ITAT Mumbai

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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Bogus Purchase- Addition should be on the basis of GP of assessee

Dharmendra N. Zaveri Vs ACIT (ITAT Mumbai)

Hon’ble Court has held that the addition has to be made on the basis of GP of the assessee. Accordingly, ITAT set aside the order of CIT(A) and direct the AO to apply a rate of 3% on the bogus purchases....

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Interest against House Rent from Children used Jointly allowable

Md. Hussain Habib Pathan Vs ACIT (ITAT Mumbai)

We say so as it may well, in view of the joint residence, be that no area (portion) is specified in the rent agreements. The number of family members living jointly; their living requirements – which may not be uniform; fair rental value of the property, etc., are some of the parameters which could be considered for the purpose. The AO ...

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Rent received as per option agreement is taxable as other income

Redwood IT Services P. Ltd. Vs ITO (ITAT Mumbai)

The issue under consideration is that whether the rent received as per the option agreement is chargeable to tax under the head ' Income from house property' or under the head ' Income from Other sources'?...

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Service tax & reimbursement of equipment Lost in Hole not forms part of total turnover in computing income u/s 44BB

DCIT Vs Nabors Drilling International Limited (ITAT Mumbai)

Service tax component need not be included in the total turnover for the purpose of computing income under section 44BB of the Income Tax Act, 1961. ITAT further held that receipts on account of reimbursement of equipment Lost in Hole will not form  part of gross receipts for the purpose of section 44BB....

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Section 11(2) exemption cannot be denied for mere non submission of Form 10 electronically

Parle Hindu Devalaya Mandal Vs DCIT (ITAT Mumbai)

Parle Hindu Devalaya Mandal Vs DCIT (ITAT Mumbai) The dispute in the present appeal is confined to denial of assessee’s claim of exemption under section 11(2) of the Income Tax Act, 1961. The assessee is a charitable trust and has been granted registration under section 12AA of the Act. For the assessment year under dispute, […]...

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Section Sec. 2(22)(e) not applicable to reimbursement of expenditure

Rajesh Rajkumar Nagpal Vs ACIT (ITAT Mumbai)

Rajesh Rajkumar Nagpal Vs ACIT (ITAT Mumbai) Provisions of 2(22)(e) were not applicable since the payment was mere reimbursement of expenditure. Ld. CIT(A) proceeded on wrong footing that the same would be personal expenditure and hence, disallowable completely overlooking the fact that the said expenditure has never been claimed by the a...

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Undue haste in recovery of disputed demands by issue of Section 226(3) garnishee notices

Cleared Secured Services Pvt Ltd Vs DCIT (ITAT Mumbai)

Cleared Secured Services Pvt Ltd Vs DCIT (ITAT Mumbai) We have noted that the hearing of stay petition was concluded, as per information available to us, on 17th January 2020, but the order thereon has not been passed as yet since one of the Members constituting coram of the bench has gone on tour to Delhi […]...

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