ITAT
Prima Facie Adjustment Made By CPC Towards Deduction U/s 80P Prior To Apr 01, 2021 Is Beyond Its Jurisdiction: Kolkata ITAT
The Kolkata ITAT ruled that section 80AC of the Income tax Act puts a bar against claiming of deduction in respect of certain income provided under the head (C) of Chapter VIA which includes section 80P of the Act also if the return of income are not filed before the due date prescribed u/s. 139(1) of the Act.The Bench of Rajpal Yadav (Vice President) and Girish Agrawal (Accountant Member) observed that “the issue is regarding prima facie adjustment made u/s. 143(1)(a)(v) of the Act and as...
Mere Dismissal Of Appeal For Want Of Prosecution Is Not In Accordance With Mandate Of Sec 250(6): Kolkata ITAT
Since the AO as well as the CIT(A) has not examined the issue with the angle of section 69, rather they took the conditions of section 68 where unexplained cash credit is required to be explained by the assessee and applied on the issue of investment, the Kolkata ITAT remanded the matter for re-adjudication.Finding that the CIT(A) has merely followed the decision of the ITAT, whereby appeals were dismissed for want of Prosecution, the Bench of Rajpal Yadav (Vice President) and Manish Board...
Kolkata ITAT Deletes Addition Made By AO Upon Capital Gains By Adopting Value Of Property As Per DVO's Report
Upon not finding justification on the part of the Income Tax Authorities in computing the capital gains by adopting the sale value as per the value estimated by the Departmental Valuation Officer, the Kolkata ITAT deleted the addition made by the AO in respect of capital gains by adopting the value of the property as per the DVO report.The Bench of the ITAT comprising of Sanjay Garg (Judicial Member) and Girish Agrawal (Accountant Member) observed that, “The problems of the assessee continued...
AO Can't Apply Sec 69 R/w/S 115BBE To Surrendered Business Income Of Assessee Which Was Duly Offered In I-T Return: Chandigarh ITAT
Finding that the nature and source of unaccounted investment in the hospital building is arising out of assessee's professional receipts, the Chandigarh ITAT ruled that there was no justifiable basis on the part of the AO in applying the provisions of Section 69 r/w Section 115BBE of the Income tax Act to the surrendered business income of the assessee which has been duly offered in the return of income. The Bench of Sanjay Garg (Judicial Member) and Vikram Singh Yadav (Accountant...
Ahmedabad ITAT Quashes Sec 263 Order Absent Twin Conditions For Exercise Of Power Under Said Provision
On finding that there is no prejudice against the Revenue and the twin conditions to exercise the power u/s 263 of the Income Tax Act, 1961 have not been satisfied, the Ahmedabad ITAT set aside the order of PCIT to assess the assessee's case freshly.The Bench of the ITAT comprising of Madhumita Roy (Judicial Member) and Waseem Ahmed (Accountant Member) observed that, “the value of closing stock becomes the opening stock in the next year, hence the same is also a tax natural exercise. Hence there...
Deeming Provisions Of Sec 2(22)(E) Gets Attracted To Beneficial Shareholder Only Who Has Controlling Interest: Kolkata ITAT
Since the income accrues or arises or is deemed to accrue or arise in the hands of KSWPL and not in the hands of the assessee, the Kolkata ITAT held that by invoking second limb of section 2(22)(e) of the Income tax Act, accrual of income and its taxability cannot be held to be in the hands of the assessee.Finding that both, the assessee and APL are in no way in a position to compel KSWPL in any way for exercising its voting rights in a particular manner, and it is the other way that KSWPL,...
If Period Of Holding Of Plant & Machinery Is More Than 36 Months, it Qualifies As Long-Term Capital Asset As Per Sec 2(42A): Ahmedabad ITAT
The Ahmedabad ITAT ruled that when the period of holding of the plant and machinery is more than 36 months, then the same has to be treated as long-term capital asset in pursuant to the provisions of section 2(42A) of the Income tax Act.The Bench of Waseem Ahmed (Accountant Member) and Siddhartha Nautiyal (Judicial Member) observed that “provisions of section 50 of the Act clearly specify that gain shall be deemed as short-term on the sale of depreciable assets irrespective of the period of...
Trading Income From Sale Of Scrips Can't Be Conferred As 'Unaccounted Income' If Trading Activity Is Not Disputed At Any Time: Ahmedabad ITAT
On finding that AO as well as the CIT(A) was not right in making/confirming the addition on account of unaccounted business income, the Ahmedabad ITAT deleted the addition made by AO under the Income Tax Act, 1961.The Bench of Suchitra R. Kamble (Judicial Member) observed that, “The summons issued to Shri Ramesh Ajwani, who is an entry provider as per the Assessing Officer, has nothing to do with the assessee and the said statement was not at all verified by the Assessing Officer as well as the...
Failure To Produce Share Certificate Is No Basis To Doubt Share Purchase Transaction: Mumbai ITAT Refers Art 265 Of Constitution
Referring to Article 265 of the Constitution of India, the Mumbai ITAT remanded the case to the file of AO with direction to verify factual aspects, pertaining to the purchase of the shares in consideration and re-compute the liability accordingly.The Bench of the ITAT comprising of Narender Kumar Choudhry (Judicial Member) and Padmavathy S. (Accountant Member) observed that, “May be the Assessee is at fault as she did not produce the relevant documents pertaining to the purchase of the shares...
Rights Held By Taxpayer As Confirming Party In Sale Deed Is Capital Asset As Per Sec 2(14) And Liable For LTCG: Ahmedabad ITAT
On finding no infirmity in the order passed by the CIT(A), the Ahmedabad ITAT confirmed that rights held by the assessee as a Confirming Party in the Sale Deed is a capital asset within the meaning of Section 2(14) and liable for LTCG and the assessee is also eligible to claim deduction u/s. 54B of the Income Tax Act, 1961.The Bench of the ITAT comprising of T.R. Senthil Kumar (Judicial Member) and Annapurna Gupta (Accountant Member) observed that, “It is in the above registered Sale Deed, the...
Accepting Submissions Of Assessee Cannot Be Said As Faulty If Assessment Was Made By National E-Assessment Centre: Indore ITAT Quashes Sec 263 Order
While holding the revision-order passed by PCIT as invalid, the Indore ITAT recently clarified that I-T authorities cannot punish the assessee by merely saying that the payee has not filed income-tax return.The Bench of Vijay Pal Rao (Judicial Member) and B.M Biyani (Accountant Member) observed that “the action of AO in accepting the replies/ submissions of assessee cannot not lack bona fides and cannot be said to be faulty specially when the assessment of assessee has been made by National...
Belief Of AO Regarding Escapement Of Income Should Be Based On Some Tangible Information: Kolkata ITAT Quashes Reassessment
The Kolkata ITAT recently clarified that mere information regarding transfer of funds is no basis to conduct reassessment once source of such transfer was sufficiently established through banking channel.The Bench of Sanjay Garg (Judicial Member) and Girish Agrawal (Accountant Member) observed that “the belief of the Assessing Officer regarding escapement of income should be based on some tangible information and it should not be mere pretence of the Assessing Officer”. (Para 6)As per the brief...