ITAT Cases Weekly Round-Up: 31 March To 6 April 2024

Jaipur ITAT Directs Dept. To Allow Taxpayer To File Revised Appeal Memo In Form No. 35 For Removal Of Deficiency Case Title: Zila Parisad verses Addl. CIT, TDS While relegating the taxpayer to file a revised appeal memo in Form No. 35 either on the e-filing portal of the department or physical form, the Jaipur ITAT restored the matter back to the file of the CIT(A) to adjudicate the matter of rectification application for removal of deficiency, afresh, as per law. Incorrect...

ITAT Cases Quarterly Digest 2024

S. 54F Exemption Not Available On Property Predominantly Being Used For Religious Purposes: ITAT Case Title: Asstt. CIT Versus Iqbal Ali Khan The Hyderabad Bench of Income Tax Appellate Tribunal (ITAT) has held that exemption under Section 54F of the Income Tax Act is not available on property predominantly being used for religious purposes. ITAT Deletes Addition Of Unexplained Investment In Stock Valuation Difference Case Title: Ethiraj Hotel Mart Versus DCIT The...

Once Busines Income Of Wife Accepted During Scrutiny, AO Can't Tax Husband Again Stating Wife Was Not The One Carrying Business: Rajkot ITAT

While accepting on one hand that the income found to be belonging to taxpayer's wife in scrutiny assessment was duly offered to tax, the Rajkot ITAT reprimanded the I-T Department from taking a contrary view and taxing it in the hands of the taxpayer on the ground that his wife was not actually carrying out any business. The Bench of the ITAT comprising of Suchitra R. Kamble (Judicial Member) and Annapurna Gupta (Accountant Member) observed that “since the income of the wife of...

AO Fails To Scrutinize Cash Payments By Assessee Under Lens Of Sec 40A; Indore ITAT Upholds Revisional Interference U/s 263

On finding a lack of inquiry on the part of AO in allowing cash sales, which renders the assessment order erroneous so far as it is prejudicial to the interests of revenue, the Indore ITAT upheld the order of disallowance u/s 40A(3) of the Income Tax Act, passed by Pr. CIT by invoking Section 263. The Bench of the ITAT comprising of Vijay Pal Rao (Judicial Member) and Manish Borad (Accountant Member) observed that “If the assessee takes a plea that the payment in cash was made as per...

Assessment By AO Can't Be Termed As Prejudicial To Interest Of Revenue If It Doesn't Result In Any Loss To Revenue: Indore ITAT

On finding that the facts of the case do not warrant application of section 263 of the Income Tax Act, the Indore ITAT set aside the revision order passed by PCIT and restored the original assessment-order passed by the AO. The ITAT explained that revocation of revisionary jurisdiction u/s 263 requires assessment to be erroneous as well as prejudicial to interest of Revenue. The Bench of the ITAT comprising of Vijay Pal Rao (Judicial Member) and B.M. Biyani (Accountant Member)...

Enhancement Made To Taxpayer's Income Without Following Procedures As Per Sec 154, Calls For Re-Adjudication: Bangalore ITAT

On finding that a vague order has been passed by the AO by reshuffling the addition under different heads of income and without discussing the issue under the provision of section 154(3) of the Income Tax Act, the Bangalore ITAT remitted back the issue to the file of the AO for fresh consideration. The ITAT explained that as per Section 154(3), an Amendment, which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee or the...

Making Deposit At One Go After Declaration Of Demonetization Is No Reason For Doubting Cash Sales: Indore ITAT

While deleting the addition made by the AO u/s 68 of the Income Tax Act, the Indore ITAT held that once the cash sales and availability of the cash with the assessee is duly supported by the books of account of the assessee, then making deposit at one go in the circumstances after declaration of demonetization cannot be a reason for doubting the availability of cash with the assessee. The Bench of the ITAT comprising of Vijay Pal Rao (Judicial Member) observed that “once the ...

ITAT Cases Monthly Round-Up: March 2024

Filing Return By Due Date U/s 139 Is Mandatory For Political Party To Claim Exemption U/s 13A: Delhi ITAT Refuses To Stay Recovery Against Congress Party Case Title: Indian National Congress Verses Deputy Commissioner of Income Tax While holding the argument that an assessee is entitled to a stay on the recovery proceedings on payment of 20% of the demand during the pendency of appeal before the Tribunal, as too general, the New Delhi ITAT dismisses the stay application of...

Ex-Parte Order Which Resulted Into Denial Of Proper Opportunity Of Being Heard, Merits Remand: Mumbai ITAT

On finding that the order passed by the Commissioner is an ex-parte order which resulted into denial of proper opportunity of being heard, the Mumbai ITAT set aside the order passed u/s 144 of the Income Tax Act, and remanded the case back to the file of the Commissioner for decision afresh. The ITAT also directed the assessee to deposit Rs.11,000/- in the Prime Minister's National Relief Fund (PMNRF) within 30 days of the order and to co-operate with the appellate proceedings and to...

Simple Disagreement With Plausible Views Of AO Is No Basis For CIT To Assume Jurisdiction U/s 263: Kolkata ITAT

While quashing the invalid exercise of jurisdiction by PCIT u/s 263 of the Income Tax Act, without satisfying the conditions precedent for such section, the Kolkata ITAT held that the PCIT cannot invoke the jurisdiction u/s 263 to substitute his view in place of AO on the ground that he does not agree with the view taken by the AO. The Bench of the ITAT comprising of Sanjay Garg (Judicial Member) and Rajesh Kumar (Accountant Member) observed that “it can be said to be plausible and ...

Bifurcated Details Of Income From Specified & Non-Specified Business Is Not Available: Indore ITAT Asks To Reconsider Deduction U/s 35AD

While setting aside the order of deduction passed u/s 35AD of the Income Tax Act in relation to investment on warehouse, the Indore ITAT has remitted back the issue to the AO for proper verification and consideration of the bifurcated details of income from specified and non-specified business after finding that such bifurcation of income was not presented earlier before the AO. The Bench of the ITAT comprising of Vijay Pal Rao (Judicial Member) and B.M. Biyani (Accountant Member)...

No Addition U/S 69 Is Permitted Without Examining & Finding Fault In Cash Book Produced By Taxpayer: Delhi ITAT

On finding that the CIT(A) has failed to examine the cash book presented by the assessee, the New Delhi ITAT deleted the addition sustained by CIT(A) u/s 69 of the Income Tax Act. The Bench of the ITAT comprising of Yogesh Kumar U.S. (Judicial Member) and N. K. Billaiya (Accountant Member) observed that “The assessee having been produced the cash book and explained the cash found during the search and seizure operation contending that the cash found during the search are belongs to...