ITAT Hyderabad

Section 41(1) No Addition without evidence of cessation of trading liability

Nama Properties Ltd. Vs DCIT (ITAT Hyderabad)

Nama Properties Ltd. Vs DCIT (ITAT Hyderabad) In the decisions relied upon by the learned Counsel for the assessee it was held that the genuineness of the trade payables or creditors has to be examined in the year in which they originate and that unless the liability becomes unenforceable or is written off by the […]...

Read More

Assessee to Offer Business Income in Year in which Stock-in-Trade was Sold

DCIT Vs Clean City Estates Pvt. Ltd. (ITAT Hyderabad)

The issue under consideration is whether in case of real estate, tax liability will be arise when land was sold or when same was contributed for development under JDA?...

Read More

Additions made without issuing show cause notice were invalid

Lal Construction Company Vs DCIT (ITAT Hyderabad)

Lal Construction Company Vs DCIT (ITAT Hyderabad) During the assessment proceedings u/s.143(3) of the of the Income Tax Act [Act], the Assessing Officer (AO) noticed that there is a difference between the total receipts offered to tax by the assessee and the receipts reflected in Form-26AS. The AO after hearing the assessee, considered th...

Read More

Section 194H TDS not applicable on Payment gateway charges paid to banks/credit card agencies

ACIT Vs. Head Infotech India Pvt. Ltd. (ITAT Hyderabad)

ACIT Vs. Head Infotech India Pvt. Ltd. (ITAT Hyderabad) Assessee hosts online games and when the customers make payments through banking Gateways by way of credit or debit card of the relevant banks ( which are referred to as Gateways) and while transferring money to the assessee’s account, banks invariably retain service charges. It is...

Read More

GPA holder cannot be taxed on sale of property When he was not owner of property

Shri Rama Chandra Reddy Vs. ITO (ITAT Hyderabad)

Shri Rama Chandra Reddy Vs. ITO (ITAT Hyderabad) In this case GPA was given by three persons i.e. (i) Shri K. Pratap Reddy, Sri K. Madhav Reddy and Shri K. Dharma Reddy in favour of the assessee in the year 1990 and it is mentioned therein that the possession of the said land was also […]...

Read More

Investment on Renovation of New Residential House Eligible for section 54F Exemption

Juveria Begum Vs ITO (ITAT Hyderabad)

The issue under consideration is whether the investment made on renovation of new residential house is eligible for exemption u/s 54F?...

Read More

No TP adjustment for interest on receivables from AE’s if delay is less than industry average

Value Labs Technologies Vs ACIT (ITAT Hyderabad)

TPO has not given any finding on the No. of days delay in receivables. As submitted by the learned AR, the delay was less than 90 days and the industry acceptable period of average is 90 days. The Coordinate Bench of the ITAT in assessee’s own case for the A.Y 2013-14 has taken view that no adjustment is required if the delay is between...

Read More

Debt free Company- No Adjustment for interest free loan to Associated Enterprise

Value Labs Vs ACIT (ITAT Hyderabad)

Value Labs Vs ACIT (ITAT Hyderabad) The issue which arises in the present appeal is against the adjustment made in the hands of the assessee on account of interest due on outstanding Receivables by treating the same as international transaction. Much reliance is placed on the explanation inserted under section 92B of the Act with [&hellip...

Read More

Section 54F exemption cannot be denied for Home Loan default

Goulikar Jawaharlal Vs ITO (ITAT Hyderabad)

The issue under consideration is whether the default in home loan by the owner of the property can be the reason to disallow the capital gain deduction u/s 54F of the Income Tax Act, 1961?...

Read More

Section 50C cannot be invoked in respect of TDR Rights

Sri Justice B. Subhashan Reddy (HUF) Vs ACIT (ITAT Hyderabad)

whether section 50C can be invoked in respect of the right to receive compensation on compulsory acquisition of land & the TDR rights as the same would not come within the meaning of “immovable property”?...

Read More

Entire Purchases cannot be Treated as Bogus if Payments Made through Accounted Money

Bhagatram, Hyderabad Vs ACIT (ITAT Hyderabad)

Bhagatram Vs ACIT (ITAT Hyderabad) The issue under consideration is whether the CIT(A) is correct in considering the entire purchase as bogus purchase? ITAT states that it is also a known fact that Gold / Gold Jewellery is often purchased in the grey market in order to avoid taxes/customs duty etc., by the traders. In […]...

Read More

Gift not unexplained merely because donor holds Low Economic class Ration Card

Lokadri Naidu Vs ITO (ITAT Hyderabad)

The issue under consideration is whether the Ration Card can be considered as a source of determining financial status of assessee and whether gift from person holding Ration Card of Low Economic class can betreated as unexplained Credit under section 68 of Income Tax Act, 1961 ?...

Read More

Section 54/54F exemption: ITAT directs AO to consider additional evidence

Hemalatha Mallapuram Vs ITO (ITAT Hyderabad)

The issue under consideration is whether the tribunal can give fresh opportunity to the assessee to submit evidence which assessee might not have been able to provide at the time of hearing?...

Read More

Section 50C not applies if Market Value of Property reduced due to Defect in Property Title

Aruna Kommuri Vs ACIT (ITAT Hyderabad)

The issue under consideration is whether the provisions of section 50C of the Act can be applied in cases where the market value of the property is reduced due to the defect in the title of the property?...

