JUDGEMENT

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Section 206AA Does Not Have Overriding Effect Over Other Provisions Of The Act: ITAT Hyderabad

In the case of Nagarjuna Fertilizers and Chemicals Limited vs. ACIT, ITAT Hyderabad (Special Bench) has held that: In view of the above discussion, we are of the view that the provisions of section 206AA of the Act will not have a overriding effect for all other provisions of the Act and the provisions of …

Section 206AA Does Not Have Overriding Effect Over Other Provisions Of The Act: ITAT Hyderabad Read More »

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Penalty Cannot Be Levied If Omission And Wrong Claim Was By Oversight And Auditors Did Not Point It Out: ITAT Mumbai

In the case of Wadhwa Estate & Developers India Pvt. Ltd vs. ACIT, ITAT Mumbai has held that: Undisputedly, in the return of income assessee has failed to offer interest on fixed deposit amounting to Rs 5,92,186 and loss claimed on account of fixed asset written–off amounting to Rs 1,82,242. It is also a fact …

Penalty Cannot Be Levied If Omission And Wrong Claim Was By Oversight And Auditors Did Not Point It Out: ITAT Mumbai Read More »

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CIT(A) Has No Power To Enhance New Source Of Income Neither Discussed in Assessment Order Nor Mentioned in ITR: ITAT Pune

In the case of Ram Infrastructure Ltd vs. JCIT, ITAT Pune has held that: It is well settled law laid down by the Hon’ble Apex Court in Commissioner of Income Tax Vs. Shapoorji Pallonji Mistry, 44 ITR 891 (SC) and Commissioner of Income Tax Vs. Rai Bahadur Hardutroy Motilal Chamaria, 66 ITR 443 (SC) and …

CIT(A) Has No Power To Enhance New Source Of Income Neither Discussed in Assessment Order Nor Mentioned in ITR: ITAT Pune Read More »

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Income Which is Not Chargeable Under Specific Provisions Of Articles 6 to 21 Cannot Be Taxed Under Residuary Provision: ITAT Chennai

In the case of DCIT vs. Ford India Limited, ITAT Chennai has held that: An income is of such a nature as, on satisfaction of conditions specified in the related provision, could be taxed under any of these specific treaty provisions, cannot be covered by this residuary clause. Take for example, income earned by a …

Income Which is Not Chargeable Under Specific Provisions Of Articles 6 to 21 Cannot Be Taxed Under Residuary Provision: ITAT Chennai Read More »

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Loose Papers Which Do Not Have Full Details Are “Dumb Documents” And Have No Evidentiary Value: ITAT Ahmedabad

In the case of Nishant Construction Pvt. Ltd vs. ACIT, ITAT Ahmedabad has held that: The AO has no power to disturb the sale price shown except in three cases. The first is under Section 145 of the Act. Where the sale of properties is part of the business of the assessee, the Assessing Officer, …

Loose Papers Which Do Not Have Full Details Are “Dumb Documents” And Have No Evidentiary Value: ITAT Ahmedabad Read More »

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Disallowance Has To Be Made Even in Respect Of Securities Held As Stock-in-Trade By Assessee: ITAT Kolkata

In the case of Kalyani Barter (P) Ltd vs. ITO, ITAT Kolkata has held that: The object of section 14A is to disallow the direct and indirect expenditure incurred in relation to income which does not form part of the total income. There is no dispute that part of the income of the assessee from …

Disallowance Has To Be Made Even in Respect Of Securities Held As Stock-in-Trade By Assessee: ITAT Kolkata Read More »

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The Onus is On Assessee To Establish Justification For Clubbing The Transactions: ITAT Bangalore

In the case of Kaypee Electronics & Associates Pvt. Ltd vs. DCIT, ITAT Bangalore has held that: The only issue that arises for consideration before us is whether the TPO was justified in making the ALP adjustment in respect of royalty payment made to M/s. Falco Limited in the given facts of the present case. …

The Onus is On Assessee To Establish Justification For Clubbing The Transactions: ITAT Bangalore Read More »

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There is Distinction Between “Lack Of Enquiry” And “Inadequate Enquiry”: ITAT Mumbai

