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Untitled Document

TODAY'S CASE (DIRECT TAX)

Taxindiaonline.com


Nov 26, 2022

++ I-T- PCIT must provide cogent evidence to prove excercise of jurisdiction u/s 263 : ITAT

++ I-T- Disallowance u/s 36(1)(ii) is eligible only for employees who are partners or shareholders : ITAT

++ I-T- Failure on part of AO to mention amount of income which has escaped assessment or any other important information will result in nullifying notice issued u/s 148 of Act : ITAT

Nov 25, 2022

++ I-T- Employees contribution to PF and ESI should be remitted before due date as u/s 36(1)(va), i.e., on or before the due date under employee welfare legislations for the same to be otherwise allowable u/s.43B : ITAT

++ I-T - Appeal can be dismissed as AR fails to bring on record any substantial evidence in support of allowability of belated claim made through belated application of rectification : ITAT

++ I-T - As decision taken by AO of Anitas Exports Pvt. Ltd has not attained finality, then such order can't be relied upon in hands of assessee acquirer for disallowing depreciation : ITAT

++ I-T - Date on which agreement to sell was executed could be considered as date on which a property was transferred, for purpose of computing capital gains: ITAT

++ I-T - There is no need to make addition u/s 68 for unexplained cash credit when source and nature of transaction is clear from the seized document itself : ITAT

++ I-T - Brokerage paid can't be disallowed merely because agreement for sale is executed and entire consideration is received in earlier years : ITAT

++ I-T - No addition for unexplained cash deposit can be made when source of cash deposited in bank account is properly explained : ITAT

++ I-T - No addition u/s 68 can be made if assessee successfully explains genuineness of transaction carried on by it - YES : ITAT

++ I-T-No reason to interfere with order of CIT (A) in the absence of any co-operation from assessee: ITAT

Nov 24, 2022

++ I-T - Assets so revalued and credit into capital accounts of respective partners can be said to be 'transfer' which fall in category of 'otherwise' and provision of Sec 45(4) is applicable on same: SC

++ I-T - Jurisdiction of High Court to interfere with orders passed by the subordinate courts, is confined only to substantial question of law & interference with factual findings in unwarranted unless it involves re-appreciation of evidence : HC

++ I-T - Assessment order merits being quashed where passed without providing opportunity to assessee to respond to the information contained therein : HC

++ I-T - Increase in quantum of pre-deposit depends on prima facie case, financial stringency & balance of convenience & any hike in predeposit without discussing these factors is not tenable : HC

++ I-T - Re-assessment order passed in name of a deceased assessee is unsustainable, more so where passed despite AO knowing assessee's passing away: HC

++ I-T - Demand notice issued to a company that ceases to exist on amalgamation is invalidated; hence company cannot be penalised for non-compliance where notice not received: HC

Nov 23, 2022

++ I-T - Taxpayer shall not be permitted to re-agitate question of reopening of assessment which already stands concluded: SC

++ I-T - No disallowance u/s 43B can be made as due to inadvertent error, amount is reflected under Clause 26(i)(B)(b) instead of Clause 26(i)(B)(a) of Tax Audit Report : ITAT

++ I-T - Following order passed by High Court is assessee's own case on identical issue for PY, claim of expenditure on account of sales commission can be allowed : ITAT

++ I-T - Once presumption is drawn that assessee has made interest free loans to related parties, no disallowance of interest u/s 36(1)(iii) is warranted : ITAT

++ I-T - Sec 43B would not override employer's obligation u/s 36(1)(va) to deposit amounts deducted by it from employee's income : ITAT

++ I-T-Contention of assessee could not be dismissed solely for reason that some other explanation was given in assessment proceedings: ITAT

++ I-T - Case can be remanded as principles of natural justice has not been following while passing order: ITAT

Nov 22, 2022

++ I-T - AO can't make addition by traveling beyond his jurisdiction on issues which is not part of reasons for limited scrutiny : ITAT

++ I-T- Foreign exchange fluctuation gain to be treated as operating income while computing operating profit margin, when no recourse to Safe Harbour Rules: ITAT

