Benefit Of Carried Forward Business Losses And Unabsorbed Depreciation Losses Can't Be Availed For Ingenuine Amalgamation/Demerger: ITAT

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) consisting of S.S. Vishwanethra Ravi (Judicial Member) and Inturi Rama Rao (Accountant Member) has held that the benefit of section 72A of the Companies Act, 1956 cannot be availed if the sole idea of the amalgamation was only to avail the benefit of carried forward business losses and unabsorbed depreciation losses as it is not...

ITAT Directs Revenue To Give Effect To High Court Order Holding Software License Charges Received By EY Not Taxable As 'Royalty'

The Delhi Bench of ITAT has directed the revenue authorities to give effect to the order passed by the Delhi High Court in favour of EY Global Services Limited (UK) (EYGSL (UK), holding that payments received by EYGSL (UK) from its member firms in India, towards Software License and Maintenance Charges, Global Technology Charges and GWAN Connectivity Charges, are not taxable in...

SFIS Credit Does Not Constitute Taxable Income: ITAT Delhi

The Delhi Bench of ITAT has ruled that the credit received by the assessee under the "Served From India Scheme" (SFIS) is not in the nature of income and that it does not constitute taxable income under Section 2(24) (xviii) of the Income Tax Act, 1961. The Bench, consisting of Yogesh Kumar US (Judicial Member) and Dr. B.R.R. Kumar (Accountant Member), observed that the SFIS credit...

Expenditure Incurred On Trademark Registration Is A Revenue Expenditure: ITAT Allows Deduction

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT)has allowed the deduction and held that the expenditure incurred on trademark registration is a revenue expenditure. The two-member bench of Suchitra Kamble (Judicial Member) and B.M. Biyani (Accountant Member) has ruled that the amendment in section 32 of the Income Tax Act from A.Y. 1999-2000 which allows deprecation...

Cash Deposits Related To 'Shroff Business' Is Not An Undisclosed Income: ITAT

The Rajkot Income Tax Appellate Tribunal (ITAT), consisting of TR Senthil Kumar (Judicial Member) and Annapurna Gupta (Accountant Member), has ruled that the cash deposits related to the Shroff business are not an undisclosed income. The assessee/respondent is in a Shroff business and derives income from commission. The AO had information that there was a cash deposit...

Sale Of Renewable Energy Certificate Of Income Received By The Assessee Is A Capital Receipt: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the sale of renewable energy certificates (carbon credit) of income received by the assessee is a capital receipt. The two-member bench of Kuldip Singh (Judicial Member) and Gagan Goyal (Accountant Member) has observed that the sale of carbon credit could not be a business receipt or income, nor is it...

Approval Of Demerger Would Not Entail The Benefit Of Set-Off Under Section 72A Of Income Tax Act: ITAT

The Pune Bench of ITAT has ruled that the mere fact that the scheme of demerger or amalgamation was approved by the High Court, does not automatically entitle the assessee to claim the set-off of brought forward business losses relating to the demerged or amalgamating undertaking. The Bench, consisting of S. S. Viswanethra Ravi (Judicial Member) and Inturi Rama Rao (Accountant...

ITAT Directs AO To Allow Depreciation On Molasses Tanks By Making The Correct Computation Of New Assets

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT), consisting of Aby T Varkey (Judicial Member) and Girish Agarwal (Accountant Member), has directed the assessing officer to allow the depreciation on molasses tanks by making the correct computation of new assets. The appellant/assessee is a limited company and is in the business of manufacturing sugar. It has its...

Imparting Skill Development Is Akin To Providing Education, Eligible For Section 12AA Registration: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Yogesh Kumar U.S. (Judicial Member) and B.R.R. Kumar (Accountant Member) has held that the assessee is eligible for registration under section 12AA of the Income Tax Act for imparting skill development, which is akin to providing education. The appellant/assessee, C.R. Dadhich Memorial Society was established...

Fee Paid For Client Referral Services Is A Normal Business Payment And Not FTS: ITAT Delhi

The Delhi Bench of ITAT has ruled that fees paid by the assesssee to a non-resident for providing services of introduction of clients would fall in the definition of payments made to an intermediary and the same cannot be said to be a technical service. The Bench, consisting of Anubhav Sharma (Judicial Member) and Shamim Yahya (Accountant Member), held that the remittances made by...

Reassessment Proceedings Can't Be Initiated On Same Set Of Facts Available: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the reassessment proceedings cannot be initiated by applying a fresh application of mind to the same set of facts available at the time of the original scrutiny assessment proceedings.The assessee is in the business of real estate. The assessee e-filed its return of income, declaring a total loss. The assessee...

Expenditure Incurred After Set-Up of Business Is Allowable As Deduction, Even If No Business Income Is Earned By The Assessee : ITAT Chennai

The Chennai Bench of ITAT has ruled that once the business of an assessee is set-up, all the expenditure incurred by it would be allowable as deduction, notwithstanding the fact that no business income was earned by the assessee during the relevant year. The Bench, consisting of Mahavir Singh (Vice President) and Manoj Kumar Aggarwal (Accountant Member), reiterated that there may be...