ITAT Mumbai

297 Page ITAT order in the case of Late Shri Harshad S. Mehta

Late Shri Harshad S. Mehta Vs DCIT (ITAT Mumbai)

First we shall deal with the appeals of Late Harshad S. Mehta through Legal Heir Smt. Jyoti H.S. Mehta for AY 1992-93 in ITA No.5702/Mum/2017 of assessee appeal and ITA No.6028/Mum/2017 of Revenue appeal....

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Long term vis-a-vis short term: Tenancy right after converting into ownership

Jayantilal K. Jain Vs ITO (ITAT Mumbai)

Where assessee had tenancy right in property, which was converted into ownership before sale of shop, then period of holding would be determined from the date the assessee acquired ownership of the asset because on purchase of the property the tenancy right was converted into ownership and assessee had sold shop not tenancy right....

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No Disallowance U/s. 40A(2) if Personal Tax already paid on Remuneration

DCIT Vs Bombay Samachar Pvt. Ltd. (ITAT Mumbai)

Payment of high remuneration to Directors cannot be disallowed by treating the same as a tool to shift profits to evade tax when the Directors have already offered the income for tax through their personal returns....

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FMV as on Date of Sale Agreement is Relevant for Section 50C

Ms. Balmer Lawrie Van Leer Ltd. Vs ACIT (ITAT Mumbai)

Provision of section 50C is applicable as on the date of execution of sale agreement and accordingly the fair market value of the property as on the date of sale agreement is to be taken....

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Valuation for Share Premium on Preference share cannot be made on mere suspicion

DCIT Vs Piramal Realty Pvt. Ltd. (ITAT Mumbai)

DCIT Vs Piramal Realty Pvt. Ltd. (ITAT Mumbai) We have considered the issue and find that this section does not cover section 68 of the Act. Thus, the Legislature does not envisage any sort of valuation for the purpose of section 68 of the Act. Indeed, valuation of preference shares is a completely different exercise […]...

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Conversion of Private Limited company into LLP to be treated as transfer or not

ACIT Vs Celerity Power LLP (ITAT Mumbai)

Assessee LLP had failed to satisfy clause (e) of the proviso of Sec. 47(xiiib), therefore, the ‘transfer‘of the capital assets on the conversion of the private limited company into a LLP was to be regarded as a ‘transfer‘within the meaning of Sec. 45 and also, there was no occasion for invoking the provisions of Sec. 47A(4). ...

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Long term capital gain cannot be treated as bogus on mere surmises

Ramprasad Agarwal Vs ITO (ITAT Mumbai)

Addition made by AO on the reason that assessee had introduced his own unaccounted money by way of bogus long term capital gain was not correct as AO had not brought any material on record to show that assessee had paid over and above purchase consideration of shares as claimed and evident from the bank account and assessee had produced t...

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Bonafide business transaction cannot be taxed U/s. 56(2)(vii)

ACIT Vs Shri Subhodh Menon (ITAT Mumbai)

Difference between alleged fair market value of share and the subscribed value of shares cannot be assessed as income u/s 56(2)(vii)(c) as the transaction of issue of shares was carried out to comply with a covenant in the loan agreement with the bank to fund the acquisition of the business by the subsidiary in USA, therefore, such a bona...

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Addition cannot be made Merely on Statement unless supported by documentary evidence

Concept Communication Ltd Vs DCIT (ITAT Mumbai)

Income earned corresponding to the expenditure alleged to be bogus is not question and hence the entire expenditure incurred which is duly supported by the income cannot be disallowed. Genuineness of the transaction has been proved by the documentary evidence. Addition restricted to the difference in the gross profit declared as compared ...

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Addition Not Possible U/S 68 Once Identity, Creditworthiness & Genuineness Of Transaction Is Proved

DCIT Vs Piramal Realty Pvt. Ltd. (ITAT Mumbai)

Transaction is duly recorded in the books of accounts, statutory returns are duly filed with regard to allotment of shares. Documentary evidence proving identity, creditworthiness and genuineness of the transaction is provided. Addition under section 68 not possible....

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