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Bakhtawar Co-Operative Housing Society Ltd. v. ITO
Mumbai Tribunal : S. 254(1) : Appellate Tribunal-Powers-Condonation of Delay-Co-operative society-Appeal filed after 13 years-Delay caused due to bona fide belief that rectification would be carried out by the Department, change in managing committee, dependence on accountant and Covid-related disruptions-Delay condoned and matter restored for adjudication on merits. [S. 80P(2)(d), 143(1), 249(3)] The assessee, a co-operative housing society,… Read More ...
Deepak Maratha v. UOI
Rajasthan High Court : S. 115BBE : Taxation of unexplained income-Amendment enhancing tax rate from 30% to 60% w.e.f. 01.04.2017 cannot be applied retrospectively to income of F.Y. 2016-17-Law applicable on the first day of the assessment year governs assessment-Enhanced tax and consequential penalty provisions are prospective-Demonetisation- Cash deposited in Bank-Charge of tax- The enhanced rate of tax @60%… Read More ...
Prakash Bhaguji Katkade v. ITO (ITAT Mumbai)
Mumbai Tribunal : S. 69A : Unexplained money-Alleged on-money paid for purchase of flat-Addition based solely on statements of builder Cosmos Group and unverified Excel sheets seized during search-No incriminating material supplied to assesse-No opportunity of cross-examination-Addition deleted. [S. 132(4), 147, 148, 254(1)] The assessee, a co-owner of a residential flat purchased from Cosmos Group, was subjected to… Read More ...
Paaneri Exim Pvt. Ltd. v. DCIT (ITAT Mumbai)
Mumbai Tribunal : S. 68 : Cash credits-Cash deposits during demonetization-Addition cannot be made merely because cash-in-hand as on 08.11.2016 was substantially higher than the preceding year when books of account were not rejected, sales were duly recorded, supported by stock records and accepted in VAT returns. Cash deposits out of recorded business receipts cannot be treated as… Read More ...
DCIT v. Sundaram Alternative Opp Series High Yield Secured Debt Fund (ITAT Chennai)
ITAT Chennai: This judgement explains the scheme of taxation of Category II Alternative Investment Funds (AIF). It held that income from interest and capital gains earned by a Category II Alternative Investment Fund (AIF) was exempt under section 10(23FBA) of the Act. An AIF could not be treated as a Venture Capital Fund (VCF) and such a… Read More ...
Manugraph India Ltd. v. ACIT
Mumbai Tribunal : S. 37(1): Business expenditure - Scientific research expenditure – Expenditure not approved by DSIR for weighted deduction – Ordinary deduction allowable if expenditure incurred wholly and exclusively for business – Deduction allowed u/s 37(1).(S. 35(2AB) ] The assessee claimed weighted deduction under section 35(2AB) in respect of expenditure incurred on in-house research and development. Part… Read More ...
Manugraph India Ltd. v. ACIT
Mumbai Tribunal : S. 37(1): Business expenditure – Rent paid to directors for farmhouse used for accommodation of foreign customers – Business purpose partly established – Personal use not ruled out – Disallowance restricted to 50 per cent. [ S.40A(2)(b) ] The assessee claimed rent paid for a farmhouse taken on leave and licence from directors and their… Read More ...
Manugraph India Ltd. v. ACIT
Mumbai Tribunal : S. 14A : Disallowance of expenditure relating to exempt income-For the purpose of Rule 8D, only investments which have actually yielded exempt income during the year can be considered-No disallowance of interest where own funds exceed investments-Presumption that investments are made out of interest-free funds. [R. 8D(2)(ii), 8D(2)(iii)] The assessee-company earned exempt dividend income and… Read More ...
Sameena Shamsuddin Sayed v. ITO
Mumbai Tribunal : S. 69 : Unexplained investments-Property purchased in the name of daughter-Entire consideration paid directly by father from disclosed bank account out of natural love and affection-Identity of father, payment trail and source of funds established-Absence of formal gift deed cannot justify addition-Addition deleted. [S. 148A, 147, 115BBE] The assessee, a homemaker having no independent source… Read More ...
RK & Company Manpower Pvt. Ltd. (ITAT Delhi)
Income Tax Appellate Tribunal (Delhi): Aftermath of Checkmate Law as laid down by Hon'ble SC- Disallowance made by Income Tax Officer on account of delay in deposit of employees contribution to PF/ESI under Section 36(1)(va) of Income Tax Act, 1961 deleted when intimation order under section 143(1) were issued prior to the date of decision of Hon'ble SC in case… Read More ...