Bogus Long-Term Capital Gains From Transaction In Penny Stocks: ITAT Upholds Addition

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the addition of bogus long-term capital gains from transactions in penny stocks.The bench of T.R. Senthil Kumar (Judicial Member) and Annapurna Gupta (Accountant Member) has observed that the assessees' failure to show how they were prejudiced by not providing the report cannot be held to be an infraction of the...

Expenses For Community Development, Environment Health & Safety : ITAT Allows CSR Expenditure

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that once the expenditure has been accepted to be for community development and environmental health and safety expenses, the same cannot be held to have not been incurred wholly and exclusively for the purpose of business in the year under consideration.The bench of Sandeep Singh Karhail (Judicial Member) and Amarjit...

Income Tax Not Chargeable On Interest Subsidy Received Under Technology Upgradation Fund Scheme: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that income tax is not payable on the interest subsidy received under the technology upgradation fund scheme.The bench of Kuldip Singh (Judicial Member) and Prashant Maharishi (Accountant Member) has observed that interest subsidy received under the technology upgradation fund scheme, though credited in the net off against...

Joint Ownership Of The Property Is No Bar In Claiming Exemption Under Section 54F Of The Income Tax Act: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the deduction under Section 54F of the Income Tax Act on the grounds that the assessee is not the exclusive owner of multiple residential properties occupied by other family members.The bench of Kavitha Rajagopal (Judicial Member) and Om Prakash Kant (Accountant Member) has observed that the joint ownership of the...

Interest Income Received On Temporary FDs Is Eligible For Exemption: ITAT

The Banglore Bench of the Income Tax Appellate Tribunal (ITAT) has held that interest income received on temporarily fixed deposits is eligible for exemption.The bench of George George K. (Judicial Member) and Laxmi Prasad Sahu (Accountant Member) has relied on the decision of the Karnataka High Court in the case of CIT Vs. Hewllett Packard Soft Ltd. in which it was held that the assessee...

200% Penalty Can’t Be Levied Unless Dept. Specifies Misreporting: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that a 200% penalty can’t be levied unless the department specifies misreporting.The bench of Aby T. Varkey (Judicial Member) and Om Prakash Kant (Accountant Member) has observed that AO failed to bring the addition or disallowance he made in quantum assessment under the ken of (a) to (f) of Section 270A (9) of the Act,...

Benefits Of India- Mauritius DTAA Available To Collective Investment Vehicles: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the benefits of the Double Taxation Avoidance Agreement (DTAA) are available to collective investment vehicles.The bench of Saktijit Dey (Judicial Member) and Dr. B. R. R. Kumar (Accountant Member) has observed that the TRC is statutorily the only evidence required to be eligible for the benefit under the DTAA, and...

Provisions Of Section 44BB Not Applicable In Absence Of PE: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the provisions of Section 44BB of the Income Tax Act are not applicable in the absence of a permanent establishment (PE).The bench of Kul Bharat (Judicial Member) and Shamim Yahya (Accountant Member) has observed that the burden of proving the existence of PE lies on the department, which has not been discharged. There...

Deemed Dividend Cannot Be Taxed In The Hands Of Non-Shareholders: ITAT

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that deemed dividends cannot be taxed in the hands of non-shareholders.The bench of Annapurna Gupta (Accountant Member) has observed that the deeming fiction envisaged in Section 2(22)(e) of the Income Tax Act is only with respect to dividends, and its scope, therefore, cannot be enlarged to extend to shareholders also....

Income Derived From Sale Of Agricultural Land Is Not A Capital Asset: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that income derived from the sale of agricultural land is not a capital asset.The bench of Saktijit Dey (Judicial Member) and M. Balaganesh (Accountant Member) has observed that income tax is not payable on the income derived from the sale of agricultural land.A search and seizure operation was conducted in the case of...

ITAT Deletes Disallowance On Setting Off Legal Expenses Against Interest Income For Contesting Arbitral Award

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted that disallowance setting off legal and other expenses against interest income for contesting an arbitral award.The bench of G.S. Pannu (President) and Saktijit Dey (Judicial Member) has observed that the arbitral award was passed in July 2020, which is under challenge before the Delhi High Court. Even after the conclusion...

AO Can’t Sit On The Armchair Of Businessman Assessee To Replace His Business Strategy By His Own Whims And Fancies: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Assessing Officer cannot sit on the armchair of a businessman assessee to replace his business strategy with his own whims and fancies.The bench observed that Chandra Mohan Garg (Judicial Member) and Pradip Kumar Kedia (Accountant Member) have observed that the Assessing Officer only noted an abnormal fall in the...