Mumbai ITAT Upholds Exemption Granted On LTCG Upon Sale Of Equity Shares Of Indian Entity Holding Valid TRC

The Mumbai ITAT upheld the exemption of long-term capital gain granted to the Assessee, holding a valid Tax Residency Certificate (TRC), under Article 13 of India-Mauritius DTAA, on sale of equity shares of an Indian company, acquired prior to April 01, 2017.The Division Bench comprising Prashant Maharishi (Accountant Member) and Sandeep Singh Karhail (Judicial Member) observed that...

Reassessment Proceedings Initiated On Account Of Change Of Opinion Merits To Be Quashed: Mumbai ITAT

While confirming the CIT(A)'s order quashing the reassessment order, the Mumbai ITAT held that the reassessment proceedings were initiated on account of change of opinion formed on re-appraisal of the facts already on record and examined during the regular assessment proceedings.The Division Bench comprising B.R. Baskaran (Accountant Member) and Rahul Chaudhary (Judicial Member) observed...

Management Fee On ECB Partakes Character Of 'Interest' U/s 2(28A), Hence Exempt Under Art.11 Of Indo Germany DTAA: Delhi ITAT

The Delhi ITAT ruled that management fee received by the non-resident taxpayer bank for extending ECB to an Indian entity is not taxable as fee for technical services (FTS) since it partakes the character of interest under Section 2(28A).Thus, the ITAT held that such management fee would be exempt under Article 11(3)(b) of India-Germany DTAA. The Division Bench comprising Saktijit Dey...

Conduct Of Enquiry As Per Sec 148A Is Not Mandatory But Discretionary: Calcutta HC Upheld Reopening Proceeding

Pointing that the information which was furnished to the assessee though contained information pertaining to the three assessment years, the information called for in the notice dated Mar 31, 2023 pertained only to the assessment year 2016-17, the Calcutta High Court upheld the reassessment proceedings despite the fact that Section 148A(b) notice issued for AY 2016-17 was accompanied...

For Computing Presumptive Income U/s 44BB, Service Tax Collected For Rendering Services Does Not Form Part Of Gross Receipts: Kolkata ITAT

The Kolkata ITAT recently ruled that service tax is not an amount paid or received for the services rendered by it, when the assessee is only collecting the service tax for passing it on to the Government account.Referring to the decision of Delhi High Court in case of DCIT Vs. Mitchell Drilling International Pvt. Ltd, the Bench comprising Sonjoy Sarma (Judicial Member) and Girish...

Failure To Furnish Segmental Information U/s 92D By Diamond Trader Is No Basis To Levy Penalty U/s 271G: Mumbai ITAT

On finding that transfer pricing adjustment made in the Arm's Length Price to be erroneous, the Mumbai ITAT deleted the penalty u/s 271G of Income Tax Act, 1961 for non-furnishing of requisite information u/s 92D.The Bench comprising Amit Shukla (Judicial Member) and S. Rifaur Rahman (Accountant Member) observed that, “levy of penalty under section 271G of the Act is neither fair nor...

Revisionary Authority Could Not Exercise Jurisdiction U/s 263 When Larger Issue Was Pending Before CIT(A): Chennai ITAT

The Chennai ITAT held that the impugned revision u/s 263 of the Income Tax Act, 1961, was bad-in-law and liable to be quashed, while pointing that when larger issue was pending before CIT(A), the revisionary authority could not exercise jurisdiction u/s 263.Referring to the decision of Madras High Court in the case of Smt. Renuka Philip vs. ITO (409 ITR 567), the Bench comprising V. Durga...

Loans Given By Co-Operative Banks To Their Nominal Members Qualify For Deduction U/s 80P(2)(A)(I), Reiterates Bangalore ITAT

While considering the definition of 'member' under the Kerala Act, as per which loans given to nominal members would qualify for purpose of deduction u/s 80P(2)(a)(i) of the Income Tax Act, 1961, the Bangalore ITAT directed the AO to grant relief to the assessee by allowing the claim of deduction under said provision.Relying on the decision of Supreme Court in the case of Mavilayi...

Statutory Scheme Permits Allowance Of Deduction U/s 80P Only If It Is Made In Return Filed Within Time Prescribed U/s 139(1): Bangalore ITAT

On finding that failure on the part of assessee to comply with the pre-condition for obtaining the deduction cannot be condoned either by the statutory authorities or by the courts, the Bangalore ITAT ruled that the assessee is not eligible for deduction u/s. 80P of the Income Tax Act, 1961.Relying on the decision of Kerala High Court in case of Nileshwar Rangekallu Chethu Vyavasaya...

Additions Made By AO Once Deleted By Appellate Authority With Reasoned Order, Merits Status Quo In Identical Cases: Mumbai ITAT

Relying upon the decisions of the Co-ordinate Bench, the Mumbai ITAT upheld the decision of CIT(A) in deleting the addition made u/s 68 read with section 147 of the Income Tax Act, 1961.The Bench comprising of Sandeep Singh Karhail (Judicial Member) and Prashant Maharishi (Accountant Member) observed that, “The co-ordinate Bench in paragraph no.6 and 7 after considering the remand report...

Cash Deposit In Bank Account Made Out Of Sale Proceeds Received In Cash If Duly Explained, Is Not Unexplained Credit: Delhi ITAT

Accepting the explanation given by the assessee that he had received cash on sale of property to be believable which was faithfully deposited in the bank account within a short period, the Delhi ITAT provided relief to the assessee against the order of assessment passed u/s 143(3) of the Income Tax Act, 1961.The Bench of M. Balaganesh (Accountant Member) observed that, “the explanation given...

Service Tax Not Leviable On Service For Transmission Of Electricity By GETCO: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not leviable for the erection of bays, substations, and transmission lines provided by Gujarat Energy Transmission Corporation Limited (GETCO) to service recipients.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has observed that for the entire period...