INCOME TAX
Ahmedabad ITAT Quashes Sec 263 Order Absent Twin Conditions For Exercise Of Power Under Said Provision
On finding that there is no prejudice against the Revenue and the twin conditions to exercise the power u/s 263 of the Income Tax Act, 1961 have not been satisfied, the Ahmedabad ITAT set aside the order of PCIT to assess the assessee's case freshly.The Bench of the ITAT comprising of Madhumita Roy (Judicial Member) and Waseem Ahmed (Accountant Member) observed that, “the value of closing...
Deeming Provisions Of Sec 2(22)(E) Gets Attracted To Beneficial Shareholder Only Who Has Controlling Interest: Kolkata ITAT
Since the income accrues or arises or is deemed to accrue or arise in the hands of KSWPL and not in the hands of the assessee, the Kolkata ITAT held that by invoking second limb of section 2(22)(e) of the Income tax Act, accrual of income and its taxability cannot be held to be in the hands of the assessee.Finding that both, the assessee and APL are in no way in a position to compel KSWPL in...
If Period Of Holding Of Plant & Machinery Is More Than 36 Months, it Qualifies As Long-Term Capital Asset As Per Sec 2(42A): Ahmedabad ITAT
The Ahmedabad ITAT ruled that when the period of holding of the plant and machinery is more than 36 months, then the same has to be treated as long-term capital asset in pursuant to the provisions of section 2(42A) of the Income tax Act.The Bench of Waseem Ahmed (Accountant Member) and Siddhartha Nautiyal (Judicial Member) observed that “provisions of section 50 of the Act clearly specify...
Trading Income From Sale Of Scrips Can't Be Conferred As 'Unaccounted Income' If Trading Activity Is Not Disputed At Any Time: Ahmedabad ITAT
On finding that AO as well as the CIT(A) was not right in making/confirming the addition on account of unaccounted business income, the Ahmedabad ITAT deleted the addition made by AO under the Income Tax Act, 1961.The Bench of Suchitra R. Kamble (Judicial Member) observed that, “The summons issued to Shri Ramesh Ajwani, who is an entry provider as per the Assessing Officer, has nothing to...
Failure To Produce Share Certificate Is No Basis To Doubt Share Purchase Transaction: Mumbai ITAT Refers Art 265 Of Constitution
Referring to Article 265 of the Constitution of India, the Mumbai ITAT remanded the case to the file of AO with direction to verify factual aspects, pertaining to the purchase of the shares in consideration and re-compute the liability accordingly.The Bench of the ITAT comprising of Narender Kumar Choudhry (Judicial Member) and Padmavathy S. (Accountant Member) observed that, “May be...
Rights Held By Taxpayer As Confirming Party In Sale Deed Is Capital Asset As Per Sec 2(14) And Liable For LTCG: Ahmedabad ITAT
On finding no infirmity in the order passed by the CIT(A), the Ahmedabad ITAT confirmed that rights held by the assessee as a Confirming Party in the Sale Deed is a capital asset within the meaning of Section 2(14) and liable for LTCG and the assessee is also eligible to claim deduction u/s. 54B of the Income Tax Act, 1961.The Bench of the ITAT comprising of T.R. Senthil Kumar (Judicial...
Accepting Submissions Of Assessee Cannot Be Said As Faulty If Assessment Was Made By National E-Assessment Centre: Indore ITAT Quashes Sec 263 Order
While holding the revision-order passed by PCIT as invalid, the Indore ITAT recently clarified that I-T authorities cannot punish the assessee by merely saying that the payee has not filed income-tax return.The Bench of Vijay Pal Rao (Judicial Member) and B.M Biyani (Accountant Member) observed that “the action of AO in accepting the replies/ submissions of assessee cannot not lack bona...
Belief Of AO Regarding Escapement Of Income Should Be Based On Some Tangible Information: Kolkata ITAT Quashes Reassessment
The Kolkata ITAT recently clarified that mere information regarding transfer of funds is no basis to conduct reassessment once source of such transfer was sufficiently established through banking channel.The Bench of Sanjay Garg (Judicial Member) and Girish Agrawal (Accountant Member) observed that “the belief of the Assessing Officer regarding escapement of income should be based on...
Proceeding Upon Intimation Passed U/s 143(1) Without Granting Reasonable Opportunity Of Hearing To Assessee, Is Bad In Law: Kolkata ITAT
The Kolkata ITAT held the intimation passed by the Assessing Officer under section 143(1) and proceeding on such intimation to be bad in law, as the same was passed without granting any reasonable opportunity of hearing to the assessee.Relying on the decision of Income Tax Officer (Exemption) –vs- Camellia Educare Trust, the Bench of Rajesh Kumar (Accountant Member) and Anikesh...
Deeming Provisions Of Sec 69B Can't Be Invoked Once Nexus Of Source Of Unrecorded Transactions With Assessee's Business Is Proved: Chandigarh ITAT
Finding that the difference in stock found out by I-T Authorities has no independent identity and is part & parcel of entire stock, the Chandigarh ITAT refused to treat such difference as undeclared business income and clarified that it cannot be said that there is an undisclosed asset which existed independently.The Bench of Sanjay Garg (Judicial Member) and Vikram Singh Yadav...
Penalty Imposed U/s 271A On Wrongful Consideration Of Facts Merits To Be Deleted: Jaipur ITAT
On finding that the CIT(A) has not rebutted the contention that the assessee was dealing in share investment and not in the business activities, the Jaipur ITAT deleted the penalty imposed u/s 271A of the Income Tax Act.The Bench comprising of Sandep Gosain (Judicial Member) and Dr. M. L. Meena (Accountant Member) observed that, “when the assessee has filed a return on account of...
Taxpayer Can't Be Penalised For Failure To Get Its Books Of Accounts Audited If There Exists Reasonable Cause For Such Failure: Jaipur ITAT
While allowing the appeal against the order passed u/s 271B of the Income tax Act, the Jaipur ITAT held that provision of section 273B gives power to the taxing authority not to impose the penalty if the assessee proves that there was a reasonable cause for failure to get the books of accounts audited and directed the AO to delete such addition.The Bench of the ITAT comprising of Sandeep...