The assignment of debt in favor of another entity partly in exchange of land was integral part of the business activities of the assessee and any gain / loss arising on such an asset should be viewed as business profits only.
Lakshmanan Indirani Vs ACIT (ITAT Chennai) The assessee was subjected to search action u/s 132 on 08-9-2015. During search operations, the jewellery belonging to the assessee and her family members was found. The jewellery weighed 3574.590 Grams which was valued at Rs.85.78 Lacs. In statement u/s 132(4), the assessee submitted that the jewellery belonged to […]
Devaraj Construction Vs ITO (ITAT Chennai) In this case the reason for the delay in filing the appeal was that Shri S. Muthiah, F.C.A. died on 02.03.2015 and because of that there is no coordination between the assessee and the C.A. firm. The appellate order passed by the ld. CIT(A) dated 28.12.2017. The assessee knows […]
Once, it is established that these payments are for construction contract and particularly the AO has made disallowance by invoking the provisions of section 40A(3) of the Act, no disallowance can be made by invoking the provisions of section 269SS of the Act for levy of penalty u/s.271D of the Act.
P.S. Jayaraman Vs ACIT (ITAT Chennai) Ld. CIT(A) concurred with assessee’s submissions that deduction u/s 54F was solely due to difference in interpretations of the provisions and therefore, the penalty was not to be levied on this count. However, the provisions of Sec. 54EC were clear that the investment in a financial year was not […]
ITAT Chennai held that permit charges paid to Government to operate buses in the state is revenue expenditure. Accordingly Pondicherry permit charges paid to Government of Pondicherry to operate buses in the state of jurisdiction of Pondicherry is allowable revenue expenditure.
ITAT Chennai held that disallowed the claim of loss on account of written off inventory as the assessee failed to produce necessary evidence proving that such stock became obsolete and unusable.
Balaji Janakiraman Vs ACIT (OSD) (ITAT Chennai) In the case of Smt. NS. Lakshmi, the assessee had taken a sum of Rs.20 lakhs through bank, and out of Rs.20 lakhs, the AO has accepted a sum of Rs.6 lakhs as genuine, and the remaining amount of Rs.14 lakhs has been added as unexplained credit. The […]
ITAT Chennai held that as per the ratio of decision of jurisdictional High Court in CIT V/s Gumanmal it is held that deduction u/s 54 of the Income Tax Act is available in respect of more than one property
Trivitron Healthcare Pvt. Ltd Vs DCIT (ITAT Chennai) The PCIT has questioned provision for warranty expenses amounting to Rs.2,25,71,530/-. According to the PCIT, there is a five times increase in provision for warranty expenses for the AY 2014-15 when compare to AY 2013-14. Although, the assessee has not explained rational behind substantial increase in expenses, […]
