ITAT Chennai held that once the nature and source of credit found in the books of accounts is linked to business, then any income generated out of such business activity is assessable under the head income from business and profession alone, but not under the provisions of section 68 of the Income Tax Act.
ITAT Chennai held that the corporate guarantee to Associated Enterprise (AE) is an international transaction and it has to be assessed at 0.5% of the corporate commission. Hence, directed AO to restrict the disallowance at 0.5% of the guarantee value.
ITAT Chennai held that the services rendered by non-resident agent for completion of export commitment would not fall under the definition for fee for technical services. Hence, disallowance alleging non-deduction of TDS unjustified.
ITAT Chennai held that provisions of section 115BBE not invocable in case of addition u/s. 69A towards unexplained money as assessee is having only one source of income from business and claims that source for cash deposits is out of sales of the year.
ITAT Chennai directs AO to accept 50% of cash deposits as sale proceeds and balance as unexplained money in J. Kalappa Naidu Sons’ case vs. ITO.
ITAT Chennai held that addition towards unexplained money u/s 69A of the Income Tax Act unjustified as assessee has filed necessary evidence to explain nature and source for cash deposits.
ITAT Chennai held that income from listed shares and securities which had been treated as stock in trade by assessee is taxable under the head income from business and profession and not under the head capital gain.
ITAT Chennai held that transaction of purchase of own shares by the appellant company is distribution of accumulated profits within the meaning of section 2(22) of the Income Tax Act, 1961. Accordingly, it is treated as dividend u/s. 2(22)(a)/2(22)(d) read with section 115-O of the Act.
ITAT Chennai held that Once, nature of expenditure and source is explained, then the question of making additions towards refund money as unexplained expenditure u/s. 69C of the Income Tax Act does not arise.
ITAT Chennai held that acquiring jurisdiction u/s 153C of the Income Tax Act without fulfilling the requirement of satisfaction note in case of searched person is unsustainable and liable to be quashed.
