ITAT Bangalore held that incentive/ bonus paid to employees before due date of filing the return is allowable as deduction under the Income Tax Act. Accordingly, disallowance of expenditure incurred towards incentive payment for executive gain sharing plan not sustained.
The tribunal held that revision under Section 263 is invalid where the Assessing Officer has examined the issue and adopted a plausible legal view. The PCIT cannot substitute his opinion merely because another interpretation is possible.
The issue was whether a reassessment could be framed in the name of a company that had ceased to exist due to amalgamation. ITAT held such an assessment void ab initio, quashing the entire proceedings.
The ITAT held that equipment received free of cost for testing purposes does not constitute a taxable business benefit. It ruled that once the receipt itself is not taxable, no notional mark-up can be added.
The Tribunal held that serving notices on an outdated email ID violates principles of natural justice. The assessment was set aside and the matter restored for fresh adjudication after proper service.
The ITAT held that income addition based solely on Form 26AS differences cannot survive when books are audited and no defects are found.
The Tribunal ruled that cash deposits arising from regulated liquor sales are a normal business incident. Where bank reconciliations explain the source, Section 69A cannot be invoked.
The Tribunal held that interest earned from deposits with co-operative banks qualifies for deduction under section 80P. Such interest does not lose its character as business income of an eligible co-operative society.
The issue was whether revision under Section 263 was valid when the AO allowed Section 80P deduction after enquiry. The tribunal held that a plausible and correct view cannot be revised.
ITAT Bangalore held that claiming of amortised upfront fees i.e. 1/5th of the upfront fees paid is not allowable since the entire amount is already claimed as deduction. Accordingly, ground raised by revenue/department is allowed.
