ITAT Bangalore

Deduction u/s 54F cannot be denied if a person holding one more residential property in joint name

Shree Anil Dev Vs DCIT (ITAT Bangalore)

Disallowance of assessee's claim for deduction under section 54F on the ground of assessee holding one more residential property in joint name along with his wife, could not be sustained as although in purchase deed, name of assessee was also there along with name of wife and purchase consideration of second residential property was paid ...

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TDS not applicable on reimbursement of actual CAB expenses

Sri Balaji Prasanna Travels Vs ACIT (ITAT Bangalore)

Balaji Prasanna Travels Vs ACIT (ITAT Bangalore) It is observed that as agreed by and between the assessee and the cab owners, a vehicle was to be provided by the assessee to the parties and thus, the assessee was to bear the vehicle expenses actually incurred by the said cab owners and which will be […]...

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To claim Bad Debts written off assessee has to fulfill requirement of section 36(2)

M/s. SAP India Pvt. Ltd. Vs DCIT (ITAT Bangalore)

SAP India Pvt. Ltd. Vs DCIT (ITAT Bangalore) We find that apart from writing off of bad debts in the books of accounts, the assessee has to fulfill this requirement of section 36(2) of the IT Act also that the amount in question has been considered as income in the relevant year or in an […]...

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Working capital adjustment subsumes sundry creditors- No further TP adjustment for outstanding receivables

Blue Coat Network (India) Private Limited Vs DCIT (ITAT Bangalore)

The issue under consideration is whether TPO is correct in making an upward adjustment to the transfer price of the Appellant's international transactions on account of imputation of notional interest on outstanding receivables?...

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Section 10AA Deduction eligible on Voluntary Transfer Pricing Adjustment by Assessee

EYGBS (India) LLP Vs DCIT (ITAT Bangalore)

The issue under consideration is whether denial of claim of deduction u/s 10AA of the Act on transfer pricing adjustment made by the assessee voluntarily is justified in law?...

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No section 54 Deduction denial for mere Non-Completion of Construction of New House

Estate of Late Dr. S. Zakaulla Masood Vs ITO (ITAT Bangalore)

The issue under consideration is whether the CIT(Appeals) was justified in denying the benefit of deduction to assessee u/s. 54 of the Income Tax Act, 1961?...

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Section 195 TDS Applicable on Software Purchase Expenses incurred by Distributor

Kaseya Software India Private Limited Vs DCIT (ITAT Bangalore)

The issue under consideration is whether the CIT(A) is correct in stating that TDS u/s 195 applicable on software expenses without appreciating the fact that appellant was merely acting as a distributor and not having right to have a copy of the software?...

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Secondary & higher education cess deductible as business expenditure

Aptean India Pvt. Ltd. Vs DCIT (ITAT Bangalore)

Aptean India Pvt. Ltd. Vs DCIT (ITAT Bangalore) Assessee submitted that’s education says and secondary and higher education cess has been duly discharged by assessee while computing tax liability under normal provisions of income tax act. Placing reliance on following decisions Ld.AR submitted that ‘cess’ is deductible as business e...

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Depreciation on Imported Software Not Considered as Royalty & Not Liable for Disallowance u/s 40(a)(ia)

Wifi Networks Pvt. Ltd Vs DCIT (ITAT Bangalore)

The issue under consideration is whether depreciation on ‘imported software’ will be considered as royalty and liable for disallowance under section 40(a)(ia) for want of TDS?...

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Delete TP adjustment by way of royalty Against Himalaya Drug Company- ITAT Directs AO

The Himalaya Drug Company Vs ACIT (ITAT Bangalore)

Himalaya Drug Company Vs ACIT (ITAT Bangalore) We noticed that the assessee has exported finished goods to its AEs located in various Countries and the AEs have only marketed the goods. Since the finished goods exported by the assessee are drugs and beauty care items, the assessee was required to comply with the requirement of […]...

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Expense on Microsoft EAS licence renewal of AXABS software: ITAT remands case back to CIT(A)

AXA Business Services Pvt. Ltd. Vs DCIT (ITAT Bangalore)

AXA Business Services Pvt. Ltd. Vs DCIT (ITAT Bangalore) We have considered the rival submissions. We find that despite all the details having been filed by the assessee before the CIT(Appeals), the CIT(Appeals) has not considered those submissions with regard to the sum disallowed by the AO, except the sum of Rs.81,52,209 which was incur...

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Income From Land Sale by Assessee Engaged in Property Development Taxable as Business Income

Ashok Kumar Chouta Vs DCIT (ITATBangalore)

The issue under consideration is whether land sold by assessee engaged in property development taxable as capital gains or business income?...

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FMV of shares: Jurisdiction of AO to reject valuation methods adopted by Assessee

Canvera Digital Technologies Pvt. Ltd Vs DCIT (ITAT Bangalore)

Canvera Digital Technologies Pvt. Ltd Vs DCIT (ITAT Bangalore) From the details filed, Ld.AO observed that, assessee had computed the value as per DCF method and that there was nothing to suggest that DCF method was an appropriate method to value the shares. Ld.AO rejected DCF method adopted by assessee for the reasons that cash […...

