AO noticed that the assessee in its computation of income claimed prepaid finance charges amounting to Rs.19,96,29,043/- and he asked to clarify or show-cause as to how the prepaid finance charges were allowable.
ITAT Ahmedabad held that ex-parte dismissal of appeal on account of non-appearance by CIT(A) without discussing the merits of the case is unsustainable in law. CIT(A) is obliged to dispose of appeal on merits.
ITAT Mumbai held that normal period of limitation i.e. 3 years will apply in case of reopening of assessment where escapement of income was below Rs. 50 Lakhs and extended period of 10 years will apply only in case of concealment of income of Rs. 50 Lakhs or more.
Re-opening of assessment by AO was unjustified if the original return had not been processed by following the decision in case of Super Spinning Mills Ltd. vs Addl. CIT 37 DTR (Chennai) (T.M) (Trib).
ITAT Delhi held that routine support services would not be taxable as Fees for Technical Services (FTS) in terms of the provisions of India-UK Double Taxation Avoidance Agreement (DTAA).
ITAT Mumbai held that the disbursal of loan scholarship to students in India for study overseas as application of income for charitable purposes in India. Thus, claim of exemption under section 11 of the Income Tax Act allowed.
ITAT Ahmedabad held that interest income and miscellaneous income earned by the assessee are directly related to the business of the assessee and assessable as business income only and not as income from other sources.
Compensation received under Section 28 of the Land Acquisition Act was taxable under section 56(2)(viii) r.w.s 145B(1) as the provisions of section 10(37) deal with ‘compensation’ only and not interest on compensation or enhanced compensation.
ITAT Ahmedabad condoned delay of 326 days in filing quantum appeal and delay of 1 day in filing penalty appeal as assessee demonstrated sufficient cause for the delay.
ITAT Ahmedabad held that in case of two contrary decision by non-jurisdictional High Courts, decision favourable to the assessee shall apply. Thus, order of CIT(A) allowing deduction u/s. 80IA of the Income Tax Act upheld.
