ITAT Kolkata

Non-Compete Fees Allowable as Admissible Revenue Expenditure: PWC gets Relief

Pricewaterhouse Coopers Private Ltd. Vs ACIT (ITAT Kolkata)

It is undisputed fact that the consideration is paid to individuals who had experience in the business of consultancy for not to engage themselves in similar kind of business and activities for a period of 3 years. It is also not disputed that such consideration is independent and not part of the cost of acquisition of business paid to sh...

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Reopening based on mistaken facts was invalid

Excel Financial Consultants Pvt. Ltd. Vs ITO (ITAT Kolkata)

Therefore, reasons are to be examined only on the basis of reasons as recorded. Here, in this case, I note that the A.O on mistaken facts resorted to reopening which is an admitted fact on a perusal of re-assessment order (supra). Therefore, the condition precedent for reopening the assessment u/s 147 of the Act is found to be absent and,...

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Section 68 additions merely on third Party Statement without cross examination was invalid

ACIT Vs Overtop Marketing Pvt. Ltd. (ITAT Kolkata)

ACIT Vs Overtop Marketing Pvt. Ltd. (ITAT Kolkata) when the assessee as well as the lenders had discharged the onus upon them to prove the identity, creditworthiness and genuineness of the loan transaction, the AO could have disbelieved the transaction only on the basis of reliable material to disprove the same. In this case the […...

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Section 41(1) cannot be applied to bogus & non-existent liability

Green Star Corporation Vs ACIT (ITAT Kolkata)

No addition can be made to the income of the assessee in this asst. years, as in the view of the AO the outstanding liability in question is bogus and non-existent. The question of cessation of such non-existent as bogus liability does not arise. Hence, Sec. 41(1) cannot be applied. Only when there is a genuine liability and there is ces...

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CIT (A) cannot delve on any issue not arising from assessment order

United Provinces Sugar Company Ltd Vs ITO (ITAT Kolkata)

United Provinces Sugar Company Ltd Vs ITO (ITAT Kolkata) A perusal of the propositions of law laid down in all these case-law, takes us to the conclusion that the ld. CIT(A) cannot touch or delve on any issue which does not arise from the order of assessment and which was outside the scope of or […]...

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Loan Amount not disclosed in Balance Sheet cannot be taxed

Sati Nath Chatterjee Vs ITO (ITAT Kolkata)

Even though for whatever reason/over-sight the assessee had not disclosed the loan as liability in the balance sheet and since the incurring of interest on it has been disallowed being personal in nature and the source of loan is from Vijaya Bank as noted by the AO, the loan amount of Rs.2,33,950/- cannot be taxed as it is a liability and...

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Non-seeking of permission for conversion of limited scrutiny to complete scrutiny not makes assessment order passed erroneous  

Binod Kumar Mahato Vs PCIT (ITAT Kolkata)

Binod Kumar Mahato Vs PCIT (ITAT Kolkata) The reasons for scrutiny selection through CASS, is to examine the cash deposits in savings bank account, as these are more than the turnover. The Assessing Officer stuck to these reasons and completed the assessment u/s 143(3) of the Act. Aggrieved with this order, the assessee carried the [&hell...

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Indexed Long-Term Capital Loss from Sale of Government Securities allowable

Peerless General Finance & Investment Company Limited Vs DCIT (ITAT Kolkata)

Peerless General Finance & Investment Company Limited Vs DCIT (ITAT Kolkata) It is observed that the issue relating to the assessee’s claim for Long-Term Capital Loss arising from the sale of Government Securities by applying the Cost Inflation Index was disallowed by the Assessing Officer in the assessment completed under section 1...

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Staff Recruitment Expenses exclusively for the business are allowable

DCIT Vs EIH Associated Hotels Ltd. (ITAT Kolkata)

DCIT Vs EIH Associated Hotels Ltd. (ITAT Kolkata) It is noted that the staff recruitment expenses were incurred only exclusive for the purpose of business and hence allowable expenditure. We note that the expenses on account of employees’ relation expenses to the tune of Rs. 3,78,242/- was incurred for efficient functioning of the busin...

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In absence of a valid section 143(2) notice scrutiny assessment cannot be framed

Shivam Dhatu Udyog Ltd. Vs DCIT (ITAT Kolkata) 

Supreme Court has held that issue of a legally valid notice u/s. 143(2) is mandatory for usurping jurisdiction to frame scrutiny assessment u/s. 143(3) of the Act and in the absence of a valid notice u/s 143(2) the scrutiny assessment u/s 143(3) cannot be framed and omission to issue notice u/s 143(2) of the Act is not a curable defect....

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