ITAT
ITAT Pune Upholds ₹6 Lakh Professional Fees Disallowance For Lack of Evidence
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the disallowance of Rs. 6 lakh claimed as professional fees for the assessment year 2017-18, noting that the payment was not supported by sufficient evidence such as the recipient's income tax return, Form 26AS (annual tax statement), or bank statements.The Bench, comprising Accountant Member Dr Dipak P. Ripote and Judicial Member Vinay Bhamore, reaffirmed that expenses claimed as professional fees must be substantiated...
Suppliers' Failure To File Income Tax Returns Alone Can't Render Purchases Bogus: ITAT Chandigarh
The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) has recently observed that purchases cannot be treated as bogus only because some suppliers failed to file income tax returns or did not respond to departmental notices when the transactions are otherwise supported by records. Explaining this, a bench of Vice President Rajpal Yadav and Accountant Member Manoj Kumar Aggarwal observed that in the fctas of the case, the tax department had accepted the taxpayer's sales and had not...
ITAT Sets Aside Penalty Against Taxpayer For Receiving Property Sale Price In Cash At Registration
The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) recently quashed a penalty of Rs. 7.41 lakh imposed on a Ludhiana resident for receiving the sale consideration of a plot in cash at the time the sale deed was registered. The order was passed by Accountant Member Manoj Kumar Aggarwal, who held that the penalty had been wrongly imposed, as the cash was received in a single transaction at the time of execution of a registered sale deed and not as an advance. On those facts, the...
No Tax Addition Where Charitable Trust Incurred Loss, Even If Some Receipts Treated As Business Income: ITAT Mumbai
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has recently held that no tax addition can be made where a Mumbai charitable trust has incurred an overall loss, even if the Assessing Officer treats some of its receipts as business income. The tribunal made it clear that tax can be levied only on real and net income, and where expenditure exceeds receipts, nothing survives to be taxed. The coram comprising President Justice (Retd.) C V Bhadang and Accountant Member Vikram...
Carry Forward Of Losses Can't Be Denied On Vague Grounds: ITAT Pune
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has held that statutory tax benefits cannot be denied on vague grounds. Such rejections such as in the present case, reflect a “sheer lack of application of mind,” the tribunal said. Applying this principle, the tribunal allowed a Maharashtra based tech company to carry forward business losses of Rs 1.09 crore and unabsorbed depreciation totalling Rs 1.03 crore. The tribunal, comprising Judicial Member Astha Chandra...
Waiver Of Liability To Redeem Debentures Not Taxable If Interest Deduction Was Not Claimed Earlier: ITAT Pune
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has held that the waiver of a company's liability to redeem debentures cannot be taxed as income when no deduction of interest on those debentures was claimed in earlier years.A coram comprising Judicial Member Astha Chandra and Accountant Member Dr. Dipak P. Ripote examined the applicability of Sections 28(iv) and 41(1) of the Income Tax Act on the action. Relying on apex court rulings, the tribunal held that Section 28(iv) applies...
ITAT Delhi Quashes Revision Order, Says Tax Dept. Cannot Expand Limited Scrutiny Assessment
The Income Tax Appellate Tribunal, Delhi Bench, has quashed a revision order passed against an individual taxpayer, holding that the tax department cannot expand a limited scrutiny assessment by invoking its revisionary powers.A coram comprising Judicial Member Yogesh Kumar U.S. Accountant Member S. Rifa'ur Rahman held that the Principal Commissioner of Income Tax had wrongly invoked Section 263 of the Income Tax Act which allows revision of an assessment only if it is both erroneous and...
ITAT Upholds Deletion Of ₹25.55-Crore Income Tax Addition On Everest Food Over Alleged Bogus Purchases
The Mumbai Bench of the Income Tax Appellate Tribunal has recently upheld the deletion of a Rs 25.55 crore income tax addition against Everest Food Products Pvt. Ltd., a Mumbai-based company that manufactures and sells masala and spices under the popular “Everest” brand. A bench of Judicial Member Kavitha Rajagopal and Accountant Member Vikram Singh Yadav dismissed the revenue's appeal, agreeing with the Commissioner (Appeals) that purchases cannot be treated as non-genuine solely because...