Availability Of Cash With Different Companies Is Sufficient To Explain Cash Found At The Time Of Search: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the availability of cash with different companies is sufficient to explain the cash found at the time of the search.The bench of Astha Chandra (Judicial Member) and N.K. Billaiya (Accountant Member) has observed that the very same Assessing Officer assessed the nine group concerns and companies and accepted the availability of cash in hand in the respective books of accounts. Therefore, it would be a futile exercise to remit...

Prior Sanction Of Approval From Competent Authority Mandatory Before The Reopening Of Assessment: ITAT

The Dehradun Bench of the Income Tax Appellate Tribunal (ITAT) has held that prior sanction of approval under Section 151 of the Income Tax Act from the competent authority is mandatory before the reopening of the assessment.The bench of Kul Bharat (Judicial Member) and M. Balaganesh (Accountant Member) has observed that no approval under Section 151 of the Income Tax Act is on record for the years under consideration; the assumption of jurisdiction under Section 147 becomes void ab initio.The...

Tax Cases Monthly Round Up: November 2023

Supreme Court Supreme Court Affirms Penalty On 'Zarda' Manufacturers For Misclassifying Product As 'Chewing Tobacco' For Central Excise Duty Case Title: Commr. Of Cen. Exc. Ahmedabad v M/S Urmin Products P. Ltd. And Others Citation: 2023 LiveLaw (SC) 949 The Supreme Court while adjudicating a matter wherein the Assesssee deliberately misclassified the ‘Zarda’ produced by it as ‘Chewing Tobacco’ for evading payment of a high duty as applicable to ‘Zarda’, has affirmed the...

ITAT Allows Section 80G Registration To Trust Recycling Post-Consumer Plastic Waste

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has allowed the registration under Section 80G of the Income Tax Act to the trust recycling post-consumer plastic waste.The bench of Sandeep Singh Karhail (Judicial Member) and Amarjit Singh (Accountant Member) has observed that the assessee earned income only from donations, the sale of scraps, and the sale of finished goods, and no such service was rendered to any entity. A service, even if it is rendered by the assessee, will only be...

Tax Cases Weekly Round-Up: 26 November To 2 December, 2023

Delhi High Court Appellant Was Pursuing Review Petition In Good Faith, Delhi High Court Condones Delay In Filing Appeal Against ITAT Order Case Title: Resorts Consortium India Limited Versus ITAT Citation: 2023 LiveLaw (Del) 1178 The Delhi High Court has condoned a 79-day delay in filing an appeal as a review petition was filed before the Income Tax Appellate Tribunal (ITAT). AO Lacked Tangible Material To Form A Belief That Income, Chargeable To Tax Had Escaped ...

Dept. Can Dispute Residential Status On Strength Of TRC But Not Without Establishing Assessee To Be Shell Company: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that though the department has the authority to dispute the residential status of the assessee merely on the strength of the Tax Residency Certificate (TRC), it is incumbent upon the department to make a proper inquiry and to establish the fact that the party claiming benefit and the strength of the TRC is a shell or conduct company.The bench of G.S. Pannu (Vice President) and Saktijit Dey (Vice President) has observed that no...

Club Membership Fees Paid By ICICI Bank For Employees Are To Be Treated As Business Expenditure: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has observed that club membership fees for employees are to be treated as business expenditures of a company under Section 37 of the Income Tax Act.The Bench of Amit Shukla (Judicial Member) and Padmavathy S. (Accountant Member) has upheld the decision of the CIT (A) and deleted the disallowance made by the AO by relying on its own order for Ay 2006-07 in the assessee’s own case.The appellant/assessee is in the business of banking and...

ITAT Deletes Addition On Consideration Received By German Entity For Offshore Supplies

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that addition on consideration received by the German entity for offshore supplies.The bench of Challa Nagendra Prasad (Judicial Member) and M. Balaganesh (Accountant Member) has observed that the offshore services that primarily involve the offshore supply of drawings and designs are inextricably linked with the offshore supply of plants and equipment, and accordingly, the receipts from offshore services do not give rise to any...

ITAT Imposes Cost Of Rs. 51K For Condoning 33 Days Delay In Filing Appeal

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has imposed a cost of Rs. 51,000 for the 33-day delay in filing the appeal.The bench of Narendra Kumar Choudhry (Judicial Member) and Gagan Goyal (Accountant Member) has set aside the ex-parte order passed by the Commissioner, consequently remanding the case to the file of the Commissioner or decision on merit, but subject to a deposit of Rs. 51,000 in the Prime Minister’s National Relief Fund (PMNRF) within 30 days.The appellant/assessee...

Tax Cases Weekly Round-Up: 19 November To 25 November, 2023

Delhi High Court Reassessment Notice Severed At Old Address Despite Knowing Assessee’s New Address: Delhi High Court Quashes Assessment Order Case Title: PCIT Versus M/S Dart Infrabuild (P) Ltd. The Delhi High Court has quashed the assessment order as the notice under Section 148 was improperly served as it was sent to the old address, despite the fact that the department was aware of the new address. Seized Cash Should Be Treated As Advance Tax As Per Law, There Was No Default...

ITAT Allows Section 80P Deduction On Interest Income Arising From Deposits/Investments Made With Co-Operative Bank

The Visakhapatnam Income Tax Appellate Tribunal (ITAT) has held that there is a deduction under Section 80P of the Income Tax Act on interest income arising from deposits or investments made with cooperative banks.The bench of Duvvuru Rl Reddy (Judicial Member) and S Balakrishnan (Accountant Member) has observed that the cooperative society is eligible for deduction under Section 80P(2)(a)(i) on the interest income received from investments in banks.The respondent-assessee is a primary...

Initiation Of Revision Proceedings By Issuing Show Cause Notice And Passing Revision Order Without DIN Are Invalid: ITAT

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the initiation of revision proceedings by issuing show cause notice and passing a revision order without a Document Identification Number (DIN) is invalid.The bench of T.R. Senthil Kumar (Judicial Member) and Annapurna Gupta (Accountant Member) have observed that the Office of the PCIT has literally not followed CBDT Circular No. 19/2019. The office of the PCIT has not justified not quoting DIN even in the revision order,...