Payment Towards Employee’s Contribution To Provident Fund After Due Date Is Not Allowable As Deduction: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that payment towards an employee’s contribution to the provident fund after the due date is not allowable as a deduction.The two-member bench of Sandeep Singh Karhail (Judicial Member) and Om Prakash Kant (Accountant Member) has relied on the Supreme Court's decision in the case of Checkmate Services (P.) Ltd. and ruled that the non-obstante clause under Section 43B or anything contained in that provision would not absolve the...

Centralized Processing Centre Not Authorized To Carry Out Adjustment For Disallowance Of Section 80P Deduction: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Centralised Processing Centre (CPC) was not authorized to carry out such adjustments for disallowance of deduction under section 80P of the Income Tax Act.The two-member bench of Pavan Kumar Gadale (Judicial Member) and Om Prakash Kant (Accountant Member) observed that the assessment year 2007-08 occurred prior to the CPC being empowered to carry out adjustments, and thus making adjustments were beyond the CPC's...

Amounts Paid By Google India To Google US For Seconded Employees Does Not Come Within ‘FTS’ or ‘FIS’: ITAT

The Banglore Bench of the Income Tax Appellate Tribunal (ITAT) has held that amounts paid by Google India to Google US with reference to seconded employees do not come within the fees for technical services (FTS) or fees for included services (FIS) under the Income Tax Act or under the India-US Tax Treaty.The two-member bench of George George K. (Judicial Member) and Padmavathy S. (Accountant Member) has observed that the seconded employees were working solely under the control and supervision...

ITAT Deletes Addition On Cash Deposits During Demonetisation

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition of cash deposits during demonetization.The bench of R.S. Syal (Vice President) has observed that the assessee sold their ancestral agricultural land in 2013 for a sum of Rs. 38 lakhs along with his brother. The assessee’s share was Rs. 19 lakh. The assessee's share of Rs. 19 lakhs in cash was kept with his brother, who was looking after the agricultural operations previously, and both of them decided to purchase...

Tax Cases Weekly Round-Up: 19 February To 25 February 2023

Bombay High Court GST Act Can’t Be Interpreted To Deny Right To Carry Trade And Commerce By Citizens: Bombay High Court Case Title: Rohit Enterprises Versus The Commissioner State GST Bhavan Citation: 2023 LiveLaw (Bom) 108 The Aurangabad Bench of the Bombay High Court has held that the provisions of the GST enactment cannot be interpreted so as to deny the right to carry on trade and commerce to any citizen or subject. Availability Of Interest-Free Surplus Fund To Make...

Jet Airways Fails To Comply With The Notices In spite Of Several Opportunities: ITAT Imposes Cost Of Rs. 25,000 Payable To PM Relief Fund

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has observed that Jet Airways has failed to comply with the notices issued by the lower authorities in spite of several opportunities. Jet Airways was directed to pay a cost of Rs. 25,000 for being delinquent before the lower authorities which was to be paid to the Prime Minister’s Relief Fund within 30 days.The two-member Kavitha Rajagopal (Judicial Member) and Prashant Maharishi (Accountant Member), have observed that the assessee...

Misplacing FD Is Not The Ground For Deleting Addition Of Interest: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the addition of interest on fixed deposits (FDs).The two-member bench of Anubhav Sharma (Judicial Member) and N.K. Billaiya (Accountant Member) has observed that the bank, in Form No. 26AS, has acknowledged the fixed deposits with it and has credited interest by deducting tax at source. Even if the fixed deposits are misplaced, the assessee can approach the bank and ask for duplicate fixed deposits.The appellant/assessee...

IBC Has Overriding Effect On All The Acts Including Income Tax Act: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Insolvency and Bankruptcy Code (IBC) has an overriding effect on all acts, including the Income Tax Act, as per Section 178(6) of the Income Tax Act, effective from November 1, 2016.The bench of Yogesh Kumar U.S. (Judicial Member) and Pradip Kumar Khedia (Accountant Member) has observed that no proceedings can be initiated against the corporate debtor, including proceedings before the Tribunal, income tax proceedings,...

Tax Cases Weekly Round-Up: 5 February to 11 February 2023

Supreme Court Exemption Of Newspaper’s Income Utilised For Charity: Supreme Court Remands The Matter To AO Case Title: PCIT Versus Servant of People Society The Supreme Court has remanded the appeal in respect of the exemption of newspaper income used for charity. Delhi High Court Department Can’t Go Behind TRC Issued By The Other Tax Jurisdictions: Delhi High Court Case Title: Blackstone Capital Partners (Singapore) VI FDI Three Pte. Ltd. Versus ACIT Citation: 2023...

Expenses Incurred During Regular Course Of Business Cannot Be Treated As Capital Expenses: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that expenses incurred during the regular course of business cannot be treated as capital expenses.The two-member bench of Yogesh Kumar US (Judicial Member) and Anil Chaturvedi (Accountant Member) has observed that the payment was made towards the professional fee, which includes monthly retainer fees for the professional services.The assessee/respondent is a company stated to be engaged in the business of software development....

Section 14A Disallowance Not Warranted If No Exempt Income Is Earned: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the disallowance under Section 14A of the Income Tax Act is not warranted if no exempt income is earned.The two-member bench of Anubhav Sharma (Judicial Member) and Anil Chaturvedi (Accountant Member) has observed that Section 14A envisages that there should be actual receipt of income, and hence Section 14A of the Act will not apply where no exempt income is received or receivable during the relevant previous year.The...

Unmarried Daughter’s Jewllery And Mother’s Jewellery Can Be Kept In Family Home: ITAT Deletes Addition

The Allahabad Income Tax Appellate Tribunal (ITAT) has deleted the addition as the jewellery belonging to unmarried daughters will be kept along with the assessee’s jewellery in a family home where they are living together.The two-member bench of Vijay Pal Rao (Judicial Member) and Ramit Kochar (Accountant Member) has observed that the assessee has discharged her primary burden by explaining the jewellery found during search and explaining in a statement that 504 grams belonged to her mother,...