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Section 14A disallowance cannot exceed amount of exempt Income

Brindavan Beverages Pvt.Ltd. Vs DCIT (ITAT Banglore)

The issue under consideration is whether the disallowance u/s 14A can exceed the amount of exempt income? In the light of the order of M/s.Century Real Estate Holdings Pvt. Ltd. v. ACIT (supra), ITAT hold that the disallowance u/s 14A of the I.T.Act cannot exceed the exempt income....

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Section 54EC – ITAT explains deduction of Rs. 50 Lakh & Rs. 1 Crore

Sri Arun Kumar B M Vs ITO (ITAT Bangalore)

Arun Kumar B M Vs ITO (ITAT Bangalore) The Assessing Officer held that the assessee is required to invest Rs.50 lakh in REC Bonds in any financial year. The Assessing Officer also relied on the amendments made to section 54EC of the I.T.Act vide Finance Act, 2014 w.e.f. 01.04.2015. Assessee has filed this appeal before […]...

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ITAT condones delay of 2625 days in Appeal Filing

EIT Services India Pvt. Ltd. Vs ACIT (ITAT Bangalore)

Eit Services India Pvt. Ltd. Vs ACIT (ITAT Bangalore) According to the Assessee, it was on the basis of professional opinion, under the belief that the issues that were sought to be agitated before the CIT(A) against the order of assessment dated 30.12.2008 could be agitated before the AO in the proceedings pursuant to the […]...

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Order passed without giving effect to ITAT Direction been restored to AO for fresh order

Dell International Services India Pvt. Ltd. Vs JCIT (ITAT Bangalore)

Dell International Services India Pvt. Ltd. Vs JCIT (ITAT Bangalore) We find that before us, there are 3 grievances of the assessee. The first grievance is regarding assessee’s request for exclusion of comparable M/s. Comp-U-Learned Tech India Ltd. The second grievance is regarding assessee’s request for exclusion of CAT Technology Lt...

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ITAT Remand Back Case to CIT(A) for analysis of Nature of Service

Adadyn Technologies Private Limited Vs DCIT - International Taxation (ITAT Bangalore)

The issue under consideration is whether assessee engaged in business relating to online advertising is considered as technical services or royalty Section 9(1)(vii) of the Income Tax Act, 1961?...

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Foreign exchange gains/loss from trade debtors/Creditors is operating in nature

Galax E Solutions India Pvt. Ltd. Vs ITO (ITAT Bangalore)

Galax E Solutions India Pvt. Ltd. Vs ITO (ITAT Bangalore) The revenue is assailing the decision of Ld DRP in holding that the gain/loss arising on account of fluctuation in foreign exchange is operating income/expenses. We notice that the Ld DRP has followed the decision rendered by the Tribunal in the case of Sap Labs […]...

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Transfer Pricing: Functionally dissimilar comparable cannot be adopted

M/s. Blue Yonder India Private Limited, (Formerly JDA Software India Private Limited) Vs DCIT (ITAT Bangalore)

M/s. Blue Yonder India Private Limited, (Formerly JDA Software India Private Limited) Vs DCIT (ITAT Bangalore) E-INFOCHIPS LIMITED- The Annual Report of e-Zest Solutions Limited for assessment year 2010-2011 (placed at page 527 to 534 of the paper book) clearly demonstrates that it is engaged in end to end product development, including p...

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Assessee can take a stand contrary to their TP study

LSI India Research & Development India Private Limited, [Erstwhile Broadcom Communications Technologies Private Ltd. since merged] Vs DCIT (ITAT Bangalore)

It is open to the parties in Transfer Pricing cases to take a stand contrary to their TP study, if they contend that the stand taken in the TP study is contrary to facts or was erroneous. Such a claim cannot be disregarded only on the basis that it is contrary to Assessee’s own stand in the TP study....

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Membership Fees Paid to Stock Exchange Allowed as Capital Expenditure

BGSE Financials Ltd. Vs DCIT (ITAT Banglore)

The issue under consideration is whether the sum of admission fees paid to stock exchange will be allowed as capital expenditure? In light of Hon’ble Supreme Court judgement in the case of Techno Shares and Stocks Limited (supra) membership of stock exchange is to be treated as a capital asset....

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Profit Enhanced due to disallowance u/s 40(a)(ia) allowed for Dedcution u/s 10AA

JCIT Vs Mphasis Ltd. (ITAT Bangalore)

The disallowance of the expenditure u/s 40(a)(ia) would automatically enhance the taxable income of the assessee and the assessee is eligible for the deduction u/s 10A of the Income-tax Act on the enhanced income....

