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...

Cash-In-Hand Out Of Business Profits Declared In Return U/s 44AD, Can't Be Plainly Added As Unexplained Money: Delhi ITAT

While allowing the appeal against the addition on account of unexplained money, the New Delhi ITAT held that if the assessee's contention is that it had turnover exceeding the limit u/s 44AD of the Income Tax Act, then CIT(A) ought to have acted in accordance with law.The Bench comprising of Kul Bharat (Judicial Member) observed that, “If the assessee's contention is that it had...

Once Taxpayer Shows Reasonable Cause For Accepting Cash Loan, Burden Shifts On AO To Prove That Such Cause Lacks Bonafide: Chennai ITAT

On finding that the explanation against cash receipts offered against show cause notice before the authorities were reasonable, the Chennai ITAT held that levy of penalty u/s 271D of the Income Tax Act, is untenable.The Bench of the ITAT comprising of V. Durga Rao (Judicial Member) and Manjunatha, G (Accountant Member) reiterated while referring the case of Ms. Nanda Kumari v. ITO that,...

Interest & Dividend Derived By One Cooperative Society From Its Investment Held With Another One Is Eligible For Deduction U/s 80P(2)(D): Pune ITAT

On finding that the views adopted by the tax authorities are not in conformity with legal position and binding judicial precedents, the Pune ITAT set-aside the impugned order passed by the AO and reversed the denial of deduction u/s 80P(2)(d) of the Income Tax Act, 1961.The Bench of the ITAT comprising of Partha Sarathi Choudhury (Judicial Member) and G. D. Padmahshali (Accountant...

Delay In Uploading Application Shall Not Alone Form Basis For Denial Of Registration U/s 80G In Case Of Technical Glitches: Chandigarh ITAT

On finding that the dismissal of the application on the ground of being barred by limitation is not justified, the Chandigarh ITAT set aside the order of dismissal of final registration u/s 80G of the Income Tax Act and restored the matter to the file of the CIT(E) to decide the application after giving adequate opportunity to the assessee to present its case, irrespective of the fact that...