ITAT Cases Weekly Round-Up: 26 May To 01 June 2024

Date Of Possession Of New Property To Be Considered As Date Of Acquisition; ITAT Allows DeductionCase Title: Sunil Amritlal Shah Versus The Income Tax Officer(IT)The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the date of possession of new property to be considered as date of acquisition and the assessee is entitled to deduction under Section 54 of the Income Tax Act on the purchase of new property.Receipts From CRM Services Not Taxable In India As Royalty Or FTS: ITATCase Title: Salesforce.com Singapore Pte Ltd. Versus ACITThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that receipts from Customer Relationship Management (CRM) services are not taxable in India as royalty or Fee for Technical Services (FTS).CSR Expenditure Is Mandatory, Does Not Justify Disallowance Of Section 80G Deduction: ITATCase Title: Interglobe Technology Quotient Private Limited Versus ACITThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that expenditures under corporate social responsibility (CSR) are mandatory and does not justify disallowance of these expenditures under Section 80G of the Income Tax Act if other conditions of Section 80G are fulfilled.Interest Not Leviable From Assessee For Short Payment Of Tax Due To Payer's Default In Deducting TDS Before FY 2012-2013: ITATCase Title: Computer Modelling Group Ltd. Versus ACITThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that since the assessee was a non-resident, the entire tax was to be deducted at source on payment made by the payer to it, and there was no question of advance tax payment by the assessee; accordingly, no interest under Section 234B could be levied upon the assessee.Grant U/s 80G Can't Be Rejected Merely On Procedural Lapse By Making Application U/s 80G(5)(Ii) Inadvertently Instead Of U/s 80G(5)(Iii): Ahmedabad ITATCase Title: Shree Bipin Biharidas Charitable Foundation verses CIT (Exemption)Referring to the decision of the Calcutta Bench in ITA No. 994/Kol/2023, the Ahmedabad ITATreiterated that the assessee, who has been granted provisional registration, is eligible to apply for final registration irrespective of the fact that the assessee had already commenced its activity even prior to the date of grant of provisional approval.Rectification Application U/s 154 Can't Be Termed As Time-Barred If Taxpayer Duly Responded To Notices Issued In Consequence To Intimation U/S 143(1): Ahmedabad ITATCase Title: Shree Jay Limbach Co. Op. Credit Society Ltd. verses ITOObserving that the assessee was all along, from the beginning since it became aware of some intimation having been made u/s 143(1) of the Income tax Act, seeking rectification in the same, the Ahmedabad ITAT held that rejection of said rectification application as being time barred is not in conformity with law.Loss Due To Sale Of Government Securities By Bank Is “Business Loss”; ITAT Allows Income Tax DeductionCase Title: Kankaria Maninagar Nagarik Sahakari Bank Ltd. Versus Deputy Commissioner of Income TaxThe Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that loss due to the sale of government securities by banks is a “business loss” and the income tax deduction is allowable under Section 37 of the Income Tax Act.SBI Not Liable To Deduct TDS On Transactions Related To Assignment Of Loans By NBFC: ITATCase Title: State Bank of India Versus DCIT(TDS)The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the State Bank of India (SBI) is not liable to deduct tax at source (TDS) on transactions related to the assignment of loans by non-banking financial companies (NBFC).Mark-To-Market Loss, Loss On Forward Contracts, Loss On Forward Premium Account Not Speculative In Nature, ITAT Deletes AdditionCase Title: DCIT Versus J. K. Techno soft Ltd.The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has deleted the income tax addition and held that mark-to-market losses, losses on forward contracts, and losses on forward premium accounts are not speculative in nature.Receipts By Foreign Entity From Provision Of Software Services In India Are Not Taxable U/s 44BB In Absence Of Its PE In India: Delhi ITATCase Title: Computer Modelling Group Ltd Vs ACITThe Delhi ITAT held that receipts by a foreign entity from provision of software services to oil companies in India being in the nature of business profits are not taxable in India in the absence of its Permanent Establishment (PE) during the relevant AYs.Once Cash Deposits In Bank A/C Of Lender Firm Is Accepted As Coming From Explained Sources, No addition Is Permitted U/s 68 As Unsecured Loan: Delhi ITATCase Title: Devki Nandan Maheshwari Vs ACITThe Delhi ITAT deleted the addition made u/s 68 being unsecured loan obtained from a firm by the Assessee for further investment in a company on the ground that the identity, creditworthiness, and genuineness of the transaction stands proved.Final Assessment Made By AO After Expiry Of One Month Of Receiving...

ITAT Cases Weekly Round-Up: 26 May To 01 June 2024

Mariya Paliwala

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