- 2020 (7) TMI 752 - ITAT MUMBAI
Chargeability of late fee under section 234E - whether Late fee can be levied prior to 1.6.2015, i.e. prior to enactment of section 234E? - diversified views of various High courts on issue - CIT(A) has decided the issue by following the decision of honourable Gujarat High Court in case of Rajesh Kourani [2017 (7) TMI 458 - GUJARAT HIGH COURT] - Though CIT(A) has noted the decision of Sri Fatheraj Singhvi[2016 (9) TMI 964 - KARNATAKA HIGH COURT] which is in favour of the assessee he has chosen not to follow the same also distinguished the decision of honourable Supreme Court in the case of Vegetable Products Ltd. [1973 (1) TMI 1 - SUPREME COURT] by referring that the said decision was in connection with penalty - HELD THAT:- CIT appeals has totally erred in distinguishing the decision of honourable Supreme Court in the case of vegetable p....... + More
- 2020 (7) TMI 751 - ITAT MUMBAI
Rectification of mistake - Addition u/s 68 - cases relied upon were ignored to be considered - company was dealing in providing the accommodation entries - addition was raised on account of third party statement - assessee alternate plea was that the assessee was earning the commission by providing accommodation entries, the only amount of commission could be added to the assessee’s taxable income and not entire amount of transaction - HELD THAT:- As stated that the applicant used to issue accommodation entries on commission basis @ 0.02% to 0.10%. On the basis of the said information, the noticed u/s 153C of the Act was issued. The assessment u/s 153C was completed treating the 4% as income. Subsequently, the PCIT-4 passed the order u/s 263 of the Act and thereafter the assessment u/s 144/142(1) r.w.s. 153C of the Act was competed ....... + More
- 2020 (7) TMI 747 - ITAT JAIPUR
Computation of capital gain - Disallowance of indexed cost of improvement claimed on sale of plot - computing the long term capital gain as against long term capital loss computed by the assessee - whether CIT(A) has erred in holding that agreement with contractor and his affidavit in respect of expenditure incurred on cost of improvement looks an afterthought story without any material & basis - HELD THAT:- The assessee owns a plot of land measuring 200 sq yards and a part of the said plot measuring 133.33 sq yards, has been sold during the year. On perusal of the sale deed so executed by the assessee, the description of the property sold is shown as residential plot no. 10 Plot No.10, Bajrang Nagar, Village- Cha Getor, Tehsil-Sanganer, District Jaipur and even the site plan attached with the sale deed depicts the plot of land and do....... + More
- 2020 (7) TMI 745 - ITAT MUMBAI
Maintainability of appeal - low tax effect - HELD THAT:- As learned counsel rightly contends, this appeal of the Revenue is no longer maintainable in view of the recent CBDT Circular No. 17 of 2019 dated 08.08.2019. The mandatory limit for cases in which Revenue can challenge the relief granted by the CIT(A) now stands enhanced to ₹ 50 lakhs. This concession granted by the Central Board of Direct Taxes (CBDT) is retrospective in effect inasmuch as it applies to all pending appeals as well. In view of the above position, the appeal of the Revenue is no longer maintainable and must be dismissed as such. On re-verification at the end of the Assessing Officer it comes out that the tax effect of more than ₹ 50 lakhs is being involved in the appeal or the appeal falls within the exemption clause of the Circular, then the Revenue wil....... + More
- 2020 (7) TMI 742 - ITAT DELHI
Disallowance of claim of set-off of “B/f unabsorbed Short Term Capital Loss against the current year’s income from Short Term Capital Gain - claim of the assessee is not tenable in view of the fact that in his statement recorded u/s 132(4), the assessee has not claimed the adjustment of brought forward loss on account of the short term capital gain declared - whether or not, the brought forward short term capital loss which has been duly allowed by the department in the earlier years is eligible to be set off against the short term capital gains of the current year declared by the assessee ? - HELD THAT:- We find that the assessee has filed the computation of income correctly. The computation filed is as per the scheme of computation provided in the Income Tax Act. The provisions of Section 74 clearly provides for set off of s....... + More
