Ola Not Liable To Deduct Withholding TDS On Payments To Drivers: ITAT

The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) has held that Ola is not liable to deduct withholding TDS on the payments to drivers.The two-member bench of Sudhanshu Shrivastava (Judicial Member) and Vikram Singh Yadav (Accountant Member) has observed that the AO and the CIT(A) erred in concluding that the assessee was providing transportation services which were subcontracted to the driver and, consequently, the assessee was liable to deduct tax at source while disbursing fare...

TDS Exemption On Payments To Agents Of Foreign Shipping Companies: ITAT

The Delhi Income Tax Appellate Tribunal (ITAT) has held that the payments to agents of foreign shipping companies are exempt from TDS deduction.The two-member bench of Saktijit Dey (Judicial Member) and N.K.Billaiya (Accountant Member) has observed that provisions of section 172 of the Income-tax Act, 1961 apply to payments made to agents of foreign shipping companies; therefore, provisions of section 194C of the Income-tax Act, 1961 do not apply.Section 172 of the Income-tax Act, 1961, deals...

Transfer Of Non-Self Generated Goodwill At Book Value; No Tax Can Be Levied Despite Withdrawal Of Tax Exemption: ITAT

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that, where a goodwill is acquired by incurring cost and it is transferred at book value, no tax can be levied on transfer of the goodwill despite withdrawal of exemption on capital gains tax on conversion of a sole proprietary concern into a company, for violation of the conditions provided in Section 47(xiv)(b) of the Income Tax Act, 1961. The Bench of V. Durga Rao (Judicial Member) and G. Manjunatha (Accountant...

Serving Of Liquor Is Not A Charitable Activity, Income Tax Exemption Can't Be Granted: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that serving liquor is not a charitable activity and the income tax exemption cannot be granted.The two-member bench of Yogesh Kumar (Judicial Member) and Shamim Yahaya (Accountant Member) has observed that the Commissioner of Income Tax (Exemption) has relied on various bills of the Appellant wherein the service of liquor has been mentioned. However, CIT(A) has not mentioned the details of the clarification/reply given by the...

ITAT Allows Wastage Loss Due To Diesel & Petrol Tank Breakage

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the wastage loss due to diesel and petrol tank breakage.The two-member bench headed by R.S.Syal (Vice President) has observed that where the assessee demonstrates specific reasons for excess wastage/evaporation, such reasons cannot be thrown to the dustbin. They need to be examined on a case-by-case basis."Simply because the wastage/evaporation turned out to be a little higher in comparison with the standards, the authorities...

Members Contributions To Club Towards Infrastructure, A Capital Receipt: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT)consisting of Aby T. Varkey (Judicial Member) and Gagan Goyal (Accountant Member) has held that the voluntary contributions received from the members of the club towards infrastructure facilities were contributions received for a specific purpose and should be treated as a capital receipt.The assessee submitted that the issue regarding the treatment of entrance fees received from the members was held by the AO as revenue...

Housing Credit To Poor Through Borrowings From Financial Institutions; Not A Charitable Activity: ITAT

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that grant of housing credit by the assessee trust to the lower strata of society, financed solely through the funds borrowed from financial institutions, is not a charitable activity and thus the assessee cannot be registered as a Charitable Trust under Section 12AA of the Income Tax Act, 1961. The Bench of Sonjoy Sarma (Judicial Member) and Manoj Kumar Aggarwal (Accountant Member) held that the activity undertaken...

Seller Of Agricultural Land Insisting Cash Payment; No Disallowance Can Be Made Under Section 40A (3) Of IT Act: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that no disallowances can be made under Section 40A (3) of the Income Tax Act, 1961 for payments made otherwise than by way of account payee cheques or bank drafts for purchase of agricultural land, where the seller of the agricultural land has insisted on payment in cash. The Bench of Saktijit Dey (Judicial Member) and Pradip Kumar Kedia (Accountant Member) observed that considerations of business expediency and ...

Deposit Received From Nominal Members Of Society, Non-Deduction Of TDS On Interest Paid By Them. ITAT Deletes Addition Of Income.

The Income Tax Appellate Tribunal (ITAT) of the Pune Bench struck down the addition made under section 40(a)(ia) of the Income Tax Act for the non-deduction of TDS on interest paid on deposits received from nominal members of the society. The two-member bench of S. S. Viswanethra Ravi (Judicial Member) and Inturi Rama Rao have observed that the cooperative bank is also a species of cooperative society, and is entitled to the benefit of the general exemption provided to all cooperative...

Revisionary Order Invalid Due to Lack of DIN: ITAT

The Kolkata Income Tax Appellate Tribunal (ITAT) has declared the revisionary order passed by the CIT(E) and deemed to have never been issued as it fails to mention Document Identification Number (DIN) in its body by adhering to the CBDT circular. The two-member bench of Sanjay Garg (Judicial Member) and Girish Aggarwal (Accountant Member) observed that there was no reference to the fact that the order was issued manually without a DIN for which the written approval of the Chief...

Income Tax Authorities Cannot Impose Conditions Beyond The Scheme Of Law While Granting Registration To Charitable Institutions: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the Income Tax Authorities cannot impose additional conditions beyond the scheme of law while granting registration to charitable institutions and trusts under Section 12A of the Income Tax Act, 1961. The Bench, consisting of Pramod Kumar (Vice President) and Aby T Varkey (Judicial Member), held that the Commissioner of Income Tax (CIT) plays a limited role under Section 12AB (1), while granting registration to...

Cash Gifts Received From Close Relatives To Treat Cancer Can't Be Termed As "Unexplained": ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition and held that the cash gifts received by the assessee from her close relatives to treat her husband suffering from cancer cannot be treated as "unexplained". The bench of Anil Chaturvedi (Accountant Member) has observed that the assessee discharged her initial onus by proving the identity, creditworthiness, and genuineness of the transactions. Therefore, the AO cannot insist on the assessee proving the...