ITAT Deletes Addition On Availing Accommodation Entries In Shape Of LTCG As It Was Not Recorded In Books Of Accounts

The Indore Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition of availing accommodation entries in the shape of Long Term Capital Gain (LTCG) as it was not recorded in the books of accounts.The bench of Vijay Pal Rao (Judicial Member) and B.M. Biyani (Accountant Member) has observed that once the assessee has denied the alleged transaction and it is also not found recorded...

Without Pointing Out Any Specific Defect In Audited Books Of Accounts AO Can't And Should Not Make Any Estimated Addition: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that without pointing out any specific defect in the audited books of accounts, the AO cannot and should not make any estimated addition.The bench of Kul Bharat (Judicial Member) and N. K. Billaiya (Accountant Member) has observed that the expenses claimed by the assessee were also test-checked, and while making the addition, the...

Tax Cases Weekly Round-Up: 10 To 16 December, 2023

Delhi High Court No Incriminating Material Was Found During Search: Delhi High Court Quashes S. 153A Proceedings Case Title: PCIT Versus Oxygen Business Park Pvt. Ltd. The Delhi High Court has held that the assessment for the assessment year 2011–12 was finalized on January 20, 2012, and no notice under Section 143(2) of the Income Tax Act was issued. As such,...

Section 54 Deduction Can't Be Disallowed Merely For Not Depositing LTCG In Capital Gain Account Scheme: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that deduction under Section 54 of the Income Tax Act cannot be disallowed merely for not depositing long-term capital gain (LTCG) that was not deposited in the capital gain account scheme.The bench of Saktijit Dey (Vice President) and M. Balaganesh (Accountant Member) has adopted a hyper-technical approach while dealing with...

Addition For Deemed Dividend Made Can Be Done In Hands Of Shareholder Only: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that addition for a deemed dividend made under Section 2(22)(e) of the Income Act can be done in the hands of the shareholder only.The bench of Yogesh Kumar (Judicial Member) and Shamim Yahya (Accountant Member) has observed that the assessee is not a registered shareholder in the loan-given company, so the addition to...

ITAT Deletes Penalty For Default In Not Deducting TDS On Foreign Remittances

The Jaipur Bench of Income Tax Appellate Tribunal (ITAT) has deleted the penalty levied for default in not deducting TDS on foreign remittances.The bench of Sandeep Gosain (Judicial Member) and Rathod Kamlesh Jayantbhai (Accountant Member) has observed that the assessee has deliberately not avoided TDS and there is no contumacious conduct on the part of the assessee.The ITO has passed an...

ITAT Directs Reconsideration Of Form No.10AB For S. 80G Registration By Giving Proper Opportunity Of Being Heard To Assessee Trust

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has directed the department to reconsider Form No.10AB for final registration under section 80G of the Income Tax Act by giving the proper opportunity of being heard to the assessee trust.The bench of T.R. Senthil Kumar (Judicial Member) and Waseem Ahmed, (Accountant Member) have observed that the time is extended up till...

Availability Of Cash With Different Companies Is Sufficient To Explain Cash Found At The Time Of Search: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the availability of cash with different companies is sufficient to explain the cash found at the time of the search.The bench of Astha Chandra (Judicial Member) and N.K. Billaiya (Accountant Member) has observed that the very same Assessing Officer assessed the nine group concerns and companies and accepted the availability...

Prior Sanction Of Approval From Competent Authority Mandatory Before The Reopening Of Assessment: ITAT

The Dehradun Bench of the Income Tax Appellate Tribunal (ITAT) has held that prior sanction of approval under Section 151 of the Income Tax Act from the competent authority is mandatory before the reopening of the assessment.The bench of Kul Bharat (Judicial Member) and M. Balaganesh (Accountant Member) has observed that no approval under Section 151 of the Income Tax Act is on record for...

Tax Cases Monthly Round Up: November 2023

Supreme Court Supreme Court Affirms Penalty On 'Zarda' Manufacturers For Misclassifying Product As 'Chewing Tobacco' For Central Excise Duty Case Title: Commr. Of Cen. Exc. Ahmedabad v M/S Urmin Products P. Ltd. And Others Citation: 2023 LiveLaw (SC) 949 The Supreme Court while adjudicating a matter wherein the Assesssee deliberately misclassified the ‘Zarda’ produced by it...

ITAT Allows Section 80G Registration To Trust Recycling Post-Consumer Plastic Waste

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has allowed the registration under Section 80G of the Income Tax Act to the trust recycling post-consumer plastic waste.The bench of Sandeep Singh Karhail (Judicial Member) and Amarjit Singh (Accountant Member) has observed that the assessee earned income only from donations, the sale of scraps, and the sale of finished goods, and no...

Tax Cases Weekly Round-Up: 26 November To 2 December, 2023

Delhi High Court Appellant Was Pursuing Review Petition In Good Faith, Delhi High Court Condones Delay In Filing Appeal Against ITAT Order Case Title: Resorts Consortium India Limited Versus ITAT Citation: 2023 LiveLaw (Del) 1178 The Delhi High Court has condoned a 79-day delay in filing an appeal as a review petition was filed before the Income Tax Appellate...