- 2020 (7) TMI 729 - ITAT KOLKATA
Long Term Capital Loss on transfer of Government Securities - applying cost inflation index on transfer of assessee’s government securities - HELD THAT:- As decided in own case [2019 (12) TMI 958 - ITAT KOLKATA] we note that as per Section 2(42A) expression 'security’ shall have meaning assigned to Clause 11 of Securities Contracts Regulation Act, 1956 which includes government securities. The facts of this case are squarely applicable to the present case of the assessee. Respectfully following the judgment of Sundararn Finance Limited [2017 (7) TMI 661 - ITAT CHENNAI] we note that it is abundantly clear that Government Securities are entitled to Indexation Benefits. Therefore, we note that Government Securities are different from Bond and Debenture for the purpose of the 3rd proviso to Sec. 48 of the Act (4th proviso afte....... + More
- 2020 (7) TMI 728 - ITAT JAIPUR
Penalty u/s 271(1)(c) - whether for concealment of particulars of income or furnishing of inaccurate particulars of income? - Long Term Capital Gain earned on sale of agricultural land which was jointly held in equal share with his brother Sunil Sharma - HELD THAT:- AO has not clearly mentioned the limb, on the basis of which, penalty was proposed to be imposed. AO in assessment order or penalty notices did not specify the limb under which the penalty was initiated and simply issued a pre-printed notice without striking off the unnecessary portions of the notice. If the AO was of the view that the assessee has concealed the income or furnishing inaccurate particulars of income then he should have deleted or not mentioned the other limb for imposition of penalty i.e. concealing the particulars of income. The above act of the AO clearly sho....... + More
- 2020 (7) TMI 720 - ITAT MUMBAI
Disallowance of provision for warranty while computing book profits u/s.115JB - HELD THAT:- Disallowance made under normal provisions of the Act, ITAT had set aside to the file of the ld. AO - We also find that there is absolutely no finding recorded by the ld. CIT(A) in his appellate order as to whether the provision has been made on a scientific basis based on past history of the assessee. Since, the same issue has been set aside to the file of the ld.AO under normal provisions of the Act, we deem it fit and appropriate in the interest of justice and fair play to remand this ground also to the file of the ld. AO as the decision in this case would be depending on the outcome of the decision taken by the ld. AO under normal provisions of the Act. Accordingly, the ground raised by the assessee is set aside to the file of the ld. AO for den....... + More
- 2020 (7) TMI 719 - ITAT BANGALORE
Transfer Pricing Adjustment - Selection of comparable - HELD THAT:- Accropetal Technologies Ltd. - Observations of the DRP is a finding that the employee cost of Accropetal Technologies Ltd., is less than 25% of its total cost. However, we find that in form No.35A (form of objection before DRP) the Assessee has raised para 6.4.2 (Page-40 of Form No.35A), the objection for exclusion of this company is only on the basis of functional comparability and revenue recognition method followed by this company. Both the filters employed by the DRP for excluding this company from the list of comparables does not figure in the objection of the Assessee at all. This aspect has not been highlighted or taken as a ground of appeal by the revenue in its appeal. Therefore the only ground of appeal of the revenue against the directions of the DRP is that th....... + More
- 2020 (7) TMI 717 - ITAT AHMEDABAD
Addition u/s 14A r.w.r. 8D - investments from which the appellant has not earned any exempt income - assessee suo motu has disallowed an amount u/s 14A r.w.r. 8D - HELD THAT:- As relying on VIREET INVESTMENT (P.) LTD. [2017 (6) TMI 1124 - ITAT DELHI] we find substance in the argument made by the Ld. Senior Counsel appearing for the assessee to this effect that only those investments are to be considered for computing average value of investment which yielded exempt income during the year. In that view of the matter we find it fit and proper to restore the matter to the file of the Ld. AO for re-computing the disallowance under Section 14A in terms of the observation made hereinabove. Hence, this ground is allowed for statistical purposes. Nature of expenses - river diversion expense and HT line shifting expense - revenue or capital expend....... + More
