Deduction U/s 43B Shall Be Allowed If Assessee Has Claimed Such Deduction On Payment Basis: Rajkot ITAT

The Rajkot ITAT held that the claim of the assessee cannot be denied as it was not reported in the tax audit report, especially in the circumstances where other evidence is available on record suggesting the deduction in pursuance to the provisions of section 43B on payment basis is available. The Bench of the ITAT comprising of TR Senthil Kumar (Judicial Member) and...

Bonafide Mistake Committed By Assessee While Applying For Registration In Form 10AB Instead Of Form 10A, Merits To Be Condoned: Hyderabad ITAT

On finding that it is proper to condone the mistake committed by the assessee while applying for registration in Form 10AB instead of Form 10A of the Income Tax Act, the Hyderabad ITAT directed the CIT(E) to hear and dispose of the request of the assessee by allowing it to apply under Form 10A. The Bench of the ITAT comprising of Rama Kanta Panda (Vice President) and...

Mere Disallowance Of Expenditure Or Enhancement Of Returned Income Does Not Ipso Facto Call For Penalty U/s 271(1)(C): Delhi ITAT

While holding that mere disallowance of expenditure or enhancement of returned income does not ipso facto call for the imposition of penalty u/s 271(1)(c) of Income Tax Act, the Delhi ITAT deleted the said penalty. The Bench comprising of Kul Bharat (Judicial Member) and Pradip Kumar Kedia (Accountant Member) observed that “No allegation towards the nature of default...

Payment Of Excessive Or Unreasonable Salary Is Sine Qua Non For Invoking Provision Of Sec 40A(2)(B): Ahmedabad ITAT

On finding that none of the orders passed by I-T Authorities doubted the services so rendered by the administrative head nor alleged to have been paid salary excessive or unreasonable which is sine qua non in invoking the provision of Section 40A(2)(b) of the Income Tax Act, the Ahmedabad ITAT allowed the deduction u/s 40A(2)(b). The Bench of the ITAT comprising of Madhumita...

Time Barred Appeal Is Not Maintainable In Absence Of Sufficient Cause For Condonation: Vishakhapatnam ITAT

On finding that the assessee had neither substantiated his case before the Tribunal or before the CIT(A), the Visakhapatnam ITAT rejected the condonation and dismissed the appeal filed by the assessee in-limine. The Bench of the ITAT comprising of Duvvuru Rl Reddy (Judicial Member) and S Balakrishnan (Accountant Member) observed that “Even though the CIT(A) and the Tribunal has...

Assessee Has Not Benefited From Round-Tripping Of Share Transactions; Mumbai ITAT Deletes Addition U/s 68

On finding that the assessee has issued share application money and subsequently allotted shares which shows that the transactions are genuine and there is no material brought on record by tax authorities that the assessee has benefited from round-tripping, the Mumbai ITAT deleted the addition made u/s 68 of the Income Tax Act, 1961. The Bench of the ITAT comprising of Narendra...

Assessee Has Incurred Expenses For Transfer As Per Scheme Of Arrangement Approved By NCLT; Mumbai ITAT Directs To Allow Stamp Duty & Registration Charges

On finding that when the assessee has incurred the amount in question to complete the transfer as per the scheme of arrangement approved by the NCLT, without which the transfer could not have been effected, the Mumbai ITAT held that the CIT(A) has rightly and validly decided the issue in favour of the assessee and directed the AO to allow the stamp duty and registration charges after...

Penalty Order On Ground Of Misreporting Of Income Not Justified When SCN And Assessment Order Alleged Under-Reporting: ITAT

The Hyderabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the penalty order on the ground of misreporting of income was not justified when show cause notice and the assessment order alleged under-reporting.The bench of Laliet Kumar (Judicial Member) has observed that once the assessee himself admitted the fact that there was under-reporting of income, which was also accepted...

Taxing Unsold Flats In Real Estate Business Applicable From AY 2018-19; ITAT Deletes Notional Rent Addition For AY 2014-15

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT), while deleting the notional rent addition for AY 2014–15, held that taxing unsold flats in real estate business is applicable from AY 2018–19.The bench of Sunil Kumar Singh (Judicial Member) and Narendra Kumar Billaiya (Accountant Member) has observed that the CIT(A) has erred in as much as it relied upon the provisions brought...

Payments Received Towards Interconnectivity Utility Charges From Indian Customers Is Not Royalty: ITAT

The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) has held that payments received by the assessee towards interconnectivity utility charges from Indian customers or end users cannot be considered royalties to be brought to tax in India.The bench of Beena Pillai (Judicial Member) and Laxmi Prasad Sahu (Accountant Member) has observed that at no point in time, any possession,...

Income Tax Addition Can't Be Deleted For Sole Reason Of Erroneously Mentioning Section: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the addition cannot be deleted for the sole reason that the section under which the addition is made is mentioned erroneously and that it is necessary to look into the merits of the case. The bench of Anikesh Banerjee (Judicial Member) and Padmavathy S (Accountant Member) has observed that the addition is made primarily...

ITAT Cases Weekly Round-Up: 14 April To 20 April 2024

Actual Expenditure, Source Of Which Was Not Explained, Attracts Deeming Provisions Of Sec 69: Ahmedabad ITAT Case Title: Hyfun Frozen Foods Pvt. Ltd. Verses Income Tax Officer The Ahmedabad ITAT recently ruled that actual expenditure, the source of which has not been explained, attracted the deeming provisions provided u/s 69 of the Income tax Act. Extension Of Timeline For...