ITAT Allows Deduction On Credit Facilities Given By Co-operative Society To Its Members

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the deduction under Section 80P of the Income Tax Act on the credit facilities given by the co-operative society to its members as they were directly related to the business while deriving interest.According to the two-member bench of Suchitra Kamble (Judicial Member) and Waseem Ahmed (Accountant Member), unlike Nationalised Banks, co-operative credit societies/cooperative banks have different setups where deduction...

TDS Provisions Not Applicable To Commission Paid To Bank: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that TDS provisions are not applicable to commissions paid to banks.The two-member bench of Saktijit Dey (Judicial Member) and Dr B.R.R. Kumar (Accountant Member) has observed that commission paid to partners is not covered under Section 194H of the Income Tax Act as there is no employer and employee or principal-agent relationship between the partners and the firm.The assessee/respondent is a resident partnership firm engaged...

Extracts of Land Revenue Records, Not Sufficient Evidence To Prove Agricultural Activity: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has upheld that the assessee is against the addition made on account of short-term capital gains by treating the land as a capital asset.The two-member bench headed by Pramod Kumar (Vice President) and Sandeep Singh Karhail (Judicial Member) has observed that apart from the purchase and sale deeds of conveyance and 7/12 extracts from land revenue records, no other evidence has been brought on record by the assessee of having cultivated...

ITAT Allows 60% Depreciation On ATM machines As Applicable To Computer Software

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the 60% depreciation on ATM machines as applicable to computer software.The two-member bench of Sonjoy Sharma (Judicial Member) and G. Manjunatha (Accountant Member) has observed that once the assessee is entitled to 60% of depreciation on ATM machines, the Assessing Officer has to work out the depreciation right from the beginning at 60% to compute WDV.The appellant/assessee is in the business of providing automated...

Self-Certified Copies Of Documents Are Sufficient For Claiming Exemption Under Section 12AA of the Income Tax Act: ITAT

The Jaipur Bench of the Income Tax Appellate Tribunal (ITAT) has held that the self-certified copies of documents are sufficient for the purpose of claiming exemption under section 12AA of the Income Tax Act.The two-member bench of Dr.S. Seethalakshmi (Judicial Member) and Rathod Kamlesh Jayantbhai (Accountant Member) have observed that CIT(E) has erroneously passed the order without considering that the assessee has submitted all the necessary documents which were raised in the form of...

ITAT Disallows Cost of improvement As Assessee Did Not Produce Supporting Bills, Vouchers, Source Of Funds

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has disallowed the cost of improvement as the assessee failed to produce supporting bills, vouchers, sources of funds, etc.The two-member bench of Sandeep Singh Karhail (Judicial Member) and Om Prakash Kant (Accountant Member) noted that the claim of the assessee was denied by the lower authorities in the absence of proof with regard to the cost of improvement claimed by the assessee.The assessee, being an individual, expired on June...

ITAT Allows Deduction To ICICI Bank On Interest Expense On Perpetual Bonds

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed ICICI Bank the deduction on interest expense on perpetual bonds.The two-member bench of Kavitha Rajagopal (Judicial Member) and Amarjit Singh (Accountant Member) has observed that merely that RBI recognises treating the said debt instruments as additional tier/capital would not change the nature of Innovative Perpetual Debt Instruments, which were of the nature of long-term borrowings and the interest paid was debited to...

Income From Operating And Maintaining IT Park To Be Assessed Under "Income from Business": ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the income from operating and maintaining an IT park is to be assessed under the head "Income from Business".The two-member bench of Vikas Awasthy (Judicial Member) and M. Balaganesh (Accountant Member) has observed that the income from letting out the premises/developing space along with other facilities in an industrial park, SEZ is to be charged to tax under the head "profits and gains of business."The...

Tax Cases Weekly Round-Up: 25 September To 1 October, 2022

Delhi High Court Physical Verification Of Business Premises For GST Registration Without Issuing Notice Is Violation Of Principle Of Natural Justice: Delhi High Court Case Title: Curil Tradex Pvt. Ltd. Versus The Commissioner Citation: 2022 LiveLaw (Del) 905 The Delhi High Court has held that the physical verification of business premises for GST registration without issuing a notice is a violation of the principle of natural justice. The division bench of Justice Rajeev...

Tax Cases Monthly Round-Up: September 2022

Indirect TaxesSupreme Court Disputes Related To Tax Concessions Are Not Arbitrable: SupremeCourt Case Title: M/s Shree Enterprise Coal Sales Pvt Ltd. Versus Union Of India Citation: 2022 LiveLaw (SC) 774 The Supreme Court has held that disputes related to tax concessions are not arbitrable. The division bench of Justice Dhananjaya Y Chandrachud and Justice Hima Kohli has observed that the High Court was in error in holding that the terms of e-auction provided that any...

Revenue Can't Characterize Preference Shares As Debt Instrument Ignoring Legal Consequences: ITAT

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has reiterated that premium on redemption of preference shares is exigible to tax under the head 'Income from Capital Gains', liable to tax to the extent actually received on the redemption of shares. The Bench of N.V. Vasudevan (Vice President) and Padmavathy S (Accountant Member) held that the revenue authorities cannot disregard the legal effect of issue of cumulative preference shares, and that they cannot ignore the...

AO Treated Sundry Creditors As Bogus Based On His personal belief: ITAT Deletes Addition

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has held that AO treated the sundry creditors as bogus at the instance of the report of the inspector for a few sample cases was based on AO's personal belief and not by virtue of any concrete facts and evidence placed on record.The two-member bench of Rajpal Yadav (Vice-President) and Girish Agrawal (Accountant Member) has observed that the conclusion of the AO was based on imagination and directed to delete the addition.The...