Mistake In The Personal Information Of The Trust Is A Rectifiable Mistake At Any Stage: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that a mistake in the personal information of the assessee is always rectifiable at any stage.The two-member bench of Anubhav Sharma (Judicial Member) and Shamim Yahya (Accountant Member) has observed that the tax authorities below have fallen into error by not taking into consideration the rectification application. The nature of a mistake is one that falls into the definition of a mistake apparent from the record and is...

Deduction For Telecommunication Services of ' Vodafone' Is Available For "Profits Of Eligible Business": ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT), while allowing deduction to Vodafone, held that deduction for telecommunication services is available in respect of "profits of eligible businesses" and is not restricted to "profits derived from eligible businesses."The two-member bench of Vikas Awasthy (Judicial Member) and M. Balaganesh (Accountant Member) has directed the Assessing Officer to allow the benefit of deduction under section 80IA of the Income Tax Act in respect of...

Additional Evidence Cannot Be Admitted Without Calling For AO's Remand Report: ITAT

The Hyderabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that the additional evidence cannot be admitted without calling for a remand report or comments from the AO.The two-member bench of Laliet Kumar (Judicial Member) and R.K. Panda (Accountant Member) observed that if the CIT(A) chooses to admit any additional evidence, in that case, he/she is required to provide the Assessing Officer with a reasonable opportunity to examine the evidence or document or permit cross-examination...

Revenue Earned By BBC For Distribution Of BBC News In India, Not Taxable As Royalty: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the distribution revenue earned by the assessee- BBC World Distribution Ltd., from distribution of BBC World News Channel in India, is not in the nature of royalty and thus, it is not taxable in India in the absence of a Permanent Establishment. The bench of G.S. Pannu (President) and Saktijit Dey (Judicial Member) held that distribution rights transferred by the assessee to BBC World India, to distribute BBC...

No Need Of Any "Occasion" For Receipt Of Gift By The Assessee: ITAT

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that there need not be any "occasion" for the assessee to receive a gift.The two-member bench of T.R. Senthil Kumar (judicial member) and Annapurna Gupta (accountant member) noted that the assessee received the gift from his own brother, who has been a non-resident since 1966. The allotment of shares was made under the NRI quota to the assessee's brother in the USA. Thus, the source and genuineness are being proved beyond...

Bogus Share Transaction: ITAT Denies Exemption Under Section 10(38) Of Income Tax Act

The Pune Bench of the Income Tax Appellate Tribunal has ruled that where the assessee fails to establish the genuineness of the transaction of sale and purchase of shares, and fails to rebut the findings of quasi-judicial bodies regarding the bogus transaction in shares, the said transaction is void ab initio. Thus, applying the principle of fraud, the ITAT held that the assessee was not eligible for exemption of capital gains under Section 10(38) of the Income Tax Act, 1961. The bench...

Department Is Not Allowed To Travel Beyond The Issues Involved In Limited Scrutiny Cases: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the department is not allowed to travel beyond the issues involved in limited scrutiny cases.The two-member bench of N.K. Choudhary (Judicial Member) and Pradip Kumar Kedia (Accountant Member) have observed that the assessee was selected for limited scrutiny, and the addition in hand does not emanate from the grounds on which the case of the assessee was picked up for limited scrutiny.The appellant/assessee filed its...

ITAT Deletes Addition On Cash Deposits Before Demonetisation

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has directed the Assessing Officer (AO) to delete the addition made on account of cash deposits made before demonetization.The bench of G. Manjunatha (an accountant member) has observed that as per Section 5 of the Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016, from December 31, 2016, no person shall, knowingly or voluntarily, hold, transfer, or receive any Specified Bank Notes. There was no prohibition on dealing...

Filing Of Form 10–IC Is Mandatory Condition To Claim The Benefit Of Reduced Corporate Tax Rate For The Domestic Companies: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that in order to claim the benefit of a reduced corporate tax rate, domestic companies have to mandatorily file Form 10–IC.The two-member bench of Sandeep Singh Karhail (Judicial Member) and Om Prakash Kant (Accountant Member) has observed that the assessee did not file Form 10–IC before the due date of filing the return of income, which is a mandatory condition for claiming the option available under Section 115BAA of the...

Income Tax Assessment made by a non-jurisdictional officer is void: Kolkata ITAT

The Kolkata Income Tax Appellate Tribunal (ITAT) has held that the income tax assessment made by a non-jurisdictional officer is null and void.The two-member bench of Sonjoy Sarma (Judicial Member) and Rajesh Kumar (Accountant Member) has observed that in the case of a non-corporate assessee in non-metro cities, the ITR filed up to Rs. 15 lacs has to be assessed by ITO. Therefore, the assessment was made in violation of Instruction No. 1 of 2011 by the CBDT.The return of income was filed,...

Tax Cases Weekly Round-Up: 13 November To 19 November 2022

Supreme CourtSec.194H Income Tax Act Attracted For 'Supplementary Commission' Earned By Travel Agents ; Airlines Liable To Deduct TDS : Supreme CourtCase Title: Singapore Airlines Ltd. vs C.I.T., Delhi Citation: 2022 LiveLaw (SC) 959 The Supreme Court held that Section 194H of the Income Tax Act is attracted in the case of Supplementary Commission amounts earned by the travel agent and therefore Airlines are liable to deduct TDS in this regard. The bench comprising Justices Surya...

VAT Not Fee/Charge; Cannot Be Disallowed As Deduction Under Section 40(a)(iib) of Income Tax Act: ITAT

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that payment of Value Added Tax (VAT) by Tamil Nadu State Marketing Corporation, a State Government undertaking, is not a fee or charge, or an appropriation made by the State Government, and thus, it cannot be disallowed as deduction under the provisions of Section 40(a)(iib) of the Income Tax Act, 1961. The bench of Mahavir Singh (Vice President) and Dr. Dipak P. Ripote (Accountant Member) held that since the...