ITAT

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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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Acquisition Of New Flat in Apartment Under Construction Should Be Considered As “Construction” And Not “Purchase”: ITAT Mumbai

In the case of Mustansir I Tehsildar vs. ITO, ITAT Mumbai has held that: For the purpose of sec. 54 of the Act, we have to see whether the assessee has completed the construction within three years from the date of transfer of old asset. In the instant case, there is no dispute that the …

Acquisition Of New Flat in Apartment Under Construction Should Be Considered As “Construction” And Not “Purchase”: 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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Slump Price Paid To Acquire A Business Has To Be Bifurcated Between Tangible And Intangible Assets For Allowing Depreciation: ITAT Pune

In the case of Johnson Matthey Chemicals India Pvt. Ltd vs. DCIT, ITAT Pune has held that: The learned Departmental Representative for the Revenue also was of the view that no part of slump price is to be attributed to the know-how, patents and trademarks, since the same has not been acquired by the assessee. …

Slump Price Paid To Acquire A Business Has To Be Bifurcated Between Tangible And Intangible Assets For Allowing Depreciation: ITAT Pune Read More »

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Concealment Of Income And Furnishing Of Inaccurate Particulars Are Distinct And Separate Charges: ITAT Agra

In the case of Sachin Arora vs. ITO, ITAT Agra has held that: It is quite clear, that suppressio vari’, or ‘suppression of truth’, which has, in section 271(1)(c) of the IT Act, as its equivalent,concealment of income’, and `suggestio falsi’, literally, ‘suggesting or stating a falsehood’, which manifests itself as ‘furnishing of inaccurate particulars …

Concealment Of Income And Furnishing Of Inaccurate Particulars Are Distinct And Separate Charges: ITAT Agra Read More »

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Assessee Who Understates Consideration Received For Sale Of Agricultural Land To Avoid Payment Of Stamp Duty is Defrauding the Exchequer: ITAT Chandigarh

In the case of ACIT vs. Mohinder Singh, ITAT Chandigarh has held that: Both seller and purchaser are estopped from their act and conduct to take such a self -contradictory plea. Not only the earlier but the later authorities also are the public officers appointed for the collection of taxes contributing to the public exchequer …

Assessee Who Understates Consideration Received For Sale Of Agricultural Land To Avoid Payment Of Stamp Duty is Defrauding the Exchequer: ITAT Chandigarh Read More »

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There is No Loss To Revenue If Tax is Paid After Assessment Order u/s 147 Of Income Tax Act: ITAT Lucknow

In the case of Pankaj Kumar Gupta vs. ITO, ITAT Lucknow has held that: At the very outset, we observe that as appearing on record, in the return filed by the assessee the tax on sale of immoveable property was not paid or entered into. However, when notice under section 148 of the Act was …

There is No Loss To Revenue If Tax is Paid After Assessment Order u/s 147 Of Income Tax Act: ITAT Lucknow Read More »

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ITAT Chandigarh’s Judgement On Exemption Under Section 54 Of Income Tax Act

In the case of Seema Sabharwal vs. ITO, ITAT Chandigarh has held that: If the assessee at the time of assessment proceedings, proves that he has already invested the capital gains on the purchase / construction of the new residential house within the stipulated period, the benefit under the substantive provisions of section 54(1) cannot …

ITAT Chandigarh’s Judgement On Exemption Under Section 54 Of Income Tax Act Read More »

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If Assessee Discharged Initial Onus Regarding Identity, Creditworthiness And Genuineness, Onus Shifts To AO: ITAT Delhi

In the case of Umbrella Projects Pvt. Ltd vs. ITO, ITAT Delhi has held that: In view of the above documents and evidences filed by the assessee, we are of the opinion that these are sufficient to discharge its initial onus regarding the identity, creditworthiness and genuineness as required under Section 68 of the Act. …

If Assessee Discharged Initial Onus Regarding Identity, Creditworthiness And Genuineness, Onus Shifts To AO: ITAT Delhi Read More »

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Primary Burden Of Proof is On Revenue To Show That Assessee is Guilty Of Concealment: ITAT Delhi

In the case of Prafful Industries (P) Ltd vs. DCIT, ITAT Delhi has held that: Citation: The primary burden of proof is on the Revenue to show that the assessee is guilty of concealment/ furnishing inaccurate particulars. Making an incorrect claim does not tantamount to furnishing inaccurate particulars by any stretch of imagination. Wrong claim …

Primary Burden Of Proof is On Revenue To Show That Assessee is Guilty Of Concealment: ITAT Delhi Read More »

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Fact That Pvt. Ltd. Company Issued Shares At Exorbitant Premium is Irrelevant If Assessee Has Proved Genuineness Of Transaction: ITAT Mumbai

