Revisionary Jurisdiction U/s 263 Can't Be Invoked If AO Has Formed Plausible View After Carrying Out Necessary Enquiry: Chandigarh ITAT

Finding that the assessee has carried out seasonal trade in hosiery items duly supported by documentary evidence, which was duly examined by the AO accepting the said transactions and resultant profit has been brought to tax, the Chandigarh ITAT held that the PCIT cannot be permitted to invoke his jurisdiction u/s 263 merely because he believes that there is certain deficiency in the documentation so maintained and furnished by the assessee. The Bench of Aakash Deep Jain (Vice...

Vehicle Commercially Used For Purpose Of Business Of Company, Eligible For Benefit Of Depreciation : Ahmedabad ITAT

Relying on the decision of the Jurisdictional High Court in the case of PCIT vs. Asian Mills (P.) Ltd., the Ahmedabad ITAT that vehicle exclusively used by an entity for its commercial purpose becomes eligible for claim of depreciation. The Bench of Waseem Ahmed (Accountant Member) and Madhumita Roy (Judicial Member) observed that “car is commercially used for the purpose of business of the company and the depreciation thereon cannot be denied; moreso, the interest on car loan and car...

Receipt Of Huge Sale Consideration In Cash Is Violative To Sec 269SS, And Calls For Levy Of Penalty U/s 271D: Chennai ITAT

The Chennai ITAT recently clarified that receipt of sale consideration of huge amount of Rs. 1.60 Crores in cash, which is, in violation of the provisions of section 269SS (this section restricts cash receipts over & above twenty thousand) of the Income tax Act, rightly deserves levy of penalty u/s 271D. The Bench of V. Durga Rao (Judicial Member) & Manjunatha, G. (Accountant Member) observed that “The contention of the assessee is not acceptable by any Court of Law, claiming...

Taxpayer Should Acquire Residential House Within Three Years From Date Of Transfer Of Old House, For Claiming Benefit Of Capital Gains U/s 54: Delhi ITAT

Finding that the assessee has not fulfilled either of the conditions mentioned in Section 54 of the Income tax Act, the New Delhi ITAT held that there is no infirmity in the orders of the I-T Authorities in denying the benefit of deduction of long term capital gains to the assessee u/s 54. The Division Bench of N.K. Billaiya (Accountant Member) and Yogesh Kumar U.S (Judicial Member) observed that “For the purpose of claiming the benefit u/s 54 of the Act, within a period of one year...

Once Insurance Policy Is Assigned By Employer To Employee, Value Received By Employee Can't Be Taxed In View Of Sec 10(10D): Delhi ITAT

The New Delhi ITAT recently reiterated that once insurance policy is assigned by the employer to employee, the insurance policy gets converted into an ordinary policy, and in that case, the value received by employee would not be subjected to tax in view of section 10(10D) of the Act. Referring to the decision of Delhi High Court in the case of CIT vs Rajan Nanda [2012] 18 taxmann.com 98 (Delhi), the Bench of N.K. Billaiya (Accountant Member) and Kul Bharat (Judicial Member) reiterated...

Incorrect calculation by AO Is Not 'Failure On Part Of Taxpayer To Disclose Material Fact', For Initiating Reopening: Ahmedabad ITAT

The Ahmedabad ITAT ruled that mathematical incorrectness by AO cannot be said to be failure on the part of the assessee to disclose any material fact, so as to initiate reopening of assessment. The Bench of Annapurna Gupta (Accountant Member) and Siddhartha Nautiyal (Judicial Member) observed that “as rightly pointed out by the counsel for the assessee, escapement of income as per the AO was attributable to the incorrect calculation of bad and doubtful debts. The facts, for the said...

No Reference Can Be Made To DVO Once Value Of Capital Asset Declared By Taxpayer Is More Than FMV: Chennai ITAT

Finding that value determined by the DVO is less than the valuation adopted by assessee for computing fair market value (FMV), the Chennai ITAT ruled that the value adopted by the DVO cannot be taken for computing FMV. The Bench of Mahavir Singh (Vice President) and Manoj Kumar Aggarwal (Accountant Member) observed that “where value of capital assets shown by the assessee being less than its fair market value, reference can only be made to DVO in that condition, but in case the value...

Payment From Google Towards Marketing & Distribution Rights Of AdWords Is Not Royalty, Clarifies Bangalore ITAT

Following the Coordinate Bench ruling in IT(IT)A No.2845/Bang/2017, wherein it was held that the payment made by Google India to assessee was not in the nature of royalty/ FTS and consequently it could not be brought to tax in the hands of assessee, the Bangalore ITAT ruled that amount received by Google Ireland (Assessee) from Google India towards marketing & distribution rights of AdWords program is not royalty. While clarifying the position regarding taxability of receipts from...

Payments Made To Doctors Would Be Covered By TDS Provisions U/S 194J Of Income Tax Act: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) consisting of M. Balaganesh (Accountant Member) and Anubhav Sharma (Judicial Member) has held that the payments made to doctors would be covered by TDS provisions under Section 194J and not Section 192 of the Income Tax Act. Section 194J of Income Tax Act relates to fees for professional or technical services. Section 194J in the Income Tax Act, 1961 states that any entity, excluding individuals or Hindu Undivided families, making payments...

ITAT Quashes Pre-Drafted Performa Penalty Notice Containing Both Concealed And Inaccurate Particulars Of Income

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has quashed a pre-drafted penalty notice containing both concealed particulars of income and furnished inaccurate particulars of income.The bench of Vikas Awasthy (Judicial Member) and S. Rifaur Rahman (Accountant Member) has observed that where the Assessing Officer clearly records satisfaction for imposing penalty on one or both grounds mentioned in Section 271(1)(c) of the Act, non-striking of irrelevant matter would render the notice...

Contribution Made By NSE To Core SGF Is Not In The Nature Of Any Deposit/Contingency/Reserve: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the contribution made by the assessee stock exchange to Core SGF is not in the nature of any deposit, contingency, or reserve. The bench of Aby T. Varkey (Judicial Member) and S. Rifaur Rahman (Accountant Member) has observed that the AO/CIT(A) erred in holding that the contribution made by the assessee to Core SGF is an unascertained liability. Since the liability of payment to Core SGF by the assessee is certain, it cannot...

CIT(A) Not Empowered To Dismiss An Appeal On Account Of Non-Prosecution: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the CIT(A) has no power to dismiss an appeal on account of non-prosecution.The bench of Challa Nagendra Prasad (Judicial Member) and Pradip Kumar Kedia (Accountant Member) has referred to Section 250(6) of the Income Tax Act, which enjoins that the CIT(A) shall state the points for determination before it and the decision shall be rendered on such points along with reasons for the decision. Thus, it is incumbent upon the CIT...