++ I-T- Receipts of remittances against invoices raised closely linking with BPO services, can be segregated and treated as separate international transaction: ITAT

++ I-T- Since assessee has substantiated manner in which income is derived through confirmations and bank statements, section 271AAA cannot be invoked for undisclosed income : ITAT

++ I-T - Employees contribution to PF and ESI should be remitted before the due date under relevant employee welfare legislation for same to be allowable u/s 43B : ITAT

++ I-T- Since issue of ESOP expenses does not emanate from assessment proceedings u/s 143(3) read with section 153, appeal is liable to be rejected : ITAT

Nov 21, 2022

++ I-T - Search assessment order u/s 153A cannot be passed where assessment attains finality & where no material incriminating assessee is found in course of search: HC

++ I-T - Re-assessment notices issued u/s 148 are sustainable where the mandatory procedure of inquiry as laid down in Section 148A is not followed : HC

++ I-T- Provisions of Section 68 applicable only for sums received in cash or cheque or demand draft for which satisfactory explanation could not be given by assessee: ITAT

++ I-T- Disallowing depreciation, interest on loan, repairs and maintenance expenses, and insurance expenses when motive of incurring such expenditure is directly relatable to earning income falling under 'income from other sources' is erroneous: ITAT

++ I-T- Failure to prove authentication of documents lead to affirmation of impugned addition u/s 69 : ITAT

++I-T- Assessee's office shifted to head office building does not constitute valid reason for condonation of delay: ITAT

Nov 19, 2022

++ I-T- LTCG is manipulated and bogus and is recorded to claim exemption u/s 10(38) of Act : ITAT

++ I-T - Disclosure of actual income only during course of survey amounts to concealment and calls for penalty: ITAT

++ I-T- Quantum of deduction eligible under Section 80G is restricted to 10% of the total income in accordance with law : ITAT

++ I-T - Penalty imposed u/s 271(1)(c) is invalid where allegation of furnishing inaccurate particulars of income has not been properly established : ITAT

++ I-T - Where due to erroneous order of AO, Revenue is losing tax lawfully payable by person, it will certainly be prejudicial to interests of Revenue so as to attract revision u/s 263: ITAT

Nov 18, 2022

++ I-T - If goods manufactured by assessee is 'article' classifiable in Eleventh Schedule (entry 25), considering Sec 80-IB(2)(iii), assessee shall not be entitled to benefit u/s 80-IB: SC

++ I-T - Income has to be taxed for the right year & it being taxed in another year furnishes no ground for it being not taxed in year in which it is assessable: ITAT

++ I-T - There can not be any disallowance on ad-hoc basis but in interest of justice disallowance of household expenses can be restricted to 25,000 only : ITAT

++ I-T - Once defects in ITR filed u/s 139(1) are removed within time permitted by Department, it would relate back to original date of filing of return : ITAT

++ I-T- Claim of exemption u/s 11 cannot be denied merely on account of delay in furnishing of auditor's report as required u/s 12A of Act: ITAT

++ I-T - Proportional disallowance to employee benefit expenses can be allowed if there is non submission of expenses details : ITAT

++ I-T- Waiver of loan cannot take colour of trading transactions, and does not attract Section 28(iv): ITAT

++ I-T- Extensive repairs in form of renovation by assessee are capital expenditure : ITAT

++ I-T - Rule of double taxation will not apply where wrong person is taxed with respect to a particular income, in which case the AO is not precluded from taxing the right person with respect to that income: ITAT

++ I-T - Transport and hostel facilities provided by educational institutes to students of that particular society cannot be considered as separate business, so as to deny exemption u/s 11 to it: ITAT

Nov 17, 2022

++ I-T- The funds are not utilized out of the individual partner's and the entire sum has been paid by the partnership Firm through banking channel shall be deleted to avoid double taxation : ITAT

++ I-T- Service of statutory notice u/s 143(2) is sine-qua-non to initiate/commence assessment proceedings u/s 143(3) of the Act: ITAT

++ I-T - Addition on account of unexplained cash deposits is rightly made as assessee fails to establish with clear evidence that cash does not belongs to him :ITAT

