Assessing Officer computed a disallowance under section 14A concerning non-current investments. However, the assessee had not claimed any exempt income. Citing relevant legal precedents, the Tribunal dismissed the disallowance, affirming that section 14A was inapplicable in the absence of exempt income.
ITAT emphasized that the AO must decide on the objections raised by the assessee before proceeding with the assessment. Failure to do so renders the assessment bad in law.
Explore the case of Tirupati Developers vs ACIT where ITAT Mumbai ruled no section 50C addition for PGBP income in a redevelopment project.
Read the detailed analysis of ITAT Kolkata’s decision in Jai Trading Co. vs. ITO regarding the allowance of commission payments as business expenses. Full text included.
ITAT Bangalore directs re-examination of Long-Term Capital Gains (LTCG) dispute concerning a property whose sale was canceled by a Civil Court. Details of Mangalagiri Tulasi Vs ITO case.
The computation of income by AO giving effect to CIT’s direction was an assessment order which was appealable. The order passed by CIT(A), therefore, holding the assessment order to be not appealable was incorrect in law.
ITAT Delhi held that revenue received from various hotel owners for providing various centralized services cannot be treated as fees for included services (FIS) either under Article 12(4)(a) or 12(4)(b) of the India-US tax treaty. Thus, in absence of PE in India, the same is not taxable.
In Tokai Sahakari Sakhar Karkhana Ltd vs ITO (ITAT Pune), ITAT rules that loan received from State Government is not subject to S.43B(d) of Income Tax Act, 1961. Full text analysis here.
In the case of Cavalcade Properties Pvt. Ltd. vs. DCIT, ITAT mandates re-evaluation of advances against flat bookings, challenging revenue recognition methods.
Read the detailed analysis of Hiral Exports vs ITO case where ITAT Mumbai deletes Rs.40,82,500 addition under section 68 of the Income Tax Act due to failure to rebut evidence.