Read More

No taxable gain on Land Purchased & Sold as Agricultural land

J.K. Bros Constrafin Ltd Vs ITO (ITAT Hyderabad)

The issue under consideration is whether the land purchased by the assessee as agricultural land & whether the income from such sale is business income or capital gains?...

Read More

Depreciation on Wheel loaders & Graders as Motor Vehicles

DCIT Vs Quippo Construction Equipment Ltd. (ITAT Hyderabad)

The issue under consideration is whether the CIT(A) is correct in charging depreciation at the rate of 30% on wheel loaders and graders?...

Read More

Depreciation should be considered for evaluating operating results of comparables

AMD Research & Development Centre India Pvt. Ltd. Vs DCIT (ITAT Hyderabad)

AMD Research & Development Centre India Pvt. Ltd. Vs DCIT (ITAT Hyderabad) The method of depreciation adopted by the various comparable companies has an impact on the operating result of the respective comparable companies, which is highlighted in the above charts. The assessee company’s percentage of depreciation to total expenditu...

Read More

Capital Gain tax payable on sale consideration receipt despite Release Deed at a later date

Shri I. Seshagiri Rao Vs ITO (ITAT Hyderabad)

Shri I. Seshagiri Rao Vs ITO (ITAT Hyderabad) The issue under consideration is whether the capital gains will be applicable where assessee signed a release deed waiving all his rights, title and interests in the property? During the assessment, the A.O. found that the assessee had entered into a release deed and also a supplementary [&hel...

Read More

Section 54F Exemption allowable despite Non-Claim in Income Tax Return

Srinivas Bejgam Vs ACIT (ITAT Hyderabad)

Since S.54F of the Act is a beneficial provision and the Hon’ble Courts have held that the beneficial provision should be construed liberally, I deem it fit and proper to admit assessee’s claim of deduction u/s 54F of the Act and remand the issue to the file of the AO with a direction to consider the eligibility of the assessee for de...

Read More

Tax on Sale of Property cannot be levied from GPA Holder

Sama Om Reddy Vs ITO (ITAT Hyderabad)

Sama Om Reddy Vs ITO (ITAT Hyderabad) Ld.Counsel for the assessee had reiterated the submissions made by the assessee before the AO and has submitted that by virtue of the Agreement of Sale cum GPA and handing over of the possession, the assessee had transferred the property in favour of the Vendee/GPA-holder, Shri A.Manikyam. It [&hellip...

Read More

No transfer on acquisition of own property by assessees in the names of their childrens

Smt. R.Mangala Devi Vs ITO (ITAT Hyderabad)

Thus, it is seen that there is actually no sale of property by the assessees before us and the Sale Deed has been executed by the original owners through GPA holders to the children of assessees. Therefore, in my opinion, there is no transfer of property by the assessees in fact it is acquisition of property by the assessees in the names ...

Read More

No Penalty for Loan in cash for sisters marriage which was repaid through RTGS

Shri Venkat Narayana Raju Pasuparthy Vs Addl. CCIT (ITAT Hyderabad)

: Where there existed reasonable cause for the assessee in accepting the loans in cash and particularly as the loans were repaid by way of RTGS, i.e., via banking channels, penalty levied by AO under section 271D was deleted....

Read More

No Section 271B Penalty if books of account not maintained

Naveen Kumar Kaparthy Vs ITO (ITAT Hyderabad)

Naveen Kumar Kaparthy Vs ITO (ITAT Hyderabad) In the instant case, when the books of account are not maintained, the AO did not initiate any proceedings for not maintaining the books of account. The AO obviously satisfied that the books of account were not maintained for good and sufficient reasons. When the AO accepted the […]...

Read More

ITAT disallowed loss on Sales made at lower rate to reduce taxable Profit

Agarwal Global Steels Pvt. Ltd. Vs DCIT (ITAT Hyderabad)

Agarwal Global Steels Pvt. Ltd. Vs DCIT (ITAT Hyderabad) We observe that even if we consider the selling price @ 30,675.56 by M/s Gautham Rolling Mills Pvt. Ltd. and the same was purchased from the assessee @ 25,000/- per MT with tax, the difference would be Rs. 4,500/- per MT. We gave opportunity to both […]...

Read More

Order of ITO cannot be branded as erroneous by CIT simply because order was not elaborate

Smt. K. Krishnaveni Vs I.T.O. (ITAT Hyderabad)

In the present case before us, the assessee has offered the capital gains tax in the next year and there has not been any prejudice to the revenue. Further, the assessee has explained to the query raised during the scrutiny proceedings before the Assessing Officer was answered to the satisfaction of the Assessing Officer. Hence, the Order...

Read More

Salary cannot be disallowed for mere non furnishing copies of appointment order, attendance register

Manne Hareesh Vs ITO (ITAT Hyderabad)

Manne Hareesh Vs ITO (ITAT Hyderabad) During the course of scrutiny assessment proceedings, it was observed by the Ld. AO that the assessee has debited in his P & L Account an amount of Rs. 2,40,000 towards Accounting Charges. On query, it was explained by the assessee that the outstanding amount of Rs. 2,40,000 was […]...

Read More

Mere discrepancy in Form 26AS & 16 not amounts to concealment

Chalapati Katiki Vs ITO (ITAT Hyderabad)

Taking into account the amount mentioned in Form 26AS it could not be said that the assessee had concealed amount or furnished inaccurate particulars of income. However, penalty was restricted to the tax sought to be evaded on the amount of commission income not disclosed by assessee....

