Employee Contribution To PF/ESI Before ITR Filing Eligible For Income Tax Deduction: ITAT

The Banglore Bench of Income Tax Appellate Tribunal (ITAT) has ruled that an Employee contribution to Provident Fund (PF)/ Employee State Insurance (ESI) before ITR filing is eligible for income tax deduction. The single member bench of Vice President, N.V.Vasudevan in the light of the decision of the Karnataka High Court in the case of M/s Essae Teraoka (P.) Ltd vs DCIT observed...

Inspection And Examination Of Goods Before Shipment Not Taxable As Technical And Managerial Services: ITAT Delhi

The Delhi Bench of ITAT, consisting of members Amit Shukla (Judicial Member) and Dr. B. R. R. Kumar (Accountant Member), ruled that inspection and examination of goods before shipment cannot be treated as technical and managerial services under Section 9 (1) of the Income Tax Act, 1961. The Commissioner of Income Tax (Appeals) (CIT (A)) had confirmed the additions made to...

Invalid Re-Assessment By AO Cannot Be Subject Matter Of Revision Under Section 263 Of Income Tax Act: ITAT Mumbai

The Bench of ITAT Mumbai, consisting of members Kuldip Singh (Judicial Member) and M. Balaganesh (Accountant Member), held that when an assessment framed by the Assessing Officer is invalid in law, the said invalid order cannot be the subject matter of revision under Section 263 of the Income Tax Act ,1961. The Assessing Officer (AO) had reopened assessment for the relevant years...

Reassessment Proceedings Not Time Barred When Time Limit Increased Retrospectively Under Income Tax Act: ITAT

The Mumbai Bench of ITAT, comprising of members Pramod Kumar (Vice President) and Suchitra Kamble (Judicial Member), has held that reassessment proceeding cannot be held time barred when an amendment increasing limitation of time is expressly stated to be retrospective. The court added that it was not open to the ITAT and Commissioner of Income Tax (Appeals), to contest the validity...

Loss On Investment In Subsidiary, Made To Boost Sales, Deductible As Revenue Expenditure, Rules ITAT

The ITAT Bench of Chennai, consisting of members V. Durga Rao (Judicial Member) and Manoj Kumar Aggarwal (Accountant Member), allowed the loss on investment made in subsidiary company for increasing business expediency to be written off as business loss. Allowing deduction of legal fee and due diligence expenditure incurred in acquiring a foreign entity, the ITAT ruled that the loss...

AOP Running Educational Institution Eligible For Exemption Under Section 10 (23C) (VI) Of The Income Tax Act, Rules ITAT

The ITAT Bench of Mumbai, consisting of members Kuldip Singh (Judicial Member) and Prashant Maharishi (Accountant Member), ruled that an unregistered Association of Persons (AOP), formed by an agreement merging two charitable Trusts, is eligible for exemption under section 10 (23C) (vi) of the Income Tax Act, 1961. The Assessee, an educational institution, formed as an AOP, filed...

CBDT Circular Denying Tax Benefit Under MFN Clause Transgresses Income Tax Act, Rules ITAT

The ITAT Bench of Pune, consisting of members R.S. Sayal (Vice President) and Partha Sarathi Chaudhury (Judicial Member), has held that the CBDT Circular, issued in February 2022, requiring a separate notification by the Government of India for importing the benefit of the Most Favoured Nation (MFN) clause into a Double Taxation Avoidance Agreement (DTAA), transgressed the...