Judgements Uploaded By Users In Category: Income-Tax Act
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The Mumbai Tribunal has held that S. 153A : Assessment-Search-Alleged transfer of Development rights-Reassessment based on seized ledger account and third-party statement-No independent inquiry conducted by the AO-No evidence to link the assessee to the transaction-Addition is deleted. [S. 131, 147, 148, 153A, 153C] The assessee has been a dormant firm since 2003 and received a reassessment notice u/s 147 r/w… Read More ...
The Mumbai Tribunal has held that S. 148 : Reassessment-Notice-Issued notice without disposing of assessee’s objections-Breach of principle of natural justice-Reassessment order was quashed. [S. 147, 153A] The AO failed to dispose of the assessee’s objections before passing the reassessment order. The ITAT observed that when an assessee files objections against a reassessment notice, the AO is required to first address… Read More ...
The INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR has held that Deletion of Arbitrary Addition under Section 69A In the instant case, a 10% ad hoc addition on cash deposits was deleted. The Tribunal held that once the explanation for source of funds is found to be substantially correct, there is no scope for estimated additions under Section 69A. Taxation must rest on evidence, not assumptions.… Read More ...
The INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR has held that 🔹 Reassessment Invalid under Section 148/149(1)(b) In the instant case, the Tribunal quashed the reassessment proceedings since the alleged escaped income was below ₹50 lakh. It reaffirmed that the extended time limit under section 149(1)(b) cannot apply unless the threshold is crossed – a welcome interpretation aligning with the Finance Act, 2021 and judicial precedents… Read More ...
The Chennai Tribunal has held that S. 6(1) : Residence in India-Individual -Stayed more than 60 days in each year-More than 365 days in India for a period or periods amounting to all to 365 days or more-More than 183 days for AY. 2013 -14 & 2014-15-Control and management office is located in Chennai , India-Foreigners Regional Registration Office (FRRO) data… Read More ...
The Mumbai Tribunal has held that S. 4 : Charge of income-tax-Compensation-Surrender of premises - Allocated flat as compensation to remove illegal occupant-The value of flat received by the assessee as compensation for removing nuisance shall constitute capital receipt -Not taxable. [S. 2(24),54F, 56(2)(vii)( b )] The assessee was an illegal occupant of land, who was allotted a flat worth ₹2.59… Read More ...
The Chennai Tribunal has held that S. 56 : Income from other sources-Long term capital loss-Share transfer agreement-Shares sold at an undervalued price-Related party transaction-AO claimed that the transaction was structured to avoid tax-Shares valued at upwards of Rs 19,000/-, per share were sold for Rs.100 per share-Valuation was not in accordance with Rule 11UA-Matter remanded back to AO for recalculating… Read More ...
The Mumbai Tribunal has held that S. 36(1)(iii) : Interest on borrowed capital-Interest on ICDs used for giving interest-free security deposit for getting the premises on leave and license-Business purpose-Interest is allowed as deduction. [S. 37(1)] The assessee had taken an office premises on leave and license by providing an interest-free security deposit, funded partly through Inter Corporate Deposits (ICDs) on… Read More ...
The Mumbai Tribunal has held that S. 45 : Capital gains Interim order-Year of taxability of capital gains on compensation-Interest on compensation-Income from other sources - Delay of 404 days-Delay is condoned-The compensation and interest received by in pursuance of an interim order of the Bombay High Court cannot be taxed in the year of receipt-Addition is deleted -Compensation and interest… Read More ...
The ITAT (Mumbai) has held that Sec. 80-IA: Even if income under the head Business/ profession is a loss, deduction under section 80-IA(4) is allowable from other heads of income if the Gross Total Income is a positive figure. Sec. 14A: Only investments yielding exempt income during the relevant previous year shall be taken into consideration for the purpose of computing… Read More ...