Inadequate Enquiry By AO Would Not By Itself Give Occasion To CIT To Pass Order U/s 263 Merely Based On Difference Of Opinion: Ahmedabad ITAT

The Ahmedabad ITAT held that the PCIT cannot impose his own view in the proceedings u/s 263 by overriding the view taken by the AO, without bringing any new fact or anything adverse on record.Section 263 of the Income Tax Act is a provision that empowers the Commissioner of Income Tax to revise any order passed by an assessing officer if the Commissioner believes that the order is erroneous...

Reasons To Believe Of Income Escaping Assessment Must Have Nexus With Information Before AO Which Led To Formation Of Such Belief: Ahmedabad ITAT

The Ahmedabad ITAT held that at the stage of reopening, conclusive proof of income escaping assessment is not required rather a prima-facie formation of a belief that income of assessee has escaped assessment of the AO is required based on tangible material.The said reasons to believe that income have escaped assessment should have a live link or nexus with the information before the AO which...

Rehabilitation Allowance received On Account Of Re-Development Of Society Can't Be Treated As Income: Mumbai ITAT

Referring to the decision of the Bombay High Court in case of Sarfaraz S. Furniturewall [Writ Petion No. 4958 of 2024], the Mumbai ITAT held that rehabilitation allowance paid by the developer to its resident customer who had suffered hardship due to dispossession on account of re-development, cannot be treated as income in hands of recipient. Single Bench of Prashant...

Software Expenses Are 'Revenue In Nature' If Fixed Capital Did Not Undergo Any Change Consequent To Acquisition Of Licensed Software: Mumbai ITAT

Referring to the decision in case of DCIT v/s M/s First Advantage Private Limited [ITA No. 6659/Mum/2013], the Mumbai ITAT held that software license expenses incurred by assessee to carry out its routine operations in a more efficient manner, has to be treated as revenue expenditure. The ITAT held so after finding that the fixed capital of assessee did not undergo any change as...

Gift Received From Non-Resident Brother Is Exempt From Taxation In India : Mumbai ITAT

Finding that Assessee has proved identity, creditworthiness and genuineness of the gift received as well as relationship with donor, the Mumbai ITAT held that gift from brother is not chargeable to tax in the hands of the assessee being relative of the donor. Single Bench of Prashant Maharishi (Accountant Member) observed that “the amount of Rs. 20,00,000/- received by the...

Claim Of Advertisement Expenditure By Hospital Violative Of Indian Medical Council Act 1956: ITAT

The Visakhapatnam Bench of Income Tax Appellate Tribunal (ITAT) has held that the claim of advertisement expenditure by hospitals is violative of the Indian Medical Council Act 1956 professional conduct, Etiquette and Ethics Regulations, 2002.The bench of Duvvuru Rl Reddy (Judicial Member) and S Balakrishnan (Accountant Member) has observed that Chapter 6 of the Indian Medical Council Act,...

Income Tax Deduction Allowable To Interest Income 'Attributable' To Cottage Industry Business: ITAT

The Chennai bench of Income Tax Appellate Tribunal (ITAT) has held that the income tax deduction allowable to interest income 'attributable' to cottage industry business.The bench of S.S. Viswanethra Ravi (Judicial Member) and S. R. Raghunatha (Accountant Member) has observed that the assessee is a 'cottage industry' and the interest income earned by the assessee is in its regular course of...

ITAT Weekly Round-Up: 11 To 17 August 2024

ITAT Declines To Stay Cancellation Of Exemption Notification To Legal Initiative For Forest And Environment Trust (LIFE)Case Title: Legal Initiative For Forest And Environment (LIFE Trust) Versus PCITThe 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...

Remittance Made To Foreign Subsidiary Companies Are Not Taxable In India: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the remittance made by the assessee to the foreign subsidiary companies have been held to be not taxable in India in the hands of the recipient company, there would be no obligation for the payer i.e. assessee company to deduct tax at source under section 195 of the Income Tax Act. The bench of Saktijit Dey (Vice President)...

Sale Consideration Invested In Purchase Of Property, With Prior Permission Of Charity Commissioner; ITAT Deletes Disallowance

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that no disallowance can be made as the sale consideration was invested in the purchase of property with the prior permission of the charity commissioner.The bench of Sandeep Singh Karhail (Judicial Member) and Narendra Kumar Billaiya (Accountant Member) has observed that whenever the properties are purchased, they are shown...

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...

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...