Non-Resident Shareholders Can’t Take Benefit Of Lower Tax Rate Prescribed In DTAAs For Taxation Of Dividend Where DDT Is Applicable: ITAT

The Mumbai Special Bench of the Income Tax Appellate Tribunal (ITAT) has held that non-resident shareholders cannot take advantage of the lower tax rate prescribed in Double Tax Avoidance Agreements (DTAAs) for taxation of dividends where Dividend Distribution Tax (DDT) is applicable.The bench of G. S. Pannu (President), N.V. Vasudevan (Vice President), and Vikas Awasthy (Judicial Member)...

AO Cannot Make Ad-Hoc Disallowance Of Expenses For Want Of Supporting For Each Expense, Without Pointing Defect In Vouchers: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the AO cannot make an ad hoc disallowance of expenses for want of support for each expense, without pointing to defects in vouchers on a sample basis furnished by the assessee.The bench of Yogesh Kumar US (Judicial Member) and B. R. R. Kumar (Accountant Member) has observed that the assessee has furnished copies of...

Adjustment Of Difference In Depreciation To The Profits Eligible For Income Tax Exemption: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that adjustment of the difference in depreciation to the profits makes them eligible for income tax exemption.The bench of Amit Shukla (Judicial Member) and Padmavathy S. (Accountant Member) has observed that the adjustment of the difference in depreciation to the profits eligible for exemption under Section 10A will not...

Once Additions Made Under Black Money Act The Same Addition Cannot Be Made Under Income Tax Act: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that once additions have been made under the Black Money Act, the same additions cannot be made under the Income Tax Act on the same set of facts.The bench of C.N. Prasad (Judicial Member) and N.K. Billaiya (Accountant Member) has upheld the order of the CIT(A), in which it was held that the addition so made by the AO amounts...

ITAT Disallows Income Tax Deduction On Employees’ Contribution To PF & ESI Beyond The Due Dates

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has disallowed income tax deduction on employees’ contributions to PF and ESI beyond the due dates.The bench of Amit Shukla (Judicial Member) and Prashant Maharishi (Accountant Member) has observed that the auditor in the audited accounts only pointed out the date of payment and the due date prescribed under the PF and ESI Act, and...

Expenditure Made On Ice Boxes Are Capital Expenditure: ITAT Upholds Disallowance Against Hindustan Coca-Cola Beverages

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the expenditure made on ice chests or ice boxes was made for acquiring or bringing into existence an asset for the enduring benefit of the business and was of the nature of capital expenditure.The two-member bench of Anubhav Sharma (Judicial Member) and N.K. Billaiya (Accountant Member) has observed that if the...

ITAT Quashes Penalty Notice Which Was Silent On Specification Of Charges

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the penalty notice, which was silent on the specification of charges.The bench of Astha Chandra (a judicial member) and Shamim Yahya (an accountant member) has observed that no specification of charge in the penalty notice leads to the same becoming void, and the penalty on that count is to be deleted.The penalty...

Income Tax Exemption On The Voluntarily Payment Made By The Employer To The Employee Out Of Appreciation: ITAT

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has held that the payment has been made voluntarily by them out of appreciation for the employee and thus falls outside the rigours of Section 17(3)(iii) of the Income Tax Act.The two-member bench of R.S. Syal (Vice President) and Partha Sarathi Chaudhury (Judicial Member) has observed that the department could not produce any...

Non-Compete Fee Related To Profession Is Made Taxable Only w.e.f. AY 2017-18: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that a non-compete fee related to a profession is made taxable only with effect from AY 2017–18, and the non-compete fee in relation to a profession for periods prior to AY 2017–18 would be treated as a capital receipt.The bench of Astha Chandra (Judicial Member) and Shamim Yahya (Accountant Member) has decided in favor...

In Absence Of Proper Show Cause Notice To The Assessee, There Is No Merit In Levy Of Penalty: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal has held that where the initiation of penalty is one limb and the levy of penalty is another limb, then in the absence of proper show cause notice to the assessee, there is no merit in the levy of penalty.The bench of Anil Chaturvedi (Accountant Member) and Yogesh Kumar Us (Judicial Member) has relied on the decision of the Bombay High Court...

ITAT Allows Section 54F Deduction Though Capital Gain Scheme Account Was Not Opened

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the deduction under section 54F though the capital gain scheme account was not opened.The two-member bench of V. Durga Rao (Judicial Member) and G. Manjunatha (Accountant Member) has observed that even though the assessee has not invested the sale proceeds in Capital Gain Account Scheme, but complied with the...

Tax Cases Weekly Round-Up: 19 March To 25 March 2023

Supreme Court Only Retail Sale Can Claim Assessment Benefits Under Section 4A Of Central Excise Act : Supreme Court Case Title: Commissioner Of Central Excise & Service Versus M/S. A.R. Polymers Pvt. Ltd. Etc. Citation: 2023 LiveLaw (SC) 223 The Supreme Court has held that mere affixation of MRP does not make goods eligible for central excise duty exemption, and what...