Mistake In Calculation Of Tax As Per Sec 115BBE Can Be Rectified U/s 154 And Not U/s 263: Ahmedabad ITAT Quashes Revision Made By PCIT

Finding that all the additions made by the Assessing Officer u/s 68 r/w/s 115BBE are in consonance with the Income Tax Statute, the Ahmedabad ITAT quashed the revisional exercise of power by the PCIT u/s 263. The power under section 263 of the Income tax Act can be exercised where the order of the Assessing Officer is erroneous and prejudicial to the interest of the revenue. Further, Section 154(1A) of the Income tax Act lays down that rectification can be done for any matter...

Income Already Offered For Taxation Can't Be Taxed Again As Unexplained Cash Credit: Ahmedabad ITAT Deletes Double Taxation By ITO

The Ahmedabad ITAT held that sum credited to sales account can't be treated as unexplained cash credits u/s 68 if they are already included in the total sales declared and taxed. As per Section 68 of Income tax Act, where any sum is found credited in the book of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the AO, satisfactory, the sum so credited may...

Cash Deposits Made By Taxpayer Out Of His Known Source Of Income: Ahmedabad ITAT Deletes Addition U/s 68

The Ahmedabad ITAT held that no addition is permitted u/s 68 once assessee had properly substantiated that cash deposits are made out of his known source of income. Section 68 of Income Tax Act aims to ensure individuals and corporations transparently disclose their income by addressing unexplained cash credits in their books of accounts, placing the responsibility on the taxpayer to prove the legitimacy of such credits. The Division Bench of Suchitra Kamble (Judicial Member) and...

ITAT Allows Section 80IA(4)(i) Deduction On Developing, Operating And Maintaining Infrastructure Facilities

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has allowed the deduction under Section 80IA(4)(i) of the Income Tax Act on developing, operating, and maintaining the infrastructure facilities.The bench of Suchitra Kamble (Judicial Member) and Narendra Prasad Sinha (Accountant Member) has observed that the maintenance of the infrastructure in each of these 17 projects, though deferred, is more than 30 months, which means almost two years. Therefore, the assessee has established that...

Income Tax Additions Can't Be Based On Generalised Report By Investigation Wing: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that income tax additions cannot be based on the generalized report given by the Investigation wing.The bench of Anikesh Banerjee (Judicial Member) and B.R. Baskaran (Accountant Member) has observed that the assessee has purchased the shares from the market in physical form, got it transferred to his name, and later dematerialized the same. The payment for the purchase of shares was made through banking channels. Later, the...

ITAT Deletes Income Tax Addition On Interest Income Received Out Of FDs

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition on the interest income received out of the fixed deposits.The bench of Kavitha Rajagopal (Judicial Member) and B R Baskaran (Accountant Member) has observed that AO has failed to corroborate the fact that the FD made by the assessee is out of the surplus funds held by the assessee in a case where the assessee has borrowed huge advances from banks and has also availed of an of an overdraft facility for the purpose...

ITAT Allows Section 54F Deduction On Construction Of The New Dwelling/Residential Unit

The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has allowed the deduction under Section 54F of the Income Tax Act on construction of the new dwelling/residential unit.The bench of Aby T. Varkey (Judicial Member) and Amitabh Shukla (Accountant Member) has observed that the assessee had discharged the burden to prove construction of a residential house/dwelling unit (first floor with separate staircase, kitchen, new electrical connection, water connection, etc.), and it is not disputed...

Vague Notice With Inaccurate Particulars Of Income Vitiates Penalty Proceedings: ITAT

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the AO failed to specify whether the penalty was for concealment or inaccurate particulars in the notice issued under Section 274 and Section 271(1)(c) of the Income Tax Act.The bench of Suchitra Kamble (Judicial Member) and Makarand V. Mahadeokar (Accountant Member) has observed that the penalty notice must clearly specify whether it is for concealment of income or furnishing inaccurate particulars. A vague notice...

ITAT Weekly Round-Up: 4 To 10 August 2024

Contribution Towards NPS Made Prior To Filing Of Return: ITAT Deletes AdditionCase Title: Adani Petronet Versus AOThe Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition of employees contribution towards the National Pension System (NPS) as the contribution towards NPS made prior to filing of the return.Additions U/s 69C On Account Of Excess Stock Can't Be Based On Third Party Statements Alone Without Any Corroboration: Delhi ITATCase Title: Mahavir Transmission...

ITAT Declines To Stay Cancellation Of Exemption Notification To Legal Initiative For Forest And Environment Trust (LIFE)

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has dismissed the stay application filed by assessee-LIFE Trust against the withdrawal/cancellation of registration for exemption granted under section 12A/12AA/12AB from FY 2013-14 onwards. The registration was cancelled on account of activities of the trust being determined to be non-genuine and not in accordance with the objects of the trust. The bench, Kul Bharat (Judicial Member) and Brajesh Kumar Singh (Accountant Member), observed...

Requirement Of Filing Audit Report In Form 10B Is Only Procedural: Delhi ITAT Grants Exemption To Educational Trust U/s 11

The New Delhi ITAT held that non uploading of Form 10B within the date prescribed under the Income tax Act would not be fatal to the claim of exemption u/s 11. Section 11 of the Income Tax Act provides exemptions to income derived from property held under trust or institutions wholly for charitable or religious purposes to the extent that such income is applied to charitable and religious purposes in India. Referring to the decision of Ahmedabad Tribunal in the case of ITO Vs....

'Unsecured Loans' Can't Be Treated As Income U/s 68 Once Legitimacy Of Credits Stands Proved: Ahmedabad ITAT

Referring to the decision in case of Commissioner of Income-tax, Rajkot-I vs. Ayachi Chandrashekhar Narsangji [2014] 42 taxmann.com 251 (Guj), the Ahmedabad ITAT reiterated that no addition should be made u/s 68 as well as section 69C, if the repayment of loans is accepted by the department in subsequent years. Section 68 of the Income tax Act aims to ensure individuals and corporations transparently disclose their income by addressing unexplained cash credits in their books of...