++ I-T- Determination of rent or CAM are separate and CAM arrangements are not essential and an integral part for use of premises : ITAT

++ I-T- AO must specify particular limb to constitute a valid notice : ITAT

++ I-T- CIT (A) have co-terminus powers with AO : ITAT

++ I-T- No addition could be made against assessee if no evidence to prove contention : ITAT

Nov 16, 2022

++ I-T - Lack of control that airlines have over actual fare charged by travel agents over and above the net Fare, cannot form legal basis for airlines to avoid their liability: SC

++ I-T - Requirement of SCN/DAO is mandatory and cannot be sidestepped by the Revenue : HC

++ I-T - AO can not seek reopening of assessment to review its decision regarding the fair market value of the Property or expenses incurred : HC

++ I-T - Re-assessment commenced in respect of amalgamated company which ceased to exist upon amalgamation, is invalid: HC

++ I-T - Interference with finding of fact is not warranted before High Court as it involves re-appreciation of evidence : HC

++ I-T - Objection raised by Audit Party, regarding a point of law, would be a debatable issue & per se cannot form basis for passing rectification order : HC

Nov 15, 2022

++ I-T- When substantial justice and technical considerations are pitted against each other, cause of substantial justice deserves to be preferred: ITAT

++ I-T- Assessee can be exempted from requirement of payment by a crossed cheque or bank draft in circumstances specified under which assessee is unable or not practicable causing genuine difficulty : ITAT

++ I-T- When assessee has proved its initial onus to prove creditworthiness and genuineness of transaction in matter, addition cannot be made under section 68 of the I.T. Act: ITAT

++ I-T- No addition for bogus purchases can be made if allegation is not supported by any cogent reasons and is more in nature of surmises and conjectures : ITAT

++ I-T- PCIT erred in law by invoking Section 263 provisions as PCIT has not looked into assessment proceedings and documents filed before AO: ITAT

++ I-T- Disallowance of expenses for non-production of vouchers of expenses claimed by assessee would meet the ends of justice: ITAT

++ I-T- Expenditure on ESOP entitles assessee for deduction u/s 37(1) of Act : ITAT

Nov 14, 2022

++ I-T - Past savings made by advocate from his legal profession of more than fourty years cannot be characterized as unexplained, in absence of any contrary material: ITAT

++ I-T- Whether when only source of income is business income, then provisions of section 115BBE cannot be invoked to tax income as 'deemed income' - YES : ITAT

++ I-T - Additions made by considering income from sale of agricultural land as adventure in nature of trade, merely on assumption and without considering relevant details, cannot be sustained: ITAT

++ I-T- Uner income derived from property held under trust wholly for charitable or religious purposes, provisions of section 164(2) will come into operation and proviso to section 164(2) is not applicable: ITAT

++ I-T- Sufficient facts must be mentioned by CIT(A) in impugned appellate order to enable Court to take a view on whether rejection of the assessee's prayer was just and fair: ITAT

++ I-T- Case can be remanded to compute capital gain on sale of property by applying amended proviso to section 50C and recompute capital gain : ITAT

++ I-T - Deduction u/s 36(1)(viia) r/w Rule 6ABA is to be allowed on total outstanding advances at end of each month considering opening balances: ITAT

++ I-T- DCF method adopted by assessee for determining Fair Market Value of shares as per Rule 11UA does not requires any interference : ITAT

Nov 12, 2022

++ I-T- Date of possession would be date of purchase made within one year for mandate as u/s 54 : ITAT

++ I-T- AO erred in ignoring facts while confirming additions u/s 40A(3): ITAT

++ I-T- No addition allowed if genuineness of transaction proved by assessee : ITAT

++ I-T- Notice issued u/s 148 has no legal sanctity when AO failed to show nexus between formation of belief and material basis with which such belief is formed : ITAT

Nov 11, 2022

++ I-T - AO cannot make addition on account of suppressed gross profit , if he has not pointed out any anomaly in books of assessee and turnover disclosed by him: ITAT

