ITAT Kolkata

No Disallowance of Interest on Loan taken to earn taxable business Income U/s. 14A r.w. Rule 8D(2)(ii)

ITO Vs Narain Prasad Dalmia (ITAT Kolkata)

The issue of revenue’s appeal is that the CIT(A) has wrongly deleted the disallowance made by AO under Rule 8D(2)(ii) of the Rules at Rs.55,47,700/-. Here the assessee before the lower authorities and even before us explained that out of the total interest payment of Rs.97,22,656/-, the interest aggregating to Rs. 92,69,529/- was paid t...

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Tax Audit Provision applies to Income From Partnership Firm

Sagar Dutta Vs D.C.I.T. (ITAT Kolkata)

The brief facts of the case are that the AO observed from the return of income filed by the assesee that the assessee’ s income included income from salary from Price Water House of which he was a partner. Since income by way of salary or remuneration from a firm was to be assessed...

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Tax Audit applicable to Partners on Income from Partnership Firm

Usha A. Narayanan Vs Deputy Commissioner of Income Tax (ITAT Kolkata)

The short issue in this appeal is whether or not penalty under section 44AB will also be attracted in the case in which the professional income of the assessee received from partnership firm of Chartered Accountants is taxable under the head “income from business or profession...

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S. 14A Interest expenditure cannot be disallowed by mechanically applying Provisions of Rule 8D

REI Agro Ltd Vs DCIT (ITAT Kolkata)

Here in the present case, there is no linkage or nexus between the funds borrowed by assessee and the impugned investments, hence, no interest expenditure can be disallowed by mechanically applying the Provisions of Rule 8D of the Rules. ...

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No Section 14A/ Rule 8D Disallowance without considering the the claim of the assessee

Deputy Commissioner of Income-tax Vs Ashish Jhunjhunwala (ITAT Kolkata)

The assessee earned income by way of dividend. During the assessment u/s 143(3) of the Income Tax Act, 1961. The AO asked the assessee for the details of expenditure incurred for earning the exempted income (dividend income)....

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When Seized documents explains unexplained expenditure, no addition is warranted

Vivek Kumar Kathotia Vs Deputy Commissioner of Income-tax (ITAT Kolkata)

The brief facts leading to above issue are that assessee incurred undisclosed expenditure for furniture, fixture, flooring etc. incurred in respect of Flat No. 501, at 20 Lee Road, Kolkata for asst. yr. 2008-09. The said expenditure was found recorded in RM-1 and RM-2. The expenditure of Rs. 35 lakhs was incurred by the assessee in connec...

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Section 50C do not prescribe any tolerance band

Heilgers Development & Construction Co. (P.) Ltd. Vs Deputy Commissioner of lncomc-tax, Central Circle-II, Kolkata (ITAT Kolkata)

The safeguard built in section 50C does envisage a situation that whenever assessee claims that the fair market value of the property is less than the stamp duty valuation of the property, a reference can be made to the Departmental Valuation Officer and all these issues relating to valuation of the property - either on the issue of allow...

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Compulsory acquisition of Land – Assessee not liable to deduct TDS u/s. 194LA on remittance to Competent Authority

Metro Railway Kolkata Vs. Income Tax Officer (TDS) (ITAT Kolkata)

In the present case, the payment to the actual beneficiary is made by the Competent Authority of Metro Railways Kolkata and not by the Dy FA and CAO of Metro Railways Kolkata. No doubt, the tax deduction obligations are on the person who makes payment to the beneficiary, and it was an undisputed position that the payment for land acquisit...

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Advertisement charges paid to Google & Yahoo not taxable as website cannot constitute a PE in India

Income Tax Officer Vs. Right Florists Pvt Ltd (ITAT Kolkata)

The service which is rendered by the Google is generation of certain text on the search engine result page. This is a wholly automated process. There is no dispute that in the services rendered by the search engines, which provide these advertising opportunities, there is no human touch at all. The results are completely automated and, as...

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Rule 8D(2)(ii) & (iii) not applies to shares held as stock-in-trade but S. 14A applies

Deputy Commissioner of Income Tax Vs Gulshan Investment Co. Ltd. (ITAT Kolkata)

In our humble understanding, the provisions of Section 14A are indeed attracted whether or not the shares are held as stock in trade or as investments, even though the provisions of rule 8D(2)(ii) and (iii) cannot be invoked in such a case, and even though the provisions of rule 8 D(2)(i) are much narrower in scope than the scope of Secti...

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