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AO cannot reject selection & valuation methods adopted by taxpayer

GSE Commerce Private Ltd. Vs ACIT (ITAT Bangalore)

GSE Commerce Private Ltd. Vs ACIT (ITAT Bangalore) The A.O. was of the view that the shares of the company have been over valued and accordingly asked the assessee to justify the valuation. After considering the explanations of the assessee, the A.O. took the view that the valuation report has been prepared on the basis […]...

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Provision for Sales return not allowable as deduction under section 37

Nike India Pvt Ltd vs DCIT (ITAT Bangalore)

Nike India Pvt Ltd vs DCIT (ITAT Bangalore) The AO noticed that the assessee has claimed deduction for ‘Provision for sales returns’. When enquired, the assessee submitted that it creates a provision for anticipated sales returns based on a percentage of the sales made each month. It was further submitted that the provision is...

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Not necessary to establish that debt become irrecoverable

Joseph Davaraj Koilpillai Vs ITO (ITAT Bangalore)

Joseph Davaraj Koilpillai Vs ITO (ITAT Bangalore) Deduction on account of bad debt as allowed u/s 36(1)(vii) read with section 36(2), after amendment by the Direct Tax Laws (Amendment) Act 1987, envisage merely wiring off the debt as irrecoverable in the accounts of the assessee as a condition for such an allowance. Before the amendment [...

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Depreciation cannot be disallowed under section 40(a)(ia)

Wipro Limited Vs. Addl CIT (ITAT Bangalore)

Wipro Limited Vs Addl. CIT (ITAT Bangalore) Claim of depreciation on software- Depreciation claimed by the assessee on the amount of software capitalized was disallowed invoking provisions of section 40(a)(ia) for non-deduction of tax at source. Held, depreciation is a statutory allowance and hence it cannot be considered as expenditure. ...

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TDS on purchase of licensed software cannot be made retrospective

Acer India Private Ltd. Vs DCIT (ITAT Bangalore)

The decision holding that the payments made for purchase of software was in the nature of royalty came to be pronounced on 15.10.2011. Accordingly, assessee could not be treated as an assessee in default for not deducting TDS under section 195 in respect of payments made for purchase of licensed software prior to 15.10.2011....

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Section 153C Assessment has to be based on material found in the course of search which relates/belongs to Assessee

Sree Lakshmi Vs DCIT (ITAT Bangalore)

Sree Lakshmi Vs DCIT (ITAT Bangalore) We have already examined the legal position with regard to validity of initiation of proceedings u/s. 153C of the Act de hors incriminating material found in the course of search which belong or relate to the assessee. Admittedly, no such incriminating material was found in respect of any of […...

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ITAT Deletes section 271C Penalty for Failure to Deduct TDS on LTA

Canara Bank (Erstwhile Syndicate Bank) Vs ACIT (ITAT Bangalore)

The issue under consideration is whether the penalty u/s 271C levied due to failure to deduct tax at source (TDS) on LTA paid to employee is justified in law?...

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Foreign Exchange Fluctuations allowable as Revenue Expense- Section 37

DCIT Vs. Coffee Day Global Ltd. (ITAT Bangalore)

DCIT Vs. Coffee Day Global Ltd. (ITAT Bangalore) The issue under consideration is whether foreign exchange fluctuations are allowed as revenue expense u/s 37 of Income Tax Act? ITAT states that, the Supreme Court in the case of CIT vs. Woodward Governor India Pvt. Ltd. (2009) 312 ITR 254 had already held that the actual […]...

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Interest on NPA loan can be taxed on receipt basis only

Chitradurga District Co-Op. Central Bank Ltd. Vs DCIT (ITAT Bangalore)

DCIT Vs. Chitradurga District Co-Op. Central Bank Ltd. (ITAT Bangalore) If an assessee adopts the mercantile system of accounting and in his accounts he shows a particular income as accruing, whether that amount is really accrued or not is liable to bring the said income to tax. His accounts should reflect true and correct statement of ...

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No further disallownce U/s. 14A warranted if Voluntary disallowance by Assessee exceeds exempted income

Coffeeday Enterprises Ltd. Vs DCIT (ITAT Bangalore)

The issue under consideration is whether CIT(A) is correct in confirming the enhancement of disallowance made by the AO over and above the amount disallowed by the assessee u/s 14A of the Act?...

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No section 69 addition for Cash Deposit in Bank as POA holder for Sale of Property of Father

Kum. Kavitha R Vs. ITO (ITAT Bangalore)

The issue under consideration is whether the addition u/s 69 for Cash deposited in assessee’s bank account being Power of Attorney holder for sale of property belong to her father is justified in law?...

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ITAT allows to withdrawn appeal challenging TP Adjustment due to APA

Citizen Watches (India) Pvt. Ltd. Vs. ACIT (ITAT Bangalore)

In the instant case, ITAT allows the assessee to withdrawn the appeal filed for challenging the transfer pricing adjustment due to Advance pricing agreement filed u/s 92CC of the Income tax Act....

