The Kolkata ITAT held that advisory and consultancy services provided by a UAE company did not amount to Fees for Technical Services because no technical knowledge was made available. Consequently, no TDS liability arose on the remittances.
The final assessment order was emailed to the assessee after the limitation period had expired. The Tribunal held that the delayed communication rendered the assessment time-barred.
ITAT remanded the issue of applying DTAA rates to dividends paid to non-resident shareholders because crucial documents such as TRCs and related records were not available on record.
The Tribunal held that a bank guarantee wrongly reported as a contingent liability in the tax audit report could not be added to income when it was not claimed as an expense. It directed deletion of the ₹9.41 lakh addition made on the basis of the reporting error.
The ITAT held that once an assessment order under Section 143(3) was passed, the earlier intimation under Section 143(1) merged into it. As a result, the appeal against the intimation became infructuous.
The Kolkata ITAT deleted an addition against an employees gratuity fund after finding that gratuity payments were higher than the interest income earned during the year. The Tribunal held that excess expenditure over income meant no taxable addition could survive.
The Kolkata ITAT held that advances received from flat purchasers in the ordinary course of a real-estate business cannot be treated as unexplained cash credits. The Tribunal ruled that such advances were genuine business liabilities regularly adjusted against sales.
The Kolkata ITAT held that penalty under Section 271(1)(c) cannot be levied where income addition is based on peak credit estimation. The Tribunal ruled that estimated additions do not automatically prove concealment or inaccurate particulars.
The ITAT upheld disallowance of ₹11.71 lakh towards loan processing fees after finding that the loans were obtained for broader business purposes and not for acquiring the property generating rental income. The ruling clarified the limited scope of deductions available under Section 24(b).
The Kolkata ITAT held that a commercial loan repaid within the same financial year along with interest and TDS compliance could not be treated as a bogus accommodation entry under Section 68. The Tribunal ruled that documentary evidence and banking transactions established the genuineness of the loan.
