Notice Didn't Contain Categorical Indication Of Furnishing Inaccurate Particulars Or Concealment Of Particular Income: ITAT Quashes Penalty Proceedings

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT)has quashed the penalty proceedings as the notice issued to the assessee did not mentioned a categorical indication of specific violation in respect of furnishing inaccurate particulars or concealment of particular income.The two-member bench headed by G.S. Pannu (President) and Anubhav Sharma (Judicial Member) has observed that in the assessment order and penalty order there is apparent ambiguity as to what was the basic ground for...

Other Income Tax Additions In Reassessment Proceedings Cannot Be Sustained If Addition on Primary Grounds Is Not Made: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) consisting of C.N. Prasad (Judicial Member) has observed that if the Assessing Officer does not make any addition on the primary ground on the basis of which procedings under Section 147 of the Income Tax Act were initiated, he cannot make other additions.The assessee/appellant has challenged the validity of the assessment made by the Assessing Officer as the assessment was reopened for escapement of income on account of cash ...

Reassessment Order Can't Be Made Until There Has Been Service Of Notice: ITAT

The Delhi Income Tax Appellate Tribunal (ITAT) consisting of C.N. Prasad (Judicial Member) has observed that reassessment cannot be made until there has been service of notice.The assessee/appellant has challenged the validity of the reassessment order, stating that the mandatory requirement of service of notice under section 148 of the Income Tax Act was not followed, which vitiated the entire reassessment proceedings. The assessee submitted that the return for the assessment year was...

Tax Cases Weekly Round-Up: 12 June To 18 June, 2022

Delhi High CourtDelhi High Court Quashes Assessment Order For Not Giving Opportunity To File Objection To SCN Case Title: Jindal Exports and Imports Private Limited Vs DCIT The Delhi High Court bench of Justice Manmohan and Justice Dinesh Kumar Sharma has quashed the assessment order as the assessee was not given an opportunity to file an objection to the show cause notice. Underreporting Of Income Due To Re-Computation Of Disallowance By The AO, Does Not Amount To Misreporting Of...

Appeal Filed By A Struck Off Company Against The Revenue Department Is Maintainable: ITAT Delhi

The Delhi Bench of ITAT has ruled that an appeal filed by a Company against the order passed by the revenue department does not become infructuous if, thereafter, the Company has been struck off from the Register of Companies. The Bench, consisting of Yogesh Kumar U.S. (Judicial Member) and B. R. R. Kumar (Accountant Member), held that a Certificate of Incorporation issued to a Company cannot be treated as cancelled for the purpose of realizing the amount due to the Company and for the...

Non-Service Of Notice On Assessee: ITAT Quashes Reassessment Order

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the reassessment order on the grounds that the notice was not served on the assessee. The bench of Challa Nagendra Prasad (Judicial Member) found that the department failed to prove proper service of the reassessment notice on the assessee. The assessee/appellant challenged the order of the CIT (Appeals) on the ground of non-service of a notice issued under Section 148 of the Income Tax Act, 1961. The assessee...

ITAT Deletes Additions As Assessee Proved Genuineness Of Purchases By Documentary Evidence

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the additions on the grounds that the assessee proved the genuineness of the purchases through documentary evidence.The two-member bench of Yogesh Kumar US (Judicial Member) and Pradeep Kumar Khedia (Accountant Member) has excluded the statement of the witness of the department as no opportunity of cross-examination was accorded to the assessee. The appellant/assessee is in the business of manufacturing and...

Depreciation To Be Carried Forward For Set Off In Succeeding Assessment Years: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) headed by G.S. Pannu (President) and C.N. Prasad (Judicial Member) has ruled that in case the depreciation exceeds the business income, then the Assessing Officer should allow the depreciation to be carried forward for set off in succeeding assessment years.The respondent/assessee for the AY 2016-17 e-filed the return of income, declaring nil income after adjusting for brought forward losses of Rs.7,37,804. In the course of...

Notice For Reopening Of Assessment Against Dead Person Is Invalid: ITAT Quashes Re-Assessment Order

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the notice for reopening of the assessment against the dead person is invalid. The two-member bench of Kul Bharat (Judicial Member) and Pradeep Kumar (Accountant Member) has observed that the Assessing Officer has accentuated the legal fallacy by continuing to proceed against the dead person by issuing notice under Section 143 (2) and Section 142(1) of the Income Tax Act. The re-assessment order passed pursuant...

Subsidy Received From The Government In The Form Of Refund Of VAT And CST, To Encourage Industrial Growth, Is A Capital Receipt: Pune ITAT

The Pune Bench of ITAT has ruled that a subsidy granted by the State of Maharashtra, with the objective of encouraging industrial growth in less developed areas of the State, is a capital receipt even though the said subsidy is disbursed in the form of refund of Value Added Tax (VAT) and Central Sales Tax (CST). The Bench, consisting of S. S. Viswanethra Ravi (Judicial Member) and Inturi Rama Rao (Accountant Member), reiterated that for considering whether a subsidy is a capital...

Commission Earned On Distribution Of Indian Mutual Fund Outside India, Not Taxable: ITAT Mumbai

The Mumbai Bench of ITAT has ruled that the commission earned on distribution of Mutual Funds schemes of an Indian fund outside India cannot be taxed in India, if all the operations are carried out by the distributor outside India. The Bench, consisting of Pramod Kumar (Vice President) and Sandeep Singh Karhail (Judicial Member), held that merely because the Mutual Funds distributed were controlled and regulated by SEBI and RBI in India, the commission earned by the...

Delayed Audit Report Due To the Delay By Statutory Auditors: ITAT Deletes Penalty

The Cuttack Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the penalty where the assessee has sufficient and reasonable cause for delay in obtaining the audit report. The two-member bench of George Mathan (Judicial Member) and Arun Khodpia (Accountant Member) has observed that the delay in submitting the audit report was on account of a delay in obtaining the audit report from the statutory auditors. The statutory auditors are appointed by the Registrar of Co-operative...