ITAT Chennai holds that ₹2 crore loan cannot be added as unexplained investment in lender’s case when already offered before Settlement Commission by borrower.
Chennai Bench clarified that under Section 54, only the portion of capital gains unutilised after 3 years is deemed taxable, deleting addition of full ₹5 crore.
Chennai ITAT set aside the denial of Sections 11 & 12 tax exemption to a Trust, directing the AO to re-examine the claim after the CCIT decides on the pending Form 10B late filing condonation petition.
Chennai ITAT restored an appeal after the CIT(A) erroneously dismissed it by copying a previous year’s order, citing a failure of natural justice and lack of due adjudication.
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.
