Subscription Money Received In Advance By DTH Operators Is Taxable Only When Services Are Provided To The Subscribers: Chennai ITAT

The Chennai Bench of ITAT has ruled that subscription money received in advance by the DTH operators is not taxable. The Bench, consisting of members V. Durga Rao (Judicial Member) and Manoj Kumar Aggarwal (Accountant Member), held that the subscription money received by DTH operators is taxable only when the said amount is accrued to them, i.e., when the services are rendered by the DTH operators to the subscribers. The assessee M/s Sun Direct TV Pvt Ltd is a 'Direct To Home' (DTH)...

Weekly Round Up Of Tax Cases : 1 May To 7 May, 2022

Supreme CourtSupreme Court Saves Over 90,000 Income Tax Reassessment NoticesIssued After 2021 Amendment By Deeming Them As Notices Under Section 148A Case Title: Union of India v. Ashish Agarwal Citation : 2022 LiveLaw (SC) 444 The Supreme Court, on Wednesday, directed that reassessment notices under Section 148 of the unamended Income Tax Act which were issued beyond 01.04.2021 (the effective date of amendment of the said provision by the Finance Act, 2021) to be deemed to have...

Capital Gain Exemption Can't Be Denied To Wife For Mere Presence of Husband's Name In Purchase Document: ITAT

The Banglore Bench of the Income Tax Appellate Tribunal (ITAT) headed by N.V. Vasudevan (Vice-President) and B.R. Baskaran (Accountant Member) has ruled that the capital gain exemption cannot be denied to the wife for the mere presence of the husband's name in the purchase document.The appellant/assessee is an individual, and she filed her return of income for the year under consideration, declaring a total income of Rs. 9,06,860. The assessee had earned long-term capital gain on the sale...

Assessing Officer Cannot Apply Wrong Method In Absence Of Audited Financials Of AE: Delhi ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Yogesh Kumar (Judicial Member) and Dr. B.R.R. Kumar (Accountant Member) has held that the AO cannot give benefit to the assessee for non-cooperation in providing audited financials of associated enterprises (AE). The appellant/assessee company, Olympus India, incorporated on October 20, 2009, is a wholly owned subsidiary of Olympus Corp. The company is engaged in the import and resale of medical equipment like...

Additions Cannot Be Made To Assessee's Income On Basis Of Document Declared By The CESTAT As 'Dumb Document': Ahmedabad ITAT

The Ahmedabad Bench of ITAT has ruled that additions cannot be made to assessee's taxable income under the Income Tax Act, 1961 on the basis of documents that are declared as 'dumb documents' by the CESTAT in the service tax proceedings before it. The Bench, consisting of members Madhumita Roy (Judicial Member) and Waseem Ahmed (Accountant Member), held that though the proceedings under the Income Tax Act and Service Tax are distinct and independent to each other, but the factual...

Subscription Fee Towards Cloud Services Not Taxable As Royalty: Delhi ITAT

The Delhi Bench of ITAT, consisting of members Anubhav Sharma (Judicial Member) and R.K. Panda (Accountant Member), has ruled that subscription fee received towards Cloud Services is not taxable as royalty. The Microsoft Corporation, USA is the ultimate parent entity of the Assessee MOL Corporation which is incorporated in the United States of America. Due to certain License Agreements entered into between the associated enterprises, the Assessee MOL Corporation was considered the...

Routine Business Support Services Are Not Taxable As Fees For Technical Services: Delhi ITAT

The Delhi Bench of ITAT, consisting of members Astha Chandra (Judicial Member) and N.K. Billaiya (Accountant Member), has ruled that routine business support services are not taxable as fees for technical services (FTS) since they do not make any technology or skill available to the recipient of the services. The Bench held that when a tax rate is prescribed under the Double Taxation Avoidance Agreement (DTAA), education cess and surcharge cannot be levied. The appellant/assessee...

Mere Ignorance Of Law With Respect To Compulsory Audit Under Section 44AB Is Not A Reasonable Cause For Deleting Penalty: ITAT Hyderabad

The Hyderabad Bench of ITAT, consisting of members S.S. Godara (Judicial Member) and A. Mohan Alankamony (Accountant Member), has ruled that mere ignorance of law with respect to the provisions of Section 44AB of the Income Tax Act for compulsory audit of accounts, cannot be said to be a reasonable cause under Section 273B for deleting the penalty imposed on the Assessee for failure to audit accounts. The Assessee Mohd Zaheeruddin was involved in trading of shares and derivatives. In the...

No TDS Required To Be Deducted On Enhanced Compensation Awarded By Court Under Land Acquisition Act: Delhi ITAT

The Delhi Bench of ITAT, consisting of members Astha Chandra (Judicial Member) and N.K. Billaiya (Accountant Member), has ruled that interest received by land owners on enhanced compensation awarded to them by the Court under Section 28 of the Land Acquisition Act, 1894 is not in the nature of 'income from other sources' under the Income Tax Act, 1961, therefore, no TDS is required to be deducted with respect to it. The Assistant Commissioner of Income Tax (ACIT) conducted TDS ...

Corpus Donations Received By A Trust For A Specific Purpose Are Not Taxable, Even If The Trust Is Not Registered: ITAT Mumbai

The Mumbai Bench of ITAT, consisting of members Sandeep Singh Karhail (Judicial Member) and Gagan Goyal (Accountant Member), has ruled that the corpus donations received by a Trust for a specific purpose are not taxable, even if the Trust is not registered under Section 12 A of the Income Tax Act, since they are in the nature of a capital receipt. The Assessee Versova Kokni Sunni Jamat Trust filed its income tax return for the relevant assessment year. The Assessing Officer (AO)...

Additions By AO On The Basis Of Suo-Moto Disclosure Before The Settlement Commission, Not Permissible If The Settlement Was Aborted: ITAT Mumbai

The Mumbai Bench of ITAT, consisting of members Kuldip Singh (Judicial Member) and Prashant Maharishi (Accountant Member), has ruled that the Assessing Officer cannot make any addition to assessee's income on the basis of the suo-moto disclosure made by the assessee before the Income Tax Settlement Commission, if the settlement got aborted due to non-fulfilment of conditions by the assessee under the Income Tax Act, 1961. The Assessee Sawarmal Hisaria was into the business of trading of...

Source Of Demonetized Notes Collected By Co-Operative Society Explained, ITAT Quashes Addition Made Under Section 68 Of Income Tax Act

The Bangalore Bench of ITAT has ruled that there is no rationale in the action of the Assessing Officer of making additions to assessee's income under Section 68 of the Income Tax Act on the ground that the assessee has violated RBI notifications. The Single Member Bench of B.R. Baskaran (Accountant Member) held that the Assessee Co-operative Society had explained the nature and source of the demonetized notes deposited by it in its bank account and all the transactions had been...