In the case of DCIT vs. Alcon Biosciences P Ltd, ITAT Mumbai has held that: Citation: The fact that a pvt. ltd co issued shares at an exorbitant premium is irrelevant if the assessee has proved the genuineness of the transaction. If the assessee has furnished necessary evidence to prove the identity of the share …

Fact That Pvt. Ltd. Company Issued Shares At Exorbitant Premium is Irrelevant If Assessee Has Proved Genuineness Of Transaction: ITAT Mumbai Read More »

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Domain Name is Intangible Asset Which is Similar To Trademark: ITAT Delhi

In the case of Godaddy.com LLC vs. ACIT, ITAT Delhi has held that: Citation: Domain name is an intangible asset which is similar to trademark. Consequently, income from services rendered in connection with such domain name registration is assessable as “royalty” u/s 9(1)(vi) of the Income-tax Act. Main Body: It is now settled law that …

Domain Name is Intangible Asset Which is Similar To Trademark: ITAT Delhi Read More »

Admission Of Estimated Income Made During Survey Has No Evidentiary Value And is Not Binding On Assessee: ITAT Mumbai

In the case of Amod Shivlal Shah vs. ACIT, ITAT Mumbai has held that: The Hon’ble Supreme Court in the case of Pullangode Rubber Produce Co. Ltd. vs State of Kerala & Anr., 91 ITR 18 (SC) recognised the trite law that it was open to the assessee who made the admission to show that …

Admission Of Estimated Income Made During Survey Has No Evidentiary Value And is Not Binding On Assessee: ITAT Mumbai Read More »

Loss Can Be Carried Forward Even If Books Are Not Audited At The Time Of Filing ITR: ITAT Cochin

In the case of DCIT vs Brahmos Aerospace, ITAT Cochin has held that: Moreover, if the assesse has not got its statutory audit done under Companies Act, 1956(Now Companies Act, 2013) within the prescribed time, or has not got its tax audit done under the provisions of Section 44AB of the 1961 Act, there are …

Loss Can Be Carried Forward Even If Books Are Not Audited At The Time Of Filing ITR: ITAT Cochin Read More »

Fact That Supplier Admitted To Issuing Bogus Bills Does Not Mean That He Issued Accommodation Bills To Assessee: ITAT Mumbai

In the case of Shantivijay Jewels Ltd vs. DCIT, ITAT Mumbai has held that: Citation: The fact that the supplier admitted to issuing bogus bills does not necessarily mean that he had issued accommodation bills to the assessee. There is subtle but very important difference in issuing bogus bills and issuing accommodation bills to a …

Fact That Supplier Admitted To Issuing Bogus Bills Does Not Mean That He Issued Accommodation Bills To Assessee: ITAT Mumbai Read More »

Registrar Of Tribunal Has No Jurisdiction To Consider And Decide On Applications For Condonation Of Delay: ITAT Mumbai

In the case of In Re Hiten Ramanlal Mahimtura, ITAT Mumbai has held that: The power of condoning the delay is with the Court/Tribunal under the Limitation Act as well as u/s 253(5) r.w.s. 252(1) of the Income Tax Act. The petition of assessee has to be examined by the court/Tribunal after hearing both the …

Registrar Of Tribunal Has No Jurisdiction To Consider And Decide On Applications For Condonation Of Delay: ITAT Mumbai Read More »

AO Has No Jurisdiction To Insist That Assessee Should Adopt A Particular Method To Determine Value Of Shares: ITAT Mumbai

In the case of DCIT vs. Ozoneland Agro Pvt. Ltd, ITAT Mumbai has held that: Section 56 allows the assessees to adopt one of the methods of their choice. But,the AO held that the assessee should have adopted only one method for determining the value of the shares.In our opinion,it was beyond the jurisdiction of …

AO Has No Jurisdiction To Insist That Assessee Should Adopt A Particular Method To Determine Value Of Shares: ITAT Mumbai Read More »

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 »

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 »

Limitation Period For Filing Rectification Application Has To Be Computed From The Date Of “Communication” Of Order: ITAT Chandigarh

In the case of Jagmohan Gurbakshish Singh vs. DCIT, ITAT Chandigarh has held that: Citation: The limitation period for filing a Rectification Application has to be computed from the date of “communication” of the order and not from the date of passing the order. The fact that the order was pronounced in open court is …

Limitation Period For Filing Rectification Application Has To Be Computed From The Date Of “Communication” Of Order: ITAT Chandigarh Read More »

It is Painful That Department Officials Are Tempted To Ignore Principles Of Law And Natural Justice To Achieve Targets: ITAT Chandigarh

In the case of Greater Mohali Area Development Authority vs. DCIT, ITAT Chandigarh has held that: Citation: It is painful to note that the Dept officials in order to achieve targets at the close of the FY not only are tempted to ignore the principles of law and natural justice but cross their limits, in …

