Subsequent Withdrawal Of Registration Is No Impediment In Denying Deduction U/s 35-AC On Donation Received By Charitable Trust: Mumbai ITAT

While relying on the previous order passed by the Co-ordinate Bench under Ravindra K. Reshamwala v/s DCIT in ITA No.2648/Mum/2022, the Mumbai ITAT directed Assessing Officer to allow the claim under Section 35-AC of the Income tax Act, 1961.The Member of the ITAT comprising Sandeep Singh Karhail (Judicial Member) and B.R. Baskaran (Accountant Member) observed that “except for statement of trustee of the society, we find that there is no positive evidence on record to substantiate the same. There...

Creditworthiness Of Share Subscribers To Make Investment In Capital Of Taxpayer Company Not Disputed: Kolkata ITAT Deletes Addition U/s 68

The Kolkata ITAT deleted the addition made under Section 68 of Income Tax, 1961 after finding that the assessee has established the onus placed upon him in respect of identity and creditworthiness of the share subscribers and also the genuineness of the transactions.The Member of the ITAT comprising Sanjay Garg (Judicial Member) and Girish Agrawal (Accountant Member) observed that “the AO has not made out his case with cogent material on record that the appellant could come under the purview of...

Furnishing Inaccurate Claim Of Expenditure Would Not Amount To Giving Inaccurate Particulars Of Income: Mumbai ITAT Quashes Penalty

While quashing the appeal filed by Revenue against the order passed u/s 250 by the National Faceless Appeal Centre, the Mumbai ITAT upheld the order passed by Commissioner of Income Tax (A) to delete the order of penalty issued under section 270A of the Income Tax Act, 1961.The Member of the ITAT comprising Kavitha Rajagopal (Judicial Member) and Om Prakash Kant (Accountant Member) observed while relying on the judgment of the case CIT vs. Reliance Petro Products Pvt. Ltd that, “furnishing...

Receipts For Sale Distribution Of Cinematographic Films Is Not Royalty, Hence Not Liable For TDS Deduction U/S 194J: Mumbai ITAT

While clarifying that amount received for sale distribution or exhibition of cinematographic films would not fall under the domain of 'Royalty', the Mumbai ITAT deleted the demand/addition for non-deduction of TDS u/s 194J of the Income Tax Act, 1961.The Member of the ITAT comprising of N. K. Choudhry (Judicial Member) and Prashant Maharishi (Accountant Member) observed that “Explanation-(2) to section 9(1)(vi) of the Act defines 'Royalty' and including certain consideration such as transfer of...

No Addition Permitted In Respect Of Sundry Creditors, Once Purchases & Payments By Taxpayer Not Disputed: Mumbai ITAT

On finding that payment and purchase made by the assessee is not disputed by AO, the Mumbai ITAT directed the AO to delete the addition on sundry creditors.The Member of the ITAT comprising of Sandeep Singh Karhail (Judicial Member) and B.R. Baskaran (Accountant Member) observed that “Since in the present case the purchases made by the assessee and the payment made during the year have not been disputed by the AO in respect of the parties shown as sundry creditors, we are of the view that the...

Comparable Need Selection As Per Correct Market Segment: Delhi ITAT Remits Matter Following Earlier Order

Relying on Co-ordinate bench ruling in assessee's own case for AY 2004-05 wherein assessee's additional evidences were admitted and matter was remanded back to TPO for fresh adjudication, the Delhi ITAT admitted the assessee's additional evidence application qua comparables selection for AY 2005-06 and 2006-07.The ITAT Coram comprising Shamim Yahya (Accountant Member) and Anubhav Sharma (Judicial Member) observed that “either both TPO and the assessee or the TPO only hand failed to take...

Depreciation Of Goodwill Acquired Pursuant To Slump Sale Under Business Transfer Agreement Is Allowable U/s 32(1): Mumbai ITAT

Emphasizing that although Section 32 of Income tax Act, 1961 was amended by the Finance Act, 2021 wherein it was stated that 'goodwill' is not an intangible asset eligible for depreciation was applicable prospectively with effect from AY 2021-22, the Mumbai ITAT held that claim of depreciation of goodwill acquired pursuant to slump sale under a Business transfer agreement is allowable under Section 32(1).The ITAT Member comprising of ABY T. Varkey (Judicial Member) and Amarjit Singh (Accountant...

Consequent Generation Of DIN Subsequently & Handwritten In Body Of Order, Will Not Satisfy Conditions Of CBDT Circular No.19/2019: Chennai ITAT

The Chennai ITAT held that the orders passed by the DRP in violation of CBDT Circular No.19/2019 dated Aug 14, 2019, and without allotment of a valid computer-generated Document Identification Number (DIN) in the body of such order is invalid, non-est and shall be deemed to have never been issued.The ITAT Coram comprising of Mahavir Singh (Vice President) and Manjunatha G (Accountant Member) observed that “there is no dispute with regard to fact that mandatory requirement of generating a...

Direct Tax Weekly Round-Up: 14 To 20 January 2024

Direct Tax Weekly Round-Up: 14 To 20 January 2024 Supreme Court Taxpayer Entitled To Hearing On Merits If Appeals Were Dismissed By HC For Delay In Filing Paper-Book: Supreme Court Case Title: Herbicides India Limited verses ACIT While setting aside the Rajasthan High Court orders, the Supreme Court restored the assessee's appeals by condoning the delay in filing the paper-book before High Court and observed that the assessee is entitled to have his appeals heard on merits. ...

S. 54F Exemption Not Available On Property Predominantly Being Used For Religious Purposes: ITAT

The Hyderabad Bench of Income Tax Appellate Tribunal (ITAT) has held that exemption under Section 54F of the Income Tax Act is not available on property predominantly being used for religious purposes.The bench of R.K. Panda (Vice President) and Laliet Kumar (Judicial Member) has observed that the property is predominantly being used for religious purposes, namely mosques, orphanages, and staff quarters. Therefore, it does not fit within the definition of a residential house as contemplated...

No Escapement Of Income By Singaporean Entity On Repatriating Rs.203.56 Cr. Arising From Redemption Of NCDs: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the Singaporean Entity has not escaped the income on repatriating Rs.203.56 Cr. arising from redemption of non-convertible debentures (NCDs).The bench of Astha Chandra (Judicial Member) and B. R. R. Kumar (Accountant Member) has observed that the Assessing Office has not examined the relevant records before them wherein the interest earned has been duly offered to tax.The NCDs amounting to Rs. 150,00,00,000 were subscribed by...

Assessment Order Passed Beyond Sec 144C(4) Is Time Barred If Objections To Draft Order Were Filed After Expiry Of Limitation As Per Sec 144C(2): Delhi ITAT

Noticing that the draft assessment order was passed on Mar 4, 2022 and the assessee filed objection before the DRP on Apr 6, 2022 which was beyond the due date provided for filing objection, the Delhi ITAT held the assessment order to be time-barred being passed beyond Section 144C(4) of Income tax Act, 1961 time-limit. The ITAT Coram comprising of Challa Nagendra Prasad (Judicial Member) and Dr. B.R.R. Kumar (Accountant Member), observed that “The draft of the Assessment Order, in this case,...