Read More

Basic administrative expenses incurred after setting up but before commencement of business allowable

Vil Media (P) Ltd. Vs DCIT (ITAT Hyderabad)

 Assessee having already set up its business was eligible to claim basic administrative expenditure as business expenditure though business operations were commenced in the subsequent year....

Read More

TDS on Commission to foreign agents having No PE in India for services rendered outside India

Vimta Labs Limited Vs DCIT (ITAT Hyderabad)

ITAT held that the business receipts of the foreign residents are not taxable in India since the agents have no PE in India and therefore, the assessee was not required to make TDS u/s 195 of the Act. Therefore, the assessee’s appeals for all the three A.Ys are allowed....

Read More

Section 254(2) Non-consideration of decisions is mistake apparent from law

M/s. Ushodaya Enterprises Private Ltd Vs Addl. CIT (TDS) (ITAT Hyderabad)

M/s. Ushodaya Enterprises Private Ltd Vs Addl. CIT (TDS) (ITAT Hyderabad) We have perused the order of the Tribunal and find that in Para 8 of the order, the Tribunal has considered the applicability of sub-section (3) of section 201(1) also to 201(1A) and has clearly held that sub section (3) refers only to an […]...

Read More

Reassessment invalid if section 148 notice not served within stipulated period

B. M. Land Developers & Builders Vs ITO (ITAT Hyderabad)

Though AO had issued notice under section 148 on 26-3-2014, i.e., within period of six years from the end of relevant assessment year, however, it was returned unserved by postal authorities and even notice by affixture was also served on 4-4-2014 and there was no report of AO containing names and addresses of witnesses having identified ...

Read More

Erroneous Assessment order cannot be revised if not prejudicial to Revenue

Pravardhan Seeds (P) Ltd. Vs ACIT (ITAT Hyderabad)

CIT should not stop merely on finding that the order was erroneous but also had to establish that the order of AO was prejudicial to the interests of revenue. Thus, revision could not be made in such a case and the order of AO was restored....

Read More

Distribution of IPL Tickets to Customers to improve Business Relations is allowable as Expenditure: ITAT

M/s. EPE Process Filters & Accumulators Pvt Ltd. Vs DCIT (ITAT Hyderabad)

M/s. EPE Process Filters & Accumulators Pvt Ltd. Vs DCIT (ITAT Hyderabad) Assessee’s submissions in support of its claim u/s 37 of the Act are that it has purchased the IPL cricket match tickets to distribute them amongst its long standing customers to garner their goodwill and improve its business relations and therefore, it is [&h...

Read More

Machinery rent cannot be taxed as Income from House Property for TDS deduction under wrong head

Heritage Hospitality Ltd. Vs DCIt (ITAT Hyderabad)

AO’s opinion that since TDS made u/s. 194-I, incomes are to be assessed under head ‘income from house property’ can not be accepted. Moreover, even if assessee has let out property but, when the Memorandum of Association permits the business of letting out of properties as such, the income cannot be brought to tax as ‘income from ...

Read More

S. 50C Addition without reference to Valuation Officer not justified

Jayashree Kothari Vs ITO (ITAT Hyderabad)

Jayashree Kothari Vs ITO (ITAT Hyderabad) Sec. 50C(2) enables the Assessing Officer to make a reference to the Valuation Officer. Whenever a reference is made by the AO to the Valuation Officer, such reference has to be construed as a reference made under sec. 16A(1) of the Wealth-tax Act. We have also carefully gone through […]...

Read More

Network Rights is Goodwill eligible for depreciation U/s. 32(1)(ii)

Apna Incable Broad Band Services Pvt. Ltd. Vs DCIT (ITAT Hyderabad)

Apna Incable Broad Band Services Pvt. Ltd. Vs DCIT (ITAT Hyderabad) The AO was of the opinion that the network rights are not intangible assets and therefore, depreciation is not allowable thereon. The AO treated the network rights as “goodwill” and observing that no depreciation is allowable on goodwill u/s 32(1)(ii) of the Act, he [...

Read More

Education cess is nothing but an additional surcharge & part of taxes

R.A.K. Ceramics, UAE Vs DCIT (ITAT Hyderabad)

Article 2(1) of the India-UAE DTAA provides that the taxes covered shall include tax and surcharge thereon. Education cess is nothing but an additional surcharge & is also covered by the definition of taxes....

Read More

Stock-in-trade transfers in the year in which sale deed gets executed

Shri Challa Ramakrishna Vs ACIT (ITAT Hyderabad)

ITAT held that Stock- in-trade can be considered as transferred only in the year in which the assessee has executed the sale deed transferring the stock-in-trade and not when the assessee has given stock-in-trade for joint development to the builder. As already held in the above cases, the provisions of section 2(47)(v) would apply only t...

Read More

USA Federal & state tax eligible for tax credit under Income Tax Act, 1961

Pritesh Rajesh Kotak Vs ITO (ITAT Hyderabad)

Assessee was eligible to claim tax credit both federal as well as state taxes paid on the income earned during the year as section 91 did not discriminate between State and Federal taxes, and in effect provides for both the types of Income-taxes to be taken into account for the purpose of tax credits against Indian Income-tax liability....

Read More

S. 154 Applying individual tax rates to AOP not a mistake apparent from records

M/s. Shreeya Welfare Trust Vs ITO (ITAT Hyderabad)

Conclusion: Since assessee- AOP was a trust formed for the benefit of a sole beneficiary, therefore, applying individual tax rates to assessee-AOP was not a mistake apparent on the face of the record and therefore, it could not be rectified through Section 154....

