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...

'Estimation Theory Doesn't Apply To Sham Purchases': ITAT Mumbai Restores Full Disallowance Of ₹26.49 Lakh

The Income Tax Appellate Tribunal (ITAT) Mumbai has held that where purchases are conclusively proven to be bogus and the assessee fails to substantiate the genuineness of suppliers, the entire purchase amount must be added to income and the benefit of estimating profit element cannot be applied. A Bench of Smt. Beena Pillai (Judicial Member) and Shri Omkareshwar Chidara (Accountant Member) was hearing a Revenue appeal against the order of the CIT(A) which had restricted disallowance of...

Income Tax Act | ITAT Delhi Grants Relief In S.10(10D) Dispute; AO Directed To Reassess ULIP Maturity Proceeds Treated as Unexplained Investment

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has remitted back the addition of capital gains deduction to the Assessing Officer (AO) for fresh adjudication in absence of a remand report despite repeated reminders.The Bench, comprising Mr. Mahavir Singh (Vice President) on the claim of assessee that income was an exempt income for being a sum received under life insurance policy noted AO's failure to furnish remand report. “It is noted that Ld. CIT(A) has admitted the additional...

Transfer Pricing Officer Cannot Cherry-Pick Transactions When Transactional Net Margin Method Is Accepted: ITAT Mumbai

The Income Tax Appellate Tribunal (ITAT) Mumbai has held that once the Transactional Net Margin Method (TNMM) is accepted for benchmarking all international transactions, the Transfer Pricing Officer (TPO) cannot cherry-pick only the management fee and assign an Arm's Length Price (ALP) at NIL. In the case in hand, the assessee had preferred an appeal before the ITAT seeking deletion of the Transfer Pricing adjustment on management fees and the consequential enhancement of income, being...