Receipts From CRM Services Not Taxable In India As Royalty Or FTS: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that receipts from Customer Relationship Management (CRM) services are not taxable in India as royalty or Fee for Technical Services (FTS).The bench of Saktijit Dey (Vice President) and Brajesh Kumar Singh (Accountant Member) has observed that on November 26, 2019, the assessee filed a revised return of income, declaring income...

Date Of Possession Of New Property To Be Considered As Date Of Acquisition; ITAT Allows Deduction

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the date of possession of new property to be considered as date of acquisition and the assessee is entitled to deduction under Section 54 of the Income Tax Act on the purchase of new property.The bench of Raj Kumar Chauhan (Judicial Member) and Prashant Maharishi (Accountant Member) has observed that the date of possession...

Final Assessment Made By AO After Expiry Of One Month Of Receiving Directions From Dispute Resolution Panel, Is Time Barred: Chennai ITAT

The Chennai ITAT recently held that the final assessment order dated Nov 21, 2017 passed after expiry of one month from the end of the month in which the DRP directions were received by the Revenue is barred by limitation and hence, “passed wholly without jurisdiction and therefore, null in the eyes of law”. Section 144C(13) of Income tax Act mandates the completion of...

Once Cash Deposits In Bank A/C Of Lender Firm Is Accepted As Coming From Explained Sources, No addition Is Permitted U/s 68 As Unsecured Loan: Delhi ITAT

The Delhi ITAT deleted the addition made u/s 68 being unsecured loan obtained from a firm by the Assessee for further investment in a company on the ground that the identity, creditworthiness, and genuineness of the transaction stands proved. Section 68 of Income tax Act aims to ensure individuals and corporations transparently disclose their income by addressing unexplained cash...

Receipts By Foreign Entity From Provision Of Software Services In India Are Not Taxable U/s 44BB In Absence Of Its PE In India: Delhi ITAT

The Delhi ITAT held that receipts by a foreign entity from provision of software services to oil companies in India being in the nature of business profits are not taxable in India in the absence of its Permanent Establishment (PE) during the relevant AYs. Section 44BB of Income tax Act contains special provisions for computation of taxable income of a non-resident assessee engaged...

Mark-To-Market Loss, Loss On Forward Contracts, Loss On Forward Premium Account Not Speculative In Nature, ITAT Deletes Addition

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has deleted the income tax addition and held that mark-to-market losses, losses on forward contracts, and losses on forward premium accounts are not speculative in nature.The bench of Yogesh Kumar U.S. (Judicial Member) and Pradip Kumar Kedia (Accountant Member) has observed that CIT(A) has committed no error in deleting the...

SBI Not Liable To Deduct TDS On Transactions Related To Assignment Of Loans By NBFC: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the State Bank of India (SBI) is not liable to deduct tax at source (TDS) on transactions related to the assignment of loans by non-banking financial companies (NBFC).The bench of Om Prakash Kant (Accountant Member) and Sandeep Singh Karhail (Judicial Member) has observed that since the NBFC is not acting as an agent of...

Loss Due To Sale Of Government Securities By Bank Is “Business Loss”; ITAT Allows Income Tax Deduction

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that loss due to the sale of government securities by banks is a “business loss” and the income tax deduction is allowable under Section 37 of the Income Tax Act.The bench of T.R. Senthil Kumar (Judicial Member) and Narendra Prasad Sinha (Accountant Member) have observed that the depreciation of government securities was...

Rectification Application U/s 154 Can't Be Termed As Time-Barred If Taxpayer Duly Responded To Notices Issued In Consequence To Intimation U/S 143(1): Ahmedabad ITAT

Observing that the assessee was all along, from the beginning since it became aware of some intimation having been made u/s 143(1) of the Income tax Act, seeking rectification in the same, the Ahmedabad ITAT held that rejection of said rectification application as being time barred is not in conformity with law. The Bench of Annapurna Gupta (Accountant Member) observed that...

Grant U/s 80G Can't Be Rejected Merely On Procedural Lapse By Making Application U/s 80G(5)(Ii) Inadvertently Instead Of U/s 80G(5)(Iii): Ahmedabad ITAT

Referring to the decision of the Calcutta Bench in ITA No. 994/Kol/2023, the Ahmedabad ITAT reiterated that the assessee, who has been granted provisional registration, is eligible to apply for final registration irrespective of the fact that the assessee had already commenced its activity even prior to the date of grant of provisional approval. The ITAT explained that Section 80G of...

Interest-Free/Concessional Loans To Bank Employees Taxable As Perquisite : Supreme Court Upholds Rule 3(7)(I) Of Income Tax Rules

The employer's grant of interest-free loans or loans at a concessional rate will certainly qualify as a 'fringe benefit' and 'perquisite", the Court said.

ITAT Cases Weekly Round-Up: 28 April To 4 May 2024

Payments Received Towards Interconnectivity Utility Charges From Indian Customers Is Not Royalty: ITAT Case Title: M/s. KDDI Corporation Versus The Deputy Commissioner of Income Tax (International Taxation) The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) has held that payments received by the assessee towards interconnectivity utility charges from Indian...