Read More

No TDS default if recipient paid tax on income

ACIT Vs Chaitanya Educational Trust (ITAT Hyderabad)

ACIT Vs Chaitanya Educational Trust (ITAT Hyderabad) Since the assessee has filed the certificates of the recipients with proof that the recipients have offered the income to tax in their hands, the assessee shall not be treated as an assessee in default u/s 201(1) of the Act. FULL TEXT OF THE ITAT JUDGMENT All are […]...

Read More

Transfer of a portion of land in lieu of built-up area on retained land vid JDA was transfer u/s 2(47)(v)

Udai Hospitals Private Ltd Vs ITO (ITAT Hyderabad)

By virtue of JDA, assessee was parting with a portion of its land and in consideration thereof, was receiving built-up area on the land retained by it which was a transfer within the meaning of section 2(47)(v) however, AO was directed to re-compute the capital gain again by considering only elements which were necessary for the construc...

Read More

Disallowance u/s 14A unsustainable in absence of exempt income

Mylan Laboratories Limited Vs DCIT (ITAT Hyderabad)

When assessee had not earned any exempt income during the relevant assessment year, disallowance under section 14A could not be made....

Read More

Tax on Income from mushrooms grown in controlled conditions

DCIT Vs Inventaa Industries (P.) Ltd. (ITAT Hyderabad)

Agricultural operations carried out by assessee on land/soil, being human skill and labour were basically agricultural operation and as such just because mushrooms are grown in controlled conditions it does not negate claim of assessee that income arising from sale of such mushrooms was agricultural income and thus exempt under section 10...

Read More

Company cannot modify P&L adopted in AGM overlooking Auditor qualification

Gati Limited Vs ACIT (ITAT Hyderabad)

Once the financial statements were ratified by the shareholders, assessee had no right to modify the profit declared as per Companies Act and adopt differently for the purpose of MAT provisions. Therefore, the profit adopted by the company in the AGM overlooking the qualification of auditor was the final book profit for the purpose of sec...

Read More

Addition cannot be made just because share premium is abnormally high as per test of human probabilities

Bharathi Cement Corporation Pvt. Ltd. Vs ACIT (ITAT Hyderabad)

In the matter f Issue of Share at High Premium AO should not resort to rely on circumstantial evidence or on test of human probabilities but on factual evidence of passing of benefit to the shareholders/directors. Hence ITAT remanded the matter  back to AO to re-assess whether the assessee was used as a vehicle to pass on the benefit to...

Read More

Delayed ESIC and PF payment before filing of IT Return allowable

DCIT Vs Andhra Prabha Publications Ltd. (ITAT Hyderabad)

Ifthe employees’ share of contribution is paid before the due date of filing the return u/s 139(1) of the Income-tax Act, 1961 then no disallowance can be made....

Read More

Section 54F exemption eligible on Property Purchased in wife’s name

Shri Rajkumar Mandhani Vs DCIT (ITAT Hyderabad)

Shri Rajkumar Mandhani Vs DCIT (ITAT Hyderabad) In the case before us, the assessee and his wife are independent income tax assessees and the assessee already owned one house at Kilpauk, Chennai. The assessee therefore, cannot be said to have invested in order to avoid capital gains to tax in his hands, as u/s 54F(1), […]...

Read More

ITAT condones delay caused by delay in getting Signature of Company MD

ACIT Vs Nekkanti Sea Foods Ltd. (ITAT Hyderabad)

ACIT Vs Nekkanti Sea Foods Ltd. (ITAT Hyderabad) there was a delay of 92 days in filing this C.O. by the assessee, for which an application for condonation of delay was filed by the assessee, wherein, inter-alia, the assessee stated that since there was a delay in getting the signatures of the MD of the company who […]...

Read More

Unexplained cash credit entries in first year of business cannot be treated as unexplained income

Shri Srinivasa Reddy Yenumula Vs ITO (ITAT Hyderabad)

Shri Srinivasa Reddy Yenumula Vs ITO (ITAT Hyderabad) As regards the addition of Rs.18.00 lakhs towards unexplained investment is concerned, the learned Counsel for the assessee placed reliance on the judgment of the Hon’ble Supreme Court of India in the case of CIT vs. Bharat Engg. & Construction Co. reported in (1972) 83 ITR ...

Read More

S. 195 TDS deductible on property purchase payment to GPA of NRI

Shri Bhagwandas Nagla Vs ITO (International Taxation) (ITAT Hyderabad)

Shri Bhagwandas Nagla Vs ITO (International Taxation) (ITAT Hyderabad) Conclusion: TDS under section 195 was to be deducted in case payment for purchase of immovable property made to GPA (general power of attorney) holder of non-residents because, at best, GPA holder could be considered as only a conduit between assessee and the owners of...

Read More

Pre-commencement Interest income is capital receipt

ITO Vs KSK Wind Energy Halagali Benchi Pvt. Ltd. (ITAT Hyderabad)

ITO Vs KSK Wind Energy Halagali Benchi Pvt. Ltd. (ITAT Hyderabad) Assessee’s have been incorporated on 03-01-2011 with the object of generation of electricity from non-conventional sources, the project of which is proposed in the state of Karnataka and for this purpose investments have been received in the form of equity capital of the...

