PCIT Precluded From Initiating Proceedings Based On Document Not Forming Part Of Any Proceedings: ITAT

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the basis to initiate the proceedings under Section 263 of the Income Tax Act by the PCIT is misplaced as it was based on the document, which was not forming part of any proceedings.The bench of Suchitra Kamble (Judicial Member) and Waseem Ahmed (Accountant Member) has observed that the report from the Departmental...

ITAT Deletes Addition On Cash Deposit During Demonetisation On Account Of Sale Of Petrol, Diesel And Other Petroleum Products

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition of cash deposits during demonetisation on account of the sale of petrol, diesel, and other petroleum products.The bench of T.R. Senthil Kumar (Judicial Member) and Waseem Ahmed (Accountant Member) have observed that cash deposits are on account of the sale of petrol, diesel, and other petroleum products....

Bona Fide Non-Offering Of Interest On Income Tax Refund While Filing ITR Does Not Amount To Under-Reporting Of Income: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the explanation of the assessee for not offering the interest on income tax refund while filing its return of income is bona fide.The bench of Sandeep Singh Karhail (Judicial Member) and Amarjit Singh (Accountant Member) has observed that bona fide non-declaration of interest on income tax refunds cannot be said to...

Output VAT Refund Received By Hyundai Motor Towards Investment Promotion Subsidy Is Non-Taxable Capital Receipt: ITAT

The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has held that the output VAT refund received by Hyundai Motor towards investment promotion subsidy is a non-taxable capital receipt.The bench of V. Durga Rao (Judicial Member) and Manjunatha G (Accountant Member) has observed that the output VAT incentive (investment promotion subsidy) granted for the purpose of setting up or expanding...

Tax Cases Weekly Round-Up: 8 To 14 October, 2023

Supreme Court Customs Duty - Undervaluation Must Be Proved By Evidence Of Prices Of Contemporaneous Imports; Else Benefit Of Doubt Goes To Importer : Supreme Court Case Title: Commissioner of Customs (Imports), Mumbai v. M/s Ganpati Overseas Citation : 2023 LiveLaw (SC) 864 The Supreme Court has recently highlighted that the transaction value (the price actually paid...

Income Received By UK Telecom Company From Indian Telecom Company For Rendering Roaming Services To Customers Abroad Is Not ‘Royalty’: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that income received by a UK telecom company from an Indian telecom company for rendering roaming services to customers abroad is not ‘royalty’.The bench of Amit Shukla (Judicial Member) and Gagan Goyal (Accountant Member) has observed that payments made to a non-resident company for providing standard bandwidth services...

Tax Not Payable On Interest Accrued On FD Which Is Subject To CBI’s Prohibitory Order: ITAT

The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) has held that tax is not payable on interest accrued on FD, which is subject to the CBI’s prohibitory order.The bench of Madhumita Roy (Judicial Member) and Chandra Poojari (Accountant Member) has observed that the lower authorities have committed an error in bringing the interest accrued on FD, which is subject to a...

No Basis Of Allocation Or Actual Cost Incurred For Affiliates: ITAT Confirms Additions For Cost Reimbursement As FTS

The Mumbai Bench of Income Tax Appellate Tribunal, while confirming the additions for cost reimbursement as fees for technical services (FTS), noted that the assessee had no basis of allocation or actual cost incurred for affiliates.The bench of Aby T. Varkey (Judicial Member) and S. Rifaur Rahman (Accountant Member) has observed that the assessee has entered into a support services agreement...

Tax Cases Weekly Round-Up: 1 To 7 October, 2023

Delhi High Court EPF Contribution Paid Next Day After National Holiday, Delhi High Court Allows Deduction As Due Fell On National Holiday Case Title: PCIT Versus Pepsico India Holding Pvt. Ltd. The Delhi High Court has allowed the deduction for the employee’s contribution towards the provident fund as the due date fell on a national holiday. Bombay High...

Tax Cases Monthly Round Up: September 2023

Direct Tax Supreme Court Material Disclosed To Income Tax Settlement Commission Needn't Be Something Which Wasn't Discovered By Assessing Officer : Supreme Court Case Title: KOTAK MAHINDRA BANK LIMITED vs COMMISSIONER OF INCOME TAX BANGALORE AND ANR Citation : 2023 LiveLaw (SC) 822 The Supreme Court has ruled that Section 245H of the Income Tax Act,...

ITAT Confirms Addition Of Expenses Incurred On Brand Reminders, Customer Gifts For Doctor

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has confirmed the addition towards expenses incurred on brand reminders, customer gifts, and the purchase of medical books and journals for doctors.The bench of Rahul Chaudhary (Judicial Member) and Prashant Maharishi (Accountant Member) has relied on the decision of the Supreme Court in the case of Apex Laboratories, in which it was...

ALP Of The ESOP Expenses Cannot Be Taken As ‘Nil’: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the arm's-length price (ALP) of the employee stock option plan (ESOP) expenses cannot be taken as ‘Nil’.The bench of Rahul Chaudhary (Judicial Member) and S. Rifaur Rahman (Accountant Member) has observed that the transfer pricing addition of INR 26,53,078 is, therefore, set aside, and the TPO/Assessing Officer is...