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Functionally comparable company cannot be excluded from Comparables for non-disclosure of RPT

EMC Software & Services India Pvt. Ltd. Vs. JCIT (ITAT Banglore)

EMC Software & Services India Pvt. Ltd. Vs. JCIT (ITAT Banglore) The assessee seeks inclusion of T2T2 India Ltd. The Ld. A.R. submitted that this company is functionally comparable company. The TPO/DRP has rejected the same only for the reason that the detail of Related Party Transactions (RPT) was not disclosed in the Annual Report. ...

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Expense on buy-back of shares is revenue expenditure

DCIT Vs Ocwen Financial Solutions Pvt. Ltd. (ITAT Bangalore)

DCIT Vs Ocwen Financial Solutions Pvt. Ltd.(ITAT Bangalore) Facts- 1. Treatment of expenditure incurred on buy-back of shares- An assessee has spent amount of INR 8,90,961 on buy-back of shares and debited the same to Profit & Loss Account treating the same as ‘revenue expenditure’. AO treated the same as ‘capital expenditure’...

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Companies which are functionally dissimilar cannot be taken as a comparable

TRX Technologies India Pvt. Ltd. Vs DCIT (ITAT Bangalore)

TRX Technologies India Pvt. Ltd. Vs DCIT (ITAT Bangalore) The assessee is contending to exclude from the list of comparables M/s. Acropetal Technologies Limited (Seg.), M/s. Accentia Technologies Limited, ICRA Online Ltd. and Jeevan Scientific Technology Limited. In similar circumstances and for the same assessment year, the jurisdictiona...

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Section 54F: Vacant land cannot be treated as residential house

Dr. Devika Gunasheela Vs JCIT (ITAT Bangalore)

Dr. Devika Gunasheela Vs JCIT (ITAT Bangalore) The only basis on which the assessee was denied the benefit of deduction u/s 54F of the Act was that the assessee owned more than two residential houses, other than the new asset on the date of transfer of the original asset. From the order of assessment passed […]...

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Section 14A disallowance unjustified if Interest Free Funds exceeds Investment Value

Kingfisher Finvest India Ltd. Vs. DCIT (ITAT Bangalore)

Kingfisher Finvest India Ltd. Vs. DCIT (ITAT Bangalore) The issue under consideration is whether the disallowance made by AO u/s 14A of the Act is justified in law? ITAT states that if the interest free funds available with the assessee is more than the value of investments, then the presumption is that the assessee has […]...

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No Addition for Showing Net Impact of Marketing Income under head Marketing Cost in P&L A/c

Orion Property Management Services Ltd. Vs. ITO (ITAT Bangalore)

Orion Property Management Services Ltd. Vs. ITO (ITAT Bangalore) The issue under consideration is whether CIT(A) is correct in making addition of Sponsorship and Promotional income by reducing it from marketing cost? In the instant case, the marketing income has been considered under the head marketing cost and net of expenses is debited ...

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TDS Rate on payment to non resident not having PAN

DCIT Vs. Edgeverse Systems Ltd. (ITAT Bangalore)

DCIT Vs. Edgeverse Systems Ltd. (ITAT Bangalore) The question before the special bench was whether the provisions of section 206AA had overriding effect for all other provisions of the Act, whether the assesse has to deduct tax at source at the rates prescribed in section 206AA in case the payees are unable to furnish their […]...

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Assessee eligible for refund of TDS deducted on off shore supply contracts not taxable in India

ABB AB C/o ABB India Limited Vs DCIT (ITAT Bangalore)

ABB AB C/o ABB India Limited Vs DCIT (ITAT Bangalore) Assessing Officer first has to examine whether the amounts received are off shore supply contracts by the assessee were received outside the country. The learned Authorized Representative submitted that the assessee company has offered the income on on shore supply contracts. Since, th...

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Section 44AD: Assessee need not explain individual entry of cash deposit in bank

Sri. Girish V.Yalakkishettar  Vs ITO (ITAT Bangalore)

Sri. Girish V.Yalakkishettar  Vs ITO (ITAT Bangalore) Section 44AD of the Act gives an option to the assessee to offer income on presumptive basis. These are special provisions. The assessee has opted for the same and offered to tax income at the rate of 8% of his turnover. The issue is whether, the Assessing Officer […]...

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Section 50C- ITAT deletes addition of 8% difference in Value

Shri B.S. Sanjay [HUF] Vs ITO (ITAT Bangalore)

Shri B.S. Sanjay [HUF] Vs ITO (ITAT Bangalore) In the present case, the sale consideration as per sale deed is Rs. 59.40 Lakhs and the value adopted by DVO u/s. 50C (2) is Rs. 64,10,400/- and therefore, the difference between these two values is of Rs. 4,70,400/- which is less about 8% of the sale […]...

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No addition u/s 56(2)(vii)(b) if difference in valuation is less than 5%

Shri Rama Jogi Reddy Sanepalli Vs ITO (ITAT Bangalore)

Shri Rama Jogi Reddy Sanepalli Vs ITO (ITAT Bangalore) ITAT Pune Bench in the case of Ratnakanta B. Agarwal v. ITO, ITA 587/PUN/2014, order dated 24.07.2017 wherein the Hon’ble Pune Bench took the view that if the variance between the value estimated as fair market value by the DVO and the value adopted by the […]...

