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2024 (4) TMI 647
Eligibility of the assessee for exemption u/s 80P(2)(a)(i) or u/s 80P(2)(d) - interest income earned by a cooperative society from the schedule banks - appellant is a cooperative society engaged in the business of providing credit facilities to its members and accepting deposits from its members. It does not enjoy any license to carry on the business of banking from Reserve Bank of India. HELD THAT:- Hon ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. [ 2015 (2) TMI 995 - KARNATAKA HIGH COURT] and Vave....... + More
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2024 (4) TMI 646
Revision u/s 263 - lack of enquiry or lack of investigation - correct appreciation of conclusion that interest on enhanced compensation during the assessment year under consideration ought to be treated as income from other sources u/s. 56(2)(viii) of the Act - HELD THAT:- We find plausible reasons in the contention of the Ld. AR that that the issue under consideration is no longer res integra, in as much as that identical issue arises into the case of other individuals namely Gulshan Kumar S/o Mohari Ram [ 2024 (2) TMI 748 - ITAT DELHI] where....... + More
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2024 (4) TMI 645
Validity of reopening of assessment - reasons to believe - assessee has claimed huge amortization expenses on goodwill - HELD THAT:- As undisputed fact that in the reasons AO has recorded the escapement of income on account of amortization of goodwill which was not claimed by the assessee in computation of normal provisions of the Act and with regard to adjustment in book profit computed u/s 115JB of the Act AO has not disturbed the same in the order passed u/s 143(3) r.w.s. 147 of the Act. So it is very clear that the reasons recorded are wit....... + More
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2024 (4) TMI 644
Disallowance of total job work charges paid to sister concern - invocation of section 40A(2) - HELD THAT:- Lower Authorities failed to make comparative study of the job work charges with any third party, therefore A.O. is not correct in making disallowance u/s. 40A(2)(b) of the Act. Thus the disallowance made by the Lower Authorities are hereby deleted. Thus Ground Nos. 1 to 4 raised by the assessee are hereby allowed. Disallowance on adhoc basis on the job work charges - Addition at Rs. 2 per Kg for 16710 Kgs. on estimated basis on the job wo....... + More
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2024 (4) TMI 608
Eligibility of Vivad se Vishwas scheme - Denial of claim as prosecution proceedings u/s 276CC of the Act were instituted for the aforesaid assessment years before the date of filing of the declarations and the proceedings were pending - As decided by HC [ 2022 (7) TMI 286 - TELANGANA HIGH COURT] prosecution against petitioner No.1 is u/s 276 CC which pertains to failure to furnish return under Sections 139 (1) or under Section 153 A etc., of the Act. Such delayed filing of income tax returns cannot be construed to be a tax arrear within the me....... + More
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2024 (4) TMI 607
Addition u/s 68 - unexplained credit brought to tax - Addition u/s 2(2)(e) - amounts secured as loan were treated as deemed dividend - HC [ 2018 (2) TMI 2113 - DELHI HIGH COURT] deleted both the additions as done by ITAT and decided the appeal in favour of assessee. HELD THAT:- As we are of the view that the judgment of the High Court does not warrant interference. Hence, the Special Leave Petition is dismissed.
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2024 (4) TMI 606
Addition u/s 14A r.w.r.8D - expenditure incurred on earning exempt income - Effect of section 14A amendment - ITAT deleted addition - HELD THAT:- The issue is squarely covered by an order of the Supreme Court in Essar Teleholdings Ltd [ 2018 (2) TMI 115 - SUPREME COURT ] as held Rule 8D is prospective in operation and could not have been applied to any assessment year prior to Assessment Year 2008-09. - Decided against revenue Addition made on account of income from interest - assessee is following mercantile system of accounting were the inte....... + More
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2024 (4) TMI 605
Characterization of receipt - amount received by the appellant upon retirement from the partnership - taxability as capital gains under the Income Tax or not? - department, was of the firm stand that the right of the appellant in the partnership firm is a capital asset and the extinguishment of the right in the said firm is in fact a transfer of the receipt against capital asset - Appellant as contended that receipt of the share value of goodwill cannot be subjected to capital gains tax as there was no transfer of goodwill to the firm by the a....... + More
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2024 (4) TMI 604
Reopening of assessment - reasons to believe - reopening beyond period of four years - disallowance u/s 40(a)(ia) - non deduction of tds on stake money paid by the petitioner to the horse owners u/s 194B or Section 194BB - as argued receipt on behalf of the horse - owners and the debits affected on their instructions disclosing that the financials are prepared from the primary accounts and without claiming any expenditure in the regard, thus there cannot be any allegation of failure to truly and fully disclose material facts - HELD THAT:- The ....... + More
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2024 (4) TMI 603
Rejection of DTVsV application - petitioner/assessee was seeking to settle only a part of the dispute obtaining between them - HELD THAT:- Given the fact we have concluded, while disposing of MUFG BANK LTD VERSUS COMMISSIONER OF INCOME TAX 2 ANR. [ 2024 (4) TMI 530 - DELHI HIGH COURT] that an applicant can choose to settle one or more appeals or SLPs that may emerge from a given assessment year under the VSV Act, the issue raised in this writ petition stands covered by a decision in the said matter. Accordingly, the prayer made in the writ pet....... + More
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2024 (4) TMI 602
