A summary of the ITAT Chennai’s ruling, which reaffirmed the precedents in Loka Shikshana Trust and New Noble Educational Society, emphasizing that charitable activities must involve formal, scholastic learning and genuine application of income to charitable objects.
The ITAT Chennai quashed additions under Section 68 against Arusuvai Food Processors, ruling that the provision only applies to fresh unexplained credits during the Assessment Year, not to genuine, consistently disclosed brought-forward trade payables.
Chennai ITAT directed the grant of charitable registration u/s 10(23C)(iv) to a trade promotion body, holding its activities as public utility, citing binding precedents on ITPO’s identical case.
A summary of ITAT Chennai’s order in Shanmugasundaram Venkatachalapathy Vs ITO, which sustained both unexplained investment under Section 69 and professional receipts found via Form 26AS but not declared in income tax return.
Chennai ITAT cancelled the penalty u/s 270A on Redington’s Singapore subsidiary, holding that the existence of a Permanent Establishment (PE) was a debatable issue settled via MAP, not under-reported income.
Chennai ITAT ruled that surplus from land sold after 20+ years was Capital Gain, not business income, as sporadic transactions and long holding period negated intent to trade.
Chennai ITAT deleted a Rs.12.36 lakh cash deposit addition under Section 69A for a retired government employee, acknowledging retirement benefits and customary household savings as sufficient sources.
Jewellers Get ITAT Relief: Inventory Software Unaccounted Income. ITAT Chennai restricts profit on unaccounted sales to 2.5% for Mohanlal Jewellers; deletes additions on Ghat, MC Khata, Byaj, and Vatav. Corroboration is key.
Chennai ITAT set aside the assessment for exceeding the limited scrutiny scope and disallowing 80P without a speaking order or SCN. Remanded the case for fresh, compliant adjudication.
Chennai ITAT rules Dividend Distribution Tax (DDT) is a company tax and not covered by DTAA, rejecting the refund claim. Separately, it capped the TDS disallowance at 30% under Section 40(a)(ia).
