Reopening Initiated On Basis Of Wrong Reasons Renders Very Assessment As Invalid: Mumbai ITAT

On finding the reasoning behind the Assessment made by the Assessing Officer to be wrong, the Mumbai ITAT allowed the assessee's appeal against the order of Commissioner of Income Tax (Appeals) and National Faceless Appeal Centre.The Member of the ITAT comprising Aby T Varkey (Judicial Member) and S. Rifaur Rahman (Accountant Member) observed that “the reason for reopening itself fails in...

Not Filing Audit Report Along With Return Is Procedural Omission And Not Impediment In Law In Claiming Exemption U/s 11: Ahmedabad ITAT

While following the order of Co-ordinate Bench, the Ahmedabad ITAT condoned the delay and restored the matter to the file of CIT(A) to allow exemption u/s 11 of the Income Tax Act, 1961 to the assessee as per the provisions of law.The ITAT Coram comprising Waseem Ahmed (Accountant Member) observed that “non filing of Audit Report along with return of income is a procedural omission and...

No Additions Permitted U/s 68 Once Assessee Establishes Identity & Creditworthiness Of Lenders And Proved Genuineness Of Transactions: Kolkata ITAT

While finding that the assessee has substantiated all evidences concerning transactions to establish the identity and creditworthiness of the lenders and proved the genuineness of the transactions, the Kolkata ITAT directed the Assessing Officer to delete the addition made under section 68 of the Income Tax Act, 1961.The ITAT therefore allowed the appeal filed against the order passed...

Discount Linked To Subsidy Alone Can Form Part Of “Transaction Value”: Madras High Court

The Madras High Court has held that a discount linked to the subsidy alone can form part of the “transaction value.”.The bench of Justice C. Saravanan has observed that a discount by itself will not qualify as a subsidy. However, a discount offered by a distributor, a supplier, or the manufacturer to the buyer or recipient simplicitor cannot form part of the “transaction value”...

Calcutta High Court Quashes Complaint Against Director As Prosecution Failed To Implead Company Importing Liquors Not For Sale

The Calcutta High Court has quashed the complaint against the director as the prosecution failed to implead the company importing liquors not for sale.The bench of Justice Shampa Dutt (Paul) has observed that the company has not been made an accused. The petitioner, a director of the company, has been made an accused. The place of seizure and the seized articles on which the case has...

PCIT Can Grant Sanction U/s 151 For Issuing Reopening Notice U/s 148 Even After Expiry Of Four Years From End Of Relevant AY: Mumbai ITAT

The Mumbai ITAT recently reiterated that a notice can be issued u/s 148 of the Income Tax Act, 1961, even after the expiry of limitation period, if the sanction for same has been granted by the Principal Commissioner of Income Tax.The Member of the ITAT comprising of Sandeep Singh Karhail (Judicial Member) and B.R. Baskaran (Accountant Member) observed that “the sanction granted under...

Subsequent Withdrawal Of Registration Is No Impediment In Denying Deduction U/s 35-AC On Donation Received By Charitable Trust: Mumbai ITAT

While relying on the previous order passed by the Co-ordinate Bench under Ravindra K. Reshamwala v/s DCIT in ITA No.2648/Mum/2022, the Mumbai ITAT directed Assessing Officer to allow the claim under Section 35-AC of the Income tax Act, 1961.The Member of the ITAT comprising Sandeep Singh Karhail (Judicial Member) and B.R. Baskaran (Accountant Member) observed that “except for statement...

Creditworthiness Of Share Subscribers To Make Investment In Capital Of Taxpayer Company Not Disputed: Kolkata ITAT Deletes Addition U/s 68

The Kolkata ITAT deleted the addition made under Section 68 of Income Tax, 1961 after finding that the assessee has established the onus placed upon him in respect of identity and creditworthiness of the share subscribers and also the genuineness of the transactions.The Member of the ITAT comprising Sanjay Garg (Judicial Member) and Girish Agrawal (Accountant Member) observed that “the AO...

Furnishing Inaccurate Claim Of Expenditure Would Not Amount To Giving Inaccurate Particulars Of Income: Mumbai ITAT Quashes Penalty

While quashing the appeal filed by Revenue against the order passed u/s 250 by the National Faceless Appeal Centre, the Mumbai ITAT upheld the order passed by Commissioner of Income Tax (A) to delete the order of penalty issued under section 270A of the Income Tax Act, 1961.The Member of the ITAT comprising Kavitha Rajagopal (Judicial Member) and Om Prakash Kant (Accountant Member) observed...

Receipts For Sale Distribution Of Cinematographic Films Is Not Royalty, Hence Not Liable For TDS Deduction U/S 194J: Mumbai ITAT

While clarifying that amount received for sale distribution or exhibition of cinematographic films would not fall under the domain of 'Royalty', the Mumbai ITAT deleted the demand/addition for non-deduction of TDS u/s 194J of the Income Tax Act, 1961.The Member of the ITAT comprising of N. K. Choudhry (Judicial Member) and Prashant Maharishi (Accountant Member) observed that “Explanation-(2)...

No Addition Permitted In Respect Of Sundry Creditors, Once Purchases & Payments By Taxpayer Not Disputed: Mumbai ITAT

On finding that payment and purchase made by the assessee is not disputed by AO, the Mumbai ITAT directed the AO to delete the addition on sundry creditors.The Member of the ITAT comprising of Sandeep Singh Karhail (Judicial Member) and B.R. Baskaran (Accountant Member) observed that “Since in the present case the purchases made by the assessee and the payment made during the year have not...

Comparable Need Selection As Per Correct Market Segment: Delhi ITAT Remits Matter Following Earlier Order

Relying on Co-ordinate bench ruling in assessee's own case for AY 2004-05 wherein assessee's additional evidences were admitted and matter was remanded back to TPO for fresh adjudication, the Delhi ITAT admitted the assessee's additional evidence application qua comparables selection for AY 2005-06 and 2006-07.The ITAT Coram comprising Shamim Yahya (Accountant Member) and Anubhav Sharma...