Tax Cases Weekly Round-Up: 19 June To 25 June, 2022

Delhi High Court Right To File Objection To SCN Can't Be Denied Due To One Day Delay: Delhi High Court Case Title: Ernst & Young, US LLP Versus ACIT Citation: 2022 LiveLaw (Del) 586 The Delhi High Court bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora ruled that the right to file an objection to the Show Cause Notice cannot be denied owing to a...

Income Tax Penalty Can't Be Imposed For Inadvertent And Bonafide Mistake : ITAT

The Pune Bench of the Income Tax Appellate Tribunal (ITAT)Income Tax Appellate Tribunal (ITAT), headed by R.S. Syal (Vice President) and Partha Sarathi Chaudhury (Judicial Member), has deleted the penalty on the grounds that the excess claim of deduction was made due to a bona fide and unintentional mistake.The assessee/appellant debited to its profit & loss account: education cess on...

Section 41 Disallowance Can Only Be Made With Cogent Evidence Of Cessation Of Liability: ITAT Remands The Matter Back To AO

The Delhi Bench of theIncome Tax Appellate Tribunal (ITAT)has held that the issue of the genuineness of the purchases will be applicable only if the purchases belong to the current year.The two-member bench of Anubhav Sharma (Judicial Member) and Shamim Yahya (Accountant Member) has observed that if the department is of the opinion that purchases were made in earlier years but now...

ITAT Upholds Addition On Account Of Manipulation And Rigging Of Shares Via Penny Stock Company

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT), consisting of Saktijit Dey (Judicial Member), has upheld the addition on the grounds that there was an astronomical increase in the price of the shares due to price manipulation and rigging. The assessee/appellant is a resident Hindu Undivided Family (HUF). For the assessment year under dispute, the assessee filed its...

Notice Didn't Contain Categorical Indication Of Furnishing Inaccurate Particulars Or Concealment Of Particular Income: ITAT Quashes Penalty Proceedings

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT)has quashed the penalty proceedings as the notice issued to the assessee did not mentioned a categorical indication of specific violation in respect of furnishing inaccurate particulars or concealment of particular income.The two-member bench headed by G.S. Pannu (President) and Anubhav Sharma (Judicial Member) has observed that...

Other Income Tax Additions In Reassessment Proceedings Cannot Be Sustained If Addition on Primary Grounds Is Not Made: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) consisting of C.N. Prasad (Judicial Member) has observed that if the Assessing Officer does not make any addition on the primary ground on the basis of which procedings under Section 147 of the Income Tax Act were initiated, he cannot make other additions.The assessee/appellant has challenged the validity of the assessment made...

Reassessment Order Can't Be Made Until There Has Been Service Of Notice: ITAT

The Delhi Income Tax Appellate Tribunal (ITAT) consisting of C.N. Prasad (Judicial Member) has observed that reassessment cannot be made until there has been service of notice.The assessee/appellant has challenged the validity of the reassessment order, stating that the mandatory requirement of service of notice under section 148 of the Income Tax Act was not followed, which...

Tax Cases Weekly Round-Up: 12 June To 18 June, 2022

Delhi High CourtDelhi High Court Quashes Assessment Order For Not Giving Opportunity To File Objection To SCN Case Title: Jindal Exports and Imports Private Limited Vs DCIT The Delhi High Court bench of Justice Manmohan and Justice Dinesh Kumar Sharma has quashed the assessment order as the assessee was not given an opportunity to file an objection to the show...

Appeal Filed By A Struck Off Company Against The Revenue Department Is Maintainable: ITAT Delhi

The Delhi Bench of ITAT has ruled that an appeal filed by a Company against the order passed by the revenue department does not become infructuous if, thereafter, the Company has been struck off from the Register of Companies. The Bench, consisting of Yogesh Kumar U.S. (Judicial Member) and B. R. R. Kumar (Accountant Member), held that a Certificate of Incorporation issued to a...

Non-Service Of Notice On Assessee: ITAT Quashes Reassessment Order

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the reassessment order on the grounds that the notice was not served on the assessee. The bench of Challa Nagendra Prasad (Judicial Member) found that the department failed to prove proper service of the reassessment notice on the assessee. The assessee/appellant challenged the order of the CIT (Appeals) on...

ITAT Deletes Additions As Assessee Proved Genuineness Of Purchases By Documentary Evidence

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the additions on the grounds that the assessee proved the genuineness of the purchases through documentary evidence.The two-member bench of Yogesh Kumar US (Judicial Member) and Pradeep Kumar Khedia (Accountant Member) has excluded the statement of the witness of the department as no opportunity of cross-examination...

Depreciation To Be Carried Forward For Set Off In Succeeding Assessment Years: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) headed by G.S. Pannu (President) and C.N. Prasad (Judicial Member) has ruled that in case the depreciation exceeds the business income, then the Assessing Officer should allow the depreciation to be carried forward for set off in succeeding assessment years.The respondent/assessee for the AY 2016-17 e-filed the return of...