ITAT Deletes Income Tax Addition On Interest Income Received Out Of FDs

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition on the interest income received out of the fixed deposits.The bench of Kavitha Rajagopal (Judicial Member) and B R Baskaran (Accountant Member) has observed that AO has failed to corroborate the fact that the FD made by the assessee is out of the surplus funds held by the assessee in a case where the assessee...

ITAT Allows Section 54F Deduction On Construction Of The New Dwelling/Residential Unit

The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has allowed the deduction under Section 54F of the Income Tax Act on construction of the new dwelling/residential unit.The bench of Aby T. Varkey (Judicial Member) and Amitabh Shukla (Accountant Member) has observed that the assessee had discharged the burden to prove construction of a residential house/dwelling unit (first floor...

Vague Notice With Inaccurate Particulars Of Income Vitiates Penalty Proceedings: ITAT

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the AO failed to specify whether the penalty was for concealment or inaccurate particulars in the notice issued under Section 274 and Section 271(1)(c) of the Income Tax Act.The bench of Suchitra Kamble (Judicial Member) and Makarand V. Mahadeokar (Accountant Member) has observed that the penalty notice must clearly...

ITAT Weekly Round-Up: 4 To 10 August 2024

Contribution Towards NPS Made Prior To Filing Of Return: ITAT Deletes AdditionCase Title: Adani Petronet Versus AOThe Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition of employees contribution towards the National Pension System (NPS) as the contribution towards NPS made prior to filing of the return.Additions U/s 69C On Account Of Excess Stock Can't Be...

ITAT Declines To Stay Cancellation Of Exemption Notification To Legal Initiative For Forest And Environment Trust (LIFE)

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has dismissed the stay application filed by assessee-LIFE Trust against the withdrawal/cancellation of registration for exemption granted under section 12A/12AA/12AB from FY 2013-14 onwards. The registration was cancelled on account of activities of the trust being determined to be non-genuine and not in accordance with the objects of...

Requirement Of Filing Audit Report In Form 10B Is Only Procedural: Delhi ITAT Grants Exemption To Educational Trust U/s 11

The New Delhi ITAT held that non uploading of Form 10B within the date prescribed under the Income tax Act would not be fatal to the claim of exemption u/s 11. Section 11 of the Income Tax Act provides exemptions to income derived from property held under trust or institutions wholly for charitable or religious purposes to the extent that such income is applied to charitable...

'Unsecured Loans' Can't Be Treated As Income U/s 68 Once Legitimacy Of Credits Stands Proved: Ahmedabad ITAT

Referring to the decision in case of Commissioner of Income-tax, Rajkot-I vs. Ayachi Chandrashekhar Narsangji [2014] 42 taxmann.com 251 (Guj), the Ahmedabad ITAT reiterated that no addition should be made u/s 68 as well as section 69C, if the repayment of loans is accepted by the department in subsequent years. Section 68 of the Income tax Act aims to ensure individuals and...

Absence Of Diligence On Part Of Applicant Would Disentitle It To Benefit Of Condonation Of Delay As Per Sec 249(2): Pune ITAT

Finding that the assessee has not shown any action or vigilance for a period of more than five years after the assessment order was served upon it, the Pune ITAT held that such inaction and want of diligence on part of applicant would disentitle it to the benefit of Sec 249(2) in condoning the delay. As per Section 249(4) of Income tax Act, in a case where no return of income has...

Interest Income Earned From Deposits With Co-Operative Banks Shall Be Allowed As Deduction U/s 80P(2)(D): Ahmedabad ITAT

The Ahmedabad ITAT allowed deduction u/s 80P(2)(d) on interest income earned from deposits with Co-operative Banks. Section 80P of Income tax Act is applicable solely to primary agricultural credit societies or rural development and primary cooperative agricultural banks. The Division Bench of TR Senthil Kumar (Judicial Member) and Ramit Kochar (Accountant Member) reiterated...

Bangalore ITAT Grants TCS Credit To IMFL Dealer Even Though License Was In Name Of Another Person

Referring to the case of Million Traders Bhopal Pvt. Ltd. vs. ADIT [ITA Nos. 124 & 125/Ind/2023], the Bangalore ITAT allowed TCS credit to the entity conducting the business of IMFL, irrespective of the fact that the license was in the name of another person. The ITAT maintained the status quo observing that identical issue was decided in similar fashion in all previous...

Additions U/s 69C On Account Of Excess Stock Can't Be Based On Third Party Statements Alone Without Any Corroboration: Delhi ITAT

The New Delhi ITAT deleted the additions made u/s 69C on account of excess stock found during survey, after finding that those additions were solely based on the statements recorded of third parties, without any corroborative evidence of unaccounted sales. As per Section 69C of Income Tax Act, where in any financial year an assessee has incurred any expenditure and he...

Contribution Towards NPS Made Prior To Filing Of Return: ITAT Deletes Addition

The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition of employees contribution towards the National Pension System (NPS) as the contribution towards NPS made prior to filing of the return.The bench of T.R. Senthil Kumar (Judicial Member) and Annapurna Gupta (Accountant Member) has observed that NPS is regulated by the Pension Fund Regulatory and...