It is Painful That Department Officials Are Tempted To Ignore Principles Of Law And Natural Justice To Achieve Targets: ITAT Chandigarh Read More »

CIT(A) Has Power To “Enhance The Assessment”, But He is Not Entitled To Travel Beyond Subject- Matter And Assess New Sources Of Income: ITAT Jaipur

In the case of Jagdish Narayan Sharma vs. ITO, ITAT Jaipur has held that: The principle emerging from various pronouncements of the Supreme Court is that the first Appellate Authority is invested with very wide powers under Section 251(1)(a) of the Act and once an assessment order is brought before the authority, his competence is …

CIT(A) Has Power To “Enhance The Assessment”, But He is Not Entitled To Travel Beyond Subject- Matter And Assess New Sources Of Income: ITAT Jaipur Read More »

Addition Cannot Be Made On The Ground That Directors Of Share Subscribers Did Not Turn Up Before The AO: ITAT Kolkata

In the case of ITO vs. Wiz-Tech Solutions Pvt. Ltd, ITAT Kolkata has held that: To sum up section 68 of the Act provides that if any sum found credited in the year in respect of which the assessee fails to explain the nature and source shall be assessed as its undisclosed income. In the …

Addition Cannot Be Made On The Ground That Directors Of Share Subscribers Did Not Turn Up Before The AO: ITAT Kolkata Read More »

There is No Restriction That Assessee Cannot File Revised Return After Issuance Of Notice u/s 143(2): ITAT Mumbai

In the case of Mahesh H. Hinduja vs. ITO, ITAT Mumbai has held that: There is no bar / restriction in the provisions of section 139(5) of the Act that the assessee cannot file a revised return of income after issuance of notice under section 143(2) of the Act. It is trite law, the assessee …

There is No Restriction That Assessee Cannot File Revised Return After Issuance Of Notice u/s 143(2): ITAT Mumbai Read More »

Failure To Submit Tax Residency Certificate (TRC) is Not A Bar To Grant Of Benefits Under DTAA: ITAT Ahmedabad

In the case of Skaps Industries India Pvt Ltd vs. ITO, ITAT Ahmedabad has held that: Section 90(4), in the absence of a non-obstante clause, cannot be read as a limitation to the treaty superiority under Section 90(2), we are of the considered view that an eligible assessee cannot be declined the treaty protection under …

Failure To Submit Tax Residency Certificate (TRC) is Not A Bar To Grant Of Benefits Under DTAA: ITAT Ahmedabad Read More »

Excuse That Appeal Was Not Filed Due To AO Being Busy With Time Barring Assessment is Not Acceptable: ITAT Delhi

In the case of ITO vs. Gisil Designs Pvt. Ltd, ITAT Delhi, has held that: Citation: The AO was negligent in filing the remand report before the CIT(A). The same attitude has continued at the stage of filing appeal to the ITAT. The excuse that the appeal was not filed due to the AO being …

Excuse That Appeal Was Not Filed Due To AO Being Busy With Time Barring Assessment is Not Acceptable: ITAT Delhi Read More »

31000% Increase in Value Of Shares is Highly Suspicious But Cannot Take Place Of Evidence: ITAT Kolkata

In the case of Prakash Chand Bhutoria vs. ITO, ITAT Kolkata has held that: The AO further relies on the shop increase of 31000% of the value of shares over the period of 2 years. Though this is highly suspicious, it cannot take the place of evidence. The Hon’ble Supreme Court has stated that suspicion …

31000% Increase in Value Of Shares is Highly Suspicious But Cannot Take Place Of Evidence: ITAT Kolkata Read More »

Unsold Flats Held As Stock in Trade Cannot Be Chargeable To Tax Under ‘Income From House Property: ITAT Mumbai

In the case of ITO vs. Arihant Estates Pvt. Ltd, ITAT Mumbai has held that: In the case on hand before us it is an undisputed fact that both assessees have treated the unsold flats as stock in trade in the books of account and the flats sold by them were assessed under the head …

Unsold Flats Held As Stock in Trade Cannot Be Chargeable To Tax Under ‘Income From House Property: ITAT Mumbai Read More »

Goodwill is Eligible For Depreciation Under Income Tax Act: ITAT Delhi

In the case of CLC & Sons Pvt. Ltd vs. ACIT, ITAT Delhi) (Special Bench) has held that: Goodwill is an intangible asset. It falls under the expression “any other business or commercial rights of similar nature” and is eligible for depreciation u/s 32(1)(ii) of the Act. The question whether when a firm has been …

Goodwill is Eligible For Depreciation Under Income Tax Act: ITAT Delhi Read More »