ITAT
Society Receiving Grant From Foreign Entity Can't Be Denied Section 12A Registration: ITAT
The Hyderabad Bench of Income Tax Appellate Tribunal (ITAT) consisting of K.Narasimha Chary (Judicial Member) and Bhagirath Mal Biyani (Accountant Member) has ruled that the society receiving grant from foreign entity cannot be denied the registration under Section 12A of the Income Tax Act. The assessee/appellant is a society named "Share India". On 11.02.2019, the assessee filed an application on Form No. 10A to the CIT (E) for a grant of registration under section 12A of the Income...
Loss From Trading In Commodity Derivatives Non-Speculative In Nature, Can Be Set Off Against Regular Business Income: ITAT Lucknow
The Lucknow Bench of ITAT has ruled that trading in commodity derivatives, that satisfies the requirements of Clause (e) of the first proviso to Section 43 (5) of the ITAT, 1961, is non-speculative in nature, and thus the loss arising from it can be set off against the regular business income. The Bench, consisting of A.D. Jain (Vice President) and T.S. Kapoor (Accountant Member), held that there is no bar of expertise required for trading in commodity derivatives and that Clause (e) of...
Export Entitlements And Duty Drawback Of Promotion Scheme Is An Income Assessable Under "Profits Or Gains From Business Or Profession": ITAT
The Visakhapatnam Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the export entitlements and the duty drawback of the promotion scheme are an income assessable under the head "profits or gains from business or profession" as per clauses (iiib) and (iiid) of section 28 of the Income Tax Act, 1961. The two-member bench of Duvvuru Rl Reddy (Judicial Member) and S. Balakrishnan (Accountant Member) concluded that the authorities below failed to appreciate the legislative...
Delay In Filing Audit Reports Due To The Hospitalisation Of Accountant: ITAT Deletes Penalty
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the penalty for delay in filing audit reports due to the hospitalisation of the assessee's accountant. The two-member bench, led by R. S. Syal (Vice President) and Partha Sarathi Chaudhury (Judicial Member), concluded that the assessee had explained the reasonable cause through documentary evidence.The Tribunal set aside the order of the CIT (A) and directed the AO to delete the penalty from the hands of the...
Tuition Fee Is Taxable Only When A Corresponding Service Is Rendered By The Educational Institution: Hyderabad ITAT
The Hyderabad Bench of ITAT has ruled that the tuition fee collected in advance is not taxable in the year of receipt and that the tuition fee is taxable only when a corresponding service is rendered by the educational institution. The Bench, consisting of K. Narasimha Chary (Judicial Member) and Rama Kanta Panda (Accountant Member), held that examination fee collected from students on behalf of the foreign universities is not taxable as 'Fees for Technical Services'. The ITAT ruled...
Tax Cases Weekly Round-Up: 29 May To 4 June, 2022
Karnataka High CourtJust Because The Ratio For Payment Of Service Tax Not Adhered To, Assessee Not Liable To Pay Double Tax As Penalty: Karnataka High Court Case Title: The Vice Chairman Settlement Commission & Anr. versus M/s Zyeta Interiors Pvt. Ltd & Anr. The Karnataka High Court has ruled that merely because the ratio in which service tax was required to be paid by the service recipient and the service provider was not strictly adhered to, the assessee cannot be made...
Violation of RBI Notification Prohibiting Deposit Of Demonetized Notes Does not attract Addition On Account of Unexplained Cash Credits: ITAT
The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) consisting of B.R. Baskaran (Accountant Member) held that violation of the RBI notification prohibiting deposit of demonetized notes does not attract addition on account of unexplained cash credits. The appellant/assessee is a primary agricultural credit co-operative society providing credit facilities to its members. The AO noticed that the assessee had deposited a sum of Rs. 36,36,000 in the form of Specified Bank Notes...
Notice Imposing Penalty For Concealment Of Income Can't Be Issued Without Specifying The Limb: ITAT
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the notice imposing a penalty for concealment of income cannot be issued without specifying the relevant limb. The two-member bench of Suchitra Kamble (Judicial Member) and Waseem Ahmed (Accountant Member) has observed that the Assessing Officer and the CIT (A) have simply imposed a penalty on concealment of income under Section 271(1)(c) of the Income Tax Act without giving any opportunity to the assessee...
Failure Of Assessee To Give Proper Reasons For Not Appearing Before The Tax Authorities: ITAT Imposes Cost
The Banglore Bench of the Income Tax Appellate Tribunal (ITAT) consisting of B.R. Baskaran (Accountant Member) has imposed a cost of Rs.10,000 on the assessee for the failure to give proper reasons for not appearing before the tax authorities.The assessee/appellant is the director of the group company named M/s. Panama Nature Fresh Pvt. Ltd. It was the understanding of the assessee that the purchase of jewellery as well as deposits of money into the bank account were being assessed in the...
ITAT Deletes Addition Of Cash Deposited During demonetisation period by Retired Army Officer
The Banglore Bench of the Income Tax Appellate Tribunal (ITAT) consisting of B.R. Baskaran (Accountant Member) deleted the addition of cash deposits during the demonetisation period on the ground that the retired army officer had withdrawn the cash to meet medical emergencies. The assessee is a retired army officer and is drawing a pension. During the demonetisation period, the assessee deposited a sum of Rs. 7,01,000 in aggregate in two bank accounts. Asked about the sources, the ...
Consideration For Resale Of Computer Software Is Not The Payment Of Royalty For Use Of Copyright In Computer Software: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Chandra Mohan Garg (Judicial Member) and Shamim Yahya (Accountant Member) has held that consideration for the resale of the computer software through End User Licence Agreement (EULA)/distribution agreements is not the payment of royalty for the use of copyright in the computer software and, therefore, not taxable in India. The assessee, M/s. Kony Inc., is in the business of being a multichannel application...
Assessee Discharges Primary Onus Submitting Documentary Evidence: ITAT Deletes Addition of Unexplained Cash Credits
The Raipur Bench of the Income Tax Appellate Tribunal (ITAT), consisting of Ravish Sood (Judicial Member) and Jamlappa D Battull (Accountant Member), has deleted the addition made on account of unexplained cash credits. The respondent/assessee is in the business of manufacturing M.S. ingots. The assessee had filed its return of income for the assessment year 2012-13 on September 26, 2012, declaring an income. Subsequently, the case of the assessee was selected for scrutiny assessment....