ITAT Delhi held that cloud services merely facilitates the flow of user data from the front end user through internet to the provider’s system and back. Accordingly, subscription received towards cloud services is not royalty income.
Penalty was not leviable as assessee made a computational error in not disallowing 1/6th out of expenses on car amounting to aforesaid Rs.1,63,263/- being 1/6th out of motor car expenses however assessees claim was accepted that this computational error was due to oversight and inadvertent mistake, and that the error was a bonafide one.
ITAT Delhi held that TDS provisions are not applicable in case of commission paid to bank and commission paid to partners. Accordingly, disallowance u/s 40(a)(ia) unsustainable.
ITAT Delhi held that the onus is on the assessee to prove both source and nature of the credits in case of unexplained credit u/s 68. Unexplained credit will sustain in case the assessee fails to prove any of the same.
ITAT held that Income Tax reassessment initiated on the basis of borrowed satisfaction without any independent application of mind by Assessing Officer is liable to be quashed.
ACIT Vs Precision Realtors P. Ltd. (ITAT Delhi) A perusal of the sale deed show that the seller was the absolute owner and was in actual possession of the impugned property. Nowhere in the sale deed, there is a mention of encumbrance / encroachment in the impugned property. This fact has been completely ignored by […]
Anand And Anand appeal success against ACIT order. ITAT Delhi ruling on TDS provisions. Key legal insights by Anand Bhattacharya, tax expert.
Bhartiya City Developers Pvt. Ltd Vs Addl. CIT (ITAT Delhi) A conspectus of Explanation-1 to Section 271(1)(c) of the Act, makes it clear that the statute visualizes the assessment proceedings and penalty proceedings to be wholly distinct and independent of each other. While the Assessing Officer may be justified in making estimated disallowance in quantum […]
Addl. CIT Vs Mayur Batra (ITAT Delhi) When the taxable income of the tax-payer has to be computed on the basis of partial information in Return and remaining on queries put by the Ld AO during assessment, then in the next place the sum payable by assessee, on the basis of such computation has to […]
ACIT Vs AVA landmark LLP (ITAT Delhi) The capital assets held by erstwhile company transferred to assessee as LLP were considered as transfer and the Assessing officer made addition of Rs.11,37,40,244/- to the return income on allegation of non-compliance of Section 47(xiiib) of the Act. However, the Ld. CIT(A) observed that there is no violation […]
