ITAT
Discrepancy In Stock Sufficient Enough For Addition U/s 69B: Rajkot ITAT Confirms Estimation Of Gross Profit
On finding that the AO has rightly estimated the gross profit after finding discrepancy in stock, the Rajkot ITAT confirmed the addition made u/s 69B of Income tax Act, 1961.The Bench comprising Suchitra Kamble (Judicial Member) and Waseem Ahmed (Accountant Member) observed that, “The Assessing Officer has rightly estimated the gross profit by applying fair and reasonable ratio of gross...
No Addition Is Permitted U/s 69 I-T Act Once Source Of Investment Stands Proved: Mumbai ITAT
On finding that none of requirements of section 69 regarding source of investment stands fulfilled, the Mumbai ITAT upheld the order of CIT(A) deleting the addition made by AO under said provision.The Bench comprising C.V. Bhadang (President) and B.R. Baskaran (Accountant Member) observed that, “the said section envisages a situation where the assessee has (i) made an investment (ii) which...
Sec 50C(1) Is Anti-Avoidance Provision To Prevent Evasion Of Tax By Showing Lesser Consideration, Reiterates Mumbai ITAT
While setting aside the order passed by CIT(A) and emphasizing on the safe harbour limit, the Mumbai ITAT held that the assessee is entitled to the benefit of Section 50C of Income Tax Act, 1961.The Bench comprising CV Bhadang (President) and BR Baskaran (Accountant Member) observed that, “the CBDT had acknowledged that there can be genuine cases, where there would be a variance between...
Meagre Control Over Companies Transacting In Penny Stock Is No Basis To Question Source Of Source Of Income: Delhi ITAT
On not finding any substance in the conclusion of AO that the source of source of income is tainted, the Delhi ITAT confirms the deletion of addition made u/s 68 of Income Tax Act.The Bench comprising Anubhav Sharma (Judicial Member) and Narendra Kumar Billaiya (Accountant Member) observed that, “merely because of some sort of control of Gupta family into companies transacting in the...
Genuineness Of Company Is Not Dependent On Magnitude Of Profit: Kolkata ITAT Upholds Disallowance Of LTCG
The Kolkata ITAT confirmed the CIT(A)'s order upholding disallowance of claim of long-term capital gain exemption u/s 10(38) of Income tax Act, 1961 by stating that genuineness of the company is not dependent on the magnitude of profit.The Member of the ITAT comprising Rajpal Yadav (Vice-President) and Girish Agrawal (Accountant Member) observed that “The assessee might have made...
Interest Income Earned From Co-Operative/ Scheduled Bank Eligible For Deduction U/s 80P(2): Pune ITAT
Relying on decisions of Supreme Court and High Court, the Pune ITAT directed the AO to allow the deduction u/s 80P(2)(a)(i) and 80P(2)(d) of Income Tax Act, 1961 in respect of interest income earned from co-operative bank/scheduled bank.The Member of the ITAT comprising Inturi Rama Rao (Accountant Member) observed that, “the interest income earned by cooperative society on deposits made out...
Capital Gains Tax Can Be Computed Separately Even In Case Of Consolidated Sale Of Land And Building, Confirms Rajkot ITAT
The Rajkot ITAT held that Assessing Officer has not erred in computing separate capital gains tax in respect of sale of land (being Long Term Capital Gains) and sale of building / super structure (being Short Term Capital Gains), even if the assessee had made a consolidated sale of both land and building, as part of the same agreement.The Member of the ITAT comprising Siddhartha...
No Taxability Arises During Current Year If Taxpayer Has Only Repatriated Amounts Invested In Earlier Years: Delhi ITAT
Observing that the assessee has only repatriated the amounts invested in the earlier years and hence, no taxability arises during the year, the Delhi ITAT held that there is no escapement of income in the hands of assessee i.e., a Singaporean entity on repatriating Rs.203.56 Cr. arising from redemption of NCDs where Assessee did not file the ITR.The ITAT Coram comprising Dr. B.R.R....
No Prima Facie Evidence To Prove Escapement: Delhi ITAT Quashes Reassessment Of Mauritian Entity
Noting that the case has been reopened just because the assessee, i.e., a Mauritian investment company had made foreign remittance which arose from the sale of investments and there is no prima facie evidence to prove escapement of income, which is a pre-requisite for initiating reopening, the Delhi ITAT quashes reassessment proceedings initiated against the assessee.The Coram of ITAT...
No Adjustment If Margin Falls Within Tolerance Range Of (+/-) 5% As Per Sec 92CA: Mumbai ITAT
Finding that the margins of assessee company fell within the tolerance limit of +/-5% for AY 2005-06, the Mumbai ITAT deleted the ALP adjustments proposed by the TPO in ITEs as well as IT segments.The ITAT Bench comprising Amit Shukla (Judicial Member) and S. Rifaur Rahman (Accountant Member) observed that “TPO had adopted certain criteria for rejection of comparables which has been...
Discrepancies In Maintaining KYC Documentation Does Not Constitute Incriminating Material: ITAT Deletes Income Tax Addition
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that income tax addition cannot be made for discrepancies in maintaining KYC documentation, account opening forms, and violation of society bye-laws.The bench of Sandeep Singh Karhail (Judicial Member) and B.R. Baskaran (Accountant Member) has observed that for discrepancies in maintaining KYC documentation, account opening...
LTCG Not Eligible For Exemption U/s 10(38) If Claimed On Bogus Scrips: Ahmedabad ITAT
On finding the scrips as non-genuine and bogus, the Ahmedabad ITAT confirms the Assessing Officer's and CIT(A)'s decision for denying the LTCG exemption under Section 10(38) of the Income Tax Act, 1961.The Member of the ITAT comprising Suchitra Kamble (Judicial Member) observed that “The assessee's claim for LTCG cannot be simply proved on the Demat statement but the very effect of the...