INCOME TAX
Interest Not Leviable From Assessee For Short Payment Of Tax Due To Payer's Default In Deducting TDS Before FY 2012-2013: ITAT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that since the assessee was a non-resident, the entire tax was to be deducted at source on payment made by the payer to it, and there was no question of advance tax payment by the assessee; accordingly, no interest under Section 234B could be levied upon the assessee.The bench of G.S. Pannu (Vice President) and Astha...
Taxpayer Has Duly Established Existence Of Subscriber Companies: Kolkata ITAT Deletes Addition Made Towards Share Premium U/s 68
Referring to the decision of Bombay High court in the case of PCIT v. Paradise Inland Shipping Pvt Ltd. [2017] 84 taxmann.com 58 (Pan), the Kolkata ITAT deleted the addition made towards share capital and share premium u/s. 68 of the Income tax Act. The ITAT explained that when the nature and source of the amount so invested is known, it cannot be said to undisclosed income, so as...
Donation By One Trust To Other Charitable Institution Out Of Accumulated Fund Is Hit By Explanation To Sec 11(2) R/w/s 11(3)(D) & Hence Taxable: Delhi ITAT
While explaining Section 11(3) of the Income tax Act, the New Delhi ITAT held that any income referred to u/s 11(2) which is paid to any trust/ institution registered u/s 12AA or to any fund/ trust/ university/ educational institution/ hospital referred to u/s 10(23C)(v) shall be deemed to be the income of such person of the previous year in which it is so applied or ceases to be...
No Penalty U/s 271B Can Be Levied If There Is Reasonable Cause For Failure In Timely Furnishing Tax Audit Report: Delhi ITAT
The New Delhi ITAT held that Section 44AB of the Income tax Act casts an obligation upon the assessee to get accounts audited before the specified date and furnish by that date the report of such audit. However, finding that there was reasonable cause for failure in furnishing the Tax Audit Report in time, the ITAT clarified that the present case is not a case of not getting the...
Amount Deposited During Demonetization Does Not Call For Addition U/s 69A If Source Of Deposit Was Sufficiently Explained: Rajkot ITAT
Finding that the assessee has explained the details of the earning of the amount which was rightly deposited during the demonetization period, the Rajkot ITAT held that the addition confirmed by the CIT(A) u/s 69A of the Income tax Act is not justified. Section 69A lays down that if, in any financial year, the assessee is found to be the owner of any money, bullion, jewellery, or...
I-T Authority Fails To Consider Reason For Difference In Sale Consideration & Stamp Duty: Mumbai ITAT Deletes Penalty Levied U/s 270A For Under-Reporting Of Income
Noting that neither the Assessing Officer nor the CIT(A) have taken into consideration the explanation offered by the Assessee during the assessment proceedings in relation to the difference in the sale consideration and the stamp duty valuation of immovable property, the Mumbai ITAT deleted the penalty levied u/s 270A of the Income tax Act for under-reporting of income. The...
Differences In Opinion of Approved Valuer Regarding Fixation Of Value Of Particular Property Can't Be Termed As Concealment: Chennai ITAT Deletes Penalty
The Chennai ITAT held that assessee's claim on the fair market value cannot be termed as concealment of income, if such claim was based on the valuation report of an approved valuer. The Bench of Manjunatha. G (Accountant Member) and Manomohan Das (Judicial Member) observed that “The basis of the assessee's claim is the report of the approved valuer. Further, differences of...
Hyderabad ITAT Grants Additional Opportunity To Taxpayer To Adduce Nature & Source Of Cash Deposits Made During Demonetization
Finding merits in the argument of assessee regarding substantiation of cash deposit during demonetization, the Hyderabad ITAT directed the AO to give one final opportunity to the assessee to substantiate with evidence to his satisfaction regarding the nature and source of the cash deposit of Rs.9,79,000/- during the demonetization period. The Bench of R.K. Panda (Vice-President)...
Mumbai ITAT Confirms Gross Profit Margin @ 12.5% On Alleged Bogus Purchase Since Sales Are Not Disputed: Mumbai ITAT
Finding that the Settlement Commission has not discarded the evidentiary value of the statement of witness (Rajesh Doshi) who has admitted to the modus operandi of availing bogus purchase bill from the assessee, the Mumbai ITAT confirmed the addition made by I-T Authorities on the gross profit margin @ 12.5% on the alleged bogus purchase by assessee. The Bench of...
Merely Making Entries In Books Is Not Sufficient To Discharge Initial Burden Of Proof Regarding Claim Of Cost Of Improvement Of Asset: Chandigarh ITAT
Finding that except for filing copies of so-called invoices of the contractor through whom the work was done, which were also deficient in several respects, no other evidence was filed by the assessee, the Chandigarh ITAT held that the assessee had failed to discharge the initial burden of proof rested on him to substantiate his claim of having incurred expenditure on improvement of...
CIT(A) Shall Not Delete Disallowance Merely By Accepting Taxpayer's Contentions Without Dealing With Findings Of AO: Ahmedabad ITAT
Finding that the CIT(A) has deleted the disallowance merely by accepting the contentions of the assessee before it without dealing with the finding of the AO, the Ahmedabad ITAT directed the CIT(A) to consider the arguments of both the sides before him, i.e. the AO and the assessee, and thereafter adjudicate the issue in accordance with law. The Bench of Annapurna Gupta...
Income Tax Act Doesn't Mandate That Specific Money Deposited In Capital Gain Account Scheme Shall Be Utilized Towards New Investment: Chennai ITAT
The Chennai ITAT held that there is no requirement that specific money as deposited in capital gain account scheme should be utilized towards new investment, and the assessee may make investment from other funds as available with him and the same would not jeopardize the claim of the assessee. Referring to the decision of Sohanlal Mohanlal Bhandari vs. ACIT (104 Taxmann.com 161),...