Denial of weighted deduction u/s 35(2AB) for non-furnishing of Form 3CL did not preclude normal deduction u/s 35(1)(i) and depreciation u/s 32, as the research was related to the assessee’s business.
ITAT Indore held that activity of providing hostel/mess is part of main activity of imparting education. Hence, claim of 15% of gross receipts as eligible exemption under section 11(1)(a) of the Income Tax Act justified.
ITAT Indore held that land located beyond 8 km from nearest municipality does not qualify as a capital asset under Section 2(14)(iii), exempting gains from capital gains tax.
ITAT Indore deleted a Rs.1.46 crore addition made under Section 69C via rectification, ruling that the AO wrongly invoked the section. The commission payments reported in the audit form were a pass-through on behalf of clients, not the assessee’s claimed business expenditure, meaning the deduction of TDS didn’t imply an unrecorded expense.
ITAT Indore held that Deemed Dividend under section 2(22)(e) of the Income Tax Act is not taxable in hands of borrower-company who doesn’t hold shares in lender-company. Accordingly, appeal of the assessee allowed and addition set aside.
ITAT Indore deleted a ₹2 lakh addition for cash deposited during demonetisation, citing CBDT Instruction No. 3/2017 which bars verification for deposits up to ₹2.5 lakhs by individuals.
The ITAT deleted a ₹78 lakh addition made under Section 68 for alleged accommodation entries from two companies, ruling the issue was covered by multiple binding coordinate bench decisions. Following prior judgments, the Tribunal held that M/s Jay Jyoti India Pvt. Ltd. and related entities were genuine concerns, thus the cash credit addition could not be sustained.
ITAT Indore remands assessment orders for AYs 2013-14 to 2018-19 to the AO for de novo consideration, finding that non-compliance during proceedings occurred due to the COVID-19 pandemic and an inoperative email ID, violating natural justice.
ITAT Indore held that reopening of assessment done by Assessing Officer under section 147 of the Income Tax Act, based on tax audit report already available during original assessment, without any fresh and new material is invalid and liable to be quashed.
The ITAT Indore has remanded a tax case to the CIT(A), ruling that the short notice period given to the assessee violated natural justice and warrants a new hearing on the merits.
