Brilliant Study Centre Faculty Are Independent Professionals, Not Employees For TDS: ITAT Cochin

The Income Tax Appellate Tribunal (ITAT) at Cochin has recently held that faculty members engaged by Brilliant Study Centre Pvt. Ltd., a well-known Kerala coaching institute that prepares students for NEET, JEE, and other medical and engineering entrance examinations, were independent professionals and not employees. It consequently set aside a demand of Rs. 9.48 lakh raised against the institute after the Income Tax Department treated it as an assessee in default for allegedly short-deducting...

ITAT Ahmedabad Quashes Reassessment Against Tipsons Stock Brokers, Deletes ₹1.33 Crore Disallowance

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has recently quashed reassessment proceedings against Tipsons Stock Brokers Pvt. Ltd. It held that the Income Tax Department reopened the assessment solely by re-examining material already on record. The tribunal also deleted a disallowance of about ₹1.33 crore made against the company.A bench of Vice President Dr. B.R.R. Kumar and Judicial Member Rahul Chaudhary observed that the conditions for reopening an assessment beyond four...

ITAT Delhi Deletes ₹1.23 Crore Addition To Borrower's Income Over Lender's Low-Declared Income

The Income Tax Appellate Tribunal (ITAT) at Delhi has recently reiterated that a lender's low declared income, by itself, is not sufficient to reject its creditworthiness for advancing an unsecured loan. Allowing the appeal of Florence Nightingale Educational Society, the tribunal observed that the relevant test is the lender's ability to arrange funds and not merely its earning capacity. Judicial Member Raj Kumar Chauhan and Accountant Member S. Rifaur Rahman allowed the appeal filed by...

ITAT Delhi Says Computation Of Mandatory Interest Must Be Examined Before Dismissing Appeal

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that while the levy of interest under the Income Tax Act is statutory and mandatory, an appeal challenging its computation cannot be dismissed without examining the issue on merits. A coram of Judicial Member Vimal Kumar and Accountant Member Ramit Kochar ruled,“There is no dispute that the interest is statutory and mandatory, but working /computation could be subject to challenge, if the assessee is so aggrieved, which...

Interest Received By Foreign Banks On Foreign Currency Loans To Indian Concerns Taxable On Gross Basis: ITAT Mumbai

The Income Tax Appellate Tribunal (ITAT), Mumbai, has recently held that interest income earned by a foreign bank from foreign currency loans extended to Indian corporates is taxable on a gross basis. It ruled that such income cannot be reduced by attributing expenditure before the concessional rate of tax is applied. The bench of President Justice C.V. Bhadang and Accountant Member Vikram Singh Yadav held that the provisions of Section 115A of the Income Tax Act require interest income earned...

ITAT Kolkata Restores Appeal Over CPC Notice Sent To Former Consultant, Condones 1,542-Day Delay

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) on 22 June held that authorities must condone delay where sufficient cause exists, particularly when tax communications are addressed to a former authorised representative and the taxpayer establishes lack of actual knowledge. Judicial Member George Mathan and Accountant Member Rakesh Mishra allowed the appeal filed by Angkur Moulik, set aside the order of the Commissioner of Income Tax (Appeals) [CIT(A)], and restored the matter for...

Loan To Non-Shareholder Company Not Taxable As Deemed Dividend Under Section 2(22)(e): ITAT Kolkata

On 22 June, the Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) held that a loan received by a company cannot be taxed as deemed dividend under Section 2(22)(e) of the Income Tax Act merely because it has a common shareholder with the lending company, where the borrowing company itself is not a shareholder. Judicial Member George Mathan and Accountant Member Rakesh Mishra partly allowed JHV Steels Ltd.'s appeal against an order passed under Section 263 of the Income Tax Act and set...

ITAT Restores Appeal As Assessee Receives Order Intimation Belatedly, Accepts Envelope As Proof

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) on 22 June held that an appeal cannot be dismissed as time barred if filed within the statutory period computed from the date of service of the order. Judicial Member George Mathan and Accountant Member Rakesh Mishra set aside an Order of the Commissioner (Appeals) that had dismissed an appeal by Sudipta Traders Pvt. Ltd. without examining merits, and restored the matter for fresh adjudication. The Bench observed: "the appeal was...

ITAT Ahmedabad Upholds Relief To Adani Total Gas, Says No Exempt Income No Section 14A Disallowance

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 22 June reiterated that no disallowance can be made under Section 14A of the Income Tax Act where the taxpayer has not earned any exempt income during the relevant assessment year. Vice President Dr. B.R.R. Kumar and Judicial Member Rahul Chaudhary dismissed the Revenue's appeal and upheld the deletion of a Rs. 2.38 crore disallowance made against Adani Total Gas Ltd. for Assessment Year 2020-21. The Bench held: "It is an...

ITAT Ahmedabad Condones 388-Day Delay In Appeal, Cites Poor Advice From Tax Consultant

The Income Tax Appellate Tribunal (ITAT) at Ahmedabad has recently condoned a 388-day delay in filing an appeal by an educational institution. The tribunal found that the delay was caused by inadequate legal advice from its previous tax consultant and a bona fide belief that no further compliance was required. A bench of Vice President Dr. B.R.R. Kumar and Judicial Member Rahul Chaudhary set aside orders of the Commissioner of Income Tax (Appeals) passed through the National Faceless Appeal...

ITAT Mumbai Deletes ₹61.22 Crore TP Addition, Says Pending HC Appeal Doesn't Affect Earlier Binding Order

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has deleted a transfer pricing adjustment of ₹61.22 crore. The tribunal held that a pending appeal before the Bombay High Court does not dilute the binding nature of an earlier coordinate bench decision unless it has been stayed or reversed by a superior judicial forum. A bench of Judicial Member Anikesh Banerjee and Accountant Member Om Prakash Kant and passed the order while allowing an appeal filed by LANXESS India Pvt. Ltd. ...

Property Investment Can't Be Taxed As Unexplained Income In Later Year If Paid Earlier: ITAT Ahmedabad

The Income Tax Appellate Tribunal (ITAT) in Ahmedabad has upheld the deletion of additions made against a taxpayer after finding that documentary evidence showed the disputed property investments were made in an earlier financial year and not during the assessment year under consideration. A bench of Vice President Dr. B.R.R. Kumar and Judicial Member Siddhartha Nautiyal dismissed the Income Tax Department's appeal against the relief granted by the Commissioner of Income Tax (Appeals). "It is...