ITAT Mumbai

Provision for mark to market loss on trading in derivative market allowable

DCIT Vs Edelweiss Commodities Services Ltd. (ITAT Mumbai)

Assessee filed details of statement showing provision for mark to market loss and also submitted a detailed note on mark to market loss on outstanding position. Assessee submitted that it had made provisions for loss following accepted accounting principles as per the Guidance Note on 'Accounting for Equity Index & Equity Stock Futures an...

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Mere statement without backing of credible evidences not justifies addition

Bini Builders Pvt. Ltd. Vs DCIT-Central Range-7(3) (ITAT Mumbai)

Statements recorded during the course of survey proceedings would not have much evidentiary value unless the same were backed by credible evidences. Assessee could not prove the source and nature of transactions, the stated amount was added to the income of the assessee u/s 68 and the original return was processed u/s 143(1) and the only ...

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Tax on payment by Indian company to foreign celebrity for appearance outside India

Volkswagen Finance Pvt Ltd Vs ITO (ITAT Mumbai)

Volkswagen Finance Pvt Ltd Vs ITO (ITAT Mumbai) In this case ITAT held that we are of the considered view that the income embedded in payment to the international celebrity (Nicholas Cage), for participation in Dubai A8L launch event for promoting the business of the assessee in India, is taxable as arising from a ‘business [&hellip...

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Expense with no business expediency on greeting politicians not allowable

Sadhana Sahakari Bank Ltd Vs ACIT (ITAT Pune)

The Assessing Officer disallowed  expense of Rs. 1,27,500 u/s 37(1) of Income Tax Act on finding that the said expenditure relates to some advertisements connected to demise / birthday greetings / congratulating some politicians, etc....

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No Section 11 exemption denial if cancelled registration was restored

Amateur Riders’ Club Vs ADIT (ITAT Mumbai)

Once the cancellation of registration had been set aside and registration granted under section 12A had been restored by the Tribunal, CIT(Appeals)’s decision for disallowance of exemption under section 11 became redundant, hence, had to be set aside....

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Depreciation allowable on payment of non-compete fee

India Meditronic (P) Ltd Vs Asstt. CIT (ITAT Mumbai)

India Meditronic (P) Ltd Vs ACIT (ITAT Mumbai) - Non-compete fee was allowable as capital expenditure and depreciation could be claimed on the same....

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Section 271(1)(c) Penalty leviable as revised return filed only after issuance of notice u/s 143(2)/142(1)

Bhavesh Pravinchandra Sheth Vs ACIT (ITAT Mumbai)

Since assessee had no intention to make a full and true disclosure of its income as it would not have filed a revised return of income showing higher income before issuance of the notice 143(2)/142(1) by AO, therefore, AO  rightly held that assessee had deliberately and consciously failed to furnish full and true particulars of income an...

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No disallowance of depreciation if assets were not put to use because of Strike by workers

ITO Vs Ventura Textiles Ltd. (ITAT Mumbai)

Depreciation could not be disallowed due to assets were not in use as assessee had not close down the business but it was not going on because of illegal strike by the workers and therefore manufacturing had been stopped temporarily....

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Property tax reimbursed to licensor cannot be treated as tax for Section 43B

Areva India Pvt. Ltd. Vs ACIT (ITAT Mumbai)

Property tax levied by the Municipal Authority is a charge on the property. Undisputedly, the licensor is the owner of the property, hence, liable to pay the property tax. That being the case, the amount equivalent to the property tax reimbursed to the licensor cannot be treated as rate, tax, fee, cess, etc., as provided under section 43B...

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Addition for bogus purchase only to the extent of lower GP declared

Omkar Metal & Alloys Corporation Vs ITO (ITAT Mumbai)

Addition in case of bogus purchases was required to be made only to the extent of lower GP declared by assessee on bogus purchases as compared to G.P. on normal purchases. Thus, no addition was warranted in case of assessee as GROSS PROFIT declared by assessee in respect of alleged bogus purchases was more than the GROSS PROFIT declared i...

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