ITAT Delhi Upholds ₹18 Lakh Tax Deduction Claim On Ernst & Young's CSR Donations

Ernst & Young Services Private Limited has succeeded before the Delhi bench of the Income Tax Appellate Tribunal in a dispute over a tax deduction claimed on donations made as part of its Corporate Social Responsibility (CSR) spending. The tribunal dismissed the Income Tax Department's appeal and upheld the deduction. A bench of Judicial Member Yogesh Kumar U.S. and Accountant Member Manish Agarwal was considering the Department's challenge to relief granted to the company. The dispute...

Appellate Officer Cannot Ignore Assessing Officer's Findings Without Contrary Material: ITAT Ahmedabad

The Income Tax Appellate Tribunal (ITAT) at Ahmedabad has held that findings recorded by an Assessing Officer in a remand report cannot be disregarded by the Commissioner (Appeals) without any material to the contrary. The court observed that where the Assessing Officer, after verification, accepted that a taxpayer's land had been used for agricultural purposes and that the conditions for claiming exemption were met, those findings could not be ignored without contrary evidence. A bench of...

ITAT Delhi Quashes Proceedings Against Indeed Fincap Over Common, Vague Satisfaction Note

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed assessment proceedings initiated against Indeed Fincap Pvt. Ltd. after finding that the tax department relied on a common satisfaction note covering multiple assessment years without identifying assessment year-specific incriminating material. A coram of Judicial Member Vimal Kumar and Accountant Member S. Rifaur Rahman dismissed the Revenue's appeal against an order of the Commissioner of Income Tax (Appeals), which had...

ITAT Mumbai Upholds Relief To Chillies and Garlic After AO Treated Consignment Sales As Agent's Own Turnover

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the deletion of an addition made on alleged undisclosed sales in the case of Chilles & Garlic Commission Co. after finding that the Assessing Officer had wrongly treated consignment sales handled by the commission agent as the taxpayer's own turnover.A bench of Judicial Member Amit Shukla and Accountant Member Arun Khodpia observed that the Assessing Officer had proceeded on a misconceived understanding of the taxpayer's...

Interest Received By American Express India Branch From Head Office, Overseas Branches Not Taxable: ITAT Mumbai

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that interest received by the Indian branch of American Express Bank from its Head Office and overseas branches is not taxable in India. The Tribunal found that the transactions were between different parts of the same entity and therefore attracted the principle that a person cannot make a profit from oneself. A bench of Vice President Saktijit Dey and Accountant Member Prabhash Shankar was hearing cross-appeals relating...

Reassessment Without Section 143(2) Notice Lacks Jurisdiction, Cannot Be Sustained: ITAT Kolkata

On 16 June, the Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) held that reassessment proceedings initiated without issuance of the mandatory notice under Section 143(2) of the Income Tax Act are void ab initio, as the requirement goes to the root of jurisdiction and cannot be treated as a curable procedural lapse. Accountant Member Rajesh Kumar and Judicial Member Pradip Kumar Choubey set aside the reassessment against Star Tradecom Private Limited and quashed the consequential...

Cash Held By Chartered Accountant For Client Tax Payments Not Unexplained Income: ITAT Chennai

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) on 11 June held that a practising Chartered Accountant does not incur liability under Section 69A of the Income Tax Act merely because clients deposit cash into his bank account for payment of statutory dues, where the evidence shows he used the funds to remit taxes on their behalf. Judicial Member Aby T. Varkey and Accountant Member Padmavathy S allowed the appeal filed by Bose Saravanan and directed the Assessing Officer to delete...

Revenue Must Disclose Tally Data, Forensic Report Before Making Additions: ITAT Kolkata

On 16 June, the Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) held that the Revenue cannot rely on tally data and a forensic analysis report without confronting a taxpayer with those materials, as doing so constitutes a “grave violation of natural justice”. Accountant Member Rajesh Kumar and Judicial Member Pradip Kumar Choubey partly allowed Kailash Kumar Patwari's appeals for statistical purposes, dismissed the Revenue's appeals, and remanded the matter to the Assessing Officer....

ITAT Mumbai Quashes Reassessment In Nanne Gulzar Case, Holds Section 153C Mandatory In Search Matters

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) held on 15 June that the Revenue must assess additions arising from search material only under Section 153C of the Income Tax Act and cannot invoke the reassessment provisions under Sections 147/148. Vice President Saktijit Dey and Accountant Member Prabhash Shankar allowed the appeals filed by Nanne Gulzar & Company and set aside the reassessment proceedings initiated by the Department. The Bench held: “As per the scheme and...

ITAT Mumbai Allows Deduction Of ₹80 Crore Paid By Mumbai Port Authority To SBI Life For Leave Encashment

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that Mumbai Port Authority's ₹80 crore contribution to SBI Life Insurance Co. Ltd. under a leave encashment scheme is deductible, finding that the payment represented an actual outflow of funds rather than a mere provision for a future liability. A Bench of Judicial Member Anikesh Banerjee and Accountant Member Makarand Vasant Mahadeokar observed: “The amount of Rs.80,00,00,000/- stands actually paid to SBI Life Insurance...

ITAT Delhi Deletes ₹5.60 Crore Demonetisation Addition, Says Recorded Business Receipts Not Unexplained

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted a ₹5.60 crore addition made against a Delhi jeweller over cash deposits during the demonetisation period. The bench found that the source of the deposits was recorded in the taxpayer's audited books of account and that the related business income had already been assessed. The bench comprising Vice President Mahavir Singh and Accountant Member S. Rifaur Rahman allowed the appeal filed by Rakesh Kumar, proprietor of R.V....

Following Earlier Rulings, ITAT Mumbai Allows DSIR-Unapproved R&D Expenditure As Business Deduction

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed Manugraph India Limited to claim ₹22 lakh in research and development (R&D) expenditure as a business deduction. The amount had not been approved by the Department of Scientific and Industrial Research (DSIR) for weighted deduction. The tribunal followed earlier decisions that permitted such claims under the Income Tax Act. A bench of Judicial Member Pawan Singh and Accountant Member Makarand Vasant Mahadeokar noted...