Tax
Delhi ITAT Deletes ALP Adjustment Qua Interest On Loan To AEs, Considering Tenure & Commercial Prudence
The Delhi ITAT deleted the ALP adjustment made on account of interest on loan extended to AE by assessee, engaged in manufacturing of Seamless, ERW Pipes and Tubes, and trading of Pipes and Tube.The Bench comprising Saktijit Dey (Vice President) and Dr. B.R.R. Kumar (Accountant Member) observed that “With regard to the guarantee in the agreement between Citibank, Singapore and JPSPL, it...
Date Of Agreement Can't Be Construed As Date Of Sale Of Shares, For Purpose Of Computation Of Capital Gains: Mumbai ITAT
The Mumbai ITAT ruled that the date of the agreement by no stretch of imagination could be the date of sale of the shares by the assessee to the purchaser, for purpose of computation of capital gains.The Bench of Prashant Maharishi (Accountant Member) and Kavitha Rajagopal (Judicial Member) observed that “As per the decision of Bharti Gupta Ramola v. CIT [2012] 20 taxmann.com 762 the date...
PCIT Cannot Enlarge Scope Of Limited Scrutiny By Invoking Sec 263: Chennai ITAT
Finding that the case of assessee was selected for limited scrutiny by the AO, the Chennai ITAT ruled that the PCIT cannot enlarge the scope of limited scrutiny u/s 263 of the Income tax Act.The Bench of V. Durga Rao (Judicial Member) and Manjunatha, G. (Accountant Member) observed that “it is not a fit case to invoke the provisions of section 263 of the Act and pass revision order, where...
Only Profit Element On Non-Genuine Purchases Merits To Be Disallowed And Not Entire Purchases: Mumbai ITAT
Referring to the decision of Bombay High Court in case of PCIT vs. Ram Builders (454 ITR 444), the Mumbai ITAT reiterated where assessee was involved in execution of civil works and it had shown purchases from twelve parties even if assessee failed to produce said parties for verification, then AO could not have treated entire purchases as non-genuine purchases but only profit element on...
Date Of Satisfaction Note Is To Be Reckoned As Date Of Handing Over Material, For Initiation Of Proceedings U/s 153C: Delhi ITAT
Finding that the assessment year 2008-09 is beyond the period of six assessment years and respectfully following the decision of the jurisdictional High Court and the coordinate bench, the New Delhi ITAT held that the assessment made u/s 153C of Income tax Act for the AY 2008-09 is barred by limitation.The Bench of Challa Nagendra Prasad (Judicial Member) and Dr. BRR Kumar (Accountant...
Jurisdiction To Levy Fee U/s 234E While Processing TDS Returns Is Prospective In Nature And Excludes Period Prior To June 01, 2015: Chandigarh ITAT
Pointing that though there has been a delay in filing TDS returns, however, the TDS return has been filed much before 1.6.2015 and none of the cases involved a case of continuing default where the assessee has defaulted in furnishing the TDS statement even after 01.06.2015, the Chandigarh ITAT ruled that there is no basis for levy of fees u/s 234E of Income tax Act, 1961.The Bench of Aakash...
AO Lacks Jurisdiction To Frame Assessment U/s 153C/143(3) In Absence Of Valid Satisfaction Note: Mumbai ITAT
On finding that the AO have not recorded valid satisfaction note in the case of the “other person”/assessee in the case as required by section 153C of the Income Tax Act, 1961, the Mumbai ITAT held that the AO lacked jurisdiction to frame assessment u/s 153C/143(3) and therefore assessment framed by AO are held to be without jurisdiction and therefore quashed.The Bench of the ITAT...
Once ITO Accepted Income Earned Which Is Totally Based Upon Depreciation Plus 15% Markup, There Is No Reason To Deny Cost: Delhi ITAT
Finding that the assessee had arrangement with its AE for billing cost plus 15%, which has been duly billed during the year and entire depreciation cost plus 15% has been billed to the AE, the New Delhi ITAT allowed the depreciation claimed by assessee.The Bench of Shamim Yahya (Accountant Member) and Challa Nagendra Prasad (Judicial Member) observed that “When the Revenue is accepting...
Advance Filing Of Form 10B Along With I-T Return Is Not Mandatory Requirement For Claiming Exemption U/s 11 & 12: Ahmedabad ITAT
Referring to the decision in case of Association of Indian Panel board Manufacturer v Deputy Commissioner of Income Tax [2023] 157 taxmann.com 550 (Gujarat), the Ahmedabad ITAT reiterated that filing of Form 10B along with the return of income is only a procedural requirement and cannot be treated as mandatory requirement for the purpose of claiming exemption u/s 11 & 12 of the Income tax...
Even If Organisation Is Not Entitled To Benefit U/s 11, It Is Entitled To Claim Expenses Incurred During Year Against Gross Receipts: Kolkata ITAT
On perusal of the audited balance sheet and profit and loss account, the Kolkata ITAT opined that if the assessee is given deduction of expenditure incurred during the year, which it is entitled to, then there will be a net loss against gross receipts during the year, which interalia included receipt of membership and donation from members.The Bench of Dr. Manish Borad (Accountant Member)...
Ahmedabad ITAT Quashes Reopening In Absence Of Tangible Material With AO To Form Reason To Believe Escaped Assessment
The Ahmedabad ITAT quashed reopening proceedings finding that there was no tangible material available with the AO to form a reason to believe that the income of assessee has escaped assessment.The Bench of Waseem Ahmed (Accountant Member) and Siddhartha Nautiyal (Judicial Member) observed that “simply that Shri Prakash bhai Ishwar bhai Changela and the assessee are maintaining the bank...
No GST Payable By Fair Price Shop Selling Kerosene Oil To Ration-Card Holders: AAAR
The West Bengal Appellate Authority of Advance Ruling (AAAR) has held that no GST is payable by fair-priced shops selling kerosene oil to ration-card holders.The bench of Navneet Goel and Devi Prasad Karanam, while upholding AAR's ruling, has observed that the S.K. oil shop of the dealer under the Kerosene Control Order, 1968, is also a "fair price shop" as commodities, i.e., S. K. oil under...