ITAT Mumbai held that transfer pricing addition made in respect of Letter of Comfort rightly deleted since Letter of Comfort didn’t constitute an International Transaction. Accordingly, order passed by CIT(A) upheld to that extent.
ITAT Mumbai held that disallowance made under section 14A of the Income Tax Act added to Book Profits for computing taxes under section 115JB Income Tax Act deserved to be deleted.
The Tribunal held that failure to indicate the precise charge in a Section 274 notice renders penalty proceedings unsustainable. Following jurisdictional High Court rulings, the penalty was set aside.
The Tribunal emphasized that the test under Section 57(iii) is one of purpose and connection. As the assessee demonstrated reasonable nexus between borrowings and interest income, the deduction was upheld.
Relying on Supreme Court and Bombay High Court rulings, the Tribunal ruled that sanction by an incorrect authority vitiates jurisdiction. The reassessment proceedings were set aside for non-compliance with Section 151.
Holding that Rule 46A mandates recording reasons and giving the Assessing Officer a chance to rebut new evidence, the Tribunal set aside the appellate order and remitted the issue.
The Tribunal held that the scope of enquiry at the registration stage is limited to objects and genuineness of activities. The application was remanded after the trust undertook to delete clauses permitting overseas fund use.
ITAT Mumbai held that securitisation trusts, cannot be assessed as an AOP, are revocable within the meaning of section 63 of the Income Tax Act and hence income is not taxable in the hands of trust. Accordingly, the appeal of the revenue is dismissed.
ITAT Mumbai held that the disallowance under section 14A of the Income Tax Act read with rule 8D cannot exceed the exempt income earned by the assessee during the relevant previous year. Accordingly, no further disallowance u/s. 14A is called for.
ITAT Mumbai held that even if Section 11 exemption is denied due to lack of registration, the Assessing Officer cannot tax entire gross receipts without examining expenditure. Only net income, if any, can be brought to tax.