- 2020 (7) TMI 716 - ITAT MUMBAI
Draft assessment order u/s 143(3) r.w.s. 144C - maintainability of the objection filed by the assessee under Form No. 35A - Form No. 35A filed by the assessee on 19.01.2018 was not verified as per the procedure laid down since the signature of the person on verification page in the said form was a copy of the original signature - dismissing the application in limine treating the Form No. 35A filed by the assessee as nonest held to be not sustainable - submitted by the appellant that at that relevant point of time since Mauritius was hit by a cyclone leading to heavy rainfall and causing devastating damage in the country, the Directors present in Mauritius were not available for signing and forwarding the original objections. To meet the deadline, therefore, the assessee got the original objections signed by one of its Director available a....... + More
- 2020 (7) TMI 715 - ITAT DELHI
Deduction u/s 80P(2)(a)(i) - interest income earned from investment of funds in commercial banks and cooperative banks/societies - CIT-A upholding action of AO such interest income is not eligible for deduction under that section - HELD THAT:- Assessee is not a banking company and the expression “ business of banking” cannot be given a spacious meaning to unrealistically expand the term beyond, the assessee is not eligible for deduction u/ s 80P(2)(a)(i). Accordingly, we hereby hold that the interest earned from the fixed deposits made out of the surplus funds is not eligible for the claim of deduction u/s 80P(2)(a)(i). Deduction u/s 80P(2)(d) - alternative plea for deduction - whether the co- operative bank wherein the assessee made deposits out of this surplus fund be considered as a co-operative society, for if a co-operati....... + More
- 2020 (7) TMI 714 - ITAT MUMBAI
Capital gain - tenancy right available with the assessee or not? - the amount received for not interfering possessions - the parties of the family settlement that the assessee and her relatives were in possession of flat. - relinquishment of rights - capital receipt v/s capital gain - HELD THAT:- In the instant case, Smt. Saraswati Vithaldas Sahita occupied the said flat at 2nd floor of the building known as Gangasagar on license basis. This is crystal clear from the ‘Consent Term’ before the Hon’ble Court of Small Causes at Mumbai, quoted at length earlier. After demise of Mrs. Saraswati Vithaldas Sahita, her son Shri Vidyut Sahita occupied the said flat with his family. The said building Gangasagar was purchased by M/s H.M. Enterprises. For vacating the premises, M/s H.M. Enterprises filed suit against the occupier of ....... + More
- 2020 (7) TMI 713 - ITAT JAIPUR
Penalty u/s 271AAB - Addition u/s 69B - income shown suo-motto - additional income brought to tax by the Assessing Officer - Undisclosed income admitted and declared in the return of income - HELD THAT:- Penalty has been initiated in respect amount admitted by the assessee pursuant to search conducted on 13.08.2013. Given that the assessee had only disclosed a sum of ₹ 5.2 lacs in the revised return filed on 9.11.2013, subsequent to date of search and thereafter, in the return filed on 16.02.2015 in response to notice u/s 153A, the Assessing officer has brought the balance amount of ₹ 80,000/- to tax during the course of assessment proceedings. However, as far as initiation of penalty proceedings u/s 271AAB is concerned, the same has been initiated on the whole of the sum of ₹ 6 lacs admitted by the assessee pursuant to ....... + More
- 2020 (7) TMI 712 - ITAT DELHI
Assessment on a non-existent entity - assessment in the name of the amalgamating company - Whether a curable defect as per Section 292B? - HELD THAT:- The amalgamating company i.e. Genpact India was not in existence at the time of conducting assessment proceedings as well as on the date of passing Assessment Order. Once it is found that assessment is framed in the name of non-existing entity, it does not remain a procedural irregularity of the nature which could be cured by invoking the provisions of Section 292B of the Act. Hence, the Assessment proceedings as well as the Assessment order itself are void ab initio. Therefore, assessment order is set aside. - Decided in favour of assessee.
