ITAT
Cash Deposit In Bank Account Made Out Of Sale Proceeds Received In Cash If Duly Explained, Is Not Unexplained Credit: Delhi ITAT
Accepting the explanation given by the assessee that he had received cash on sale of property to be believable which was faithfully deposited in the bank account within a short period, the Delhi ITAT provided relief to the assessee against the order of assessment passed u/s 143(3) of the Income Tax Act, 1961.The Bench of M. Balaganesh (Accountant Member) observed that, “the explanation given...
Annual Letting Value Of Unsold Flats Held As Stock In Trade Cannot Be Considered For Addition U/s 22 I-T Act: Mumbai ITAT
While setting aside the order of CIT(A), the Mumbai ITAT directed the AO to delete the addition of annual letting out value (ALV) of the unsold flat u/s 22 of Income Tax Act, 1961.The Bench comprising Pavan Kumar Gadale (Judicial Member) and Prashant Maharishi (Accountant Member) observed that “the annual value of unsold flats held as stock in trade has to considered as per the amendment in...
Proceedings Under Remand Passed Without Application Of Mind: Delhi ITAT Deletes Addition Made By ITO
On finding that I-T Authorities had passed the same order which was earlier remanded, without proper application of mind, the New Delhi ITAT deleted the addition made by the ITOs.The Bench of Shamim Yahya (Accountant Member) observed that, “submission of the assessee has considerable cogency. Moreover, on earlier remand by the Tribunal, the authorities below have again passed the very...
Investments In Mutual Funds Not A Basis To Conclude Activities Of Trust Are Not Genuine: Pune ITAT Restores Registration U/S 12A
On finding that entire proceeding was based on the covenants of the trust deed but not on the actual activities carried out by the appellant trust, the Pune ITAT set aside the order passed by CIT(E) cancelling the registration granted u/s 12AB(4) of the Income Tax Act, 1961.The Bench comprising Partha Sarathi Chaudhury (Judicial Member) and Inturi Rama Rao (Accountant Member) observed...
Interest Income Derived By Co-Operative Society From Its Investment With Any Other Co-Operative Society Is Allowable U/s 80P(2)(D): Mumbai ITAT
While directing the AO to allow deduction u/s 80P(2)(a) or 80P(2)(d) of the Income-tax Act, 1961 of interest income earned by the assessee from the co-operative bank, the Mumbai ITAT clarified that co-operatives bank is also a co-operative society.The Bench comprising Rahul Chaudhary (Judicial Member) and Prashant Maharishi (Accountant Member) observed that, “in respect of any income by way...
Investments Which Yielded Exempt Income Can Only Be Considered For Purpose Of Disallowance U/s 14A R/w Rule 8D: Mumbai ITAT
Quoting the decision of cargo motors private limited versus deputy Commissioner of income tax (145 taxmann.com 641), the Mumbai ITAT reiterated that for purpose of making disallowance of expenses u/s 14A as per rule 8D, only those investments were to be considered which yielded exempt income during the year.The Bench comprising Rahul Chaudhary (Judicial Member) and Prashant Maharishi...
Taxpayer Should Not Suffer For Non-Filing Of Material Evidences: Mumbai ITAT Admits Additional Evidence
While setting aside the order u/s 68 of the Income Tax Act, 1961 passed by CIT(A), the Mumbai ITAT restored the entire disputed issues to the AO along with the additional evidence to decide the case afresh on merits, so that the assessee should be provided adequate opportunity of hearing.The Bench comprising Pavan Kumar Gadale (Judicial Member) observed that, “the evidences play important...
Investment Expenditure In Subsidiary Was Incurred For Business Expediency: Delhi ITAT Deletes Addition U/s 37 Of I-T Act
On finding sufficient evidence for establishing that expenditure was incurred for business expediency, the Delhi ITAT deleted the addition made by AO u/s 36(1)(iii) and u/s 37 of the Income Tax Act, 1961.The Bench comprising Anubhav Sharma (Judicial Member) and Narendra Kumar Billaiya (Accountant Member) observed that, “no merit in the argument of the ld. DR that unless some revenue is...
Voluntary Disallowance Of Expense U/s 40(A)(ia) Is No Basis To Treat Taxpayer As 'Assessee In Default' U/s 201(1): Delhi ITAT
On finding that voluntary disallowance of expense u/s 40(a)(ia) of the Income Tax Act is not a ground to treat the assessee as 'assessee in default' u/s 201(1), the Delhi ITAT deleted the addition of chargeable interest u/s 201(1A) as well as the treatment of 'assessee in default' u/s 201(1).The Bench comprising Anubhav Sharma (Judicial Member) and M. Balaganesh (Accountant Member) observed...
Charging Nominal Sum For Functioning Educational Institution Not Commercial Activity: Indore ITAT Directs For Registration U/s 12AB
While allowing the Assessee's appeal for registration u/s 12AB, the Indore ITAT held that mere charging a nominal amount for smooth functioning of educational institution and trust cannot called to be a part of commercial activity, and therefore, directed the CIT(E) to grant registration u/s 12AB of Income Tax Act, 1961.The Bench comprising Vijay Pal Rao (Judicial Member) and B.M....
'On-Money' No Basis To Make Addition On Sale Of House Property Sans Absence Of Reference To DVO U/s 55A: Ahmedabad ITAT
On finding that the AO has failed to refer the case to District Valuation Officer u/s 55A of Income Tax Act 1961, the Ahmedabad ITAT deleted the addition made by AO on account of on-money received by the assessee on the sale of duplex pent house.The Bench comprising T.R. Senthil Kumar (Judicial Member) and Annapurna Gupta (Accountant Member) observed that “the AO has merely relied upon...
Taxpayer Deserves Opportunity To Furnish Additional Evidence If Critical To Issue, Before Completing Assessment U/s 144: Chandigarh ITAT
On finding lack of opportunities provided to Assessee and in interest of substantial justice, the Chandigarh ITAT remanded the matter to the file of CIT(A) to examine the matter of exemption u/s 10(23C) of the Income tax Act, 1961 afresh.The Bench comprising of Sanjay Garg (Judicial Member) and Vikram Singh Yadav (Accountant Member) observed that, “the additional evidence so submitted...