Non-Deduction of TDS At The Year End As The Amount Payable Was Not Identifiable: Penalty not justifiable- ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT), consisting of Kul Bharat (Judicial Member) and R.K. Panda (Accountant Member), upheld the CIT(A) order, holding that the mere fact that taxes were not deducted on the year end provision but were deducted and deposited upon crystallisation of liability to pay the expenses does not automatically justify the imposition of a...

Income Tax Deduction Available On Distribution Of Gifts For Sales Promotion Even If Assessee Refuses To Share List Of Recipients: ITAT

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) headed by Rajpal Yadav (Vice President) and Waseem Ahmed (Accountant Member) has held that the assessee was eligible for an income tax deduction on the distribution of gifts for sales promotion even if the assessee refused to share the list of recipients.The assessee/respondent is in the business of installing computers...

Non-Appearance Of Assessee In Response To Notice Issued Electronically Under Section 142(1) Of Income Tax Act A Bonafide Mistake: ITAT Mumbai

The Mumbai Bench of ITAT, consisting of members G.S. Pannu (President) and Vikas Awasthy (Judicial Member), has ruled that non-compliance by the assessee of a notice issued electronically under Section 142(1) of the Income Tax Act, 1961 in the first year of transition towards an online and digital interface by the revenue department, is not deliberate and is a bonafide...

Belated Deposit Of PF And ESI Contribution Of Employees Cannot Be Added To Employer's Taxable Income: ITAT Delhi

The Single Bench of Delhi ITAT, consisting of judicial member Kul Bharat, has ruled that belated payment of employees' contribution to the Provident Fund and State Insurance Scheme cannot be added to the employer's taxable income as deemed income, if the said deposits are made before the due date of filing the income tax return under the Income Tax Act, 1961. The...

No Suppression Of Fact By Adani Enterprise, Extended Period Of Service Tax Demand Not Invokable, says CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), consisting of Ramesh Nair (Judicial Member) and Raju (Technical Member), has ruled that the extended period of limitation was not invokable as there was no suppression or willful misstatement on the part of the Adani Enterprise.The appellant/assessee is in the business of providing various...

Flight Testing Services Provided To Hindustan Aeronautics Not Taxable As Fees For Technical Services: Bangalore ITAT

The ITAT Bangalore Bench, consisting of members George George K (Judicial Member) and Padmavathy S (Accountant Member), has ruled that flight testing services provided to Hindustan Aeronautics Limited cannot be taxed as fees for technical services and therefore no TDS is required to be collected on it. The Assessee Hindustan Aeronautics Limited (HAL), a public sector undertaking of...

LTCG On Penny Stock Transaction Cannot Be Denied Exemption In Absence Of Incriminating Material: ITAT Mumbai

The Mumbai Bench of ITAT, consisting of members Rahul Chaudhary (Judicial Member) and Shamim Yahya (Accountant Member), has ruled that long term capital gains arising from a penny stock transaction cannot be denied exemption under the Income Tax Act, 1961 on the ground that the said transaction is bogus and pre-arranged in the absence of any incriminating material. The Assessee,...

AO's claim That The Assessee Is Only Into Job Work And Not Manufacturing Rejected, Deduction Allowed By ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) while allowing the deduction under Income Tax Act has rejected the claim of AO that the assessee is only into job work and not manufacturing.The two-member bench consisting of Anubhav Sharma (Judicial Member) and Anil Chaturvedi (Accountant Member) held that the transformation of articles to bring new articles into existence...

Interest On Income Tax Refund Not Connected To Permanent Establishment Under DTAA, Cannot Be Taxed As Business Income: Dehradun ITAT

The Dehradun Bench of ITAT, consisting of members Amit Shukla (Judicial Member) and Dr. B. R. R. Kumar (Accountant Member), has ruled that interest on income tax refund received by a foreign enterprise is not effectively connected to its Permanent Establishment in India and therefore it cannot be taxed as its business income under Income Tax Act, 1961. The ITAT also held that receipts...

Interest Income Derived By Gujarat Sports Authority On Its Surplus Taxable As "Income From Other Sources": Ahmedabad ITAT

The Ahmedabad Bench of ITAT, consisting of members P.M. Jagtap (Vice President) and Siddhartha Nautiyal (Judicial Member), has ruled that the interest income earned by the Gujarat Sports Authority on its deposits would be taxable as "Income from Other Sources" and not as business income under the Income Tax Act, 1961. The ITAT held that since the Sports Authority was not engaged in...

Accessing The Premises Of A JV Company For Technical Assistance Can't Be Treated As Permanent Establishment Under DTAA : Delhi ITAT

The Delhi Bench of ITAT, consisting of members N.K. Billaiya (Accountant Member) and Astha Chandra (Judicial Member), has held that access to a foreign enterprise for providing technical assistance to its Joint Venture Company in its premises in India does not amount to a Permanent Establishment under the Double Taxation Avoidance Agreement. The Assessee FCC Co. Ltd, a Japanese...

Payment To Foreign Company For Utilisation Of Transponder Of A Satellite Is Not "Royalty" As Per DTAA: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Sandeep Sigh Karhail (Judicial Member) and Prashant Maharishi (Accountant Member) ruled that the payment made to a foreign company for the utilisation of a transponder centred on a satellite was not in the nature of "royalty" in terms of the Double Taxation Avoidance Agreement (DTAA).The assessee/respondent in...