Explanation 3 To Sec 147 Can't Be Resorted To Make Addition On Any Other Issue Which Is Not Included In Reasons For Reopening: New Delhi ITAT

On finding that no addition is made based on the reasons to believe recorded by the AO for reopening the assessment, the New Delhi ITAT quashed the order passed by the AO u/s 147 of the Income tax Act, 1961The Bench of the ITAT comprising of Anubhav Sharma (Judicial Member) and Shamim Yahya (Accountant Member) observed while referring to the decision of Jurisdictional High Court in the case of Commissioner of Income Tax vs. Monarch Educational Society [2016] 387 ITR 416 that, “If no addition is...

Firm Can't Disown Ownership Over Land Simply Because Consideration For Purchase Of Land Was Paid Through Its Directors: Indore ITAT

The Indore ITAT upheld the assessment framed u/s 144 r.w.s 147 of the Income tax Act as the assessee did not cooperate during the assessment proceedings.The Bench of Vijay Pal Rao (Judicial Member) and B.M Biyani (Accountant Member) observed that “when the transaction is very much in the name of the assessee then the form of entity is irrelevant as the assessee has not disowned the ownership of the land in question and payment of the consideration through its directors”. (Para 7)As per the brief...

Interest Income Earned On Deposits Placed With Co-Operative Society Is Duly Eligible For Deduction U/s 80P(2)(D): Chandigarh ITAT

Finding that that the assessee is a Cooperative Society (and not a co-operative bank) which was engaged in providing short term credit facility to its members, the Chandigarh ITAT ruled that interest income has been earned on deposits placed with a co-operative society and duly eligible for deduction under section 80P(2)(d) of the Income tax Act.Referring to the decision of Supreme Court in case of Mavilayi Service Co-operative Bank Limited 431 ITR 1 (SC), the Bench of Aakash Deep Jain (Vice...

Direct Tax Cases Weekly Round-Up:3 March To 9 March 2024

Delhi High Court Revisional Jurisdiction Can't Be Invoked For Inadequacy Of Enquiry By AO: Delhi High Court Case Title: PCIT Versus M/S Clix Finance India Pvt. Ltd. The Delhi High Court has held that the inadequacy of the inquiry by the AO with respect to certain claims would not in itself be a reason to invoke the powers enshrined in Section 263 of the Income Tax Act. Pick And Choose Method Of Rejecting Certain Entries From Books Of Account Is Arbitrary: Delhi High Court ...

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

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 Indian National Congress treating it as meritless. At the same time, on the merits of the matter, the ITAT ruled that compliance with the conditions prescribed in Section 13A regarding furnishing of return by due date as per Section 139 is...

Mobile Number Mentioned In ITR Turned Out To Be A Fraud Number On True Caller Can't Be A Ground To Refuse Tax Treaty Benefit: ITAT

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee, Abu Dhabi Investment Authority, is liable to benefit provided under Article 24 of the India-UAE Double Taxation Avoidance Agreement (DTAA), which provides that the government of one contracting state shall be exempt from tax in other contracting states in respect of any income derived by such income from those other contracting states.The bench of Amit Shukla (Judicial Member) and Amarjit Singh (Accountant...

Delivery Cost And Warranty Expenses Are Post Sales Activities Doesn't Form The Part Of AMP Expenditure For Amazon India: ITAT

The Bangalore Bench of Income Tax Appellate Tribunal (ITAT) has held that delivery costs and warranty expenses are not part of advertising, marketing, and promotion (AMP) expenditures.The bench of George George K. (Vice President) and Laxmi Prasad Sahu (Accountant Member) has observed that during the course of TP proceedings, the TPO made a detailed inquiry on these issues, but it was not considered part of AMP expenditure. These expenditures cannot be regarded as having been incurred for the...

Notion Of Earning 90% Profit Is Unimaginable, Is Contractual Loot Under Guise Of Alleged Development Activities: ITAT

The Hyderabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the notion of earning 90% profit is unimaginable and is contractual loot under the guise of alleged development activities.The bench of R.K. Panda (Vice President) and Laliet Kumar (Judicial Member) has observed that the government funds meant for development should be used for development and not for the growth or enrichment of any individual. Though it is correct that the assessee disclosed the entire receipts and...

Possession Of Transport Vehicles Is Sufficient Than Legal Ownership For S. 194C-TDS Exception: ITAT

The Jodhpur Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessee, the legal owner, is not required to TDS under Section 194C, where a declaration under Section 194C(6) along with a PAN is obtained from the payees who are in possession of the vehicle, though they are not registered owners.The bench of S. Seethalakshmi (Judicial Member) and Rathod Kamlesh Jayantbhai (Accountant Member) has observed that for the purpose of Section 44AE of the Income Tax Act, the term owner means...

Direct Tax Cases Weekly Round-Up: 18 To 24 February 2024

Supreme Court 'Enemy Property' Not Exempt From Municipal Taxes As It Is Not Vested With Union Govt : Supreme Court Case Details: Lucknow Nagar Nigam & Others Versus Kohli Brothers Colour Lab. Pvt. Ltd. & Others Citation : 2024 LiveLaw (SC) 156 The Supreme Court held that the 'enemy property' vested in the possession of the Union Government-appointed 'custodian', as per the Enemy Property Act, 1968, cannot be considered a property of the Union Government to claim...

TDS Can't Be Isolatedly Taken In Any Assessment Year Without Offering Corresponding Income For Taxation: ITAT

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that the TDS cannot be isolatedly taken in any assessment year without offering the corresponding income for taxation.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that the assessee shall be entitled to TDS credit corresponding to the income reported in the AY 2017-18 itself, provided credit for TDS is reflected in Form No. 26AS in the relevant AY and is not claimed in any other AY,...

Stamp Value As On Date Of Agreement Of Sale Of Property Has To Be Considered For Applicability Of Section 56(2)(vii)(b): ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that stamp value as on the date of agreement of sale of the property, in the year 2010 (i.e., Rs. 1.4 Cr), has to be considered for the applicability of Section 56(2)(vii)(b) of the Income Tax Act.The bench of Challa Nagendra Prasad (Judicial Member) and B. R. R. Kumar (Accountant Member) has deleted the addition of Rs. 40.45 lakhs made under Section 56(2)(vii)(b). The bench noted that the assessee entered into an agreement fixing...