ITAT
Proceeding Upon Intimation Passed U/s 143(1) Without Granting Reasonable Opportunity Of Hearing To Assessee, Is Bad In Law: Kolkata ITAT
The Kolkata ITAT held the intimation passed by the Assessing Officer under section 143(1) and proceeding on such intimation to be bad in law, as the same was passed without granting any reasonable opportunity of hearing to the assessee.Relying on the decision of Income Tax Officer (Exemption) –vs- Camellia Educare Trust, the Bench of Rajesh Kumar (Accountant Member) and Anikesh Banerjee (Judicial Member) reiterated that “where there is no response received from the assessee then, within thirty...
Deeming Provisions Of Sec 69B Can't Be Invoked Once Nexus Of Source Of Unrecorded Transactions With Assessee's Business Is Proved: Chandigarh ITAT
Finding that the difference in stock found out by I-T Authorities has no independent identity and is part & parcel of entire stock, the Chandigarh ITAT refused to treat such difference as undeclared business income and clarified that it cannot be said that there is an undisclosed asset which existed independently.The Bench of Sanjay Garg (Judicial Member) and Vikram Singh Yadav (Accountant Member) observed that “the nature and source of such unaccounted stock is nothing but arising out of...
Penalty Imposed U/s 271A On Wrongful Consideration Of Facts Merits To Be Deleted: Jaipur ITAT
On finding that the CIT(A) has not rebutted the contention that the assessee was dealing in share investment and not in the business activities, the Jaipur ITAT deleted the penalty imposed u/s 271A of the Income Tax Act.The Bench comprising of Sandep Gosain (Judicial Member) and Dr. M. L. Meena (Accountant Member) observed that, “when the assessee has filed a return on account of short-term capital loss duly accepted by the ld. AO, then there wouldn't be any question of business activity being...
Taxpayer Can't Be Penalised For Failure To Get Its Books Of Accounts Audited If There Exists Reasonable Cause For Such Failure: Jaipur ITAT
While allowing the appeal against the order passed u/s 271B of the Income tax Act, the Jaipur ITAT held that provision of section 273B gives power to the taxing authority not to impose the penalty if the assessee proves that there was a reasonable cause for failure to get the books of accounts audited and directed the AO to delete such addition.The Bench of the ITAT comprising of Sandeep Gosain (Judicial Member) and Rathod Kamlesh Jayantbhai (Accountant Member) observed that, “Merely because the...
Cash-In-Hand Out Of Business Profits Declared In Return U/s 44AD, Can't Be Plainly Added As Unexplained Money: Delhi ITAT
While allowing the appeal against the addition on account of unexplained money, the New Delhi ITAT held that if the assessee's contention is that it had turnover exceeding the limit u/s 44AD of the Income Tax Act, then CIT(A) ought to have acted in accordance with law.The Bench comprising of Kul Bharat (Judicial Member) observed that, “If the assessee's contention is that it had turnover exceeding the limit u/s 44AD, the learned CIT(A) ought to have taken action in accordance with law. However,...
Once Taxpayer Shows Reasonable Cause For Accepting Cash Loan, Burden Shifts On AO To Prove That Such Cause Lacks Bonafide: Chennai ITAT
On finding that the explanation against cash receipts offered against show cause notice before the authorities were reasonable, the Chennai ITAT held that levy of penalty u/s 271D of the Income Tax Act, is untenable.The Bench of the ITAT comprising of V. Durga Rao (Judicial Member) and Manjunatha, G (Accountant Member) reiterated while referring the case of Ms. Nanda Kumari v. ITO that, “the assessee had shown a cause for having received the amount in cash. Therefore, if the assessee had shown a...
Interest & Dividend Derived By One Cooperative Society From Its Investment Held With Another One Is Eligible For Deduction U/s 80P(2)(D): Pune ITAT
On finding that the views adopted by the tax authorities are not in conformity with legal position and binding judicial precedents, the Pune ITAT set-aside the impugned order passed by the AO and reversed the denial of deduction u/s 80P(2)(d) of the Income Tax Act, 1961.The Bench of the ITAT comprising of Partha Sarathi Choudhury (Judicial Member) and G. D. Padmahshali (Accountant Member) observed that, “On perusal of section 80P(2)(d), it is ostensibly clear that interest & dividend income...
Delay In Uploading Application Shall Not Alone Form Basis For Denial Of Registration U/s 80G In Case Of Technical Glitches: Chandigarh ITAT
On finding that the dismissal of the application on the ground of being barred by limitation is not justified, the Chandigarh ITAT set aside the order of dismissal of final registration u/s 80G of the Income Tax Act and restored the matter to the file of the CIT(E) to decide the application after giving adequate opportunity to the assessee to present its case, irrespective of the fact that there was any delay in uploading the application.The Bench of the ITAT comprising of Sanjay Garg (Judicial...
Once Penalty Stood Levied U/s 271A For Non-Maintenance Of Books Of A/c, No Further Penalty U/s 271B Can Be Levied: Mumbai ITAT
Referring to the decision of Varadagovind Parthasarthy Iyer (through the legal heir Arvind Iyer) vs. ITO (in ITA No.1716/Mum/2023), the Mumbai ITAT ruled that penalty u/s. 271B of the Income tax Act cannot be levied in the present facts of the case for non-auditing of the books of accounts where the assessee has failed to maintain the same.The Bench of S. Rifaur Rahman (Accountant Member) and Kavitha Rajagopal (Judicial Member) observed that “It is a settled proposition of law that once the...
Plausible View Taken By AO In Case Of Debatable Issue Does Not Attract Rigors Of Sec 263: New Delhi ITAT
Finding that the view taken by the AO that interest u/s 28 of Land Acquisition Act received by the assessee is exempt u/s 10(37) of the Income tax Act is not contrary to law, the New Delhi ITAT quashed the revisionary exercise of powers by the PCIT by taking aid of Section 263.The Bench of N.K. Billaiya (Accountant Member) and Astha Chandra (Judicial Member) observed that “Since the order of the AO is based on the decision of the Supreme Court in Ghanshyam HUF (supra) on the issue of taxability...
No Adhoc Disallowance Is Warranted U/s 40A(2) On Payments Which Were Not Identified As Excessive Or Unreasonable By AO: Bangalore ITAT
While referring to the decision of Karnataka High Court in the case of Manipal Health System Systems Pvt. Ltd. and pointing that AO has not doubted the payment nor held the payment as excessive, the Bangalore ITAT emphasized that in terms of Section 40A (2) only 'legitimate needs of the business' is allowable as expenditure.The ITAT therefore allowed the assessee's appeal regarding the disallowance u/s. 40A(2) of the Income Tax Act, 1961, being 50% of the total back office charges paid to group...
AO Fails To Examine Relevant Material For Determining FMV Of Interest Rate For Availing Unsecured Loans: Mumbai ITAT Remits Matter
Observing that the relevant material for determining the fair market value of the interest rate for availing unsecured loans has not been examined, the Mumbai ITAT restored the issue of disallowance of excessive interest payment on unsecured loans to the file of AO for de novo adjudication.The Bench of Om Prakash Kant (Accountant Member) and Sandeep Singh Karhail (Judicial Member) observed that “As per section 40A(2)(a), if in the opinion of AO, the payment made by the assessee to any related...