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...

Income Tax | ITAT Mumbai Allows Section 80P Deduction On Interest Earned From Co-operative Banks

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed a co-operative housing society to claim deduction under Section 80P(2)(d) of the Income Tax Act on interest income earned from deposits placed with co-operative banks. A Bench comprising Vikram Singh Yadav (Accountant Member) and Rahul Chaudhary (Judicial Member) allowed the appeal filed by the assessee, Clover Everest World Co-operative Housing Society Ltd. and set aside the denial of deduction by the tax...

Income Tax Act | GST Would Not Form Part Of Gross Receipts Under Section 44BB: ITAT Mumbai

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that Goods and Services Tax (GST) collected by a non-resident assessee cannot be included in gross receipts for computing presumptive income under Section 44BB of the Income Tax Act, 1961. A Bench comprising Vikram Singh Yadav (Accountant Member) and Sandeep Singh Karhail (Judicial Member) allowed the appeal filed by the assessee, Oceaneering International GmbH for Assessment Year 2023–24 and directed the Assessing...

ITAT Mumbai Deletes Additions Based On HSBC Geneva 'Base Note' Against Anil Ambani

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has dismissed a batch of appeals filed by the Revenue against businessman Anil Dhirajlal Ambani, holding that additions made on the basis of alleged undisclosed foreign bank accounts with HSBC Bank, Geneva were unsustainable in law. A Bench comprising Anikesh Banerjee (Judicial Member) and Girish Agrawal (Accountant Member) upheld the order of the Commissioner of Income Tax (Appeals), which had deleted both substantive and ...

Income Tax Act | Long Term Capital Gain On Shares Cannot Be Branded Bogus Without Evidence: ITAT Mumbai

The Income Tax Appellate Tribunal (ITAT), Mumbai has held that long-term capital gains (LTCG) arising from the sale of listed shares cannot be treated as unexplained cash credit under Section 68 of the Income Tax Act, 1961 merely on the basis of general allegations of penny-stock manipulation, when the assessee has supported the transactions with complete documentary evidence. A Division Bench comprising Vikram Singh Yadav (Accountant Member) and Anikesh Banerjee (Judicial Member)...

Delhi High Court Dismisses Revenue's Appeal In Avery Dennison Transfer Pricing Case, Upholds ITAT Order On Intra-Group Services

The Delhi High Court has dismissed the Income Tax Department's appeal against M/s Avery Dennison (India) Pvt. Ltd., reaffirming that no substantial question of law arises where the Transfer Pricing Officer's (TPO) conclusions are unsupported by cogent evidence and the issue stands settled in favour of the assessee in earlier years. A Division Bench comprising Justice V. Kameswar Rao and Justice Mini Pushkarna was hearing an appeal filed by the Revenue for AY. 2012-2013, stated that that...

Income Tax | ITAT Mumbai Deletes ₹10.84 Cr Addition Against Preity Zinta; Holds Loans Were Genuine, Not Unexplained Cash Credits

The Income Tax Appellate Tribunal (ITAT) Mumbai has set aside a ₹10.84 crore addition made under Section 68 of the Income Tax Act in the case of actress Preity G. Zinta, holding that the Assessing Officer failed to appreciate the documentary evidence establishing identity, creditworthiness and genuineness of the loan transactions routed through entities of the Danish Merchant Group. A Bench of Saktijit Dey (Vice President) and Girish Agrawal (Accountant Member), while hearing the...

Assessment Order Passed Without Awaiting DVD Report Violates S. 50C(2) Income Tax Act: ITAT Ahmedabad

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that an assessment order passed without awaiting the DVD (Departmental Valuation Officer) report violates Section 50C(2) of the Income Tax Act.Section 50C(2) of the Income Tax Act provides a mechanism for a taxpayer (seller) to dispute the stamp duty valuation of their immovable property if they believe it is higher than the actual fair market value (FMV)Sanjay Garg (Judicial Member) and Makarand V. Mahadeokar (Accountant...

CBI Arrests Jaipur Income Tax Appellate Tribunal's Judicial Member For Indulging In 'Corrupt Practices'

The CBI has arrested a lawyer as well as a judicial member of the Income Tax Appellate Tribunal, Jaipur for allegedly indulging in corrupt practices. As per the agency's post on X, the agency has busted a "criminal network" stated to involve an advocate as well as a judicial member of ITAT, Jaipur, an assistant registrar of the tribunal, and other unknown public servants and private persons for "indulging in corrupt practices" in connection with "settling appeals in ITAT bench, Jaipur" in...