Tax
ITAT Restores Matter Back To AO To Verify ICSI's Income Tax Exemption Claim
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has restored the matter back to the AO to verify the Institute of Company Secretaries of India's (ICSI) income tax exemption claim.The bench of Astha Chandra (Judicial Member) and N.K. Billaiya (Accountant Member) has observed that the claim of the assessee needs verification. It would be judicially expedient to restore the matter back to the file of the AO to carry out the necessary verification of the assessee's claim, and if, on...
Revisionary Jurisdiction U/s 263 Can't Be Invoked If AO Has Formed Plausible View After Carrying Out Necessary Enquiry: Chandigarh ITAT
Finding that the assessee has carried out seasonal trade in hosiery items duly supported by documentary evidence, which was duly examined by the AO accepting the said transactions and resultant profit has been brought to tax, the Chandigarh ITAT held that the PCIT cannot be permitted to invoke his jurisdiction u/s 263 merely because he believes that there is certain deficiency in the documentation so maintained and furnished by the assessee. The Bench of Aakash Deep Jain (Vice...
Vehicle Commercially Used For Purpose Of Business Of Company, Eligible For Benefit Of Depreciation : Ahmedabad ITAT
Relying on the decision of the Jurisdictional High Court in the case of PCIT vs. Asian Mills (P.) Ltd., the Ahmedabad ITAT that vehicle exclusively used by an entity for its commercial purpose becomes eligible for claim of depreciation. The Bench of Waseem Ahmed (Accountant Member) and Madhumita Roy (Judicial Member) observed that “car is commercially used for the purpose of business of the company and the depreciation thereon cannot be denied; moreso, the interest on car loan and car...
No Customs Duty Exemption Available To Battery Fuse Units, CESTAT Dismisses Bharti Airtel's Appeal
The Bangalore bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), while dismissing the appeal filed by Bharti Airtel, held that no customs duty exemption is available to battery fuse units (BFU).The bench of D.M. Misra (Judicial Member) and R. Bhagya Devi (Technical Member) has observed that the BFU is not an integral part of the communication system as claimed by Bharti Airtel. The appellant/assessee imported and cleared battery fuse units (BFU) under Chapter Heading 8529...
Receipt Of Huge Sale Consideration In Cash Is Violative To Sec 269SS, And Calls For Levy Of Penalty U/s 271D: Chennai ITAT
The Chennai ITAT recently clarified that receipt of sale consideration of huge amount of Rs. 1.60 Crores in cash, which is, in violation of the provisions of section 269SS (this section restricts cash receipts over & above twenty thousand) of the Income tax Act, rightly deserves levy of penalty u/s 271D. The Bench of V. Durga Rao (Judicial Member) & Manjunatha, G. (Accountant Member) observed that “The contention of the assessee is not acceptable by any Court of Law, claiming...
Taxpayer Should Acquire Residential House Within Three Years From Date Of Transfer Of Old House, For Claiming Benefit Of Capital Gains U/s 54: Delhi ITAT
Finding that the assessee has not fulfilled either of the conditions mentioned in Section 54 of the Income tax Act, the New Delhi ITAT held that there is no infirmity in the orders of the I-T Authorities in denying the benefit of deduction of long term capital gains to the assessee u/s 54. The Division Bench of N.K. Billaiya (Accountant Member) and Yogesh Kumar U.S (Judicial Member) observed that “For the purpose of claiming the benefit u/s 54 of the Act, within a period of one year...
Once Insurance Policy Is Assigned By Employer To Employee, Value Received By Employee Can't Be Taxed In View Of Sec 10(10D): Delhi ITAT
The New Delhi ITAT recently reiterated that once insurance policy is assigned by the employer to employee, the insurance policy gets converted into an ordinary policy, and in that case, the value received by employee would not be subjected to tax in view of section 10(10D) of the Act. Referring to the decision of Delhi High Court in the case of CIT vs Rajan Nanda [2012] 18 taxmann.com 98 (Delhi), the Bench of N.K. Billaiya (Accountant Member) and Kul Bharat (Judicial Member) reiterated...
Addition Solely Based On Photocopy Of Sale Agreement Is Completely Unjustifiable: Delhi High Court
The Delhi High Court has held that an addition solely based on a photocopy of the sale agreement is completely unwarranted and unjustifiable.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that the entire foundation of the addition was laid down on the basis of the photocopy of the alleged agreement to sell. The original copy of the document has not seen the light of day. There is no other evidence to support the veracity of the recitals made in the alleged...
Incorrect calculation by AO Is Not 'Failure On Part Of Taxpayer To Disclose Material Fact', For Initiating Reopening: Ahmedabad ITAT
The Ahmedabad ITAT ruled that mathematical incorrectness by AO cannot be said to be failure on the part of the assessee to disclose any material fact, so as to initiate reopening of assessment. The Bench of Annapurna Gupta (Accountant Member) and Siddhartha Nautiyal (Judicial Member) observed that “as rightly pointed out by the counsel for the assessee, escapement of income as per the AO was attributable to the incorrect calculation of bad and doubtful debts. The facts, for the said...
Secured Creditor Registered With CERSAI Will Have Precedence Over VAT Authorities Against Proceeds Of Enforcement: Bombay HC
The Bombay High Court recently clarified that in a sale of a mortgaged asset, where the mortgage in favour of a secured creditor is registered prior in time with CERSAI, and the MVAT Authorities too have a charge, the proceeds of the enforcement of the mortgage would first go towards discharging the dues owed to the secured creditor. It is only the residue, if any, after discharging the dues of the mortgagee, that may flow to the MVAT Authorities, added the Court. The High Court...
No Reference Can Be Made To DVO Once Value Of Capital Asset Declared By Taxpayer Is More Than FMV: Chennai ITAT
Finding that value determined by the DVO is less than the valuation adopted by assessee for computing fair market value (FMV), the Chennai ITAT ruled that the value adopted by the DVO cannot be taken for computing FMV. The Bench of Mahavir Singh (Vice President) and Manoj Kumar Aggarwal (Accountant Member) observed that “where value of capital assets shown by the assessee being less than its fair market value, reference can only be made to DVO in that condition, but in case the value...
Payment From Google Towards Marketing & Distribution Rights Of AdWords Is Not Royalty, Clarifies Bangalore ITAT
Following the Coordinate Bench ruling in IT(IT)A No.2845/Bang/2017, wherein it was held that the payment made by Google India to assessee was not in the nature of royalty/ FTS and consequently it could not be brought to tax in the hands of assessee, the Bangalore ITAT ruled that amount received by Google Ireland (Assessee) from Google India towards marketing & distribution rights of AdWords program is not royalty. While clarifying the position regarding taxability of receipts from...