The Tribunal held that interest income earned from mandatory reserve fund deposits and co-operative bank accounts qualifies for deduction under Section 80P. It observed that temporarily parking surplus funds does not amount to carrying on a separate investment activity.
ITAT Bangalore held that the Income Tax Act does not bar a trust from filing a fresh Section 80G application merely because an earlier rejection was not challenged. The Tribunal remanded the matter for fresh consideration after holding the “void-ab-initio” finding unsustainable.
The Tribunal ruled that the use of the word may in Section 271AAC gives discretionary power to the Assessing Officer and does not mandate automatic penalty levy. It emphasized that such discretion must be exercised judiciously.
The ITAT held that the institution’s activities as a seminary imparting religious training to priests established its religious character. It remanded the matter for fresh consideration of registration as a religious trust under Section 12AB.
The ITAT held that teaching Arabic language and Islamic studies through systematic instruction amounts to education and not religious activity. It directed grant of registration under Section 12AB and approval under Section 80G.
The ITAT ruled that the Assessing Officer wrongly adopted the stamp duty valuation despite contrary valuation material on record. The Tribunal directed fresh capital gain computation using the lower departmental valuation.
The ITAT held that stamp duty valuation could not be blindly adopted where the property was affected by BBMP demolition proceedings for unauthorized construction. The Tribunal accepted the actual purchase price as fair market value and deleted the addition.
The Tribunal ruled that a flat 15% profit estimation was excessive where all contract receipts were received through banking channels with TDS deductions. It directed recomputation of income at 7% of turnover.
The Tribunal ruled that the CIT(E) failed to properly consider the assessees replies, documents, and objections before rejecting the Section 12AB application. The matter was remanded for de novo adjudication.
ITAT Bangalore held that the presence of associate or nominal members does not disqualify a co-operative society from claiming deduction under Section 80P(2)(a)(i). The Tribunal relied on the Supreme Court ruling in Mavilayi Service Co-operative Bank Ltd.