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Section 50C:  Increase to 10% in variation between stamp duty value & consideration is retrospective

Sri Sandeep Patil Vs. ITO (ITAT Banglore)

Sri Sandeep Patil Vs. ITO (ITAT Banglore) ITAT held that difference between the value adopted by stamp valuation authority and actual consideration is to be ignored if the same is less than 10%. We also notice that the Parliament has introduced third proviso in section 50C(1) of the Act, as per which the difference in […]...

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Asking to prove 92% of expense defeats purpose of presumptive taxation: ITAT Bangalore

Shri Kokkarne Prabhakara Vs. ITO (ITAT Bangalore)

Shri Kokkarne Prabhakara Vs. ITO (ITAT Bangalore) Asking the assessee to prove to the satisfaction of the Assessing Officer, the expenditure to the extent of 92% of gross receipts, would also defeat the purpose of presumptive taxation as provided under section 44AD of the Act or other such provision. Since the scheme of presumptive taxati...

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Section 10AA Deduction on Enhanced Income Earned through APA

ACIT Vs EYGBS India Pvt. Ltd. (ITAT Bangalore)

whether the 1st proviso of section 92C(4) is triggered when the income computation for deduction u/s 10AA is enhanced only in the computation of income and no such entries are made in the books of account?...

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Land cannot be held as an agricultural land in absence of agricultural operations

Jairam G Kimmane Vs DCIT (ITAT Bangalore)

Jairam G Kimmane Vs DCIT (ITAT Bangalore) In the present case, the claim of the Assessee that agricultural operations were carried out over the property and the property was actually used for agricultural purpose was sought to be established by relying on the classification of the property in revenue records. The Revenue contends that the...

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JDA: No transfer when even permissive possession was not given

Shri A. R. Prasad Vs ITO (ITAT Bangalore)

Shri A. R. Prasad Vs ITO (ITAT Bangalore) When we compare the terms of possession in the said case as per Para 4 of the tribunal order reproduced above and the terms of JDA in the present case as reproduced above, we find that in both cases, the possession is handed over to the builder […]...

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Section 195- Withholding Tax- Royalty- Levy of Surcharge & cess

M/s. Wipro Limited Vs Add. CIT (ITAT Bangalore)

M/s. Wipro Limited Vs ACIT (ITAT Bangalore) In this case relief was allowed by learned CIT (A) in respect of levy of surcharge and cess by directing the AO that surcharge and cess should be levied only in the cases where the non resident vendors are residents of countries with which DTAA allows withholding rate […]...

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Extension of Stay of Demand Allowed if Delay in Not Disposing of Appeal is Not Attributable to Assessee

United Spirits Ltd. Vs JCIT (ITAT Bangalore)

The issue under consideration is whether the second extension of stay of demand against ITAT appeal will be allowed to the assessee?...

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Architectural Services provided to Singapore Entity Taxable at 10% when DTAA Benefit is Available

Mantri Technology Constellations Pvt. Ltd. Vs DCIT (ITAT Bangalore)

The issue under consideration is whether the architectural services provided to Singapore Entity taxable at 10% or 20% when the benefit of Double Taxation Avoidance Agreement (DTAA) is available?...

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No Capital Gain arises if Permissive Possession Not handed Over to Builder during Concerned Year in case of JDA

A. R. Prasad Vs ITO (ITAT Bangalore)

The issue under consideration is whether the capital gain will be chargeable in case of JDA even if Permissive possession was not handed over to builder during the concerned year?...

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Section 80P Deduction eligible on Bonus in the nature of dividend by KMF to Co-op Society

The Mysore District Co-operative Milk Producers Society Union Ltd. Vs ACIT (ITAT Bangalore)

The issue under consideration is whether the deduction u/s 80P is allowed against the bonus received by the Co-operative Society from M/s. Karnataka Co-operative Milk Producers’ Federation (KMF)?...

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Surcharge & Cess Levied alongwith Withholding Tax because No Residency Proof Brought on Record

Wipro Limited Vs. Add. CIT (ITAT Bangalore)

The issue under consideration is whether surcharge and education cess should be levied only in the cases where the non-resident vendors are residents of countries with which the DTAA allows withholding rate of more than 11.33%?...

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Depreciation under Block of Assets Allowed even for Non Used Assets during the Year

Bharat Mines And Mineral Vs ACIT (ITAT Bangalore)

The issue under consideration is whether under block of assets, the depreciation allowed even for those assets which have not been used during the year under consideration?...

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CSR expense Eligible for Section 80G Deduction on fulfilling conditions

Goldman Sachs Services Pvt. Ltd. Vs JCIT (ITAT Bangalore)

The issue under consideration is whether CSR is also eligible for deduction u/s 80G of the Act subject to assessee satisfying the requisite conditions prescribed for deduction u/s 80G?...