Read More

Capital gain when assessee given developer possession & permission to construct property

Adinarayana Reddy Kummeta Vs ACIT (ITAT Hyderabad)

Where assessee did permit developer to enter into premises and do all necessary things for construction of apartments and assessee handed over the possession, provisions of section 2(47) got attracted....

Read More

Depreciation allowable on Right to operate project facility & collect toll charges

DCIT Vs Progressive Constructions Ltd. (ITAT Hyderabad)

DCIT Vs Progressive Constructions Ltd. (ITAT Hyderabad) Expenditure incurred for gaining right to operate the project facility and collect toll charges resulted into an intangible asset eligible for depreciation Conclusion: Expenditure incurred by assessee of Rs.214 crore for creating the project or project facilities had created an inta...

Read More

Cash payment cannot be disallowed if not claimed as business expense or capitalized

Kalyan Constructions Vs ITO (ITAT Hyderabad)

Kalyan Constructions Vs ITO (ITAT Hyderabad) Where assessee had not claimed cash payment of Rs. 1.50 crores for purchase of land as business expenditure or treated as stock or capitalized the same in order to claim depreciation in the future, disallowance under section 40A(3) could not be made. FULL TEXT OF THE ITAT JUDGMENT This [&hellip...

Read More

Trade Advances in the course of business cannot be termed as deemed dividend

Nutan Malpani, Vs Asst. Commissioner of Income Tax (ITAT Hyderabad)

Nutan Malpani Vs ACIT (ITAT Hyderabad) We noticed that when the assessee is having a regular business connection with the company and in that process, assessee receives or pays certain advances, they can be considered as ‘trade advances’ and not otherwise. In the given case, certain transactions which were treated by the Assessing Off...

Read More

S. 80IB(10) Deduction can’t be denied for mere non furnishing of Project Completion Certificate

Sahara States – Hyderabad Vs Additional CIT (ITAT Hyderabad)

Sahara States – Hyderabad Vs Additional CIT (ITAT Hyderabad) As rightly observed by the Tribunal, though the assessee has completed the project by 31.03.2008 and had requested the local authorities for issuance of completion certificate since there was no provision under the GHMC Act of 1985 for issuance of completion certificate, the s...

Read More

Date of Transfer in JDA when assessees merely entitled to a specified constructed space

Atluri Usha Rani Vs Asst. CIT (ITAT Hyderabad)

Atluri Usha Rani Vs Asst. CIT (ITAT Hyderabad) I have carefully considered the rival submissions and perused the record. I have also carefully perused the development agreement-cum-GPA. The said agreement shows that the builders and developers have to bear all the expenditure for preparation of the said plan, obtaining licenses, permissio...

Read More

No Wealth Tax on Commercial Asset which is Capable of being put to Productive Use

M/s. Chavva Estates Private Vs Wealth Tax Officer (ITAT Hyderabad)

M/s. Chavva Estates Private Vs Wealth Tax Officer (ITAT Hyderabad) We find that as long as the assessee owns the commercial asset, which is capable of being put to productive use, the said commercial asset is not exigible to Wealth Tax. In this case, the assessee along with two other companies owns the theatre but […]...

Read More

Year of taxability on Transfer of land pursuant to development agreement

K. Vijaya Lakshmi Vs Assisstant Commissioner of Income Tax (ITAT Hyderabad)

K. Vijaya Lakshmi Vs ACIT (ITAT Hyderabad) The development agreement implied that assessee did permit the developer to enter into the premises and to do all the necessary things for construction of apartments. Some of the agreement holders also sold the flats in semi-finished condition or in fully developed condition, whereas few like ass...

Read More

If exempt income is Nil, section 14A will not apply

Nekkanti Sea Foods Ltd Vs CIT (ITAT Hyderabad)

Nekkanti Sea Foods Ltd Vs CIT (ITAT Hyderabad) It is settled position of law that the provisions of section 14A can be applied to quantify the expenses in relation to exempt income. Since the exempt income is Nil, section 14A will not apply. The Rule 8D can be applied only when there is difficulty in […]...

Read More

Interest u/s 234E cannot be levied in respect of TDS returns filed prior to 1.6.2015

M/s. Terra Infra Development Limited Vs. Income Tax Officer (ITAT Hyderabad)

M/s. Terra Infra Development Limited Vs ITO (ITAT Hyderabad) Provisions for levy of fee in certain cases has been brought into the Statute book w.e.f. 1.7.2012, it has been brought under the purview of section 200A only w.e.f. 1.6.2015. Therefore, as rightly held by the Coordinate Bench in the case of M/s. Sonalac Paintings & [&hellip...

Read More

Section 54F exemption cannot be denied for mere non claim in Return

Sri Manohar Reddy Basani Vs. ITO (ITAT Hyderabad)

When assessee utilised sale consideration of property in construction of another residential property within prescribed time period, then, merely on account of the fact that the assessee had neither declared the transaction of sale of property nor made any claim of deduction under section 54F in the return of income, deduction under secti...

Read More

Income from share transaction on daily basis is business Income

Smt. Anju Gaggar Vs. Asstt. Commissioner of Income Tax (ITAT Hyderabad)

Smt. Anju Gaggar Vs. ACIT (ITAT Hyderabad) During the relevant financial year, there were repeated purchase of same scrip and sale thereof immediately, almost on daily basis to take advantage of the market fluctuations. Further that, records of the broker clearly revealed that she had no intention to make investments for long periods. Hen...

