Interest expenditure incurred for investment in group concerns constituted business activity and was allowable u/s 36(1)(iii)

ACIT Vs Tata Sons Ltd. (ITAT Mumbai)

The dominant object of assessee's investment in group concerns was to exercise business control by way of acquiring shareholding and not to earn the dividend. Assessee’s activity of holding such investment constituted business activity and therefore, the interest would be fully deductible u/s 36(1)(iii)....

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Recording of reasons after due application of mind is sine qua non for valid section 148 notice

Omkam developers Ltd. Vs ITO (ITAT Delhi)

Omkam developers Ltd. Vs ITO (ITAT Delhi) 1. The reasons recorded are based on suspicion, which is evident from the words used in reasons recorded, i.e., “it appears that assessee M/s Omkam Developers Ltd. has received bogus share capital/share premium to the tune of ₹ 1.93 Crores. 2. The Assessing Officer has just accepted the [&hell...

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No Tax if no development taken place & Possession taken back

Santosh Kumar Subbani Vs ITO (ITAT Hyderabad)

Santosh Kumar Subbani Vs ITO (ITAT Hyderabad)  In the instant case, the assessee has entered into development agreement for construction of duplex houses and assessee was to receive the constructed area of 5000 sq.ft by virtue of development agreement. However, after entering into agreement, the developer has vanished and no real develop...

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Section 143(2) Notice on very same day of Return Filing makes Reassessment Invalid

Simranpal Singh Suri Vs ITO (ITAT Delhi)

Simranpal Singh Suri Vs ITO (ITAT Delhi) This shows that the notice u/s 143(2) was issued to the assessee on the very same day on which the assessee appeared and furnished copy of ITR in response to notice u/s 148 of the IT Act. It has been held in various decisions that when the notice […]...

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Taxes paid by Taxpayer includes TDS (Taxes paid on its behalf)

ACIT Vs North American Coal Corporation India Pvt. Ltd. (ITAT Pune)

ACIT Vs North American Coal Corporation India Pvt. Ltd. (ITAT Pune) A careful perusal of the ITSC direction explicitly indicates that the AO shall compute the tax payable ‘after giving credit for taxes already paid by the applicant’. `Taxes already paid’ do not mean only the taxes directly paid by the assessee but also those...

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AMP Expenses not qualifies as ‘international transaction’ under Section 92B

Pepsico India Holdings Pvt. Ltd. Vs ACIT (ITAT Delhi)

Addition made on account of AMP expenses qualified as an ‘international transaction' under the terms of section 92B(1) read with section 92F(v) was not justified as AMP Expenses did not qualify as an 'international transaction' for the purposes of section 92B firstly, there was no international transaction in the form of any agreement o...

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Appellate Authority can exercise Power under Rule 46A suo-motu without any application from any of contesting party

DCIT Vs Kewalram Textile Pvt. Ltd. (ITAT Ahmedabad)

DCIT Vs Kewalram Textile Pvt. Ltd. (ITAT Ahmedabad) The power of the appellate authority to direct for the production of a document or examination of the witness as a matter of fact is in furtherance of any enquiry contemplated by Section 250(4) of the Act is contained in sub Rule 4 of Rule 46-A of […]...

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Section 68 not applies when assessee explained nature & source of Income

Harish Sharma Vs ITO (ITAT Chandigarh)

Harish Sharma Vs ITO (ITAT Chandigarh) Admittedly, in the present case the notebook entries containing entry pertaining to the business of M/s Sharma Overseas Services was recovered from the possession of the assessee. The authorities below have not rejected the contention of the assessee that the entries in note book pertained to the bus...

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No deduction u/s 80IA(4) granted in first year could be denied in subsequent Years unless there was change in original terms and conditions

K. Raheja IT Park (Hyderabad) Pvt. Ltd., Vs DCIT (ITAT Hyderabad)

When deduction u/s 80IA(4) had been granted in first year of claim the same could not be denied in subsequent years, unless assessee had changed the original terms and conditions in the first year while fulfilling for the granting deduction in the first year of operation....

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ITAT reprimands officers for delaying tactics during pandemic & rejects adjournment request

DCIT Vs Saroj Kumar Poddar (ITAT Kolkata)

DCIT Vs Saroj Kumar Poddar (ITAT Kolkata) Kolkata bench first  of its kind of Interim order on the subject of endless adjournments by revenue on pretext of covid 19  and resultant pains to tax payer languishing for justice held remarkably as follows:- The Revenue is also raising strong objections, without any valid ground, for the [&hel...

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May 2021