In the case of Small Wonder Industries vs. CIT, ITAT Mumbai has held that: We are of the view, that there is a distinction between “lack of enquiry” and “inadequate enquiry”. In the present case the Assessing Officer collected necessary details, examined the same and then framed the assessment u/s. 143(3) of the Act. Therefore, …

There is Distinction Between “Lack Of Enquiry” And “Inadequate Enquiry”: ITAT Mumbai Read More »

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“On Money” Received By Assessee For Sale Of Agricultural Land Has To Be Treated As “Agricultural Income” If Assessee Has No Other Source For Receipt: ITAT Cochin

In the case of ITO vs. Abraham Varghese Charuvil, ITAT Cochin has held that: The payment of on-money is an unfortunate practice in most part of our country, and none can deny this factual situation. It is the case of the assessee that the buyers were insisting on reducing the sale consideration to be disclosed …

“On Money” Received By Assessee For Sale Of Agricultural Land Has To Be Treated As “Agricultural Income” If Assessee Has No Other Source For Receipt: ITAT Cochin Read More »

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Bogus Purchases Cannot Be Assessed As ‘Unexplained Expenditure’ If Transactions Are Duly Disclosed And Payments Are Through Banks: ITAT Mumbai

In the case of Earthmoving Equipment Service Corporation vs. DCIT, ITAT Mumbai has held that: Section 69C could not be applied to the facts of the case as the payments were through banking channels which were duly reflected in the books of accounts and therefore, there was no unexplained expenditure within the meaning of Section …

Bogus Purchases Cannot Be Assessed As ‘Unexplained Expenditure’ If Transactions Are Duly Disclosed And Payments Are Through Banks: ITAT Mumbai Read More »

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Penalty Proceedings Are “Quasi-Criminal” And Ought To Comply With Principles Of Natural Justice: ITAT Mumbai

In the case of Meherjee Cassinath Holdings Pvt. Ltd vs. ACIT, ITAT Mumbai has held that: Apart from the aforesaid discussion, we may also refer to the one more seminal feature of this case which would demonstrate the importance of non-striking off of irrelevant clause in the notice by the Assessing Officer. As noted earlier, …

Penalty Proceedings Are “Quasi-Criminal” And Ought To Comply With Principles Of Natural Justice: ITAT Mumbai Read More »

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Gift Received From HUF By A Member Of HUF is Exempt From Tax: ITAT Mumbai

In the case of DCIT vs. Ateev V. Gala, ITAT Mumbai has held that: From a plain reading of section 56(2)(vi) along with the Explanation to that section and on understanding the intention of the legislature from the section, we find that a gift received from “relative”, irrespective of whether it is from an individual …

Gift Received From HUF By A Member Of HUF is Exempt From Tax: ITAT Mumbai Read More »

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AO Has To Make Independent Inquiry To Treat Purchases As Bogus: ITAT Mumbai

In the case of Geolife Organics vs. ACIT, ITAT Mumbai has held that: It is evident from the assessment order that on the basis of information obtained from the Sales Tax Department, Assessing Officer issued notices under section 133(6). As the assessee failed to produce the concerned parties, the Assessing Officer, primarily relying upon the …

AO Has To Make Independent Inquiry To Treat Purchases As Bogus: ITAT Mumbai Read More »

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A Trust is Eligible For Section 54F Deduction: ITAT Mumbai

In the case of Balgopal Trust vs. ACIT, ITAT Mumbai has held that: The issue is as to whether the assessee trust, which is for the sole benefit of an individual, will be entitled to deduction u/s. 54F or not, when its status is that of A.O.P. As per Section 54F the benefits of this …

A Trust is Eligible For Section 54F Deduction: ITAT Mumbai Read More »

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Penalty For Delay in Filing TDS Returns Cannot Be Levied If Delay Was Due To Requirement To Collect PAN Of Payees: ITAT Jaipur

In the case of Argus Golden Trades India Ltd vs. JCIT, ITAT Jaipur has held that: The assessee has submitted that since there were large number of deductees scattered throughout the country, a fact not disputed by the Revenue, it took them some time to collect the PANs of these deductees and thereafter, it was …

Penalty For Delay in Filing TDS Returns Cannot Be Levied If Delay Was Due To Requirement To Collect PAN Of Payees: ITAT Jaipur Read More »

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Penalty Cannot Be Levied Unless There is “Evidence Beyond Doubt” That There Was Concealment Of Particulars Of Income Or Furnishing Inaccurate Particulars Thereof: ITAT Delhi

