Income Derived From Sale Of Agricultural Land Is Not A Capital Asset: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that income derived from the sale of agricultural land is not a capital asset.The bench of Saktijit Dey (Judicial Member) and M. Balaganesh (Accountant Member) has observed that income tax is not payable on the income derived from the sale of agricultural land.A search and seizure operation was conducted in the case of the assessee. Following the search and seizure operation, proceedings under Section 153A of the Income Tax Act...

ITAT Deletes Disallowance On Setting Off Legal Expenses Against Interest Income For Contesting Arbitral Award

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted that disallowance setting off legal and other expenses against interest income for contesting an arbitral award.The bench of G.S. Pannu (President) and Saktijit Dey (Judicial Member) has observed that the arbitral award was passed in July 2020, which is under challenge before the Delhi High Court. Even after the conclusion of the Common Wealth Games in 2010, the assessee did not wind up its PE in India as the PE was required...

AO Can’t Sit On The Armchair Of Businessman Assessee To Replace His Business Strategy By His Own Whims And Fancies: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Assessing Officer cannot sit on the armchair of a businessman assessee to replace his business strategy with his own whims and fancies.The bench observed that Chandra Mohan Garg (Judicial Member) and Pradip Kumar Kedia (Accountant Member) have observed that the Assessing Officer only noted an abnormal fall in the GP rate of jewelry without pointing out any defects or discrepancies in the audited books of accounts of...

Trust Created For Managing The Statutory Obligations Of Employees Of The Parent Trust: ITAT Grants Section 12AA Registration

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that any trust that has been created for the purpose of managing the statutory obligations of employees of the parent trust would certainly fall within the ambit of advancement of general public utility and, hence, be considered a charitable activity as defined under Section 2(15) of the Income Tax Act.The bench of C.M. Garg (Judicial Member) and M. Balaganesh (Accountant Member) has granted the registration under Section 12AA...

Gift From Family Members Do Not Require Any Special Occasion: ITAT Deletes Addition

The Indore Bench of the Income Tax Appellate Tribunal (ITAT) has deleted that addition and held that gifts from family members do not require any special occasion.The bench of Vijay Pal Rao (Judicial Member) and B.M. Biyani (Accountant Member) has observed that all sources explained by the assessee were genuine except the gift of Rs. 1,00,000 claimed to have been received from the grandmother.The assessee/appellant filed his return of income, declaring a total income of Rs. 1,49,900/- earned...

E-Filing Of “Audit Report” Beyond The Date, Violative Of CBDT Circular: ITAT Denies Section 11 Exemption to Trust

The Raipur Bench of the Income Tax Appellate Tribunal (ITAT) refused to grant the exemption under Section 11 of the Income Tax Act on the grounds that the trust e-filed the "audit report" in Form 10B beyond the date.The bench of Ravish Sood (a judicial member) has observed that the assessee trust had e-filed or uploaded the "audit report" in Form 10B as of June 21, 2019, which was much beyond the date specified under Section 139. Therefore, its case would clearly fall beyond the scope and gamut...

Relationship Between Consultant Doctor And The Hospital Can't Be seen As Employer Employee : ITAT Deletes Addition

The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition made towards short deduction of TDS and held that the relationship between a Professional Doctor consultant and the Hospital cannot be treated as an Employer-Employee relationship unless there exist specific Rules and Provisions in the contract of appointment between the consultant and Hospital.The bench of Mahavir Singh (Vice President) and Manjunatha. G, (Accountant Member) has observed that there was no error...

NLU-Delhi Is Not Engaged In Business: ITAT Quashes Income Tax Penalty

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the penalty under Section 271B of the Income Tax Act on the grounds that the NLU-Delhi is not engaged in "business" and exists solely for educational purposes.The bench of Anubhav Sharma (Judicial Member) and Anil Chaturvedi (Accountant Member) has observed that to justify invoking the mandate of Section 44AB, it was necessary to see if the assessee university can be said to be engaged in business as defined under Section...

Once The Existence Of Goodwill Is Established, Depreciation On Goodwill Cannot Be Questioned: ITAT

The Hyderabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that once the existence of goodwill is established, depreciation on goodwill cannot be questioned.The bench of K. Narasimha Chary (Judicial Member) and R.K. Panda (Accountant Member) has observed that the transfer of IP from Blujay India to Blujay UK cannot question the benefits accrued from the bundle of assets transferred in the course of acquisition as IP was just a part of the assets acquired from Four Soft.The assessee...

Additions Can’t Be Made In Absence Of Incriminating Material: ITAT Deletes Income Tax Addition

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the additions could not have been made in the absence of any incriminating material.The bench of Kavitha Rajagopal (Judicial Member) and B.R. Baskaran (Accountant Member) observed that the additions made by the Assessing Officer under Section 68 of the Act towards the sale of shares and also estimated commission expenditure are liable to be deleted since they are not based on any incriminating material found during the...

Dept. Failed To Prove Sundry Creditors To Be Bogus: ITAT Deletes Addition Against Buffalo Meat Trader

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition against the buffalo meat trader as the department has failed to prove sundry creditors to be bogus.The bench of Yogesh Kumar US (Judicial Member) and B. R. R. Kumar (Accountant Member) observed that the Assessing Officer has failed to pinpoint any discrepancy in the details filed and books of accounts, bills, and vouchers produced during the course of the assessment proceedings.The respondent/assessee is in the...

ITAT Allows Income Tax Deduction On Effluent Water Treatment

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the income tax deduction on effluent water treatment.The bench of Amit Shukla (Judicial Member) and Gagan Goyal (Accountant Member) has observed that effluent water treatment can be considered a water treatment plant eligible under Section 80IA of the Income Tax Act.The appellant/assessee is in the business of treating effluent water sold as waste and has received approval and consent from the Maharashtra Pollution Control...