Read More

Adjusted Rental advance given for Business for Lock in period is allowable

Apollo Munich Health Insurance Company Ltd. Vs DCIT (ITAT Hyderabad)

Apollo Munich Health Insurance Company Ltd. Vs DCIT (ITAT Hyderabad) Rental advance, when it becomes unrecoverable, it becomes the business loss and not capital loss. But in the given case, it is not unrecoverable but it was adjusted towards agreed rent for lock in period as per agreement between the assessee and landlord. Therefore, in [...

Read More

Capital Gain Taxable in the year in which possession of property passed on to developer

M/s. Telukunta Chandra Mohan Rao (HUF) Vs ITO (ITAT Hyderbad)

M/s. Telukunta Chandra Mohan Rao (HUF) Vs ITO (ITAT Hyderbad) The question raised is, in the case of ‘JDA’ transaction, at what point of time, capital gain arises. It is settled law that in the year in which the possession of the property is passed on to the developer is the year in which the […]...

Read More

Depreciation on Printers, UPS, Scanners, Cash dispenser Hardware & ATM Switch

Adarsh Coopertaive Urban Bank Ltd. Vs ACIT (ITAT Hyderabad)

Adarsh Coopertaive Urban Bank Ltd. Vs ACIT (ITAT Hyderabad) ATM is a computer telecommunication device that allows Bank Customers to access banking at places other than the normal bank without having to take the trouble to go to the Bank in person and collect the cash as is done under the conventional method of withdrawing […]...

Read More

Subsidy for setting up industries to generate employment not to be adjusted against cost of depreciable assets

Sanghi Industries Ltd. Vs ACIT (ITAT Hyderabad)

Sanghi Industries Ltd. Vs ACIT (ITAT Hyderabad) Only if subsidy or other grant was given to offset the cost of an asset, such payment would be covered by Explanation 10 to section 143(1). In the instant case where subsidy was received as an incentive for setting up industries to generate employment, the mere fact that […]...

Read More

Deemed dividend Law applies only to Accumulated Profits at start of relevant FY

Sri Srikanth Marru Vs ITO (ITAT Hyderabad)

Sri Srikanth Marru Hyderabad Vs ITO (ITAT Hyderabad) There is a nexus between the loan taken from the LIC and the premium paid for the Keyman Insurance Policy. Since the Keyman Insurance Policy is for the benefit to the assessee, it was held that the same is taxable as deemed dividend u/s 2(22)(e) of the […]...

Read More

Sec. 40A(3) applies only to revenue expenditure debited to P&L account

Kalyan Constructions Vs Income-tax Officer (ITAT Hyderabad)

Kalyan Constructions Vs ITO (ITAT Hyderabad) Provisions of Section 40A(3) mention that where an assessee incurs any expenditure in respect of which payments were made to a person otherwise than by way of crossed cheque or account payee cheque, no deduction shall be allowed in respect of such expenditure. It is humbly submitted that when ...

Read More

No deduction U/s. 54F for amount not invested in CGAS within period U/s. 139(1) or 139(4)

Bolishetty Venkatesh Vs ITO (ITAT Hyderabad)

Where assessee failed to deposit the unutilized sales consideration under Capital Gain Account Scheme within the period specified under section 139(1) or 139(4), AO was justified in restricting the claim of deduction to the expenditure incurred upto the due date of filing return of income....

Read More

Cash Discount cannot be disallowed for mere non-mention of same on Invoice

M/s. Sai Krishna Agencies Medak Vs Asstt. (ITAT Hyderabad)

M/s. Sai Krishna Agencies Medak Vs Asstt. (ITAT Hyderabad) We find that the AO had made some enquiries from the customers to find out if they received any discounts from the assessee, but the assessee has not been confronted with the findings of such an ex-parte enquiry report. This is in clear violation of principles of […]...

Read More

Jurisdiction U/s. 263 cannot be assumed for non-communication of Form 3CL by DSIR to DIT (E)

Century Seeds Private Limited Vs Deputy Commissioner of Income Tax (ITAT Hyderabad)

Century Seeds Private Limited Vs DCIT (ITAT Hyderabad) With reference to the finding of the Ld. CIT that the Form 3CM and 3CL are not filed which are mandatory, it was the submission that assessee has filed Form 3CM in letter format issued by DSIR granting renewal of recognition up to 3 1.03.2015 by the […]...

Read More

S. 271D / 271E Penalty not leviable on genuine Cash transaction of convenience

Shri Tej Narayan Agarwal Vs Addl. CIT (ITAT Hyderabad)

Shri Tej Narayan Agarwal Vs Addl. CIT (ITAT Hyderabad) Amount received and repaid by the assessee subsequently is not a loan. This is a transaction done on behalf of his children to accommodate tham in obtaining DD’s without charges and cannot be considered as taking of loan or repayment of loan in cash. Facts of […]...

Read More

Mushrooms are fungus and Income from production & sale of Mushrooms is ‘agricultural income’

DCIT Vs M/s. Inventaa Industries Private Limited (ITAT Hyderabad)

DCIT  Vs. Inventaa Industries Private Limited (ITAT Hyderabad Special Bench) Mushrooms are fungus which are produced from spawn and not plants or crops and hence not agriculture. They are grown in trays of prepared soil in climate controlled rooms for commercial. We cannot restrict the word “product” to ‘plants’, ‘fruits’, ...

