ITAT Cases Monthly Round Up: June 2024

Salary Reimbursements Of Seconded Employees Is Not Taxable As Fees For Technical Services: ITATCase Title: IBM Canada Limited Versus DCITThe Bangalore Bench of Income Tax Appellate Tribunal (ITAT) has held that salary reimbursements of seconded employees are not taxable as fees for technical services.ITAT Quashes Assessment Order Against Bret Lee As Reassessment Notice Not Served Within Limitation PeriodCase Title: M/s. Valeo Friction Materials India Ltd. Versus Commissioner of CustomsThe Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the royalty is not included in the transaction value of the imported raw materials to demand any differential customs duty.No Disallowance Under Section 14A Of Income Tax Act Is Warranted In Respect Of Investments Not Yielding Tax Free Income: ITATCase Title: DCIT Versus Paranjapee Schemes Construction Ltd.The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that disallowance has to be worked out on the basis of investment which yielded dividend during the year and not by factoring in the total amount of investment.Computation Of 6 Assessment Years For Search Assessments U/S 153C Starts From Date Of Receiving Seized Documents: ITATCase Title: M/s Esha Securities Pvt Ltd Versus Dy. CITThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the computation of six assessment years for search assessments under Section 153C of the Income Tax Act starts from the date of receiving seized documents.Cash Deposits Made From Assessee's Parents Accumulated Savings And Income From Agricultural Activities; ITAT Deletes AdditionCase Title: Vivek Prahladbhai Patel Versus ITOThe Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition made by the department as the cash deposits made from the assessee's parents accumulated savings and income from agricultural activities.Section 80G Deduction Allowable On CSR Expenditure: ITATCase Title: M/s. Alubound Dacs India Private Limited Versus Dy. CITThe Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the deduction under Section 80G of the Income Tax Act is allowable on the expenditure in respect of corporate social responsibility (CSR).Non-Compete Fee To Be Treated As “Revenue Receipt” From 01.04.2003: ITATCase Title: ACIT-2(2)(1) Versus Lyka Labs Ltd.The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the non-competitive fee received by the assessee is treated as 'revenue receipt' in the hands of the assessee but only post-amendment, i.e., w.e.f. 01.04.2003.Shed Of 500 Mtr. On Agricultural Land Can't Be Considered As Residential House, Section 54F Exemption Not Allowable: ITATCase Title: ACIT Versus Himanshu GargThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has denied the exemption under Section 54F of the Income Tax Act on the 500-meter shed made on agricultural land that cannot be considered a residential house.Income From Reselling Of Subscription Based Product Is Royalty: ITATCase Title: Gartner Ireland Ltd. Versus DCITThe Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the income from the reselling of subscription-based products is royalty.Income Tax Deduction Allowable On Expenditure Incurred On Warranty Claim: ITATCase Title: Grey Orange India Pvt. Ltd. Versus ACITThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the income tax deduction is allowable on expenditures incurred on warranty claims.RPM Is Most Appropriate Method To Benchmark Transaction Of Purchase Of Solar Goods: ITATCase Title: D Light Energy P. Ltd. Versus Assessing OfficerThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the Resale Price Method (RPM) is the most appropriate method to benchmark the transaction of the purchase of solar goods.ITAT Kolkotha Allows Exemption Registration To Income Tax Bar Association, Sets Aside CIT OrderCase Title: Income Tax Bar Association Calcutta Versus Commissioner of Income Tax (Exemption)The Calcutta Bench of Income Tax Appellate Tribunal (ITAT) has allowed the exemption registration to the income tax bar association as the registration application was not time-barred.Absence Of 'FTS' In Treaty Is No Basis To Tax Technical Services Rendered To AE, In Absence Of Its PE In India: Delhi ITATCase Title: Denso (Thailand) Co. Ltd Vs ACITThe Delhi ITAT ruled that though income received by a non-resident entity towards services provided to Indian associate enterprises (AE) are in nature of 'fees for technical service' (FTS), but same cannot be taxed in India simply in absence of FTS clause under respect treaty provisions.Assessments Concluded U/s 153A Without Mandatory Approval U/s 153D Would Be Void: Delhi ITATCase Title: Emaar MGF Land Limited Vs ACITThe Delhi ITAT allowed the Assessee's appeal challenging assessments completed u/s 153A r/w Section 143(3) as void, in absence of mandatory approval u/s 153D.Income Tax Addition On Unaccounted Sales And...

ITAT Cases Monthly Round Up: June 2024

Mariya Paliwala

Tags