Judgements Uploaded By Users In Category: Income-Tax Act
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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 ...
The Rajasthan High Court has held that 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 ...
The Mumbai Tribunal has held that 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 ...
The Mumbai Tribunal has held that 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 ...
The ITAT Chennai has held that 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 ...
The Mumbai Tribunal has held that 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 ...