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...

Charitable Organisation Should spend grant As Per Terms And Conditions, not on whims and fancies: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee is not free to use the funds voluntarily as per its own whims and fancies and that the same has to be spent as per the terms and conditions of the grant.The two-member bench of Yogesh Kumar U.S. (Judicial Member) and Shamim Yahya (Technical Member) has observed that the grants are given specifically for participation in a particular event held abroad. The grant approval includes a condition that a separate...

No TDS On Payment Of FTS To Non-Resident Not Having PE In India: ITAT

The Kolkata Bench Income Tax Appellate Tribunal (ITAT) ordered no TDS on payment of fees for technical services (FTS) to non-residents not having a Permanent Establishment (PE) in India.The two-member bench of Rajpal Yadav (Vice President) and Rajesh Kumar (Accountant Member) has observed that the payment made to non-resident recipients not having any permanent establishment in India and also that the services provided are not in the nature of royalty and fee for technical services.The...

Tax Cases Weekly Round-Up: 18 September To 24 September, 2022

Delhi High Court Reassessment Notices Issued Between 1st April 2021 To 30th June,2021 Not Time Barred: Delhi High Court Case Title: Touchstone Holdings Private Limited Versus Income Tax Officer Citation: 2022 LiveLaw (Del) 890 The Delhi High Court has held that the reassessment notices issued between 1st April 2021 and 30th June 2021, will be deemed to have been issued under Section 148A of the Income Tax Act. The division bench of Justice Manmohan and Justice Manmeet Pritam...

Agricultural Land Cultivated Only For A Few Days: ITAT Allows Exemption

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the income tax exemption under Section 54B even when the land was cultivated only for a few days during the relevant years.The two-member bench of S.S. Vishwanethra Ravi (Judicial Member) and Inturi Rama Rao (Accountant Member) has observed that part of the land could not be used for agricultural purposes but grass was grown owing to the conditions of drought. It does not disentitle the assessee as the land was held for...

AO Not Justified In Disallowing The Claim Of Interest Expense : ITAT

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has held that the AO is not justified in disallowing the claim of interest expense and treating it for capitalization in the project cost.The two-member bench of Rajpal Yadav (Vice President) and Girish Aggarwal (Accountant Member) has directed the AO to allow the claim of interest expenses of Rs.41,06,890.The appellant/assessee is in the business of developing property. It filed its return, reporting a total income. During the course...