Tribunal held that the estimated disallowance under Section 14A should be restricted and should not form part of book profits, following the Special Bench decision in Vireet Investments Pvt. Ltd.
The Mumbai ITAT held that interest received by an Indian branch from its overseas head office and branches is not taxable under the domestic law as it represents transactions with self. The Tribunal applied the principle of mutuality and dismissed the Revenue’s challenge.
The ITAT Mumbai held that the assessee’s convertible debentures lacked the liability component required for classification as Compound Financial Instruments. Consequently, they could not be treated as transition amount under Section 115JB(2C).
The Tribunal ruled that tax demand cannot be raised against an employee where TDS was deducted from salary but not deposited by the employer. The decision reiterates the protection available under Section 205 of the Income-tax Act.
The Mumbai ITAT deleted the addition alleging bogus long-term capital gains from penny stock transactions after finding no evidence linking the assessee to any accommodation entry.
The Mumbai ITAT held that penalty under Section 270A cannot be sustained where income is determined purely on estimation after rejection of books. It also ruled that a show-cause notice failing to specify whether the penalty is for under-reporting or misreporting of income is legally defective and invalid.
ITAT Mumbai held that Compulsorily Convertible Debentures cannot be equated with call options and that no option premium arose from their issuance. The transfer pricing adjustment was deleted as no taxable income was generated.
ITAT Mumbai held that Compulsorily Convertible Debentures retain their character as debt until conversion into equity. It deleted the disallowance of interest under Sections 36 and 37 while remanding the transfer pricing benchmarking issue.
The ITAT Mumbai held that cash deposits during the demonetization period could not be treated as unexplained where the assessee’s books of account, stock records, and VAT returns supported the transactions. As no defects were found in the books, the addition under Sections 68/69A was deleted.
The Tribunal relied on earlier findings that the lending entities were paper concerns engaged in providing accommodation entries. The unsecured loans were treated as unexplained cash credits.
