There Cannot Be Any Addition Of The Regular Items Which Were Disclosed By The Assessee In The Regular Books Of Accounts: ITAT

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that there cannot be any addition of the regular items that were disclosed by the assessee in the regular books of accounts.The bench of Madhumita Roy (Judicial Member) and Waseem Ahmed (Accountant Member) has observed that the completed assessment cannot be disturbed in the absence of any incriminating material or documents, whereas the assessment or reassessment can be made with respect to abated assessment years. The...

Any Adjustment Against Bad And Doubtful Debts Amounts To Actual Writing Off The Bad Debts: ITAT Deletes Addition

The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition and held that any adjustment for bad and doubtful debts amounts to actual writing off the bad debts.The bench of T.R. Senthil Kumar (Judicial Member) and Waseem Ahmed (Accountant Member) has observed that the assessee cannot be denied the benefit for the bad debts merely on the reasoning that such bad debts were not claimed in the profit and loss account but adjusted against the provision for bad debts.The...

Payment Of Compensation To CSA Under Termination Agreement Is Not Taxable Under India-South Africa DTAA, BCCI Not Liable To Deduct TDS: ITAT

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held that payment of compensation to Cricket South Africa (CSA) under the Termination Agreement is not taxable under the provisions of the India-South Africa DTAA.The bench of G.S. Pannu (President) and Sandeep Singh Karhail (Judicial Member) has observed that since the payment is not chargeable to tax in India in the hands of CSA, there is no obligation on the assessee to deduct tax at source under Section 195.The...

Department Can Bring Expenditure Incurred In Earlier Years To Be Taxed In Subsequent Years On Grounds Of Bogus Expenditure: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has observed that the department can bring expenditures incurred in earlier years to be taxed in subsequent years on grounds of bogus expenditure.The bench of B. R. R. Kumar (Accountant Member) has observed that the department can bring the expenditure incurred in the earlier years to be taxed in the subsequent years if it is proved that the expenditure incurred was bogus, and the revenue can deem the liabilities ceased as time went by,...

​​AO Without Rejection Of Books Of Accounts Estimated The Income Based On Profit Margin Method: ITAT Deletes Addition

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT), while upholding the addition, has held that A.O. without rejection of books of accounts under Section 145 but estimated the income based on the Profit Margin Method.The Bench of T.R. Senthil Kumar (Judicial Member) and Waseem Ahmed (Accountant Member), while dismissing the grounds of the department, has observed that the additions made by the Assessing Officer do not survive taking into account the Tribunal decision in the...

Section 14A Disallowance Cannot Be More Than Exempted Income: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that section 14A disallowance cannot be more than exempted income.The bench of G.S. Pannu (President) and Sandeep Singh Karhail (Judicial Member) has directed the AO to restrict the disallowance made under section 14A of the Income Tax Act to the extent of exempt income earned by the assessee.Section 14A is a disallowance provision. This section provides that while computing the total income of any assessee, no deduction will be...

ITAT Allows Income Tax Deduction On The Interest Income Received From The Co-Operative Bank

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the income tax deduction under Section 80P(2)(d) of the Income Tax Act on the entire amount of interest income received from the Co-operative Bank.The bench of Sandeep Singh Karhail (Judicial Member) and S. Rifaur Rahman (Accountant Member) found that CIT(A) granted the relief to the assessee, allowing deduction under Section 80P(2)(d) on the entire interest income received by the assessee from the Co-operative Bank,...

No Requirement Of Disallowing Part Of Director’s Remuneration And Depreciation When The Business Was Stopped Due To Temporary Lull: ITAT

The Jodhpur bench of the Income Tax Appellate Tribunal (ITAT) has held that there is no requirement for disallowing part of the director’s remuneration and depreciation when the business is stopped due to a temporary lull.The bench of Dr. S. Seethalakshmi (Judicial Member) and B. R. Baskaran (Accountant Member) has observed that the only condition for allowability of depreciation is that the business should not have been closed out once and for all and that the assessee should demonstrate that...

Tax Cases Weekly Round-Up: 30 April to 6 May, 2023

Supreme Court Section 16-B Of Himachal Pradesh General Sales Tax Act Is Not Ultra Vires Any Provision Of Law: Supreme Court Reiterates Case Title: State of Himachal Pradesh & Ors. vs M/s A.J. Infrastructures Pvt Ltd & Anr. Citation : 2023 LiveLaw (SC) 366 The Supreme Court has ruled that Section 16-B of the Himachal Pradesh General Sales Tax Act, 1968 (HPGST Act) is not ultra vires any provision of law. The bench comprising Justices S. Ravindra Bhat and Dipankar...

Customary Amongst Married Women To Keep On Changing The Jewellery As And When New Designs Come In The Market: ITAT Deletes Income Tax Addition

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition and held that it is customary amongst married women to keep on changing the jewelleryas and when new designs come on the market.The bench of Anubhav Sharma (Judicial Member) and N. K. Billaiya (Accountant Member) has observed that the assessee has given an item-wise reconciliation of Wealth Tax Return items with the valuation report prepared during the search. The AO has not pointed out any specific defect...

Co-Operative Banks Are Also Registered Co-Operative Societies: ITAT Allows Section 80P(2)(d) Deduction

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the income tax deduction under Section 80P(2)(d) of the Income Tax Act on the grounds that cooperative banks are also registered cooperative societies.The bench of Suchitra Kamble (Judicial Member) has observed that the provision of Section 80P(2)(d) does not make any distinction in regard to the source of the investment because this Section envisages deduction in respect of any income derived by the co-operative society...

Tax Cases Monthly Round Up: April 2023

Indirect Taxes Supreme Court Same Activity Can Be Taxed As ‘Goods’ & ‘Services’ : Supreme Court Upholds Levy Of Service Tax On “Engineering Design & Drawings” Case Title: Commissioner of Customs, Central Excise & Service Tax v M/S Suzlon Energy Citation : 202LiveLaw(SC) 298 The Supreme Court has held that the import of “Engineering Design & Drawings” falls under the category of “design services” under section 65(35b) read with Section 65(105)...