++ I-T - Additions framed on account of undisclosed income are invalid, where assessee duly explains source of cash deposits, which was accumulation of past & current year's savings : ITAT

++ I-T - Merely because assignment agreement is not registered, actual outflow from hands of assessee towards acquisition of property cannot be ignored for computing capital gains: ITAT

++ I-T - Case can be remanded to check which receipts are similar in nature to receipts held to be eligible for exemption u/s 11 of Act in preceding years : ITAT

++ I-T - Entire bogus purchases cannot be added and reasonable disallowance of purchases can meet possibility of revenue leakage : ITAT

++ I-T - Addition u/s 68 for cash credit can be upheld as assessee fails to establish genuineness and creditworthiness of transactions : ITAT

++ I-T - Addition of bogus purchases can be restricted to profit element embedded in such purchases: ITAT

++ I-T - Cash deposits cannot be treated as undisclosed if source of such deposit was sufficiently explained: ITAT

++ I-T - Without rejection of books, AO should not refer case to DVO for the valuation of cost of construction : ITAT

Nov 10, 2022

++ I-T- Considering past consistent practice to recognize income by way of Service charges on receipt basis, addition made for service charges can be removed: ITAT

++ I-T - Assessee, a real estate developer, purchases immovable property, TDS is liable to be deducted thereon & failure to do so rightly classifies assessee as in default: ITAT

++ I-T - No additions can be made u/s 69 on account of unexplained investments simply on basis of loose sheets without any corroboration: ITAT

++ I-T- Since Commissioner has failed to examine issue analytically in right perspective therefore, order passed u/s 263 is not sustainable in eyes of law : ITAT

++ I-T- Condonation of delay cannot be claimed as matter of right and only on genuine reasons delay has to be condoned and not otherwise :ITAT

++ I-T- Without rejecting books of accounts, addition made by AO u/s 69A for unexplained money can not sustain : ITAT

++ I-T- Reopening of assessment by AO invalid if AO fails to demonstrate that escapement of income was due to failure on part of assessee to furnish all material facts relating to assessment truly and correctly: ITAT

++ I-T-ITAT upheld the contention of the assessee on the ground that the expenditure incurred by the assesee was done in connectiojn with the business, and the ignorance of this fact cannot be appreciated: ITAT

++ I-T- Unless difference between gross receipt shown by the assessee in service tax return and in the books of accounts, shows that there is lower income offered by the assessee in its tax return, addition cannot be made : ITAT

++ I-T - Addition framed u/s 68 is upheld where assessee fails to file necessary details to explain source of alleged cash credit & unable to prove identity, creditworthiness of shareholders & genuineness of transaction: ITAT

Nov 09, 2022

++ I-T- Income from production of hybrid seeds without any basic or subsequent agricultural operations can't be considered as agricultural income and entitled to exemption : ITAT

++ I-T- Appeal of the assessee was dismissed on the ground that the assessee did not discharge the burden of proof as required u/s 68, and it's failure to prove the identity, creditworthiness and genuineness of the transaction made the addition by the AO valid: ITAT

++ I-T - Power of revision is upheld where AO omits to consider fact of assessee having made cash deposits during demonetisation period, while passing original assessment order : ITAT

++ I-T - Transactions can't be considered as unexplained cash credit if investor companies has confirmed them: ITAT

++ I-T- Reopening of assessment can't be allowed merely based on information from information wing without getting approval from appropriate authority : ITAT

++ I-T - Purchase made from grey market can be treated as bogus only to extent of profit element embedded in it, for which no sale was reflected by assessee: ITAT

++ I-T- Mere reproducing contents of case laws without discussing their application on facts of case involved, would not make order justifiable speaking order : ITAT

++ I-T- Source of cash deposits as past savings can not be accepted without reasonable corroboration with facts and figures : ITAT

++ I-T - Claim of deduction u/s 80P can't be allowed if no satisfactory explanation is provided by assessee : ITAT

++ I-T Act- Revisionary proceedings can be set aside if there is no independent enquiry by PCIT: ITAT

