The ITAT Mumbai ruled in the case of Motilal Oswal Financial Services that while the AO had validly recorded satisfaction for invoking Rule 8D, the disallowance under Section 14A cannot exceed the actual exempt income, setting a crucial precedent for income tax assessments.
ITAT Mumbai quashes a Rs.2936 Cr penalty against CGTMSE, ruling its activities are charitable and not subject to the proviso of Section 2(15), and that penalty requires underlying tax liability.
Mumbai ITAT allows Section 80G deduction for CSR spending, stating that procedural disallowance under Section 37 doesn’t negate eligibility if conditions are met and AO conducted inquiry.
The ITAT Mumbai ruled that an AO cannot reclassify rental income as business income if it was consistently assessed as income from house property in previous years.
In a key ruling, the ITAT upholds that fees for accessing a copyrighted database are not royalty under Indian tax law or the India-UK DTAA, affirming no taxable presence for the UK company.
ITAT Mumbai rules that a revised assessment order becomes invalid when the original Section 263 revision order on which it was based is quashed.
The Mumbai Income Tax Appellate Tribunal (ITAT) ruled in favor of Suraj Somaru Varma, a Business Correspondent agent, deleting an addition of ₹9.16 lakh made under Section 69A. The Tribunal held that the demonetized currency deposits were not unexplained income but part of normal business operations, as Varma was authorized by RBI and maintained proper records.
The Mumbai ITAT ruled that TDS credit cannot be denied if the amount is correctly reflected in Form 26AS, directing the tax authorities to allow the claim.
Income Tax Appellate Tribunal (ITAT) Mumbai deleted a tax addition on a property purchase, ruling that the difference between the sale consideration and the fair market value (FMV) was within the permissible 10% tolerance, effectively invalidating the invoking of Section 56(2)(vii).
ITAT Mumbai held that disallowance of expenses purely on adhoc basis without rejection of books of accounts or without pointing out any specific deficiencies is not justifiable and liable to be set aside. Accordingly, appeal of assessee allowed.