Read More

Exemption cannot be denied merely because Assessee has not claimed the same

Manohar Reddy Basani Vs Income Tax Officer (ITAT Hyderabad)

Manohar Reddy Basani Vs ITO (ITAT Hyderabad) Assessing Officer having concluded that the assessee having neither disclosed the capital gains in the return of income nor claimed any deduction u/s 54F of the Act, the assessee is not entitled to get any deduction u/s 54F, in the same way he should not have added the […]...

Read More

Apportionment of expense on R&D and ESOP having no nexus with products manufactured in exempted units not justified

Dr. Reddy’s Laboratories Limited Vs DCIT (ITAT Hyderabad)

Dr. Reddy’s Laboratories Limited Vs DCIT (ITAT Hyderabad) The case of the assessee, all through, was that R & D expenditure was incurred by the assessee in a separate unit known as ‘IPDO’, which is meant for carrying on R & D. It is also not in dispute that formulations / products arising out of […]...

Read More

Weighted deduction u/s 35(2AB) on expenditure outside the R & D unit

DCIT  Vs  Aurobindo Pharma Limited (ITAT Hyderabad)

DCIT  Vs  Aurobindo Pharma Limited (ITAT Hyderabad) We have considered the rival contentions and perused the case law placed on record. In the decision of Concept Pharmaceuticals Ltd (supra) the Coordinate Bench did not allow the expenditure spent outside the R & D unit but the Bench has not considered the explanation introduced ...

Read More

Exemption U/s. 11 cannot be denied for Mere collection of fees for water Testing

Institute of Health Systems Vs Income Tax Officer (ITAT Hyderabad)

Institute of Health Systems Vs ITO (ITAT Hyderabad) Assessee’s activity comes within the purview of exceptions provided sub-section (15) of sub-clause (i) for the reason that the activity of the assessee is testing of the water quality, which monitors quality in reservoirs and slum areas, for that, assessee has charged some fee and almo...

Read More

TDS not deductible on Advance Received towards Professional Fee which is returned back

Shri A. Naga Srinivas Vs DCIT ( ITAT Hyderabad)

Advance received by the assessee towards his professional fee, when it is returned, is not covered by any of the provisions of Chapter XVIIB requiring TDS. ...

Read More

Principle of mutuality cannot be denied simply because there are two categories of members as per bye-laws of society

M/s. Sri Sai Datta Mutual Aided Co-operative Credit Society Vs Asst. (ITAT Hyderabad)

M/s. Sri Sai Datta Mutual Aided Co-operative Credit Society Vs Asst. (ITAT Hyderabad) The AO and CIT(A) have considered the ordinary members and nominal members are different class of members. AO accepts that ordinary members are having mutuality but he denies the same with reference to nominal members. The principle of mutuality cannot b...

Read More

Addition on the basis of bounced cheques- ITAT Slams Revenue officials

Dy. Commissioner of Income Tax Vs Smt. Shashikala Ramkumar (ITAT Hyderabad)

CIT Vs Smt. Shashikala Ramkumar (ITAT Hyderabad) First of all it is not understandable how an AO can make addition on the bounced cheques. It is a general banking practice that once cheques are presented for clearance, bank credits out of its own funds, subject to clearance and when cheques are not cleared, the amounts […]...

Read More

No addition separately for bank deposits when Income been assessed on estimated basis

Sri Manne Baswa Reddy Vs ITO (ITAT Hyderabad)

Sri Manne Baswa Reddy Vs ITO (ITAT Hyderabad) The deposits in the bank account pertain to assessee. Assessee had substantial income during the year and that too he is doing retail business in IMFL. There is no allegation that these amounts also pertain to the business by the AO. Since the deposits are through-out the […]...

Read More

No disallowance for purchase of old Gold from customer against sale of new ornaments

Dy. Commissioner (ITAT Hyderabad) Vs Kalanikethan Silks Private Limited

DCIT  Vs Kalanikethan Silks Private Limited (ITAT Hyderabad) As regards, the purchase of old gold, the assessee had filed the copies of the vouchers which are properly bound and preserved and it is submitted that is the normal practice of the customers to bring old gold and buy new ornaments and in that process, the […]...

Read More

No addition separately for Scrap Sales when Income been assessed on estimated basis

Dy. Commissioner of Income ( ITAT Hyderabad) Vs JVK Infra Pvt. Ltd

Income from scrap sale should be treated as additional income over and above estimation of income, we notice that for sub-contract, normally estimated at 5%, but, in the given case, assessee has already offered 6%, which includes scrap sales. Generally, scraps are generated in the normal course of business and it should be treated as part...

Read More

In absence of information to treat a Transaction as bogus same are to be accepted as Genuine Transactions

Smt. Sarita Devi Vs Income Tax Officer (ITAT Hyderabad)

These two appeals are by the assessees against the respective orders of the CIT(A)-6, Hyderabad dated 29.07.2016. Even though many issues are contested, mainly the issue pertain to whether the income offered by the assessee has to be assessed under capital gains or under ‘other sources....

Read More

Remuneration to members of HUF for services rendered in business is allowable U/s. 37(1)

Asst. Commissioner of Income Tax Vs Sri B. Sreeramulu (HUF) (ITAT Hyderabad)

The remuneration to the members of the HUF were paid for the services rendered in the business which is allowable U/s. 37(1) and invoking the provisions of Section 184 and Section 40(b) does not arise on the facts of the case at all....