++ I-T- No addition of undisclosed stock need to be made as excess stock is worked out by AO on basis of erroneous mathematical exercise : ITAT

Nov 08, 2022

++ I-T - Sale consideration received by assessee as confirming party is offered as income and suffered tax and same cannot be taxed again as capital gain as claimed by revenue : ITAT

++ I-T - Contentions of assessee can be accepted when exactly similar issues are already decided in favor of assessee by Coordinate Bench in other assessment years : ITAT

++ I-T - If there is import of goods and payment is made from bank accounts then assessee cannot say that he is not in a position to reconcile difference : ITAT

++ I-T - Method of valuation of unquoted equity can not be applied on preferential shares and correct method is to apply Rule 11UA(1)(c)(c) : ITAT

++ I-T - Revenue has dropped penalty proceedings accepting submissions made by assessee with proper application of mind : ITAT

++ I-T - Appeal against denial of exemption u/s 11 due non-condonation of delay can be dismissed as it is not maintainable : ITAT

++ I-T - Present appeal is academic in nature since no order has been passed by AO within time limit provided u/s 153(3) : ITAT

++ I-T - Merely based on statement u/s 132(4) addition cannot be made while making assessment u/s 153A : ITAT

++ I-T - Losses incurred in referring clients to group company, cannot be allowed as deduction: ITAT

++ I-T - Reassessment order passed without providing opportunity of hearing, merits to be quashed: ITAT

Nov 07, 2022

++ I-T- When a section contemplates pendency of an appeal, there is no need to introduce the qualification that it should be valid or competent: HC

++ I-T - High Court cannot intervene in re-assessment where AO obtains require approval from PCIT & where assessee furnishes returns in terms of such notice: HC

++ I-T - Entire purchase could not be added back as income, but only profit element embedded therein be treated as income of assessee: HC

++ I-T- Intangible asset within the meaning of Section 32(1)(ii) of the Act will be subjected to depreciation : HC

++ I-T- Proceeding u/s 263 comes under definition of 'proceeding' as per suo moto case of SC: HC

++ I-T- Addition u/s 69A can be upheld as assessee merely mentioned amount saved out of withdrawals, however has not substantiated with any documentary evidence: ITAT

++ I-T- Case can be remanded back to examine how much of sale consideration received has been invested in new residential property for claiming exemption u/s 54 : ITAT

++ I-T - Revenue has rightly rejected books of account as assessee has failed to maintain proper records and owing to other irregularities : ITAT

++ I-T - Nexus of incriminating documents with undisclosed income calls for addition: ITAT

++ I-T- Exemption claimed u/s 54B and 54F can be rejected as conditions for claim of deduction are not fulfilled : ITAT

++ I-T - Assessee is entitled to raise grounds towards deductions not claimed in the return of income - belated filing of revised return does not disallow claim for depreciation : ITAT

Nov 05, 2022

++ I-T - TDS is deductible on LTC involving journey in India via foreign countries: SC LB

++ I-T - Power of revision is rightly exercised where the original assessment order is erroneous and prejudicial to revenue's interest, considering that AO omits to consider cash deposited by assessee : ITAT

++ I-T - When taxability of addition under a specific section is point of contention or debatable, tax levied on said addition cannot be said to be not debatable: ITAT

++ I-T - As per settled law, invoking Section 154 would be untenable when the matter requires adjudication upon the issue which is debatable issue : ITAT

Nov 04, 2022

++ I-T - No further relief on sale and administrative expenses can be allowed to assessee as failed to produce any bills/vouchers to substantiate claim : ITAT

++ I-T- Levy of penalty u/s 271(1)(c) in case where income with reference to which penalty was levied, was already included, in the return of income is not justified : ITAT

++ I-T- AO after having initiated proceedings under section 154 cannot leave the proceedings in hibernation indefinitely : ITAT

++ I-T-When profit estimated by applying net profit rate no scope for further disallowance under Section 40A(3) separately in respect of purchases: : ITAT

++ I-T - Issue of allowance of bad debts can be remanded back as there is a contradiction between statement made by assessee and CIT (A) about nature of funds : ITAT

