ITAT Cases Weekly Round-Up: 09 To 15 June 2024

Income From Reselling Of Subscription Based Product Is Royalty: ITATCase Title: Gartner Ireland Ltd. Versus DCITThe Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the income from the reselling of subscription-based products is royalty.Income Tax Deduction Allowable On Expenditure Incurred On Warranty Claim: ITATCase Title: Grey Orange India Pvt. Ltd. Versus ACITThe Delhi...

Assessments Concluded U/s 153A Without Mandatory Approval U/s 153D Would Be Void: Delhi ITAT

The Delhi ITAT allowed the Assessee's appeal challenging assessments completed u/s 153A r/w Section 143(3) as void, in absence of mandatory approval u/s 153D. Section 153D of the Income Tax Act, mandates that no order of assessment or reassessment shall be passed by an AO below the rank of Joint Commissioner without the prior approval of the Joint Commissioner or...

Absence Of 'FTS' In Treaty Is No Basis To Tax Technical Services Rendered To AE, In Absence Of Its PE In India: Delhi ITAT

The Delhi ITAT ruled that though income received by a non-resident entity towards services provided to Indian associate enterprises (AE) are in nature of 'fees for technical service' (FTS), but same cannot be taxed in India simply in absence of FTS clause under respect treaty provisions. The Division Bench comprising G.S. Pannu (Vice-President) and Anubhav Sharma (Judicial Member)...

ITAT Calcutta Allows Exemption Registration To Income Tax Bar Association, Sets Aside CIT Order

The Calcutta Bench of Income Tax Appellate Tribunal (ITAT) has allowed the exemption registration to the income tax bar association as the registration application was not time-barred.The bench of Rajpal Yadav (Vice President) and Sanjay Awasthi (Accountant Member) has observed that the procedure adopted by the CIT (Exemption) was incorrect to grant a provisional certificate to the assessee...

RPM Is Most Appropriate Method To Benchmark Transaction Of Purchase Of Solar Goods: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the Resale Price Method (RPM) is the most appropriate method to benchmark the transaction of the purchase of solar goods.The bench of Vikas Awasthy (Judicial Member) and Pradip Kumar Kedia (Accountant Member) has observed that where there is no value addition made before reselling the product, RPM is the most...

Income Tax Deduction Allowable On Expenditure Incurred On Warranty Claim: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the income tax deduction is allowable on expenditures incurred on warranty claims.The bench of Kul Bharat (Judicial Member) and M. Balaganesh (Accountant Member) has relied on the decision of the Supreme Court in the case of Rotork Controls India (P) Ltd., in which it was held that if the facts establish or show that...

Income From Reselling Of Subscription Based Product Is Royalty: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the income from the reselling of subscription-based products is royalty.The bench of Kavitha Rajagopal (Judicial Member) and Om Prakash Kant (Accountant Member) has observed that the assessee has sold not only the digital product but also all copyrights therein, which squarely falls under the definition of 'royalty' both...

Shed Of 500 Mtr. On Agricultural Land Can't Be Considered As Residential House, Section 54F Exemption Not Allowable: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has denied the exemption under Section 54F of the Income Tax Act on the 500-meter shed made on agricultural land that cannot be considered a residential house.The bench of Kul Bharat (Judicial Member) and B. R. R. Kumar (Accountant Member) has observed that the size of the residential house is not a criteria for claiming exemption...

Non-Compete Fee To Be Treated As “Revenue Receipt” From 01.04.2003: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the non-competitive fee received by the assessee is treated as 'revenue receipt' in the hands of the assessee but only post-amendment, i.e., w.e.f. 01.04.2003.The bench of Kavitha Rajagopal (Judicial Member) and Om Prakash Kant (Accountant Member) has observed that the amendment to Section 28(va) of the Finance Act, 2002...

Section 80G Deduction Allowable On CSR Expenditure: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the deduction under Section 80G of the Income Tax Act is allowable on the expenditure in respect of corporate social responsibility (CSR).The bench of Kavitha Rajagopal (Judicial Member) and Om Prakash Kant (Accountant Member) has observed that the amendment brought about by the Finance Act, 2015, to Section 80G of the...

Cash Deposits Made From Assessee's Parents Accumulated Savings And Income From Agricultural Activities; ITAT Deletes Addition

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition made by the department as the cash deposits made from the assessee's parents accumulated savings and income from agricultural activities.The bench of Suchitra Kamble (Judicial Member) and Makarand V. Mahadeokar (Accountant Member) has observed that when the assessee provides a plausible explanation supported...

Computation Of 6 Assessment Years For Search Assessments U/S 153C Starts From Date Of Receiving Seized Documents: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the computation of six assessment years for search assessments under Section 153C of the Income Tax Act starts from the date of receiving seized documents.The bench of Saktijit Dey (Vice President) and Naveen Chandra (Accountant Member) has relied on the decision of the Supreme Court in the case of CIT vs. Jasjit Singh,...