ITAT Chennai

Section 45(3) AO cannot disturb value of consideration recorded in books of firm

Shri Sarrangan Ashok Vs ITO (ITAT Chennai)

Provision of section 45(3) are exhaustive and does not confer any power on the AO to adopt consideration different from what is recorded in the books of account of the firm. Thus, AO was not correct in adopting the market value of land as revalued subsequently by the firm in the books of account....

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Incentive received from Government for exploring new market -capital receipt or revenue receipt?

JCIT (OSD) Vs Eastman Exports Global Clothing (P) Ltd. (ITAT Chennai)

JCIT (OSD) Vs Eastman Exports Global Clothing (P) Ltd. (ITAT Chennai) We have considered the rival submissions on either side and also perused the relevant material available on record. The Market Linked Focus Product Scheme is a scheme promoted by the Director General of Foreign Trade wherein incentive @ 2% on the FOB value of […]...

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ITAT allows Depreciation on car in partner name

NVR Cinema Vs ITO (ITAT Chennai)

Partnership firm can own assets only in the name of the partners. In the case of the assessee firm, the car is owned in the name of the partner of the firm. If the car is purchased from the resource of the firm or the purchase consideration is credited to the partner’s current account or capital account then it shall be construed that t...

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ITAT upheld section 68 Addition- Big Jump in Share Price of unknown Company

Harish Kumar HUF Vs ITO (ITAT Chennai)

Assessee has not tendered cogent evidence to explain as to how the shares in an unknown company had jumped to an higher amount in no time when the fantastic sale price was not at all possible as there was no economic or financial basis to justify the price rise. Also, assessee failed to provide details of persons who purchased the shares....

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Character of agricultural land not changes merely for Sale of Land within one year

GRK Reddy & Sons (HUF) Vs ITO (ITAT Chennai)

Merely because the assessee was not able to generate desired agricultural income from the said land and thus, it sold the said land within one year of its purchase, would not change the character of agricultural land to a non-agricultural land. Consequently, the assessee would be entitled to claim the benefit of exemption under section 10...

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Provision of Section 167B(1) applies if shares of members of AOP indeterminate & unknown

M/s. Herve Pomerleau International CCCL Joint Venture Vs ACIT (ITAT Chennai)

It cannot be said that the shares of the profit in AOP of members is determinate or known. Thus on cumulative consideration of all clause the three agreement entered into it is crystal clear that shares members of AOP are indeterminate and unknown, therefore the provisions of sub section (1) to Section 167B of the Act are squarely applica...

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Section 12AA Trust Registration Cancellation justified for Receipt of unaccounted capitation fee by educational trust

M/s. Prathyusha Educational Trust Vs ACIT (ITAT Chennai)

Receipt of capitation fee by educational institution and non-recording thereof by assessee, educational trust, in regular books of account was in total violation of section 13(1)(c) and, therefore, cancellation of registration under section 12AA was justified....

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Section 54/54F: New residential house need not be purchased by assessee in his own name

Mrs. A. Vijayakumari Vs ITO (ITAT Chennai)

Mrs. A. Vijayakumari Vs ITO (ITAT Chennai) The provisions of section 54 of the Act are beneficial and are to be considered liberally for reasonable bonafide cause but investment in residential property is mandatory which is not in dispute in this case. The Assessing Officer was not justified in rejecting the case law relied on […]...

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Section 2(22)(e): ITAT restricts overall addition to amount of loan

Shri V. Ramesh Vs ACIT (ITAT Chennai)

Hence it would be an appropriate analogy that the entire amount which is liable to be treated as deemed dividend has to be apportioned between both the shareholders in whose cases the conditions stipulated for attracting the provisions of Section 2(22)(e) of the Act are satisfied. Therefore as pleaded by the Ld.AR, it would be judicious t...

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Depreciation @ 25% on toll way rights treating as intangible asset allowable

ACIT Vs M/s. PNG Tollway Ltd. (ITAT Chennai)

ITAT held that CIT(A) rightly directed Assessing Officer to allow the assessee’s claim of depreciation @ 25% treating the toll way rights as an intangible asset under section 32(1)(ii) of the Income Tax Act, 1961....

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