Judgements Uploaded By Users In Category: Income-Tax Act
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The Mumbai Tribunal has held that S. 148 : Reassessment-Limitation-Notice issued under section 148 after expiry of six years under the erstwhile law is barred by limitation notwithstanding that notice under section 148A(b) was issued within the limitation period-Reassessment quashed. [S. 147, 148A(b) 149] The assessee challenged the validity of the reassessment proceedings for A.Y. 2015-16 on the ground that the… Read More ...
The Mumbai Tribunal has held that S. 80G: Donation-Deduction-Corporate Social Responsibility (CSR) expenditure-Donation made as part of CSR obligation to an institution approved under section 80G is eligible for deduction-Disallowance under Explanation 2 to section 37(1) does not bar deduction under Chapter VI-A. [S . 37(1), Companies Act, 2013, S. 135] The assessee incurred Corporate Social Responsibility (CSR) expenditure in compliance… Read More ...
The Delhi ITAT has held that The Delhi ITAT allowed the assessee’s appeal and quashed the reassessment proceedings after holding that the non-supply of approval under Section 151 of the Income Tax Act rendered the reassessment invalid. The assessee’s case was reopened through a notice under Section 148 dated 31.03.2022. The reopening was based on allegations that the assessee had purchased… Read More ...
The Mumbai Tribunal has held that S. 69A : Unexplained money-Alleged on-money paid for purchase of flat-Principles of Natural Justice-Addition based solely on statement of builder and uncorroborated Excel sheets seized during search-No incriminating material supplied to assesse-Cross-examination denied -Addition deleted. [S. 132(4), 147, 148, 254(1), Evidence Act, 1872, S. 65B] The assessee's assessment was reopened on the basis of information… Read More ...
The Bombay High Court has held that S. 147 : Reassessment-Supply of reasons-Accommodation entries-Furnishing only the gist of the reasons instead of the complete recorded reasons vitiates the reassessment proceedings. Reassessment based solely on a statement which had already been retracted and whose retraction had been accepted by the appellate authority does not constitute a valid "reason to believe" that income had… Read More ...
The Mumbai Tribunal has held that S. 37(1) : Business expenditure-Builder-Payments to tenants /occupants-Compensation payable for vacating the occupants-Mercantile system of accounting-Provision for liability towards payment to occupants/tenants-Accrued liability allowable – Mere deferment of quantification or payment does not render liability contingent. [S 28, 145, Accounting Standard-29] The assessee, a builder and developer, received compensation of ₹12.25 crore from a developer… Read More ...
The Mumbai Tribunal has held that S. 69 : Unexplained investments-Foreign assets-Foreign investments were jointly held with the assessee's husband, acquired through disclosed remittances in earlier years under the Liberalised Remittance Scheme (LRS), and supported by contemporaneous documentary evidence including bank statements, PMS reports, reconciliation statements, balance sheets and Schedule FA disclosures of both co-holders-No addition under section 69 could be… Read More ...
The ITAT, HYDERABAD has held that The Hyderabad Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the penalty levied under Section 271DA of the Income Tax Act, 1961, ruling that the Revenue cannot reject an assessee's books of accounts under Section 145(3) as unreliable to estimate business profits and simultaneously rely on uncorroborated entries in those exact same books… Read More ...
The ITAT AGRA has held that 1. Where a trust or institution is granted registration u/s 12AA, the benefit of Sections 11 & 12 shall also be available for earlier assessment years. 2. Donations duly credited to the Income & Expenditure Account cannot again be brought to tax under Section 68, as the same would amount to double addition. 3. The… Read More ...
The Mumbai Tribunal has held that 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 ...