Claim Of Deduction Under Section 54 Of Income Tax Act To Be Reckoned From The Date Of Possession Of New Property: Mumbai ITAT

The Mumbai Bench of ITAT, consisting of members Pramod Kumar (Vice President) and Kuldip Singh (Judicial Member), has ruled that an assessee's claim of deduction under Section 54 of the Income Tax Act, 1961 was to be reckoned from the date of possession of the new residential house property. Also, the ITAT ruled that the source of funds for the purchase of the new house...

ITAT Chennai: Internal Family Arrangement Has No Bearing On Computation Of Capital Gains From Joint Property

The Chennai Bench of ITAT, consisting of members V. Durga Rao (Judicial Member) and G. Manjunatha (Accountant Member), has held that capital gains under the Income Tax Act, 1961 is to be computed according to the respective share of the parties in a residential property and not according to any internal family arrangement. The Assessee had filed his income tax return, which was taken...

Non Production Of Persons Despite Summons Leads To Inference Of Routing Own Money : ITAT Delhi

The Delhi Bench of ITAT, consisting of members G.S. Pannu (President) and K. Narsimha Chary (Judicial Member), has ruled that an Assessing Officer has the power to verify transactions beyond the paperwork submitted by the Assessee under Section 68 of the Income Tax Act, 1961. The Assessing Officer (AO) had disallowed expenses and made additions to Assessee's income under Section 68...

ITAT: Unascertained Business Loss Cannot Be Allowed As Deduction

The Bangalore Bench of ITAT, consisting of members Beena Pillai (Judicial Member) and Chandra Poojari (Accountant Member), has ruled that unless the recovery of embezzled amount in the course of business was impossible, it could not be claimed as a business loss. The ITAT ruled that an unascertained loss cannot be allowed as deduction from taxable income. The Assessing Officer (AO)...

Rejection of Additional Evidence without Examination is Violation of Principles of Natural Justice: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has ruled that rejection of additional evidence without examination is a violation of principles of natural justice.The two-member bench of B.R.R.Kumar (Accountant Member) and Saktijit Dey (Judicial Member) has restored the issue to the file of Commissioner (Appeals) for de-novo adjudication after considering the additional...

ITAT Remands Matter To CIT(A) To Determine Taxable Income After Examining Nature Of Credit Entries, Bank Accounts

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) consisting of Astha Chandra (Judicial Member) and Dr. B. R. R. Kumar (Accountant Member) has remanded the matter back to CIT(A) to determine the issue afresh after examining the bank accounts and determining the taxable income. The assessee/appellant had credited a total amount of Rs.4,00,74,711/- in the bank accounts of his...

Consideration For Accessing Database Cannot Be Treated As 'Royalty' Under India-US DTAA: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT)has ruled that the consideration for accessing Database cannot be treated as 'Royalty' under India-US Double Taxation Avoidance Agreement (DTAA). The two-member bench of Challa Nagendra Prasad (Judicial Member) and N.K.Billaiya (Accountant Member) has observed that the purchaser of the book does not acquire the right to exploit...

ITAT Mumbai: Sale Of TDRs Does Not Attract Capital Gains Tax

The ITAT Bench of Mumbai, consisting of members Pavan Kumar Gadale (Judicial Member) and Prashant Maharishi (Accountant Member), has ruled that sale of transferable development rights does not attract capital gains tax since the cost of acquisition for the same does not exist. The Assessing Officer (AO) had issued a notice under Section 147 of Income Tax Act, 1961,...

Income Tax Notice, Revisionary Proceedings Against A Dead Person Is Void: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the notice issued against a dead person is null and void and all consequent proceedings or orders being equally tainted are liable to be set aside.The two-member bench of Amit Shukla (Judicial Member) and Pradip Kumar Kedia (Accountant Member) has observed that the entire proceedings beginning from issue of show...

ITAT Disallows 'Mixed Used Charges' For Regularising Usage Of Residential Premises For Commercial Purposes Against House Property Income

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has disallowed the 'Mixed Used Charges' for regularising usage of residential premises for commercial purposes against house property income. The two-member bench of N.K.Billaiya (Accountant Member) and Yogesh Kumar US (Judicial Member) held that the collection of the annual mixed used charge will not make any difference in...

Denying Carry Forward Of Business Loss Based On Non-Completion Of Tax Audit Within Prescribed Time Not Justified: ITAT

The Cochin Bench of Income Tax Appellate Tribunal (ITAT) has ruled that denying the carry forward of business loss based on non-completion of tax audit/ statutory audit within prescribed time is not justified.The two-member bench of George Mathan (Judicial Member) and Ramit Kochar (Accountant Member) said, "there could be several reasons for not getting the statutory audit/tax-audit...

ITAT Delhi: Income Tax Act Does Not Prohibit HRA Exemption On Rent Paid To Wife

The Delhi Bench of ITAT, consisting of members A. D. Jain (Vice President) and Dr. B. R. R. Kumar (Accountant Member), has ruled that HRA exemption under Income Tax Act, 1961 cannot be denied on the ground that the Assessee pays rent to its spouse. The Assessing Officer (AO), while making assessment, clubbed the rental income earned by Assessee's wife in the hands of the Assessee on...