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...

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,...

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...

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...

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...

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...

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...

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...

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...

'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...

Absence Of Diligence On Part Of Applicant Would Disentitle It To Benefit Of Condonation Of Delay As Per Sec 249(2): Pune ITAT

Finding that the assessee has not shown any action or vigilance for a period of more than five years after the assessment order was served upon it, the Pune ITAT held that such inaction and want of diligence on part of applicant would disentitle it to the benefit of Sec 249(2) in condoning the delay. As per Section 249(4) of Income tax Act, in a case where no return of income has...

Interest Income Earned From Deposits With Co-Operative Banks Shall Be Allowed As Deduction U/s 80P(2)(D): Ahmedabad ITAT

The Ahmedabad ITAT allowed deduction u/s 80P(2)(d) on interest income earned from deposits with Co-operative Banks. Section 80P of Income tax Act is applicable solely to primary agricultural credit societies or rural development and primary cooperative agricultural banks. The Division Bench of TR Senthil Kumar (Judicial Member) and Ramit Kochar (Accountant Member) reiterated...