ITAT Chandigarh

Tax on Interest on enhanced compensation arising on compulsory acquisition of agricultural land

Satbir & Ors. Vs ITO (ITAT Chandigarh)

Satbir & Ors. Vs ITO (ITAT Chandigarh) Capital gains–Interest on enhanced compensation arising on compulsory acquisition of agricultural land–Taxability Interest earned under section 28 of Land Acquisition Act, 1894, which is on enhanced compensation, is treated as an accretion to the value and therefore, is part of the en...

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Foreign travel expenses of MD of company for business purpose allowable

Ms Mount Shivalik Brewereis Ltd. Vs DCIT (ITAT Chandigarh)

Foreign travelling expenses incurred by assessee-company for its Managing Director (MD) should be allowed as deduction as AO had no basis for holding the expenses incurred on the MDs trip to Germany as excessive or personal....

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Set off of business losses against capital gains is not mandatory

Sh. Ajay Kumar Singhania Vs DCIT (ITAT Chandigarh)

Sh. Ajay Kumar Singhania Vs DCIT (ITAT Chandigarh) The sole issue involved in this appeal is as to whether under the provisions of section 71 of the Income-tax Act, 1961 (in short ‘the Act’) there is an option to the assessee to set off the business losses against the capital gains or is it mandatory to […]...

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Interest disallowance justified for Interest-free loan to sister concern for non-commercial expediency

C.R. Auluck & Sons (P) Ltd. Vs ACIT (ITAT Chandigarh)

Where assessee-company had advanced interest-free loan to its sister concerns out of interest bearing fund, the disallowance under section 36(1)(iii) was proper because the loan could not be said to have been given out of commercial expediency, when the two concerns had independent lines of manufacturing and were manufacturing different ...

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Trust penalized by ITAT for fraudulently seeking exemption as Govt Trust

Sri Dashmesh Academy Trust Vs CIT (Exemptions) (ITAT Chandigarh)

Sri Dashmesh Academy Trust Vs CIT (Exemptions) (ITAT Chandigarh) Identical contentions as were raised by the representatives of the Trust before the lower authorities that the Trust is controlled and managed by the Government or that its funds and properties otherwise belong to the Government, have been raised by the counsel for the asses...

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TDS not deductible on by-product retained by millers, as same was not passed on as Milling Charges

ITO (TDS) Vs. M/s Punjab State Warehousing Corporation (ITAT Chandigarh)

ITO (TDS) Vs. M/s Punjab State Warehousing Corporation (ITAT Chandigarh) The main contention of the Department is that by-product retained by the millers have considerable market value and further that a sum of Rs. 15/- paid as ‘milling charges’ is a nominal cost which is insufficient to meet even the actual cost of services rendered ...

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Application U/s. 80G(5) cannot be rejected for sufficiency of funds with an institution

Raghu Nath Rai Memorial Educational & Charitable Trust Vs CIT(E) (ITAT Chandigarh)

CIT(E) was not justified in rejecting approval sought by assessee under section 80G(5) on the allegation that assessee had sufficient disposable fund because sufficiency of funds available with an institution seeking the approval is not mentioned as condition under section 80G, which needs to be looked into before granting approval....

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Penalty U/s. 271D for Contravention of section 269SS not leviable if assessee provides reasonable cause

Baldev Singh Vs Addl. CIT (ITAT Chandigarh)

The assessee in the present case has also raised the plea of reasonable cause, that the person advancing the loan was agriculturist and had no bank account. Accordingly, we delete the penalty levied under sections 271D and 271E of the Act....

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ITAT explains presumption theory that advances to sister concerns are made from own funds

ACIT Vs Janak Global Resources Pvt. Ltd (ITAT Chandigarh)

ACIT Vs Janak Global Resources Pvt. Ltd (ITAT Chandigarh) Where sufficient own interest free funds are available with the assessee, the presumption arises that the assessee had utilised those funds for the purpose of making interest free non business advances. Thus in very clear terms the Hon’ble Apex Court in the case of Hero Cycle...

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Disallowance U/s. 36(1)(iii) justified for Interest-free loan to sister concern without commercial expediency

M/s C.R. Auluck & Sons Pvt. Ltd. Vs ACIT (ITAT Chandigarh)

M/s C.R. Auluck & Sons Pvt. Ltd. Vs ACIT (ITAT Chandigarh) Assessee has failed to establish its case of commercial expediency.  The intention of assessee in advancing the said interest-free loan to its sister concern was not for the purpose of business because the two concerns were carrying on independent lines of manufacturing and t...

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