Validity of Reopening of assessment - as argued notices were not served on the petitioner - HELD THAT:- The documents that are relied on by the petitioner disclose that respondent had issued various notices to the petitioner calling upon him to file his returns for the year 2014-15. Even though it is contended that notices were not served on the petitioner, the same cannot be accepted, in view of the specific averment made in the assessment order regarding service of notices. Therefore, the contention taken by the petitioner is that, he was no....... + More
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2024 (4) TMI 601
Revision petition u/s 264 by assessee - contention of the petitioner was negated by passing the order in the absence of any proper material being placed on record by the petitioner to establish that there was expenditure incurred in relation to earning income - as argued when the money was collected by the petitioner from farmers and repaid to the rig owners, the petitioner has acted as only a collection agent and there cannot be any income that has been derived by the petitioner and the said aspect of the matter has not property considered by....... + More
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2024 (4) TMI 599
Ex-parte order passed by CIT - Revision u/s 263 - no representation on behalf of the assessee in respect of the notice issued by him - DR placed on record the assessment order passed by the AO in pursuance to the direction of Ld.Pr.CIT - HELD THAT:- DR for the Revenue and perused the material available on record and gone through the orders of the authorities below. It is brought to our notice that the assessment has already been passed by the Revenue in pursuance to the direction of Ld. Pr.CIT. From the assessment order, it is transpired that ....... + More
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2024 (4) TMI 598
Dismissal of appeal in limine u/s 249 by CIT(A) - Addition of purchase price of the property bought by assessee son - as argued payment made for purchase of property for which the investment is made by assessee's son from his own independent source - D.R. submitted that as per section 249(4)(b) the assessee is liable to file the return of income and pay the advance tax before filing the appeal before the CIT(A) but assessee failed to do so HELD THAT:- The provisions of section 249(4)(b) of the Act is clear that the appeal before the CIT(A)....... + More
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2024 (4) TMI 597
D eduction u/s 80P(2)(d) - interest received from the Co-operative Bank - gross interest calculation - HELD THAT:- We note that issue under consideration is no longer res judicata and the interest received from Co-operative Bank is allowable deduction u/s 80P(2)(d) for that reliance is placed on the decision of Surat VankarSahakari Sangh Ltd [ 2016 (7) TMI 1217 - GUJARAT HIGH COURT] wherein it was held that assessee-co-operative society was eligible for deduction under section 80P(2)(d) of the Act, in respect of gross interest received from co....... + More
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2024 (4) TMI 596
Addition u/s 68 sales made by the assessee to M/s Sangeeta enterprises - distance between the factory of the assessee and destination of Sangeeta enterprises is 54 km and therefore in the timing that is provided in the invoices of dispatch of goods is not possible - argument in the decision of Unicot food products private limited [ 2023 (9) TMI 1458 - ITAT MUMBAI] which is raised before us by the learned departmental representative of goods transported from assessee to destination of Sangeeta enterprises in one lorry and at jet speed - HELD TH....... + More
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2024 (4) TMI 595
Exemption u/s 11 - Charitable activity u/s 2(15) - AO has treated that the activities of the trust as commercial activity by invoking the proviso to section 2(15) - HELD THAT:- As relying on decision by the Co-ordinate Bench in assessee s own case [ 2024 (3) TMI 944 - ITAT KOLKATA] we are inclined set aside the order of ld. CIT(A) and further uphold that the assessee is entitled to exempt u/s. 11 of the Act during the year on the ground that the profit derived from the services rendered as public utility service is very meager or there is defi....... + More
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2024 (4) TMI 594
Addition u/s 68 - share capital/share premium received as unexplained - onus to prove - no compliance of summons issued u/s 131 to the directors of the assessee - HELD THAT:- When the assessee has filed all the evidences as desired by the AO ,then the assessee is presumed to have discharged the onus cast upon it and the onus shifts to the revenue to conduct an enquiry on this evidences and record findings as to how the investment/money received by the assessee are covered u/s 68 of the Act. However in the present case, we note that no such enq....... + More
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2024 (4) TMI 593
Reopening of assessment u/s 147 - Addition u/s 68 - applicability of section 115BBE - HELD THAT:- Information received from investigation wing, while recording the reasons AO categorically mentions that escapement of income has arisen on account of failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment. However, assessee has already assessed u/s 143(3). The search on Mr. Dilip Kumar Gupta, his statement and information about accommodation entries received by the assessee from Sarwaria In....... + More
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2024 (4) TMI 592
Penalty proceedings u/s 271(1)(c) - deduction u/s 35(2)(AB) was reduced by the Competent Authority - HELD THAT:- As time of filing of the return of income, the claim of deduction u/s 35(2)(AB) of the Act, was not reduced by the Competent Authority. The Competent Authority had subsequently approved the expenditure to an extent , therefore, the assessee during the course of assessment proceedings, reduced its claim as approved. CIT(A), therefore, considering the facts and circumstances of the case, applied the ratio laid down in the case of Pric....... + More