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Carbon Credit sale receipt is Capital Receipt & Not Liable to Tax

DCIT Vs Bhoruka Power Corporation Ltd. (ITAT Bangalore)

DCIT Vs Bhoruka Power Corporation Ltd. (ITAT Bangalore) The issue under consideration is whether receipt on account of sale of carbon credit is Revenue Receipt or Capital Receipt? ITAT states that carbon credit is in the nature of ‘an entitlement’ received to improve world atmosphere and environment reducing carbon, heat and g...

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IBM India liable to pay interest for delay in filing ITR on incremental income pursuant to APA: ITAT

IBM India Pvt. Ltd. Vs ACIT (ITAT Bangalore)

IBM India Pvt. Ltd. Vs ACIT (ITAT Bangalore) It has been submitted by Ld.Counsel that as a consequence of APA entered into by assessee, income was increased vis-a-vis original computation at page 322. Referring to revised computation at page 328 of paper book volume 1, he submitted that, incremental increase in the income is Rs.7,74,2 [&h...

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Actual results of later years cannot be used for Valuation of shares: ITAT

M/s Flutura Business Solutions Pvt. Ltd. Vs ITO (ITAT Bangalore)

Flutura Business Solutions Pvt. Ltd. Vs ITO (ITAT Bangalore) We are of the view that, the Assessing Officer has erred in considering the actuals of revenue and profits declared in the future years as a basis to dispute the projections. At the time of valuing the shares as on 16.04.2012, the actual results of the […]...

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Section 54F deduction restricted to only one residential property

Late Susan Cherian Vs ITO (ITAT Bangalore)

The issue under consideration is whether the capital gain deduction benefit is restricted to only one residential property under section 54F of the Income Tax Act?...

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ITAT extends Stay of demand as Delay was Not Attributable to Assessee

Infosys Ltd. Vs ACIT (ITAT Bangalore)

Infosys Ltd. Vs The ACIT (ITAT Bangalore) The issue under consideration is whether the stay application seeking an extension of the stay approve by the Tribunal? In the present case, the assessee submitted that the appeal had been fixed for hearing on January 20, 2020, when the earlier stay order was passed. Thereafter, the case […...

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DTAA overrides Section 206AA of Income Tax Act, 1961

DCIT Vs Bharath Fritz Werner Ltd. (ITAT Bangalore)

DCIT Vs Bharath Fritz Werner Ltd. (ITAT Bangalore) At the time of hearing it was not disputed that the issue raised by the revenue in its appeals are already decided by a Special Bench of ITAT, Hyderabad. The issue regarding the applicability of provisions of section 206AA of the Act, in cases of tax to […]...

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Issue of Share at a premium: AO cannot change valuation method

Signure Technologies Pvt. Ltd. Vs ACIT (ITAT Bangalore)

ITAT held that AO can scrutinize the valuation report and he can determine a fresh valuation either by himself or by calling a determination from an independent valuer to confront the assessee but the basis has to be DCF method and he cannot change the method of valuation which has been opted by the assessee....

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Peak Credit Computation- Both deposits & withdrawal needs to be considered

Shri B.A.Moideen Bava Vs DCIT (ITAT Bangalore)

Shri B.A.Moideen Bava Vs DCIT (ITAT Bangalore) The issue raised by assessee is on merits is regarding peak credits in unaccounted bank accounts of assessee’s. It has been submitted that peak credit has to be computed on the basis of actual deposits and withdrawal and not on the basis of cash deposit alone. Accordingly, we […]...

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Section 14A Disallowance cannot exceed Exempt Income

Century Real Estate Holdings Pvt. Ltd. Vs ACIT (ITAT Bangalore)

The window for disallowance is indicated in section 14A and is only to the extent of disallowing expenditure incurred by the assessee in relation to tax exempt income....

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Automation Software expense allowable as Revenue Expense

Texas Instruments (India) Private Limited Vs Add. CIT (ITAT Bangalore)

The Agreement refers to the US parent company of the Assessee having acquired license to use EDA tools from the vendors and the right of the Assessee to use the same and the fact that billing will be done on the Assessee on the basis of actual use of the software by the Assessee. It is thus clear that the Assessee had acquired no right or...

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AO cannot change Share Valuation Method adopted by taxpayer

VBHC Value Homes Pvt. Ltd. Vs ITO (ITAT Bangalore)

AO can scrutinize the valuation report and he can determine a fresh valuation either by himself or by calling a determination from an independent valuer to confront the assessee but the basis has to be DCF method and he cannot change the method of valuation which has been opted by the assessee....

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No section 271C penalty for non-deduction of TDS on LTA

State Bank of India Vs Addl. CIT (ITAT Bangalore)

The issue under consideration is whether the AO is correct in levying penalty u/s 271C of the Act for non-deduction of tax at source on Leave Travel Allowance?...

