immovable property was held as stock-in-trade by the assessee. A Bench comprising Judicial Member Rahul Chaudhary and Accountant Member Om Prakash Kant was hearing the appeal filed by an individual assessee for Assessment Year...

ITAT Mumbai Deletes ₹50 Lakh Section 68 Addition In Absence Of Incriminating Material Found During Search

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the appeal filed by M/s JS Infrastructure, deleting an addition of ₹50 lakh made under Section 68 of the Income Tax Act in proceedings initiated under Section 153C. A Bench comprising Judicial Member Kavitha Rajagopal and Accountant Member Omkareshwar Chidara held that no addition could be sustained in a completed assessment in the absence of any incriminating material found during the course of search. The...

ITAT Flags Mismatch Between Stock & Sales Of Jewellery Firm During Demonetisation Period, Orders Fresh Examination

The Lucknow Bench of the Income Tax Appellate Tribunal (ITAT) has set aside an appellate order deleting a ₹2.75 crore addition made on account of cash deposits during the demonetisation period and has remanded the matter back to the Assessing Officer for a fresh assessment. A Bench comprising Vice President Kul Bharat and Accountant Member Anadee Nath Mishra was hearing the Revenue's appeal against an order passed by the National Faceless Appeal Centre, which had earlier deleted the...

Film Broadcasting Licence Fees Not Royalty Under India–Mauritius DTAA: Mumbai ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal has allowed the appeal, holding that the consideration received for granting non-exclusive broadcasting rights of Hindi feature films does not constitute “royalty” taxable in India under the Income Tax Act or the India–Mauritius Double Taxation Avoidance Agreement (DTAA). A Bench comprising Judicial Member Narender Kumar Choudhry and Accountant Member Omkareshwar Chidara was hearing the appeal for Assessment Year 2004-05 against an...

Income Tax | Cannot Curtail Trust's Time Window For Availing Exemption On Existing Accumulations: ITAT Delhi

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has allowed a Trust that had accumulated Income for Financial Year 2016-2017 to claim exemption under Section 11 of the Income Tax Act, 1961 and deleted addition of ₹37,99,090. In a recent order, a Division Bench, comprising Shri S. Rifaur Rahman (Accountant Member) and Shri Sudhir Kumar (Judicial Member) on effect of amendment restricting the accumulation period for income of charitable/religious trusts under Section 11, it was ...

Income Tax Act | ITAT Mumbai Grants Major Tax Relief To Vodafone; Deletes Depreciation, TDS & S.14A Disallowances

The Mumbai Bench of the Income Tax Appellate Tribunal has held that multiple additions made by the Assessing Officer could not be sustained in law. The Bench held that the transfer of passive telecom tower assets pursuant to a court-approved demerger amounted to a genuine “gift” under Section 47(iii), and the Assessing Officer could not artificially impute consideration or deny depreciation. It further ruled that roaming services do not involve human intervention so as to qualify as...

Income Tax Act | S.54 Relief Cannot Be Denied Merely Due To Delay In Registration If Sale Proceeds Invested Within Time: ITAT Chennai

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) held that deduction under Section 54 of the Income Tax Act cannot be denied merely due to delay in registration if investment in new residential property is made within the prescribed time. Section 54 of the Indian Income Tax Act, 1961 offers individuals and Hindu Undivided Families (HUFs) an exemption from long-term capital gains tax. This exemption applies when they sell a residential house property and use the proceeds...