- 2020 (7) TMI 711 - ITAT JAIPUR
Non-grant of TCS credit - Rectification of mistak u/s 154 - Amount of TCS was not reflected (shown) in the name of assessee, but corresponding income declared by the assessee - HELD THAT:- In the return of income, though the assessee has claimed TCS, however, in absence of reflection of the TCS in the name of the assessee in Form No. 26AS, while processing the return of income, the credit of TCS has not been granted to the assessee. During the rectification proceedings, the assessee has submitted before AO that though TCS has been collected in the name of Shri Bheru Singh Tak, the corresponding revenues have been offered by the assessee in his return of income - also not disputed the said fact that revenues have been offered by the assessee in his return of income but at the same time, has rejected the said claim stating that TCS was dedu....... + More
- 2020 (7) TMI 710 - ITAT JAIPUR
Correct year of assessment - Interest income was taxed in the earlier assessment year - interest income from partnership firms was included in the total income of the assessee for the year under consideration as well as for the assessment year 2014-15 - mistake on the part of the assessee is to declare and offer to tax the interest income - only reason for denial of exclusion of the income from the total income of the assessee is non filing of the revised return of income - HELD THAT:- Since the return of income was filed by the assessee belatedly, therefore, the assessee could not file a revised return of income. Undisputedly the said income on account of interest from the partnership firms has been taxed for the assessment year 2014-15 and it was again taxed for the year under consideration. It is a case of taxing the same income twice........ + More
- 2020 (7) TMI 709 - ITAT JAIPUR
Rectification u/s 254 - Sale of land - land in question were sold by the assessee in the capacity of power of attorney holder and AO has assessed the income in the hand of the assessee who sold the land - tribunal deleted addition - HELD THAT:- Assessee produced the relevant documentary evidence in support of the claim that he has executed the sale deeds in the capacity of power of attorney holder of the land owners namely, Hanuman Sahai, Chauthmal, Gyarsi Lal, Pachuram, Shankar Lal and Nanchi Lal. Tribunal has given a finding of fact on merits after analyzing the documentary evidence. AO though did not accept the documentary evidence but also not conducted any enquiry and particularly by examination of the original land owners who have given a power of attorney in favour of the assessee. The assessment order is silent about enquiry condu....... + More
- 2020 (7) TMI 708 - ITAT MUMBAI
Provision for labour demand - disallowance by taking view that it is contingent in nature - HELD THAT:- As in assessee’s own case for AY 2006-07 [2013 (9) TMI 522 - ITAT, MUMBAI] issue in question has already been decided in favour of the assessee in earlier years. Deduction is allowable in respect of the estimated liability regarding incremental wages before the final agreement was entered in to. Addition being prorate premium payable on redemption of foreign currency convertible bond (FCCB) - AO disallowed the premium paid on FCCB holding that being capital and contingent - HELD THAT:- As decided in own case [2013 (9) TMI 522 - ITAT, MUMBAI] expenses incurred in connection with the issue of FCCB were revenue in nature. Addition of expenses on FCCB - AO disallowed the expenses on FCCB holding it as capital - HELD THAT:- As decided ....... + More
- 2020 (7) TMI 687 - ITAT MUMBAI
Disallowance u/s 14A r.w.r. 8D - AO made the addition under Rule 8D(2)(iii) - total quantum of exempt income earned by the assessee was much higher than that of the disallowance made by the Ld. AO - HELD THAT:- We have carefully considered the judgment passed by the Hon’ble Delhi Bench in the matter of ACIT vs. Vireet Investment Pvt. Ltd. [2017 (6) TMI 1124 - ITAT DELHI] as relied upon by the Ld. AR. However, we find that the ratio laid down in the said judgment has not been followed in its true spirit. As we find that while making addition of.5% of the average investment under Rule 8D(2)(iii) the Ld. AO considered the entire investment made by the assessee instead of only those investment which yielded exempt income during the year. Thus, having regard to the entire facts and circumstances of the case we dispose of the appeal by re....... + More