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DTAA overrides the Act, even if it is Inconsistent with the Act

DCIT Vs Bharath Fritz Werner Ltd. (ITAT Bangalore)

whether the assessee has to deduct tax at source at the rates prescribed in section 206AA in case the payees are unable to furnish their PANs, even if tax liability arises out of the treaty?...

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AO cannot change Share Valuation Method Opted by Assessee in Return

IBS Fintech India Pvt. Ltd Vs ITO (ITAT Bangalore)

The issue under consideration is whether AO in invoking section 56(2)(viib) of the Act and taxing the share premium under the said provisions?...

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No Section 271D Penalty for transactions between father & son

Mohammadyusuf R.Dargad Vs ACIT. (ITAT Bangalore)

The issue under consideration is whether the issue of penalty notice u/s 271D is justified under the Act? Penalty u/s 271D shall not be levied in the case of near relatives...

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ITAT remands back matter to CIT(A) for not adjudicating the ground raised properly

Confederation of Real Estate Developers Association of India Vs CIT (ITAT Bangalore)

TAT states that the order passed by CIT(A) is not clear in as much way the ld. CIT(A) has given a general direction without having regard to the factual aspects of ‘receipts and expenditure’ relating to exhibitions presented before ITAT. A clear cut direction from ld. CIT(A) in this regard would be helpful to both the assessee and the...

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Section 10A benefit allowed on Enhanced Income pursuant to MAP Resolution

Dell International Services India Private Limited v. DCIT (ITAT Bangalore)

Dell International Services India Private Limited v. DCIT (ITAT Bangalore) Benefit of Section 10A of the Act is Allowed on Enhanced Income Pursuant to Mutual Agreement Procedure (MAP) Resolution Outcome: In favor of Assessee Facts: 1. During the relevant year, the assessee has provided ITeS and Software Development Services (SWD) of INR 6...

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A Transaction not become Genuine merely for receipt via banking Channel

Shri M.Balakrishna Hegde Vs DCIT (ITAT Bangalore)

Whether AO is correct in considering the gift received by the assessee as unexplained gift and made addition u/s 68 when the Gift was received through banking channels?...

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No TDS on Reimbursement of Relocation Expenses of Outbound Employees

Global E-Business Operations Vs The DDCIT (ITAT Bangalore)

Global E-Business Operations Vs DDCIT (ITAT Bangalore) When a claim was made by the assessee that there was no income of element embedded in the remittances, the AO has not examined the claim of the assessee in a proper perspective. They have merely said only few evidence have been filed. Another reason given was that […]...

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ITAT Dismiss appeals despite non-issue of Form 3 of Vivad Se Vishwas Scheme 2020

Mahaveer Medicare Vs ACIT (ITAT Bangalore)

Dismissal of Appeal by ITAT after filing Vivad Se Vishwas Scheme 2020 before receiving Form 3 from Department...

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Section 272A Penalty not justified for Assessee having exempt income under Section 10(23C)

Rotary Charitable Trust Vs. JCIT (ITAT Bengaluru)

Whether the penalty levied by CIT(A) u/s 272A of the Income Tax Act, 1961 is justified in law? Penalty u/s 272A is not justified for Assessee having exempt income u/s 10(23C)....

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MBBS Seat Blocking Scam | Suppression of Fees | Decision in favour of Assessee

Ananda Social & Education Trust Vs ACIT (ITAT Bangalore)

Ananda Social & Education Trust Vs ACIT (ITAT Bangalore) The issue under consideration is whether Addition relating to suppression of fee receipts of Management/ NRI quota and Post graduate seats are justified in law? The assessee is a charitable trust established for educational purposes in the year 1980. It has set up a medical coll...

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Expense on developing & maintaining land for real estate activity is Allowable

Sri S.K Bhaskar Raju Vs Addl. CIT (ITAT Bangalore)

Whether the AO is correct in disallowing expenses incurred on developing and maintaining land in connection with real estate activity?...

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No TDS on harvesting charges paid on behalf of farmers as agent

Parry Sugar Industries Limited Vs DCIT (ITAT Bangalore)

The issue under consideration is whether the disallowance made u/s 40(a)(ia) of the Act for non-deduction of tax at source from the payment made towards Harvesting charges is justified in law?...

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Section 10AA deduction eligible on voluntary transfer pricing adjustment

DCIT Vs EYBGS India Pvt. Ltd. (ITAT Bangalore)

The issue under consideration is whether the officer is correct in rejecting claim for deduction u/s 10AA of the Act on the amount of transfer pricing adjustment voluntarily made by the assessee?...

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On mere change of opinion, the concluded assessment cannot be reopened

Akshaya Souharda Credit Cooperative Limited Vs ITO (ITAT Bangalore)

Akshaya Souharda Credit Cooperative Limited Vs ITO (ITAT Bangalore) The issue under consideration is whether A.O. is correct in re-opening of assessment based on the same material on which he relied at the time of assessment u/s 143(3)? The assessee is a co-operative engaged in providing credit facilities to its members. The assessee file...

