ITAT Deletes Income Tax Addition Of Rs.2.30 Crores As AO Failed To Mention Investment Outside The Books Of Accounts

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has deleted the income tax addition of Rs. 2.30 crores as the Assessing Officer (AO) did not mention any investment outside the books of accounts.The bench of Astha Chandra (Judicial Member) and N. K. Billaiya (Accountant Member) has observed that the assessee has explained the investment duly reflected in its bank statement, and...

Income Tax Authorities Can’t Step Into Shoes Of Businessmen To Determine Expenditure For Business Purpose: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that income tax authorities cannot step into the shoes of businessmen to determine how much expenditure should have been incurred for the purpose of business.The bench of Astha Chandra (Judicial Member) and B. R. R. Kumar (Accountant Member) has observed that activities clearly demonstrate that the assessee had incurred expenses...

Interest Earned Deposited In The Consolidated Fund Of India By Way Of Challans: ITAT Deletes Income Tax Addition Against NHIDCL

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessee, National Highways & Infrastructure Development Corp. India (NHIDCL), received funds in fiduciary capacity from the government and deposited with the Consolidated Fund of India the interest received on deposits kept in bank accounts out of funds received for infrastructure development projects.The bench...

Tax Cases Weekly Round-Up: 29 October To 4 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...

Web Hosting Services Availed By The Assessee Do Not Constitute Royalty Or FTS Under India-Mauritius DTAA: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that web hosting services availed by the assessee do not constitute royalty or Fee for Technical Services (FTS) under the India-Mauritius Double Tax Avoidance Agreement (DTAA).The bench of G.S. Pannu (President) and Astha Chandra (Judicial Member) has observed that the web hosting services availed by the assessee do not...

Shree Sai Baba Sansthan Trust Eligible For Income Tax Exemption On Anonymous Donations: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that Shree Sai Baba Sansthan Trust is eligible for income tax exemption on anonymous donations.The bench of Aby T. Varkey (Judicial Member) and Om Prakash Kant (Accountant Member) has observed that there may be instances where a trust, which exists both for charitable and religious purposes, has incurred religious...

Delhi High Court Upholds ITAT’s Decision On Selection Of Comparables For Determination Of Arm’s Length Price Of An International Transaction

The Delhi High Court had upheld the decision of the Income Tax Appellate Tribunal (ITAT) on the selection of comparables for the determination of the arm’s length price of an international transaction.The Bench of Justice Rajiv Shakdher and Justice Girish Kathpalia observed that the Tribunal not only followed the previous orders mentioned above to maintain consistency but also examined...

Deemed Dividend Is Taxable Only In The Hands Of The Shareholder: ITAT

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that a deemed dividend is taxable only in the hands of the shareholder.The bench of Siddhartha Nautiyal (Judicial Member) and Annapurna Gupta (Accountant Member) has observed that the assessee firm was neither a registered shareholder nor a beneficial shareholder; there is no reason to tax the amount received by it by way...

ITAT Allows Income Tax Deduction On Interest Income From Investment In Co-Operative Bank

The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has allowed the deduction under Section 80P(2)(d) of the Income Tax Act on the interest income from investments in cooperative banks.The bench of Mahavir Singh (Vice President) and Manjunatha.G. (Accountant Member) has observed that the Erode District Central Co-operative Bank is also governed by the Tamil Nadu Co-operative Societies...

Tax Cases Weekly Round-Up: 22 To 28 October, 2023

Supreme Court State Amendments Made To VAT Acts After GST Came Into Effect Are Invalid : Supreme Court Case Title: The State of Telangana & Ors. V. M/S Tirumala Constructions., Civil Appeal No(S). 1628 Of 2023 Citation : 2023 LiveLaw (SC) 927 A Division Bench of the Supreme Court, while deciding the appeals arising from judgments of Telangana, Gujarat and Bombay...

Long-Term Capital Gain Can’t Be Claimed Without Owning Flats for At Least 3 years: ITAT

The Hyderabad Bench of Income Tax Appellate Tribunal (ITAT) has held that long-term capital gain cannot be claimed without owning flats for at least 3 years.The bench of R.K. Panda (Vice President) and Laliet Kumar (Judicial Member) has observed that PCIT is fully justified in invoking the provisions of Section 263 of the Income Tax Act as the assessee without holding the seven flats for a...

Tax Cases Weekly Round-Up: 15 To 21 October, 2023

Supreme Court U.P. Trade Tax Act | ‘Tinted Glass’ To Be Taxed As “Goods Or Wares Made Of Glass”, As it is Different from ‘Plain Glass’: Supreme Court Case Title: M/S Triveni Glass Limited v COMMISSIONER OF TRADE TAX, U.P. Case No.: 2023 LiveLaw (SC) 896 The Supreme Court has held that ‘Tinted Glass Sheet’ is different from ‘Plain Glass sheet’ and...