Internal Arrangement W/r/t Transfer Of Assessment Proceedings Not Material For Ascertaining Limitation: Madras High Court

Finding that the period of one month expired on July 31, 2022, whereas the assessment order came to be issued on Mar 25, 2023, the Madras High Court Held the assessment order issued beyond time-limit specified in Sec.144C(13) as unsustainable.A Single Judge Bench of Justice Senthilkumar Ramamoorthy observed that “the directions of the DRP were forwarded to the assessing officer, i.e. National Faceless Assessment Centre, Delhi by uploading the same on 17.06.2022. Although learned senior standing...

Cash Deposits By Members Of Society During Demonetization Not Verified In Absence Of PAN & KYC: Bangalore ITAT Asks To Reconsider Relief U/s 80P(2)(A)

The Bangalore ITAT set aside the order passed by CIT(A) for providing relief u/s 80P(2)(a)(i) and 115BBE of Income Tax Act, 1961 and redirect the case back to the file of AO for reconsideration of the genuineness of the deposit during demonetization by the assessee.At the same time, the ITAT also made it clear that in the event, the assessee does not co-operate with the revenue officer, the AO will be at liberty to dispose of the matter strictly in accordance with law.The Bench of the ITAT...

PLR Rates Are Not Applicable To Loans To Be Re-Paid In Foreign Currency Vis-À-Vis Interest On Delayed Realization: Mumbai ITAT

The Mumbai ITAT clarified that interest rates on FCNR accounts maintained in foreign currency are different and dependent upon the currency in question. They are not dependent upon the PLR rate, which is applicable to loans in Indian rupee.The ITAT therefore deleted the ALP adjustments qua Letter of Comfort and interest on delayed realization of sale proceeds from the AEs.Referring to decision of Delhi High Court in the case of CIT-I vs. Cotton Naturals (I) (P) Ltd. [2015] 231 Taxmann 401 (Del),...

Exgratia Bonus Paid By Indian Express To Employees Over And Above Eligible Bonus Is Allowable As Business Expenditure: Bombay High Court

The Bombay High Court has held that exgratia bonuses paid to employees over and above the eligible bonus under the Payment of Bonus Act are allowable as business expenditures.The bench of Justice K. R. Shriram and Justice Dr. Neela Gokhale has observed that the ITAT was not right in law in holding that the liability for salary and wages arising out of the Justice Palekar Award is not allowable as expenditure in the present year but only in the year in which the agreement between the management...

Assessment Order Passed Beyond Time Limit Prescribed U/s 153 Merits To Be Quashed: Delhi High Court

Finding that no valid demand stood raised against the Petitioner / assessee prior to Sep 30, 2021, the Delhi High Court directed the Respondents / Revenue to re-compute the refund payable to the petitioner along with statutory interest which shall run up to the date of remittance in accordance with law.The High Court therefore quashes the assessment order passed beyond time limit prescribed u/s.153 of the Income tax Act. The Division Bench comprising of Justice Yashwant Varma and Justice...

Application For Registration In Form No. 10AB Should Be Construed As If Filed U/s 12A(1)(Ac)(I): Kolkata ITAT

Pointing that applications are to be considered on merit for grant of registration, the Kolkata ITAT relegate the issue to the file of CIT(E) with a direction that application in Form No. 10AB should be construed as if filed under section 12A(1)(ac)(i) of Income Tax Act, 1961.The Bench of the ITAT comprising Sanjay Garg (Judicial Member) and Girish Agrawal (Accountant Member) observed that, “basically application of the assessee ought to have been under section 12A, sub-clause (1)(ac)(i), where...

Filing Of Audit Report In Form 10CCB Before Due Date As Per Sec 139(1) Is Only Directory And Not Mandatory: New Delhi ITAT

While holding that filing of audit report in Form 10CCB before the due date for filing of return of income u/s 139(1) of the Income Tax Act, 1961 is only directory and not mandatory for the year under consideration, the New Delhi ITAT directed the AO to allow deduction claimed u/s 80IA of the Income Tax Act, 1961.The Bench of the ITAT comprising of G.S. Pannu (Vice President) and Challa Nagendra Prasad (Judicial Member) reiterated while referring the decision of Karnataka High Court in the case...

Payee Who Has Considered Amounts Received By Payer In Its Return & Paid Taxes On Same, Can't Be Treated As In Default U/s 201(1): New Delhi ITAT

On finding that CIT(A) has failed to consider all submission of assessee and evidences placed on record, the New Delhi ITAT restored the matter back to file of AO for fresh adjudication regarding the TDS deduction u/s 194J or u/s 194C of the Income Tax Act, 1961 on the payments made towards maintenance of X-Ray machine and CVC machine.The Bench of the ITAT comprising of G.S. Pannu (Vice President) and Challa Nagendra Prasad (Judicial Member) observed while referring to decision of Supreme Court...

I-T Authorities Must Prove Authenticity Of Entries And Its Nexus With Dealer, Before Making Addition U/s 69: New Delhi ITAT

On finding that the person from who's possession seized document is recovered, was not subject to cross examination of assessee and no opportunity of cross examination was given to assessee, the New Delhi ITAT deleted the addition made u/s 69 of the Income Tax Act.The Bench of the ITAT comprising of Yogesh Kumar U.S. (Judicial Member) and Dr. B.R.R. Kumar (Accountant Member) observed while considering the judgment of Allahabad High Court in the case of Mumar Trading Co. Vs. Commissioner of Trade...

Mentioning Of Wrong Clause In Application For Registration U/s 80G Out Of Inadvertence, Is No Basis To Deny Deduction: Kolkata ITAT

Irrespective of the delay occurred in filing fresh application for final approval u/s 80G(5) of Income tax Act, the Kolkata ITAT directed the CIT(E) to treat the application of assessee for final registration as 'filed within the time limit prescribed' and also pointed that the time consumed by the assessee in filing the revised application will not be taken into consideration.The Bench comprising of Sonjoy Sarma (Judicial Member) and Girish Agrawal (Accountant Member) observed that, “all the...

Disallowance Of Claim U/s 80P By CPC Prior To Apr 01, 2021 Is Beyond Its Jurisdiction: Kolkata ITAT

On finding that the alleged disallowance by CPC is beyond its jurisdiction as the adjustment towards deduction u/s. 80P of the Income Tax Act came to CPC only from Apr 01, 2021, the Kolkata ITAT interfered with the action of CPC in denying the deduction u/s 80P of the Income Tax Act, 1961.The Bench of the ITAT comprising Sanjay Garg (Judicial Member) and Girish Agrawal (Accountant Member) observed that, “section 80AC of the Act puts a bar against claiming of deduction in respect of certain...

Contribution Collected From Employees If Not Deposited Within Due Dates Prescribed As Per PF & ESIC Act, Is Dis-Allowable: Mumbai ITAT

The Mumbai ITAT recently clarified that mere deposit of employee's contribution before due date of filing return of income as per Section 139 of Income tax Act, will not make it eligible for deduction.Referring to the decision of Supreme Court in case of Checkmate Services Pvt Ltd. Vs. CIT (2022) 143 taxmann.com 178, the Bench of Prashant Maharishi (Accountant Member) and Narendra Kumar Choudhry (Judicial Member) reiterated that “such sum collected from employees if not deposited within the due...