In the case of DDIT vs. Metapath Software International Ltd, ITAT Delhi has held that: It is an well established proposition of law that being penal in nature, the provisions of section 271(1)(c) of the Act are invoked only when there is evidence beyond doubt that there was concealment of particulars of income or furnishing …

Penalty Cannot Be Levied Unless There is “Evidence Beyond Doubt” That There Was Concealment Of Particulars Of Income Or Furnishing Inaccurate Particulars Thereof: ITAT Delhi Read More »

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Period Of Limitation For Rectification Application is Six Months From End Of Month in Which “Order is Passed”: ITAT Hyderabad

In the case of Srinivas Sashidhar Chaganty vs. ITO, ITAT Hyderabad has held that: Section 254(2) of the Act refers to the period of limitation reckoning from the end of the month in which the order Is passed’ and not from the ‘date of receipt of the order’. As rightly pointed out by the Ld …

Period Of Limitation For Rectification Application is Six Months From End Of Month in Which “Order is Passed”: ITAT Hyderabad Read More »

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Amounts Paid By Way Of Reimbursement Of Expenses Do Not Constitute Income in The Hands Of Recipient: ITAT Cochin

In the case of ACIT vs. St. Mary’s Rubbers Private Ltd, ITAT Cochin has held that: The Tribunal, while giving the above decision, had also considered the effect of CBDT Circular No.715 dated 08.08.1995 and also ruled that the said Circular was applicable only where consolidated bills were raised inclusive of contractual payments and re-imbursement …

Amounts Paid By Way Of Reimbursement Of Expenses Do Not Constitute Income in The Hands Of Recipient: ITAT Cochin Read More »

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Section 69C Cannot Be Applied Where All Purchase And Sales Transactions Are Part Of Regular Books Of Accounts: ITAT Mumbai

In the case of M/s. Fancy Wear vs. ITO, ITAT Mumbai has held that: The AO or the FAA have not rejected the books of accounts of the assessee nor have doubted the purchases made by it. The recognised principles of accountancy and tax jurisprudence hold that no sales can take place without purchases. Thus, …

Section 69C Cannot Be Applied Where All Purchase And Sales Transactions Are Part Of Regular Books Of Accounts: ITAT Mumbai Read More »

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“Concealment Of Particulars Of Income” And “Furnishing Of Inaccurate Particulars Of Income” Are Different Terms: ITAT Mumbai

In the case of Orbit Enterprises vs. ITO, ITAT Mumbai has held that: Notably, Sec. 292BB of the Act has been inserted w.e.f. 01.04.2008 and is understood basically as a rule of evidence. The implication of Sec. 292BB of the Act is that once the assessee appears in any proceedings or has co-operated in any …

“Concealment Of Particulars Of Income” And “Furnishing Of Inaccurate Particulars Of Income” Are Different Terms: ITAT Mumbai Read More »

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No Addition Can Be Made in Absence Of Direct Evidence Showing Assessee Received Cash Payment: ITAT Mumbai

In the case of ACIT vs. Katrina (Kaif) Rosemary Turcotte, ITAT Mumbai has held that: The Assessing Officer has not brought on record any clinching evidence on the basis of any enquiry made by him to demonstrate that the assessee has actually received any cash as per the evaluation sheet from Matrix. Therefore, in the …

No Addition Can Be Made in Absence Of Direct Evidence Showing Assessee Received Cash Payment: ITAT Mumbai Read More »

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Petitioner/Plaintiff Is The ‘Dominus Litis’ And It Is Open To Him To Pursue Or Abandon His Case: ITAT Mumbai

In the case of M/s Sainath Enterprises vs. ACIT, ITAT Mumbai has held that: The Petitioner/ Plaintiff is the ‘dominus litis’ and it is open to him to pursue or abandon his case. Withdrawal cannot be denied except when the person making the prayer has obtained some advantage/ benefit which he seeks to retain. To …

Petitioner/Plaintiff Is The ‘Dominus Litis’ And It Is Open To Him To Pursue Or Abandon His Case: ITAT Mumbai Read More »

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The scheme Of Income Tax Act is To Assess Real Income And Not Hypothetical Income: ITAT Mumbai

