Characterization Of Share Application Money By AO As Unexplained Cash Credit Is Devoid Of Necessary Verifications: ITAT

The Raipur Bench of the Income Tax Appellate Tribunal (ITAT) has held that the characterization of the share application money of Rs. 25 lac by the AO as an unexplained cash credit under Section 68 of the Income Tax Act is clearly devoid and bereft of necessary verifications.The bench of Ravish Sood (Judicial Member) has observed that the matter, in all fairness, requires to be restored to...

Husband Entitled To TDS Credit On Interest Earned From Amount Gifted To His Wife: ITAT

The Income Tax Appellate Tribunal's (ITAT), Pune Bench ruled that the husband is entitled to TDS credit on interest earned on the amount gifted to his wife.The two-member bench of R.S. Syal (Vice President) and S.S. Viswanethra Ravi (Judicial Member) has held that where the income on which tax has been deducted at source is assessable in the hands of someone other than the deductee, credit...

Assessee Not Responsible To Explain Recipients Of Receipts Shown In Form No. 26AS: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessee is not responsible to explain the recipients of the receipts shown in Form No. 26AS.The two-member bench of Anubhav Sharma (Judicial Member) and N.K. Billaiya (Accountant Member) while deleting the additions observed that the Assessing Officer should have asked the payer, for details of the payee to whom...

Reasons Recorded For Reopening The Reassessment To Be Examined On Standalone Basis To Determine The Validity Of Proceedings U/s 147: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has observed that the reasons, as recorded for reopening the reassessment, are to be examined on a standalone basis to determine the validity of proceedings under Section 147 of the Income Tax Act.The two-member bench of Sandeep Singh Karhail (Judicial Member) and M. Balaganesh (Accountant Member) relied on the Bombay High...

Failure Of Kidney A Reasonable Cause Which Prevented Assessee To Supply The Documents And Replies To The AO: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that failure of the kidney was a reasonable cause of ailment that prevented the assessee from supplying the documents and replies to the AO.The two-member bench of Astha Chandra (Judicial Member) and Shamim Tahya (Accountant Member) has directed that the additional evidence and submissions made before the CIT(A) be accepted...

ITAT Bangalore Holds Expenditure Incurred By Flipkart Towards ESOP Is Eligible For Deduction Under S. 37 Of ITA

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the appeal of Flipkart India against disallowance of over Rs.15.5 Crore of expenses claimed by it under Section 37 of the Income Tax Act, 1961, towards Employee Stock Ownership Plan (ESOP). Flipkart had claimed that the ESOP cross charge payments made to its Singapore based Holding Company...

Tax Cases Weekly Round-Up: 12 March To 18 March, 2023

Supreme Court Non-Service Of Assessment Orders Inconsequential If Assesee Had Knowledge About Them Otherwise : Supreme Court Case Title: Commercial Tax Officer Versus Neeraja Pipes Pvt. Ltd. Citation: 2023 LiveLaw (SC) 199 Attachment orders issued by the revenue for tax arrears will not be vitiated merely because the assessment orders were not served on the assessee, if...

Income Tax Disallowances Made On Ad Hoc Basis Without Specifying A Particular Mistake: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has observed that disallowances have been done on an ad hoc basis without specifying a particular mistake.The two-member bench of Astha Chandra (Judicial Member) and Shamim Yahya (Accountant Member) has set aside the orders of the authorities below and decided the issue in favor of the assessee and observed that AO has not pointed...

Employers Have To Deposit Employees' Contribution Towards EPF/ESI On Time To Avail Income Tax Deduction: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that employers have to deposit employees' contributions towards EPF/ESI on time to avail of income tax deductions.The two-member bench of Narender Kumar Choudhry (Judicial Member) and Anil Chaturvedi (Accountant Member) has relied on the decision of the Supreme Court in the case of Checkmate Services Pvt. Ltd. vs Commissioner...

Confusion In Relation To The Service Of Intimation Through Email: ITAT Condones Delay Of 9 Years

The Amritsar Bench of the Income Tax Appellate Tribunal (ITAT) ruled that there was significant ambiguity regarding the service of notice under Section 143(1) to the assessee via email.The two-member bench of Anikesh Banerjee (Judicial Member) and Dr. M. L. Meena (Accountant Member) has observed that there has been a delay of 9 years, which is a huge delay for adjudicating the appeal by...

Income Earned From Offshore Supply Of Escalators And Elevators Is Not Taxable In India: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has observed that income earned by the assessee from the offshore supply of escalators and elevators is not taxable in India.The two-member bench of G.S. Pannu (President) and Sandeep Singh Karhail (Judicial Member) have observed that the property in goods passes on to the buyer at the port of shipment. Though the cost,...

Late Filing Of Return, Denial Of Section 80P Exemption Not Justified: ITAT

The Rajkot Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that denying the exemption under Section 80P of the Income Tax Act solely on the basis of the assessee's late filing of a return is not justifiable.The two-member bench of Suchitra Kamble (Judicial Member) and Waseem Ahmed (Accountant Member) has relied on the decision of the Kerala High Court in the case of Chirakkal...