Non-Disclosure Of A Foreign Asset In ITR Is Not A Valid Reason For Imposition Of Penalty If source Of Investment Is Well Explained: Mumbai ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) headed by Pramod Kumar (Vice President) and Rahul Chaudhary (J​​udicial Member) has ruled that mere non-disclosure of a foreign asset in the income tax return, by itself, is not a valid reason for a penalty under the Black Money Act, if the source of investment is well explained by the assessee.The Assessing Officer challenged the correctness of the order passed by the Commissioner (Appeals) in the matter of penalty under ...

No Liability To Deduct TDS On Payments Made By Lenskart To Facebook Ireland: ITAT Delhi

The Delhi Bench of ITAT, consisting of members N. K. Choudhry (Judicial Member) and Anil Chaturvedi (Accountant Member), has upheld the order passed by the CIT (A) deleting additions of over Rupees 67 Lakhs made to Lenskart's taxable income for non-deduction of TDS on marketing expenses paid by it to Facebook Ireland Inc. The Bench noted that the CIT (A) had concluded that that there was no liability to deduct tax on payments made for advertising services to Facebook Ireland Inc. ...

Limitation For Revisionary Jurisdiction Runs From The Date Of Assessment Order And Not Reassessment, If Subject Matter Was Not Covered In Reassessment: ITAT Kolkata

The Kolkata Bench of ITAT, consisting of members Rajpal Yadav (Vice President) and Rajesh Kumar (Accountant Member), has ruled that the period of limitation for exercising revisionary jurisdiction under Section 263 of Income Tax Act, 1961 runs from the date of assessment order and not the reassessment order, if the revisionary jurisdiction is sought to be exercised with respect to an issue which was not the subject matter of reassessment proceedings. The Assessee Alkem Laboratories...

AO's Jurisdiction Doesn't Change On Mere Surrendering Section 12A Registration: ITAT Upholds Income Tax Reassessment Order Against Young Indian

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Amit Shukla (Judicial Member) and Anil Chaturvedi (Accountant Member) has upheld the income tax reassessment order against Young Indian on the grounds that the jurisdiction of AO does not change on mere surrendering registration under Section 12A of the Income Tax Act. The appellant, Young Indian (YI), was incorporated and registered as a company on November 23, 2010, when a licence was granted under section 25 of...

Assessment Order Without Reasons, Not Erroneous Or Prejudicial To The Interest Of The Revenue: ITAT Quashes Revenue's Revision Order

The Mumbai Bench of ITAT has ruled that action of the Assessing Officer in accepting the explanation submitted by the Assessee in the course of scrutiny assessment proceedings cannot be faulted merely because the Assessing Officer did not write specific reasons for accepting the explanation. The Bench, consisting of members Pramod Kumar (Vice President) and Kuldip Singh (Judicial Member), held that non-mentioning of reasons does not render the assessment order passed by the Assessing...

Foreign Tax Credit Cannot Be Denied For Delay In Filing Form 67: Bangalore ITAT

The Bangalore Bench of ITAT has ruled that Foreign Tax Credit cannot be denied to the assessee for delay in filing Form 67. The Bench, consisting of members Beena Pillai (Judicial Member) and Chandra Poojari (Accountant Member) has ruled that Rule 128 of the Income Tax Rules which requires the assessee to submit Form 67 before filing the income tax return for claiming Foreign Tax Credit (FTC) is directory in nature and not mandatory, thus FTC cannot be denied for delay in filing Form...

Performance Guarantee Commission Is Not Business Income Under DTAA: Delhi ITAT

The Delhi Bench of ITAT, consisting of Amit Shukla (Judicial Member) and B.R.R. Kumar (Accountant Member), has ruled that performance guarantee commission received by an assessee from its foreign Associated Enterprise is not its business income under the Double Taxation Avoidance Agreement (DTAA). The ITAT therefore allowed foreign tax credit under Income Tax Act, 1961 to the assessee against the tax withheld under the Singapore Income Tax law on the commission paid by a Singapore...

State Authorities, Regulatory Bodies Including Direct & Indirect Tax Departments Cannot Question Resolution Plan: ITAT Dismisses Revenue Department's Appeal

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has dismissed the appeal filed by the revenue department on the grounds that the state authorities and regulatory bodies, including direct and indirect tax departments, cannot question the resolution plan.The two member bench of Sandeep Singh Karhail (Judicial Member) and Prashant Maharishi (Accountant Member) observed that as per section 31 of the Insolvency and Bankruptcy Code, 2016, the resolution plan as approved by the ...

Non-Deduction of TDS At The Year End As The Amount Payable Was Not Identifiable: Penalty not justifiable- ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT), consisting of Kul Bharat (Judicial Member) and R.K. Panda (Accountant Member), upheld the CIT(A) order, holding that the mere fact that taxes were not deducted on the year end provision but were deducted and deposited upon crystallisation of liability to pay the expenses does not automatically justify the imposition of a penalty under section 271C of the Income Tax Act.The respondent/assessee is in the business of providing ...

Income Tax Deduction Available On Distribution Of Gifts For Sales Promotion Even If Assessee Refuses To Share List Of Recipients: ITAT

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) headed by Rajpal Yadav (Vice President) and Waseem Ahmed (Accountant Member) has held that the assessee was eligible for an income tax deduction on the distribution of gifts for sales promotion even if the assessee refused to share the list of recipients.The assessee/respondent is in the business of installing computers and providing after-sale services, including the sale of computers and peripherals, and collecting from...

Non-Appearance Of Assessee In Response To Notice Issued Electronically Under Section 142(1) Of Income Tax Act A Bonafide Mistake: ITAT Mumbai

The Mumbai Bench of ITAT, consisting of members G.S. Pannu (President) and Vikas Awasthy (Judicial Member), has ruled that non-compliance by the assessee of a notice issued electronically under Section 142(1) of the Income Tax Act, 1961 in the first year of transition towards an online and digital interface by the revenue department, is not deliberate and is a bonafide mistake. The Assessee Triumph International Finance India Limited had filed an appeal before the ITAT against the...

Belated Deposit Of PF And ESI Contribution Of Employees Cannot Be Added To Employer's Taxable Income: ITAT Delhi

The Single Bench of Delhi ITAT, consisting of judicial member Kul Bharat, has ruled that belated payment of employees' contribution to the Provident Fund and State Insurance Scheme cannot be added to the employer's taxable income as deemed income, if the said deposits are made before the due date of filing the income tax return under the Income Tax Act, 1961. The Appellant/ Assessee Guardian India Solutions had filed its income tax return which was processed by the Centralized...