AO cannot make additions only on the basis of minimum income declared by the parties, because the income earned by person cannot decide quantum of loan that a person can give
DCIT Vs Medi Sales India Pvt. Ltd. (ITAT Chennai) Issue– Disallowance by the AO by not allowing assessee’s claim holding that the CBDT Circular No. 5/2012 dated 01.08.2012 applies only to pharmaceutical manufacturers and not to distributors like the assessee. Upon careful consideration of material facts, it could be gathered that the assessee merely acts […]
RKKR Holdings Pvt. Ltd. Vs ITO (ITAT Chennai) There is no dispute with regard to the fact that two Directors of the assessee company have travelled to USA, London and Singapore. Although, there is no direct nexus between the foreign travel expenses incurred by the assessee and business receipts from those destinations, but fact remains […]
Erumapalayam Primary Agricultural Co-Op Credit Society Vs ITO (ITAT Chennai) The Ld. AR pleaded that there was sufficient cause for delay in the audit since the assessee being cooperative society, it was governed by the Tamil Nadu Cooperative Societies Act, 1983 and the relevant rules 1988. For the relevant AY, the accounts of the society […]
Expense incurred on temporary partition is a revenue expense eligible for depreciation in the respective year if the asset is put to use for business. The amount has been incurred towards temporary structure during the previous year. No deferred revenue expenditure claim is allowable unless specifically provided under the Act.
ITAT held that depreciation eligible on goodwill which has arisen pursuant to business acquisition made by the assessee
AO erred in assessing cessation of liability towards unsecured loans availed from financial institutions in terms of order of BIFR u/s. 41(1) of Income Tax Act, 1961.
A. Sivashankar Vs DCIT (ITAT Chennai) In our considered view, the estimation made by the AO towards undisclosed income of under reporting of sales Revenue from sale of plots, is purely a guess work, which is based on the suspicion and surmises, but not based on any material evidences. Facts- The only issue that came […]
S. Ashokan Vs DCIT (ITAT Chennai) Addition towards cash payments u/s 40A(3) unsustainable in absence of any incriminating materials found during search – claim of assessee abruptly rejected that cash found during search pertains to earlier AY. Facts- The first issue in assessee appeal is validity of assessment order passed by the AO u/s.143(3) r.w.s.153A. […]
International Agricultural- Processing (P) Ltd. Vs ACIT (ITAT Chennai) Facts- The assessee is engaged in the business of export of processed agricultural produce like gherkins, onions and other vegetables. The assessee company is a 100% Export Oriented Unit and has claimed deduction u/s.10B of the Income Tax Act, 1961 (The Act) from the AY 2000-01. […]
