Capital Gains On Silver Articles Wrongly Estimated By I-T Authorities: Chennai ITAT Deletes Addition & Penalty Levied U/s 271(1)(C)

On finding that lower authorities had erred in computing the estimated gain on silver articles, the Chennai ITAT deleted the addition made by CIT(A) and levy of penalty u/s 271(1)(c) of the Income Tax Act, 1961.The Bench of the ITAT comprising V. Durga Rao (Judicial Member) and Manoj Kumar Aggarwal (Accountant Member) observed that, “the shortage of 693.85 grams in gold jewellery is well covered by the stated purchase of 1950 grams of gold jewellery by the assessee. This being the case, the...

Cash Deposits By Members Of Society During Demonetization Not Verified In Absence Of PAN & KYC: Bangalore ITAT Asks To Reconsider Relief U/s 80P(2)(A)

The Bangalore ITAT set aside the order passed by CIT(A) for providing relief u/s 80P(2)(a)(i) and 115BBE of Income Tax Act, 1961 and redirect the case back to the file of AO for reconsideration of the genuineness of the deposit during demonetization by the assessee.At the same time, the ITAT also made it clear that in the event, the assessee does not co-operate with the revenue officer, the AO will be at liberty to dispose of the matter strictly in accordance with law.The Bench of the ITAT...

PLR Rates Are Not Applicable To Loans To Be Re-Paid In Foreign Currency Vis-À-Vis Interest On Delayed Realization: Mumbai ITAT

The Mumbai ITAT clarified that interest rates on FCNR accounts maintained in foreign currency are different and dependent upon the currency in question. They are not dependent upon the PLR rate, which is applicable to loans in Indian rupee.The ITAT therefore deleted the ALP adjustments qua Letter of Comfort and interest on delayed realization of sale proceeds from the AEs.Referring to decision of Delhi High Court in the case of CIT-I vs. Cotton Naturals (I) (P) Ltd. [2015] 231 Taxmann 401 (Del),...

Application For Registration In Form No. 10AB Should Be Construed As If Filed U/s 12A(1)(Ac)(I): Kolkata ITAT

Pointing that applications are to be considered on merit for grant of registration, the Kolkata ITAT relegate the issue to the file of CIT(E) with a direction that application in Form No. 10AB should be construed as if filed under section 12A(1)(ac)(i) of Income Tax Act, 1961.The Bench of the ITAT comprising Sanjay Garg (Judicial Member) and Girish Agrawal (Accountant Member) observed that, “basically application of the assessee ought to have been under section 12A, sub-clause (1)(ac)(i), where...

Filing Of Audit Report In Form 10CCB Before Due Date As Per Sec 139(1) Is Only Directory And Not Mandatory: New Delhi ITAT

While holding that filing of audit report in Form 10CCB before the due date for filing of return of income u/s 139(1) of the Income Tax Act, 1961 is only directory and not mandatory for the year under consideration, the New Delhi ITAT directed the AO to allow deduction claimed u/s 80IA of the Income Tax Act, 1961.The Bench of the ITAT comprising of G.S. Pannu (Vice President) and Challa Nagendra Prasad (Judicial Member) reiterated while referring the decision of Karnataka High Court in the case...

Payee Who Has Considered Amounts Received By Payer In Its Return & Paid Taxes On Same, Can't Be Treated As In Default U/s 201(1): New Delhi ITAT

On finding that CIT(A) has failed to consider all submission of assessee and evidences placed on record, the New Delhi ITAT restored the matter back to file of AO for fresh adjudication regarding the TDS deduction u/s 194J or u/s 194C of the Income Tax Act, 1961 on the payments made towards maintenance of X-Ray machine and CVC machine.The Bench of the ITAT comprising of G.S. Pannu (Vice President) and Challa Nagendra Prasad (Judicial Member) observed while referring to decision of Supreme Court...

I-T Authorities Must Prove Authenticity Of Entries And Its Nexus With Dealer, Before Making Addition U/s 69: New Delhi ITAT

On finding that the person from who's possession seized document is recovered, was not subject to cross examination of assessee and no opportunity of cross examination was given to assessee, the New Delhi ITAT deleted the addition made u/s 69 of the Income Tax Act.The Bench of the ITAT comprising of Yogesh Kumar U.S. (Judicial Member) and Dr. B.R.R. Kumar (Accountant Member) observed while considering the judgment of Allahabad High Court in the case of Mumar Trading Co. Vs. Commissioner of Trade...

Mentioning Of Wrong Clause In Application For Registration U/s 80G Out Of Inadvertence, Is No Basis To Deny Deduction: Kolkata ITAT

Irrespective of the delay occurred in filing fresh application for final approval u/s 80G(5) of Income tax Act, the Kolkata ITAT directed the CIT(E) to treat the application of assessee for final registration as 'filed within the time limit prescribed' and also pointed that the time consumed by the assessee in filing the revised application will not be taken into consideration.The Bench comprising of Sonjoy Sarma (Judicial Member) and Girish Agrawal (Accountant Member) observed that, “all the...

Disallowance Of Claim U/s 80P By CPC Prior To Apr 01, 2021 Is Beyond Its Jurisdiction: Kolkata ITAT

On finding that the alleged disallowance by CPC is beyond its jurisdiction as the adjustment towards deduction u/s. 80P of the Income Tax Act came to CPC only from Apr 01, 2021, the Kolkata ITAT interfered with the action of CPC in denying the deduction u/s 80P of the Income Tax Act, 1961.The Bench of the ITAT comprising Sanjay Garg (Judicial Member) and Girish Agrawal (Accountant Member) observed that, “section 80AC of the Act puts a bar against claiming of deduction in respect of certain...

Contribution Collected From Employees If Not Deposited Within Due Dates Prescribed As Per PF & ESIC Act, Is Dis-Allowable: Mumbai ITAT

The Mumbai ITAT recently clarified that mere deposit of employee's contribution before due date of filing return of income as per Section 139 of Income tax Act, will not make it eligible for deduction.Referring to the decision of Supreme Court in case of Checkmate Services Pvt Ltd. Vs. CIT (2022) 143 taxmann.com 178, the Bench of Prashant Maharishi (Accountant Member) and Narendra Kumar Choudhry (Judicial Member) reiterated that “such sum collected from employees if not deposited within the due...

No TDS Liability Can Be Fastened For Earlier Year If Taxpayer Was Not Aware Of Subsequent TDS Certificate Issued By Depositor: Mumbai ITAT

The Mumbai ITAT restored the matter back to the file of AO to consider the lower deduction of TDS certificates and give opportunity to the assessee to explain the case.The Bench of Amit Shukla (Judicial Member) and Prashant Maharishi (Accountant Member) observed that “AO should have given opportunity to the assessee before carrying out rectification u/s. 154, so as to explain the various certificates which were issued by VIL to the assessee company for lower deduction of TDS”. (Para 7)As per the...

AO Must Make Independent Enquiry To Verify Veracity Of Identity, Genuineness & Credit-Worthiness Of Lenders Before Making Addition U/s 68: Kolkata ITAT

Finding that the AO without examining any of the documents, simply made the addition u/s 68 on account of failure of assessee to produce share subscribers, the Kolkata ITAT held that AO cannot take adverse inference without pointing out discrepancies or insufficiency in the evidences and without examining statement of the directors of the subscriber companies.The Bench of Sanjay Garg (Judicial Member) and Girish Agrawal (Accountant Member) observed that “once the assessee has submitted the...