Income Tax Department Introduces Young Professional Scheme to Assist Officers in Income Tax Appellate Tribunal (ITAT)

In a bid to bolster its resources and streamline tax litigation management, the Income Tax Department, under the Ministry of Finance, Government of India, has launched the Young Professional Scheme. This scheme aims to engage young graduates in Law and Accountancy on a full-time basis, providing valuable support to Departmental Officers across various benches of the Income Tax Appellate...

“Cloud Service Fee” Received By Amazon From Customers In India Is Not Taxable As Royalty, FTS, FIS: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that cloud computing services provided by Amazon Web Services cannot be held liable to tax in India as royalty and fee for technical or included services (FTS/FIS).The bench of G.S. Pannu (President) and Astha Chandra (Judicial Member) has observed that the AWS services provided by Amazon are standardised services that do...

ITAT Allows Income Tax Deduction On Interest Received From Enhanced Compensation Against Compulsory Acquisition Of Agricultural Land

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the income tax deduction on interest received from enhanced compensation for the compulsory acquisition of agricultural land.The bench of C.M. Garg (Judicial Member) has observed that the interest received by the assessee on enhanced compensation under Section 28 of the Land Acquisition Act, being part of the...

PCIT Can’t Initiate Revision Proceedings When CIT (A) Has Already Disposed Of The Appeal: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the revision order passed by the PCIT as the CIT (A) had already disposed of the appeal.The bench of Chandra Mohan Garg (Judicial Member) and M. Balaganesh (Accountant Member) has observed that the issue of granting additional TDS credit was already considered and decided by the CIT (A). For adjudication of the same...

District Mining Officer Liable To Collect TCS On Compounding Fee Received From Illegal Miners: ITAT

The Raipur Bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee, the District Mining Officer, is liable to collect tax at source on the compounding fee received from illegal miners even in the absence of a valid lease or licence of mines.The bench of Ravish Sood (Judicial Member) and Arun Khodpia (Accountant Member) has observed that even in the absence of any...

ITAT Deletes Addition On Security Deposits From Distributors/Retailers Against Coca Cola Bottles

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition against Hindustan Coca-Cola Beverages on the Security Deposits made by distributors and retailers against Coca-Cola bottles.The bench of Anubhav Sharma (Judicial Member) and N.K. Billaiya, (Accountant Member) has relied on the decision of the Supreme Court in the case of Sugauli Sugar Works [P] Ltd., in which...

No specific ICDS, ITAT Disallows Deduction On Marketing & Sales Expenses To Real Estate Developer

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has disallowed the deduction of marketing and sales expenses accumulated in work-in-progress as per accounting standards and revenue recognition policy.The bench of Rajpal Yadav (Vice President) and Girish Agrawal (Accountant Member) has observed that no specific Income Computation and Disclosure Standards (ICDS) have been notified...

ITAT Upholds Addition On Account Of Unexplained Cash Deposit Made During Demonetisation

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT), while rejecting the plea of the assessee for cash received in marriage, upheld the addition on account of an unexplained cash deposit made during demonetisation.The bench of Mahavir Singh (Vice President) and Manoj Kumar Aggarwal (Accountant Member) has observed that there is no direct evidence available from the assessee...

Tax Cases Weekly Round-Up: 16 July To 22 July, 2023

Supreme Court Income Tax Act | Completed/Unabated Assessments Cannot Be Reopened by AO If No Incriminating Material Is Found During Search: Supreme Court Case Title: Principal Commissioner of Income Tax vs King Buildcon Pvt. Ltd. Citation : 2023 LiveLaw (SC) 532 The Supreme Court has reiterated that in view of the judgment of the Supreme court in...

Passing Of Project Specific Architectural Drawings And Design With Measurement Doesn’t Amount To ‘Make Available’ Technical Knowledge: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the mere passing of project-specific architectural drawings and designs with measurements did not amount to making available technical knowledge, know-how, or processes.The bench noted that G.S. Pannu (President) and Astha Chandra (Judicial Member) observed that the assessee has not transferred any technical...

Plastic Waste Management Falls Under Preservation Of Environment: ITAT Allows Income Tax Exemption

The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the Income Tax exemption for the Punjab Plastic Waste Management Society and observed that plastic waste management falls under the preservation of the environment.The bench of A.D. Jain (Vice President) And Vikram Singh Yadav (Accountant Member) has quashed the order of the Commissioner of Income Tax...

ITAT Upholds Interest On 'Outstanding Interest Receivable' Against Parle Biscuits

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the levy of interest on 'outstanding interest receivable' against Parle Biscuits.The bench of Kuldip Singh (Judicial Member) and Padmavathy S. (Accountant Member) has observed that in a transfer pricing transaction, what needs to be looked into is whether, in an uncontrolled similar transaction, the third party would...