++ I-T-Late fees u/s 234E of the Act can be levied only prospectively w.e.f. 01.06.2015 : ITAT

++ I-T- ITAT held that the payment of employee's contribution beyond the due date mentioned in the relevant statute but before the due date of filling the return of income u/s 139(1) is allowable expenditure: ITAT

++ I-T- ITAT held that very basis of Section 263 of the Act has not been properly invoked by the PCIT as the AO has taken utmost interest of the Revenue and the same cannot be stated as prejudicial to the interest of Revenue: ITAT

++ I-T- Disallowance where amount was deposited by assessee after due date under respective Acts but before date prescribed u/s 139 allowed provided assessment year under consideration is anterior to amendment carried out w.e.f. A.Y. 2021-22 : ITAT

Nov 03, 2022

++ I-T - Order based on decision of Jurisdictional High Court does not call for any interference and assessee is not entitled to exemption u/s 54 in respect of two flats : ITAT

++ I-T - If sale purchase transaction of property is treated as transfer by notionally assigning value then benefit of indexation and benefit of Sec. 54 is to be given to assessee : ITAT

++ I-T - Revision order passed u/s 263 can be quashed as based on explanation offered by assessee no disallowance / addition is required to be made in assessment : ITAT

++ I-T - If case is covered by binding decision of jurisdictional High Court, then there is no scope for holding assessment order as erroneous & prejudicial to interest of revenue : ITAT

++ I-T - PCIT rightly exercised power u/s 263 as losses caused to directors has been allowed to be set off against income of company by AO without enquiry : ITAT

++ I-T - Issue of unexplained investments can be remanded back as AO made addition in absence of supporting material : ITAT

++ I-T - No addition u/s 69 can be made by in hands of assessee when assessee is not party to transaction : ITAT

++ I-T - PCIT without verifying status of appeal proceedings with CIT (A) cannot invoked Revision Proceedings : ITAT

++ I-T - No disallowance u/s 14A can be made when there is no exempt income earned during relevant year : ITAT

Nov 02, 2022

++ I-T- A.O. cannot blow hot and cold in different assessment years on identical and similar facts and circumstances:ITAT

++ I-T - Issue of addition u/s 68 can be remanded back as AO mechanically added share premium which is unjustified :ITAT

++ I-T - When quantum order itself is under appeal and alleged concealment is not final and is debatable penalty imposed u/s 271(1)(c) can not survive: ITAT

++ I-T - Following order passed in assessee's own case credit card commission can be allowed as there is no need to deduct TDS u/s 194H of act : ITAT

++ I-T - Provision made for liquidated damages can be allowed as deduction : ITAT

Nov 01, 2022

++ I-T- Assessee must provide documentary evidence to prove genuineness of transaction: HC

++ I-T- Where assessment of respondents attained finality prior to date of search and no incriminating documents or materials had been seized at time of search, no addition could be made u/s 153A of Act: HC

++ I-T- Order of Tribunal not been assailed in appeal under Section 260A and inaction of Respondents in granting refund contravenes Sections 240 and 244A of Act: HC

++ I-T- Bad debt recovered by appellant, written off by amalgamating company, which got amalgamated, can be taxed in hands of appellant: HC

++ I-T- The assessment u/s 41 (1) is same as assessment u/s 41 (4). Merely because there is no corresponding amendment in sub-clause (4), it would not mean provisions of Section 41 (1) will not apply: HC

++ I-T - For allowing expenses u/s 35D, there has to be a direct nexus between such capitalisation of pre-operative expenses to asset concerned : ITAT

++ I-T - No addition of deposits can be made considering purpose for which assessee is working hard and collecting savings in form of deposits : ITAT

++ I-T - If surplus funds generated by charitable society are used for charitable purposes, then exemption u/s 11 should not be denied: ITAT

++ I-T - Assessee fails to demonstrate no interest bearing borrowed funds are used for investments : ITAT

++ I-T- Case can be remanded as additional evidence filed not examined by AO and statement on basis of which reassessment proceedings are initiated not furnished to assessee : ITAT