ITAT
No Tax Addition Where Charitable Trust Incurred Loss, Even If Some Receipts Treated As Business Income: ITAT Mumbai
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has recently held that no tax addition can be made where a Mumbai charitable trust has incurred an overall loss, even if the Assessing Officer treats some of its receipts as business income. The tribunal made it clear that tax can be levied only on real and net income, and where expenditure exceeds receipts, nothing survives to be taxed. The coram comprising President Justice (Retd.) C V Bhadang and Accountant Member Vikram...
Carry Forward Of Losses Can't Be Denied On Vague Grounds: ITAT Pune
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has held that statutory tax benefits cannot be denied on vague grounds. Such rejections such as in the present case, reflect a “sheer lack of application of mind,” the tribunal said. Applying this principle, the tribunal allowed a Maharashtra based tech company to carry forward business losses of Rs 1.09 crore and unabsorbed depreciation totalling Rs 1.03 crore. The tribunal, comprising Judicial Member Astha Chandra...
Waiver Of Liability To Redeem Debentures Not Taxable If Interest Deduction Was Not Claimed Earlier: ITAT Pune
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has held that the waiver of a company's liability to redeem debentures cannot be taxed as income when no deduction of interest on those debentures was claimed in earlier years.A coram comprising Judicial Member Astha Chandra and Accountant Member Dr. Dipak P. Ripote examined the applicability of Sections 28(iv) and 41(1) of the Income Tax Act on the action. Relying on apex court rulings, the tribunal held that Section 28(iv) applies...
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...