INCOME TAX
Litigant Is Not Allowed To Use Process Of Law To Achieve Ulterior Purpose In Under Hand Way By Filing Appeal Belatedly: Indore ITAT
On finding that the assessee has failed to make out a case of reasonable cause much less sufficient cause for an abnormal delay of more than six years in filing the appeal, the Indore ITAT declined to condone the inordinate delay in filing of appeal and consequently dismissed the appeal filed against the revision order passed u/s 263 of Income Tax Act, being barred...
Additions U/s 69 Should Not Be Based Merely On Obtaining Surrender Statements: Chandigarh ITAT
On finding that the assessee in clear terms has surrendered the additional professional income covering the expenditure incurred on the building, the Chandigarh ITAT held that the invocation of Section 115BBE of the Income Tax Act, is not applicable and hence deleted the addition made by the AO on account of the addition in the value of building u/s 69. The Bench of the...
Taxpayer Must Substantiate Form 26AS Or Form 16 So As To Claim Credit Over TDS: Mumbai ITAT
While remanding the case back for re-adjudication, the Mumbai ITAT held that the prima facie onus would be upon the Assessee to substantiate its claim of non-granting of TDS credit, by providing relevant documents, such as an appointment letter, salary slips or Form No.16 or bank statements, or any other corroborative evidence/ documents. The Bench of the ITAT comprising...
Cash Deposits Made During Demonetization Is No Basis For Addition U/s 68, Without Rejecting Audited Books Of Account: Delhi ITAT
On finding that the authorities have not considered the history of the assessee and not even rejected its books of accounts, the New Delhi ITAT deleted the addition sustained by the CIT(A) u/s 68 of the Income Tax Act. The ITAT found that the addition was made u/s 68 on account of huge cash deposits made during demonetization period. The Bench of the ITAT comprising of Yogesh...
Incorrect Assumption Of Facts Alone Is No Basis To Revoke Revisionary Jurisdiction U/s 263: Rajkot ITAT
On finding that the PCIT has held the assessment order passed by AO as erroneous and prejudicial to the interest of the Revenue simply based on incorrect assumption of facts, the Rajkot ITAT directed to set aside the order passed u/s 263 of the Income tax Act, 1963. The ITAT explained that the assessment order needs to be erroneous as well as prejudicial to the interest of...
Jaipur ITAT Directs Dept. To Allow Taxpayer To File Revised Appeal Memo In Form No. 35 For Removal Of Deficiency
While relegating the taxpayer to file a revised appeal memo in Form No. 35 either on the e-filing portal of the department or physical form, the Jaipur ITAT restored the matter back to the file of the CIT(A) to adjudicate the matter of rectification application for removal of deficiency, afresh, as per law. The Bench of the ITAT comprising of Sandep Gosain (Judicial Member) And M....
Assessment Order Passed In The Name Of Non-Existent Entity Is Void Ab Initio: ITAT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that an assessment order passed in the name of a non-existent entity is void ab initio.The bench of Saktijit Dey (Vice President) and Dr. B.R.R. Kumar (Accountant Member) has observed that the merger of Boeing International Corporation India Ltd. with Boeing India Pvt. Ltd. was very much in the knowledge of the Assessing...
ITAT Restores Matter Back To AO To Verify ICSI's Income Tax Exemption Claim
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has restored the matter back to the AO to verify the Institute of Company Secretaries of India's (ICSI) income tax exemption claim.The bench of Astha Chandra (Judicial Member) and N.K. Billaiya (Accountant Member) has observed that the claim of the assessee needs verification. It would be judicially expedient to restore the matter back...
Revisionary Jurisdiction U/s 263 Can't Be Invoked If AO Has Formed Plausible View After Carrying Out Necessary Enquiry: Chandigarh ITAT
Finding that the assessee has carried out seasonal trade in hosiery items duly supported by documentary evidence, which was duly examined by the AO accepting the said transactions and resultant profit has been brought to tax, the Chandigarh ITAT held that the PCIT cannot be permitted to invoke his jurisdiction u/s 263 merely because he believes that there is certain deficiency in...
Vehicle Commercially Used For Purpose Of Business Of Company, Eligible For Benefit Of Depreciation : Ahmedabad ITAT
Relying on the decision of the Jurisdictional High Court in the case of PCIT vs. Asian Mills (P.) Ltd., the Ahmedabad ITAT that vehicle exclusively used by an entity for its commercial purpose becomes eligible for claim of depreciation. The Bench of Waseem Ahmed (Accountant Member) and Madhumita Roy (Judicial Member) observed that “car is commercially used for the purpose...
Receipt Of Huge Sale Consideration In Cash Is Violative To Sec 269SS, And Calls For Levy Of Penalty U/s 271D: Chennai ITAT
The Chennai ITAT recently clarified that receipt of sale consideration of huge amount of Rs. 1.60 Crores in cash, which is, in violation of the provisions of section 269SS (this section restricts cash receipts over & above twenty thousand) of the Income tax Act, rightly deserves levy of penalty u/s 271D. The Bench of V. Durga Rao (Judicial Member) & Manjunatha, G....
Taxpayer Should Acquire Residential House Within Three Years From Date Of Transfer Of Old House, For Claiming Benefit Of Capital Gains U/s 54: Delhi ITAT
Finding that the assessee has not fulfilled either of the conditions mentioned in Section 54 of the Income tax Act, the New Delhi ITAT held that there is no infirmity in the orders of the I-T Authorities in denying the benefit of deduction of long term capital gains to the assessee u/s 54. The Division Bench of N.K. Billaiya (Accountant Member) and Yogesh Kumar U.S (Judicial...