ITAT Tax Cases Monthly Round Up: July 2024

ITAT Allows Depreciation Claim On Non Compete Fee, Deletes PenaltyCase Title: Metro Tyres Limited Versus ACITThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has allowed the claim of depreciation on non-competing fees.Long Term Capital Gain On Sale Of Shares By Mauritius Company Is Not Liable To Be Taxed In India: ITATCase Title: M/s. Superb Mind Holdings Ltd. Versus Assistant Commissioner of Income TaxThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that long-term capital gain on sale of shares by Mauritius Company is not liable to be taxed in India.Bank Charges & Bank Guarantee Charges Wrongly Included As Interest: ITATCase Title: Advance Valves Pvt.Ltd. Versus ACITThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that bank charges and bank guarantee charges do not partake in the character of interest and had been wrongly included as interest while making disallowance under section 14A of the Income Tax Act.Even If STT Not Paid At Time Of Acquisition, Trust Entitled To Claim LTCG Exemption: ITATCase Title: Dy. Commissioner of Income Tax- 23(1) Versus Business Excellence TrustThe Mumbai Bench Income Tax Appellate Tribunal (ITAT) has held that even if the Securities Transaction Tax (STT) was not paid at the time of acquisition, the assessee-trust would be entitled to claim exemption of long-term capital gain (LTCG) under Section 10(38) of the Income Tax Act.Price Paid By Donor As Well As Holding Period Of Previous Owner Is Required For Purpose Of Computing Capital Gain In Case Of 'Gift': Delhi ITATCase Title: Ashish verses ACITThe New Delhi ITAT held that that date of acquisition of property has to be reckoned from the date of its allotment, for purposes of computing short-term capital gain or loss.Income Tax Addition Can't Be Made On Cash Deposits During Demonetization Period: Delhi ITATCase Title: Durga Fire Work Versus ITOThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the department is precluded from making any addition under Section 68 of the Income Act in respect of the cash deposits made into bank accounts during the demonetization period.Scrip Can't Be Called Penny Stock When Shares Retained For More Than 10 Years; ITAT Deletes AdditionCase Title: M/s. Elara India Opportunities Fund Limited Versus Dy. CIT (International Taxation)- 2(2)(1)The Mumbai Bench of Income Tax Appellate Tribunal (ITAT), while deleting the addition, held that scrip cannot be called penny stock when shares are retained for more than 10 years.Section 254(2) Applies Only Rectification Of Mistake, Can't Be Utilised For Recall And Review Order: ITATCase Title: ITO Versus Neetaben Snehalkumar PatelThe Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the provision of Section 254(2) of the Income Tax Act is intended to only rectify the mistake apparent from the records, and the power of Section 254(2) of the Income Tax Act cannot be utilized to recall and review the order on its merit.Income Tax Addition Can't Be Made On Cash Deposits During Demonetization Period: Delhi ITATCase Title: Durga Fire Work Versus ITOThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the department is precluded from making any addition under Section 68 of the Income Act in respect of the cash deposits made into bank accounts during the demonetization period.Scrip Can't Be Called Penny Stock When Shares Retained For More Than 10 Years; ITAT Deletes AdditionCase Title: M/s. Elara India Opportunities Fund Limited Versus Dy. CIT (International Taxation)- 2(2)(1)The Mumbai Bench of Income Tax Appellate Tribunal (ITAT), while deleting the addition, held that scrip cannot be called penny stock when shares are retained for more than 10 years.Section 254(2) Applies Only Rectification Of Mistake, Can't Be Utilised For Recall And Review Order: ITATCase Title: ITO Versus Neetaben Snehalkumar PatelThe Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the provision of Section 254(2) of the Income Tax Act is intended to only rectify the mistake apparent from the records, and the power of Section 254(2) of the Income Tax Act cannot be utilized to recall and review the order on its merit.Section 80P(2)(d) Deduction Allowable To Co-operative Society On Interest Earned From Co-operative Bank: Delhi ITATCase Title: The Janta Adarsh Co-operative Thrift & Credit Society Ltd. Versus ITOThe Delhi bench of Income Tax Appellate Tribunal (ITAT) has held that the deduction under Section 80P(2)(d) of the Income Tax Act is allowable to the co-operative society on interest earned from co-operative banks.Licence Fees Received Towards Live Transmissions Of Cricket Matches Held In Australia, Not Taxable In India As Royalty: Delhi ITATCase Title: Cricket Australia Versus ACITThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the licence fees received by the assessee towards live transmissions of cricket matches held in Australia are not taxable in India ...

ITAT Tax Cases Monthly Round Up: July 2024

Mariya Paliwala

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