Jurisdiction To Levy Fee U/s 234E While Processing TDS Returns Is Prospective In Nature And Excludes Period Prior To June 01, 2015: Chandigarh ITAT

Pointing that though there has been a delay in filing TDS returns, however, the TDS return has been filed much before 1.6.2015 and none of the cases involved a case of continuing default where the assessee has defaulted in furnishing the TDS statement even after 01.06.2015, the Chandigarh ITAT ruled that there is no basis for levy of fees u/s 234E of Income tax Act, 1961.The Bench of Aakash Deep Jain (Vice President) and Vikram Singh Yadav (Accountant Member) observed that “even though the AO...

AO Lacks Jurisdiction To Frame Assessment U/s 153C/143(3) In Absence Of Valid Satisfaction Note: Mumbai ITAT

On finding that the AO have not recorded valid satisfaction note in the case of the “other person”/assessee in the case as required by section 153C of the Income Tax Act, 1961, the Mumbai ITAT held that the AO lacked jurisdiction to frame assessment u/s 153C/143(3) and therefore assessment framed by AO are held to be without jurisdiction and therefore quashed.The Bench of the ITAT comprising of Aby T. Varkey (Judicial Member) and S Rifuar Rahman (Accountant Member) observed that, “AO has simply...

Once ITO Accepted Income Earned Which Is Totally Based Upon Depreciation Plus 15% Markup, There Is No Reason To Deny Cost: Delhi ITAT

Finding that the assessee had arrangement with its AE for billing cost plus 15%, which has been duly billed during the year and entire depreciation cost plus 15% has been billed to the AE, the New Delhi ITAT allowed the depreciation claimed by assessee.The Bench of Shamim Yahya (Accountant Member) and Challa Nagendra Prasad (Judicial Member) observed that “When the Revenue is accepting the revenue earned which is totally based upon depreciation plus 15% markup, there is no reason to deny the...

Advance Filing Of Form 10B Along With I-T Return Is Not Mandatory Requirement For Claiming Exemption U/s 11 & 12: Ahmedabad ITAT

Referring to the decision in case of Association of Indian Panel board Manufacturer v Deputy Commissioner of Income Tax [2023] 157 taxmann.com 550 (Gujarat), the Ahmedabad ITAT reiterated that filing of Form 10B along with the return of income is only a procedural requirement and cannot be treated as mandatory requirement for the purpose of claiming exemption u/s 11 & 12 of the Income tax Act and even if filed at a later stage the assessee is entitled to exemption claimed.The Bench of...

Even If Organisation Is Not Entitled To Benefit U/s 11, It Is Entitled To Claim Expenses Incurred During Year Against Gross Receipts: Kolkata ITAT

On perusal of the audited balance sheet and profit and loss account, the Kolkata ITAT opined that if the assessee is given deduction of expenditure incurred during the year, which it is entitled to, then there will be a net loss against gross receipts during the year, which interalia included receipt of membership and donation from members.The Bench of Dr. Manish Borad (Accountant Member) and Anikesh Banerjee (Judicial Member) observed that “even if an organisation, is not entitled to benefit...

Ahmedabad ITAT Quashes Reopening In Absence Of Tangible Material With AO To Form Reason To Believe Escaped Assessment

The Ahmedabad ITAT quashed reopening proceedings finding that there was no tangible material available with the AO to form a reason to believe that the income of assessee has escaped assessment.The Bench of Waseem Ahmed (Accountant Member) and Siddhartha Nautiyal (Judicial Member) observed that “simply that Shri Prakash bhai Ishwar bhai Changela and the assessee are maintaining the bank account in the Social Co-operative cannot be a ground to draw a conclusion that the assessee is engaged in the...

Taxpayer Failed To Duly Substantiate Question Of Identity & Source Of Fund: Kolkata ITAT Remits Matter For Re-adjudication

Finding that the issue in question has been agitated for the first time before the Bench and the same has been covered by a previous decision under homogenous facts, the Kolkata ITAT remitted back the matter to the file of AO for further adjudication de-novo both in legal as well as factual aspect of the assessee.Referring to the decision of Delhi High Court in the case of CIT vs. Insecticides (India) Ltd. [2013] 357 ITR 330 (Delhi), the Bench of Rajesh Kumar (Accountant Member) and Anikesh...

Additions Based On Altogether Different Issue On Which No Reasons Were Recorded, Dents Proceedings U/s 147 / 148: Mumbai ITAT

On finding that addition which is not based on the reasons for reopening is un-sustainable, the Mumbai ITAT deleted the addition made by AO u/s 69C of the Income Tax Act, 1961.The Bench of the ITAT comprising of Narender Kumar Choudhry (Judicial Member) and Padmavathy S. (Accountant Member) observed that, “the return of income was assessed under section 143(3) of the Act and the additions made by the Assessing Officer and affirmed by the Ld. Commissioner, in fact, are based on the different...

AO Must Follow Mandate Of Sec 50C If Values Adopted By Stamp Value Authorities Exceeds FMV Of Property: Mumbai ITAT

On finding that AO has not computed capital gains by adopting the stamp duty value, the Mumbai ITAT restored the matter back to the file of the AO to follow the mandate of provision u/s 50(C)(2) of the Income Tax Act, 1961, and decide the issue afresh after giving the assessee an adequate opportunity of hearing.The Bench of the ITAT comprising of Prashant Maharishi (Judicial Member) and Sandeep Singh Karhail (Accountant Member) observed that, “According to the provision under section 50(C)(2),...

Warranty Costs Are Not Part Of AMP Expenditure, Clarifies Bangalore ITAT

The Bangalore ITAT ruled on treatment of share-based compensation (SBC), depreciation & amortization as operating expense and inclusion of delivery charges & warranty expenses in AMP expenditure.The Bench comprising George George K (Vice President) and Laxmi Prasad Sahu (Accountant Member) observed that “these expenditure cannot be regarded as having been incurred for the purpose of development of brand since these are post sales activities and part of sales expenditure. It is also not a...

Foreign-AEs Being Least Complex Entities Can Be Accepted As Tested Party, Confirms Kolkata ITAT

The Kolkata ITAT accepted foreign AE as tested party, and deleted the ALP adjustments qua export of software services and receipt of account management charges in case of assessee, engaged in providing a wide range of IT solutions.The Bench comprising Rajpal Yadav (Vice President) and Girish Agrawal (Accountant Member) observed that “Co-ordinate bench, ITAT, Kolkata also considered the functions performed, asset employed and risk assumed i.e. FAR analysis of the assessee vis-à-vis the foreign...

Foreign AE Can Be Accepted As Tested Party: Mumbai ITAT Deletes ALP Adjustment Qua Export Of Formulations

While deciding on ALP adjustments qua export of goods to AEs and guarantee commission in case of a pharma company, engaged in manufacturing and marketing of formulations in India, the Mumbai ITAT accepted foreign AE as tested party.The Bench comprising B.R Baskaran (Accountant Member) and Rahul Chaudhary (Judicial Member) observed that “so far the assessee herein is concerned and qua the transfer pricing provisions, what is required to be seen is whether the price realized on export of products...