ITAT
AO Is Required To Apply His Mind To Facts Of Case And Then Pass Reasoned Assessment: Ahmedabad ITAT Calls For Adjudication Afresh
On finding that the order of the AO is not a simple order giving effect to the order of the CIT passed u/s 263, the Ahmedabad ITAT restored the issue back to the AO to verify the facts of the case and thereafter pass an order in accordance with the directions of the CIT in his order passed u/s 263 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, “The AO was required to apply his mind to the...
Compensation Received Under Mutual Agreement For Non-Renewal Of Contract Can't Form Basis Of Addition U/s 28(Ii)(E): Delhi ITAT
While clarifying the difference between profession and business, the Delhi ITAT reiterated that compensation received under mutual agreement for non-renewal of contract cannot form basis of addition u/s 28(ii)(e) of the Income Tax Act, 1961The Bench of the ITAT comprising of Yogesh Kumar U.S (Judicial Member) and N.K. Billaiya (Accountant Member) reiterated while considering the decision of Supreme Court in the case of G.K. Choksi & Co. 295 ITR 376 that, “Though the phrase has been used in...
Taxpayer Is Entitled To Deduction On Capital Gains U/s 54 Once It Satisfies Conditions Prescribed By Said Provision: Mumbai ITAT
While overturning the findings of CIT(A) that the assessee does not satisfy the condition laid down u/s 54 of the Income tax Act, 1961 for claiming deduction, the Mumbai ITAT directed the AO to re-compute the capital gains, if any, after allowing deduction u/s 54 as claimed by the assessee.The Bench of the ITAT comprising of Rahul Chaudhary (Judicial Member) and Om Prakash Kant (Accountant Member) observed that, “the Revenue has not disputed that the facts that the occupation certificate in...
Hyderabad ITAT Dismisses Assessee's MA Qua Interest On Receivables Since Invoice-Wise Details Were Not Filed Earlier
The Hyderabad ITAT dismissed the Miscellaneous Application filed by assessee for modifying Tribunal's order on TP adjustment qua interest on trade receivables for AY 2015-16.Referring to the decision of Supreme Court in the case of MCorp Global Pvt. Ltd. Vs. CIT [(2009) 309 ITR 434/178 Taxmann 347 (SC)], the Bench comprising R.K. Panda (Vice President) and Laliet Kumar (Accountant Member) observed that “it would appear from order of ITAT that the credit period of only 60 days from the invoice...
Benefit Test Must Be Considered For Determining ALP Adjustment Qua Notional Interest On Outstanding Receivables: Bangalore ITAT
Emphasizing on the necessity of credit period, the Bangalore ITAT remitted the matter of ALP adjustment made towards notional interest on outstanding receivables in case of assessee company engaged in software development and IT enabled services.Referring to the judgment of ITAT Delhi in ITA NO.1248/Del/2012, the Bench comprising Goerge Goerge K (Vice President) and Laxmi Prasad Sahu (Accountant Member) observed that “there has to be a proper inquiry by the TPO by analysing the statistics over a...
Once Working Capital Adjustments Is Factored In Pricing, No Separate Adjustment On Outstanding Receivables Is Required: Visakhapatnam ITAT
The Visakhapatnam ITAT directed the TPO to consider the impact of working capital adjustments of the assessee company and appropriate material differences with that of the comparable companies.The ITAT ruled on comparables selection, treatment of expenses as operating/non-operating, and notional interest on outstanding receivables in case of assessee company engaged in providing processing services in relation to manufacture of garments. The Bench comprising Duvvuru RL Reddy (Judicial Member)...
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...
No Addition Can Be Made U/s 69 If Difference In Stock Found During Survey And As Recorded In Books Stands Reconciled: New Delhi ITAT
Finding that no defects were pointed out and the books of accounts have been accepted, the New Delhi ITAT ruled that the assessee having given the explanation which was plausible explanation which stands verified in inquiry by the Assessing Officer, the same cannot be rejected arbitrarily by indulging into surmises.The Bench of Dr. B.R.R Kumar (Accountant Member) and Yogesh Kumar US (Judicial Member) observed that “when the difference in physical stock found during survey and as recorded in the...
Filing Of Return U/s 139(1) Within Due Date Is Mandatory For Claiming Deduction U/s 80IB: Ahmedabad ITAT
Emphasizing that the condition of filing the return of income within the due date is mandatory in nature for claiming deduction u/s 80IB(10) of the Income tax Act, the Ahmedabad ITAT confirmed the disallowance made by the AO under the said provision.Referring to the decision of Apex Court in Wipro Ltd. vs. Pr. CIT (2022) 142 taxmann.com 562 (SC), the Bench of Suchitra Kamble (Judicial Member) and Waseem Ahmed (Accountant Member) reiterated that “for claiming the benefit u/s. 80IB(10) of the...
Once Unsecured Loan Stands Repaid Along With Interest, Then Such Loan Transaction Can't Be Treated As Non-Genuine: Mumbai ITAT
The Mumbai ITAT pointed out that the AO and the CIT(A) has applied the concept of human probabilities to hold the scrip as penny stock without bringing on record as to how the assessee is involved in any of the scrupulous activities or directly linked to one of the persons who has involved in manipulation/rigging of share prices, entry operator or exit provider.The ITAT therefore held that there is no material with the tax authorities to substantiate their findings that the impugned transaction...
Genuineness & Veracity Of Party Can't Be Doubted To Make Addition U/s 69 Merely Because Rent Was Received In Cash: Delhi ITAT
While deleting the addition on account of unexplained investment, the New Delhi ITAT clarified that genuineness and veracity of the party cannot be doubted merely because the cold storage rent was received in cash, when the assessee is only a custodian of the goods received by it for storing in its storage.The Bench of Challa Nagendra Prasad (Judicial Member) and Dr. BRR Kumar (Accountant Member) observed that “the material impounded in the course of survey on 01.11.2017 also contains copies of...
Investments Yielding Tax Exempt Income Can Only Be Considered For Computing Disallowance Under Rule 8D(2)(iii): Kolkata ITAT
Abiding by the principle of judicial hierarchy and binding precedent, the Kolkata ITAT directed the AO to consider only the investments yielding tax exempt income for computation of disallowance under Rule 8D(2)(iii) of the Income Tax Rules 1962.The Bench of the ITAT comprising of Sanjay Garg (Judicial Member) and Girish Agrawal (Accountant Member) observed while referring to the decision of Coordinate Bench of Guwahati in the case of ACIT vs. Williamson Financial Services Ltd. while...