Sec 50C(1) Is Anti-Avoidance Provision To Prevent Evasion Of Tax By Showing Lesser Consideration, Reiterates Mumbai ITAT

While setting aside the order passed by CIT(A) and emphasizing on the safe harbour limit, the Mumbai ITAT held that the assessee is entitled to the benefit of Section 50C of Income Tax Act, 1961.The Bench comprising CV Bhadang (President) and BR Baskaran (Accountant Member) observed that, “the CBDT had acknowledged that there can be genuine cases, where there would be a variance between the “stamp duty value” and the “actual consideration received” in respect of similar properties depending upon...

Meagre Control Over Companies Transacting In Penny Stock Is No Basis To Question Source Of Source Of Income: Delhi ITAT

On not finding any substance in the conclusion of AO that the source of source of income is tainted, the Delhi ITAT confirms the deletion of addition made u/s 68 of Income Tax Act.The Bench comprising Anubhav Sharma (Judicial Member) and Narendra Kumar Billaiya (Accountant Member) observed that, “merely because of some sort of control of Gupta family into companies transacting in the alleged penny stock cannot be basis to question the source of source in the hands of the assessee company without...

Genuineness Of Company Is Not Dependent On Magnitude Of Profit: Kolkata ITAT Upholds Disallowance Of LTCG

The Kolkata ITAT confirmed the CIT(A)'s order upholding disallowance of claim of long-term capital gain exemption u/s 10(38) of Income tax Act, 1961 by stating that genuineness of the company is not dependent on the magnitude of profit.The Member of the ITAT comprising Rajpal Yadav (Vice-President) and Girish Agrawal (Accountant Member) observed that “The assessee might have made investment when the shares of the company were already managed to a particular level and he sold his investment very...

Interest Income Earned From Co-Operative/ Scheduled Bank Eligible For Deduction U/s 80P(2): Pune ITAT

Relying on decisions of Supreme Court and High Court, the Pune ITAT directed the AO to allow the deduction u/s 80P(2)(a)(i) and 80P(2)(d) of Income Tax Act, 1961 in respect of interest income earned from co-operative bank/scheduled bank.The Member of the ITAT comprising Inturi Rama Rao (Accountant Member) observed that, “the interest income earned by cooperative society on deposits made out of surplus funds with cooperative banks as well as schedule bank qualifies for deduction both under the...

Capital Gains Tax Can Be Computed Separately Even In Case Of Consolidated Sale Of Land And Building, Confirms Rajkot ITAT

The Rajkot ITAT held that Assessing Officer has not erred in computing separate capital gains tax in respect of sale of land (being Long Term Capital Gains) and sale of building / super structure (being Short Term Capital Gains), even if the assessee had made a consolidated sale of both land and building, as part of the same agreement.The Member of the ITAT comprising Siddhartha Nautiyal (Judicial Member) and Waseem Ahmed (Accountant Member) observed that, “the Assessing Officer has not erred in...

UPGST | Expired E-Way Bill, But No Intention To Evade Tax: Allahabad High Court Quashes Penalty Order

Recently, the Allahabad High Court has quashed the penalty which was imposed due to production of expired e-way bill at the time of detention. The Court held that no intention to evade tax was established by the authorities. Since, there was no dispute regarding consignor and consignee and the description of the goods, the Court held that penalty could not be imposed for a technical error in absence of any intention to evade tax.When the goods of the petitioner were intercepted, one of the two...

75(4) UPGST Act| Even If There Is No Request For Personal Hearing, Must Be Heard Before Adverse Decision: Allahabad High Court

The Allahabad High Court has held that before taking any adverse decision under the Uttar Pradesh Goods and Service Tax Act 2017, an opportunity of hearing must be provided to the assesee even if there is no request on his part.Relying on various decisions of the Allahabad High Court regarding mandatory opportunity of hearing under Section 75(4) of the UPGST Act, Justice Shekhar B. Saraf held that“Even if no request is received from the person chargeable with tax or penalty, an opportunity of...

Customs Act | Claimant Entitled To Interest On Delayed Return Of The 'Duty Drawback' : Supreme Court

The Supreme Court on Monday (February 5) observed that if there is a delay in refund of the 'duty drawback' to the claimant under the Customs Act, 1962, then the claimant would be entitled to interest in addition to the amount of drawback at the rate of interest which was fixed by the Central Government at the relevant point of time. It was contended on behalf of the Directorate General of Foreign Trade (DGFT) that there was no provision for payment of interest on delayed refund of duty...

No Taxability Arises During Current Year If Taxpayer Has Only Repatriated Amounts Invested In Earlier Years: Delhi ITAT

Observing that the assessee has only repatriated the amounts invested in the earlier years and hence, no taxability arises during the year, the Delhi ITAT held that there is no escapement of income in the hands of assessee i.e., a Singaporean entity on repatriating Rs.203.56 Cr. arising from redemption of NCDs where Assessee did not file the ITR.The ITAT Coram comprising Dr. B.R.R. Kumar (Accountant Member) and Astha Chandra (Judicial Member) observed that “the assessee has only repatriated the...

No Prima Facie Evidence To Prove Escapement: Delhi ITAT Quashes Reassessment Of Mauritian Entity

Noting that the case has been reopened just because the assessee, i.e., a Mauritian investment company had made foreign remittance which arose from the sale of investments and there is no prima facie evidence to prove escapement of income, which is a pre-requisite for initiating reopening, the Delhi ITAT quashes reassessment proceedings initiated against the assessee.The Coram of ITAT comprising Kul Bharat (Judicial Member) and Dr. B.R.R. Kumar (Accountant Member) observed that “The case has...

No Adjustment If Margin Falls Within Tolerance Range Of (+/-) 5% As Per Sec 92CA: Mumbai ITAT

Finding that the margins of assessee company fell within the tolerance limit of +/-5% for AY 2005-06, the Mumbai ITAT deleted the ALP adjustments proposed by the TPO in ITEs as well as IT segments.The ITAT Bench comprising Amit Shukla (Judicial Member) and S. Rifaur Rahman (Accountant Member) observed that “TPO had adopted certain criteria for rejection of comparables which has been highlighted above. If those criteria itself are adopted on the comparables which has been chosen by the TPO and...

Discrepancies In Maintaining KYC Documentation Does Not Constitute Incriminating Material: ITAT Deletes Income Tax Addition

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that income tax addition cannot be made for discrepancies in maintaining KYC documentation, account opening forms, and violation of society bye-laws.The bench of Sandeep Singh Karhail (Judicial Member) and B.R. Baskaran (Accountant Member) has observed that for discrepancies in maintaining KYC documentation, account opening form, and violation of society bye-laws, action can be taken against the assessee under the relevant statute...