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Section 80JJAA do not differentiate between Salary & Wages

Manhattan Associates (India) Development Centre (P.) Ltd. Vs DCIT (ITAT Bangalore)

person working in software industry cannot be termed as 'Wages'. In our view there is no distinction sought to be made in the provisions of Sec.80JJAA of the Act...

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No comparables to be selected in ALP determination if comparables differs in turnover

NXP India Pvt. Ltd. Vs DCIT (ITAT Bangalore)

Exclusion of comparables from the list of comparables on basis of turnover, functional difference for determination of Arms Length Price was valid. ...

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Exemption u/s 54 allowed if purchase amount paid by assessee irrespective of name on agreement of Son

Smt. Subbalakshmi Kurada Vs ACIT (ITAT Bangalore)

Smt. Subbalakshmi Kurada Vs ACIT (ITAT Bangalore) The issue under consideration is that if the assessee reinvested capital gains in purchase of new residential house in the name of assessee and his son together then whether assessee in entitle to the full amount of exemption u/s 54? As per Section 54, it mandates that the […]...

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Loan from directors – Section 68 addition- Additional Evidence- ITAT restore matter to AO

Harina Developers Pvt. Ltd. Vs ITO (ITAT Bangalore)

Harina Developers Pvt. Ltd. Vs ITO (ITAT Bangalore) The issue under consideration is that whether the loan received from two directors can be considered as unexplained cash credit u/s 68 of the Act? In the given case, the assessee has received amount from two of its directors. The assessee could file only ledger account extract […]...

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Interest paid on Loan cannot be set off against interest earned on Fixed Deposit

Smt. Zeelia Zeena Mayzean Shenoy Vs ITO (ITAT Bangalore)

Smt. Zeelia Zeena Mayzean Shenoy Vs ITO (ITAT Bangalore) The issue under consideration is whether or not income paid on interest against the fixed deposits can be said to have been incurred ‘wholly and exclusively’ for the purpose of earning interest income from fixed deposits? In the present case, the assessee made fixed depo...

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Deduction u/s 80G cannot denied merely because such payment forms part of CSR

First American (India) Pvt. Ltd Vs ACIT (ITAT Bangalore)

The issue under consideration is that whether the expenditure incurred for CSR will also be qualified for deduction under section 80G?...

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CPC Processing/Additions cannot go beyond Inst. No.10/2017

Sri Arthur Bernard Sebastine Vs DCIT (ITAT Bangalore)

CBDT's instruction No.10/2017 dated 15.11.2017 has clearly laid down that only when receipts are completely omitted to be declared in the return of income can there be an addition for invoking 143(1)(a)(vi) of the Act....

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While computing income U/s. 115J AO cannot tinker book profit

DCIT Vs Yahoo Software Development Private Limited (ITAT Bangalore)

Assessing Officer tinkered the book profit by adding the additional revenue on account of subsequent realization of export, while computing the book profit u/s 115JB of the Act. The assessee has revised the return of income by including the additional revenue in its total income....

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Section 292BB not save cases having complete absence of notice

ITO Vs P.N. Krishnamurthy (ITAT Bangalore)

ITO Vs P.N. Krishnamurthy (ITAT Bangalore) According to Section 292BB of the Act, if the assessee had participated in the proceedings, by way of legal fiction, notice would be deemed to be valid even if there be infractions as detailed in said Section. The scope of the provision is to make service of notice having […]...

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Sec 194J TDS deductible on Toll Free Telephone charges (Royalty)

Vidal Health Insurance TPA (P.) Ltd. Vs JCIT (ITAT Bangalore)

Payments made by assessee towards toll-free telephone charges is royalty, in terms of section 9(1)(vi) of the Act, and is liable to deduct TDS under section 194J of the Act. We therefore are in agreement with the view taken by Ld.CIT (A)....

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Section 80IC deduction allowed for service charges based on direct nexus between service rendered & product

Xalted Information Systems Pvt. Ltd. Vs ITO (ITAT Banglore)

The issue under consideration is that whether deduction u/s 80-IC will be allowed against service charges since services rendered were part of business and also involved manufacturing activity?...

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Section 80IAB deduction allowed against rental income from SEZ development

Cessna Garden Developers Pvt. Ltd. Vs ACIT (ITAT Bangalore)

The issue under consideration is whether deduction under section 80IAB will be allowed against the income of lease/ rental income from development of SEZ irrespective of wrong classification of head of income....

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Object clause alone cannot be a basis to determine head of income

MLC Properties LLP Vs DCIT (ITAT Bangalore)

The issue under consideration is whether the rental income earned by the assessee is taxable under the head "Income from House Property" as claimed by the assessee in the return of income or under the head "Income from Business" as held by the AO in the assessment order....

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Cash expenses not amenable for cross verification; ITAT disallows 5% expense

Kempsz Trading Pvt. Ltd. Vs DCIT (ITAT Bangalore)

The assessee is engaged in the business of quarrying, processing/selling exporting of a granite block and slabs....

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