In the case of Late Shri Gordhandas S. Garodia vs. DCIT, ITAT Mumbai has held that: The expression “full value of consideration received or accruing” would mean the amount actually received by the assessee or consideration which has accrued to the assessee. The expression “accrue” means a right acquired by the assessee to receive income. …

The scheme Of Income Tax Act is To Assess Real Income And Not Hypothetical Income: ITAT Mumbai Read More »

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Common Area Maintenance Charges And Non-Occupancy Charges Paid to Society Are Deductible: ITAT Mumbai

In the case of DCIT vs. Yogen D. Sanghvi, ITAT Mumbai has held that: What section 22 attempts to assess is the annual value of the property consisting of any building or land appurtenant thereto, of which the appellant is the owner,, and which has not been put to use for the purposes of its …

Common Area Maintenance Charges And Non-Occupancy Charges Paid to Society Are Deductible: ITAT Mumbai Read More »

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CIT(A) Has To Apply His Own Independent Mind in Facts And Circumstances Of Case: Telangana High Court

In the case of APR Jewellers Private Limited vs CIT(A) and ITO, the Telangana High Court has held that: Supreme Court in Principal Commissioner of Income Tax vs. L.G. Electronics India Private Ltd, observed that an administrative circular would not operate as a factor on the Commissioner since it is a quasi-judicial authority. Clarifying further, …

CIT(A) Has To Apply His Own Independent Mind in Facts And Circumstances Of Case: Telangana High Court Read More »

No new show cause notices to small taxpayers: CBDT tells officials

The Central Board of Direct Taxes (CBDT) issued on Wednesday extensive guidelines for implementing a Supreme Court (SC) order in reassessment cases. The court had early this month ruled that the thousands of show cause notices the Income Tax department had issued under a previous regime should be treated as ones issued under a new one for reopening assessment …

No new show cause notices to small taxpayers: CBDT tells officials Read More »

Cash Payments If Transaction is Genuine And Identity Of Payee

No Disallowance Can Be Made For Cash Payments If Transaction is Genuine And Identity Of Payee is Known: ITAT Jaipur

In the case of M/s A Daga Royal Arts vs. ITO, ITAT Jaipur has held that: Citation: Section 40A(3) Rule 6DD: No disallowance can be made for cash payments if the transaction is genuine and the identity of the payee is known. Rule 6DD is not exhaustive. The fact that the transaction does not fall …

No Disallowance Can Be Made For Cash Payments If Transaction is Genuine And Identity Of Payee is Known: ITAT Jaipur Read More »

income tax judgment

Disallowance u/s 14A & Rule 8D Has To Be Made Even If Assessee Not Earned Any Tax-Free Income On Investment: ITAT Amritsar

In the case of Lally Motors India (P.) Ltd vs. PCIT, ITAT Amritsar has held that: Citation: Disallowance u/s 14A & Rule 8D has to be made even if the assessee has not earned any tax-free income on the investment. Cheminvest 378 ITR 33 (Del) is not binding on the AO as it is a …

Disallowance u/s 14A & Rule 8D Has To Be Made Even If Assessee Not Earned Any Tax-Free Income On Investment: ITAT Amritsar Read More »

ITAT Agra's Landmark Judgement On ESI/ PF Disallowance

ITAT Agra’s Landmark Judgement On ESI/ PF Disallowance

In various cases, ITAT Agra has held that: Having gone through the Orders of the Co-ordinate Bench of Tribunal allowing the delayed payment pertaining to employees contribution, Orders of the Co-ordinate Bench of Tribunal disallowing the delayed payment pertaining to employees contribution, Judgments of various Hon’ble Courts disallowing the delayed payment, Judgments of various Hon’ble …

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Bombay High Court Quashes Assessment Order Due To Not Granting Opportunity To Assessee [Read Judgement]

Bombay High Court Quashes Assessment Order Due To Not Granting Opportunity To Assessee [Read Judgement]

In the case of Pankaj s/o Roshan Dhawan vs National E-Assessment Centre and Others, the Bombay High Court has held that: It is true that an alternate remedy by way of statutory appeal is available to the petitioner. However in view of the fact that it is apparent that the assessment order has been issued …

Bombay High Court Quashes Assessment Order Due To Not Granting Opportunity To Assessee [Read Judgement] Read More »