Read More

Cash deposit cannot be assessed U/s. 68 when cheque deposits were accepted as business turnover

Income Tax Officer Vs Sri Shaik Zameer (ITAT Hyderabad)

This is an appeal by Revenue against the order of the Commissioner of Income Tax (Appeals)-Tirupati, dated 31-03-2017, treating the deposits made in the bank account as business turnover, whereas AO was of the opinion that these are unexplained income U/s. 68 of the Act....

Read More

Gain from Transfer of Agricultural Land cannot be taxed despite absence of agricultural operations on such land

Shri Kallepu Sharath Chander Vs ACIT (ITAT Hyderabad)

Where the land is shown in revenue record as agricultural land and no permission was taken for conversion of land, it is immaterial whether any agricultural income is shown in the return or not, the gains from sale are exempt from taxation....

Read More

MAT Provisions U/s. Section 115JB not applicable to sick company

B.V. Reddy Transports Pvt. Ltd. Vs Asst. (ITAT Hyderabad)

The facts in brief qua the issue raised in the grounds are that assessee filed its return of income electronically for the AY. 2009-10 on 23-09-2009, declaring NIL income. This return was processed u/s. 143(1) of the Act and the total income was determined at Rs. 69,19,580/- u/s. ...

Read More

No addition for Gift from daughter if Assessee proves identity, genuineness & creditworthiness

Padmalatha Tama Vs Income-tax Officer (ITAT Hyderabad)

Briefly the facts of the case are, assessee who derives income from house property and income from other sources, filed her return of income for the AY 2010-11 on 27/07/2010 declaring an income of Rs. 17,75,810/-. Subsequently, the case was selected for scrutiny under CASS and accordingly notice u/s 143(2) dated 25/08/2011 was issued and ...

Read More

TP: Provision for bad & doubtful debt & bad debts written off are operating expenses

Hyundai Motor India Engg. Pvt. Vs Dy. Commissioner of Income tax (ITAT Hyderabad)

Hyundai Motor India appeal: Including bad debts and provision for bad and doubtful debts as operating expenses is necessary for the purpose of computing profit and loss of comparable companies, the margins of comparable companies ...

Read More

Mere Provision not eligible for Adjustment against Book Profit it must be Ascertained Liability

M/s. Southern Power Distribution Company of Andhra Pradesh Ltd. Vs DCIT (ITAT Hyderabad)

In accordance with the view expressed by the third member, Hon'ble Vice-President, Hyderabad, the ground of appeal No.4 is partly allowed and the AO is directed to allow the deduction from the book profit of sum of Rs.22.89 crores while computing the taxable income u/s 115GB of the I.T. Act. The ground of appeal No.4 is therefore, treated...

Read More

Section 54F deduction not allowable if Purchase of new property not concluded

Mahesh Malneedi Vs ITO (ITAT Hyderabad)

Mahesh Malneedi Vs ITO (ITAT Hyderabad) As far as the assessee is concerned, he was aware of the bank loan and also the default committed by the vendor in repaying the loan. Thus, the property was not without an encumbrance as on the date of filing of the return and there was no certainty of […]...

Read More

Loan waiver cannot be taxed under Section 28(iv)

Income-tax Officer Vs Tini Pharma Ltd. (ITAT Hyderabad)

The alternative submission that the amount of loan written off would be taxable under Section 28(iv) of the Act also came up for consideration before this Court in the matter of Mahindra & Mahindra Ltd. ( supra) and it was held therein that Section 28(iv) of the Act would apply only when a benefit or perquisite is received in kind and has...

Read More

TDS on execution of orders by one of the constituents of JV

KCL Amrcl joint Venture Vs ITO (ITAT Hyderabad)

In the given case, memebrs of JV decided to form a JV only to secure the orders and execution of the orders was to be done by one of the constituents of the JV. JV was formed for the benefit of the individual members and a business was carried on for the benefit of the businessman. There was no sub-contract relationship existed between JV...

Read More

No addition U/s. 69 if Source of Funds was referable to Monies Pooled from Customers in the Form of Advances and Sales in Business

Smt. Dyapa Rajini Vs Income Tax Officer (ITAT Hyderabad)

The assessee is engaged in the business of purchase and sale of matching material for women clothing and she was also running a tailoring centre. For the year under consideration she declared total income of Rs. 1,33,900/- and net agricultural income of Rs. 52,450/-....

Read More

Deduction U/s. 80-IA allowable on amount disallowed U/s. 43B

Dy. CIT Vs TA Infra Projects Ltd. (ITAT Hyderabad)

As amount disallowed under section 43B would become profits of business in the computation of income under the head "Profits and gains of business or profession". Consequently, if the amounts disallowed were pertaining to the projects on which the claim under section 80-IA was made, the same had to be allowed as profits get increased to t...

Read More

No further addition if books are rejected and ad hoc addition been made

Dy. CIT Vs Sree Nagendra Constructions & Ors. (ITAT Hyderabad)

Where there was estimation of business income, disallowance and consequential addition of revenue expenditure was not sustainable, in view of decision in Indwell Constructions v. CIT (1998) 232 ITR 776 (AP-HC). Since AO already had made estimation of income at 5% after rejection of books of account of assessee, no further disallowance of ...

Read More

Browse All Categories

CA, CS, CMA (5,053)
Company Law (6,720)
Custom Duty (8,087)
DGFT (4,389)
Excise Duty (4,411)
Fema / RBI (4,438)
Finance (4,699)
Income Tax (35,128)
SEBI (3,757)
Service Tax (3,627)

Search Posts by Date

December 2020
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
28293031