ITAT Pune

Subsidy cannot be treated as a payment to meet any portion of actual cost of Capital Asset

ACIT Vs Inox Air Products Private Limited (ITAT Pune)

ACIT Vs Inox Air Products Private Limited (ITAT Pune) The only issue raised in the assessee’s appeal is against  the direction of the ld. CIT(A) for reducing the amount of subsidy from the value of assets for the purpose of granting depreciation. From Explanation 10 to section 43(1) of the Act it is immensely clear […]...

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No TP addition in respect of international transaction of payment of Regional Service Charges in case value within tolerance range

Goodyear South Asia Tyres Private Limited Vs ACIT (ITAT Pune)

No transfer pricing addition in respect of international transaction of payment of Regional Service Charges pertaining to five intra-group services could be made because even if presume that the comparable uncontrolled transaction was at zero mark-up, still the value of the international transaction was within the notified tolerance range...

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No disallowance under Rule 8D(2)(ii) r.w. Section 14A if Investment were out of Interest Free Funds

Milind Pralhad Bhandarkar Vs DCIT (ITAT Pune)

The issue under consideration is whether CIT(A) is correct in confirming the disallowance made by the Assessing Officer u/s.14A read with Rule 8D(2) of the Income Tax Rules, 1962?...

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TDS Credit eligible in year in which Assessee shows relevant Income despite credit appearing in 26AS of next Year

Mahesh Software Systems Pvt. Ltd. Vs ACIT (ITAT Pune)

The issue under consideration is whether TDS will be granted in the year in which assessee has recorded the corresponding income even if the deposit of TDS is in next financial year?...

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No Addition u/s 14A for Non Consideration of  Share Application Money as Investment Yielding Exempt Income

Kumar Urban Development Ltd Vs ITO (ITAT Pune)

The issue under consideration is whether the addition made by AO u/s 14A read with rule 8D is justified in law? Respectfully following the precedent, ITAT set-aside the impugned order on this score and order to delete the disallowance....

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Issue examined under original assessment proceeding cannot be reexamined

DCIT Vs Manav Realty (ITAT Pune)

DCIT Vs Manav Realty (ITAT Pune) It is evident from the reasons recorded by the AO that the initiation of reassessment proceedings was premised on the fact that the commencement took place at a date in variance with the one stated by the assessee in the original assessment proceedings. The ld. CIT(A) has aptly recorded […]...

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Assessee can claim proportionate deduction under Section 80IB(10) relating to eligible units

DCIT Vs Shree Venkatesh Associates (ITAT Pune)

DCIT Vs Shree Venkatesh Associates (ITAT Pune) The issue of pro-rata deduction u/s. 80IB(10) for eligible units has been considered by the jurisdictional ITAT, Pune in case of Ramsukh Properties (supra) and M/s D.S. Kulkarni Developers Ltd (supra) and IT AT, Nagpur in case of AIR Developers(supra) and allowed such pro-rata deduction. The ...

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Appeal not Justified if there is Lack of Strong Contrary Evidence

Sudhakar Motiram Kadam Vs ITO (ITAT Pune)

The issue under consideration is whether the assessee can challenge the order of AO for which he has agreed before without there being any contrary evidence?...

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Once quantum addition deleted, penalty u/s. 271(1)(c) has no legs to stand

ACIT Vs Thermax Limited. (ITAT Pune)

ACIT Vs Thermax Limited (ITAT Pune) Revenue has not doubted the genuinity of the return filed by the assessee and has not said that the particular of expenses claimed in the return were not correct. The expenses were claimed and quantum additions have been upheld by the Tribunal. However, in the separate proceedings of penalty […]...

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ITAT allows section 80-IB deduction on Pro-rata basis

Vishal Constructions Vs. ITO (ITAT Pune)

Vishal Constructions Vs. ITO (ITAT Pune) We note that in the present appeal the assessee claimed deduction Rs.18,80,000/- u/s. 80IB(10) of the Act. The AO held that the assessee has violated the provisions of section 80IB(10) of the Act as built up area of shops and commercial establishments exceeded 5000 sq. ft. For such violation [&hell...

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Commission to Director cannot be disallowed without examining appointment terms

Kirloskar Oil Engines Limited Vs JCIT (ITAT Pune)

Kirloskar Oil Engines Limited Vs JCIT (ITAT Pune) The issue under consideration is whether the disallowance made for commission paid to director u/s. 40A(2) is justified? ITAT states that, the assessee is against disallowance of commission paid to Shri Atul Kirloskar u/s. 40A(2) of the Act. It is an undisputed fact that in earlier assessm...

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No Section 271F Penalty if Reasonable Cause exists for Non Filing of ITR

Arjun Dada Kharate Vs DCIT (ITAT Pune)

The issue under consideration is whether the Penalty u/s 271F will be levied for non filing of Income Tax Return even in case of reasonable cause?...

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Section 147 Assessment invalid if reasons recorded for reopening not furnished

Shri Vijaykumar L. Jain Vs ITO (ITAT Pune)

The issue under consideration is whether Non-furnishing of reasons recorded for reopening of assessment made the entire assessment u/s 147 invalid in law?...

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Capital Gains taxable in Year of Transfer of Possession of Land

DCIT Vs Shivaji Bhagwanrao Jadhav (ITAT Pune)

The issue under consideration is whether Capital Gain will be taxable in the year when consideration for sale of land received irrespective of the possession of the land?...

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No Penalty can be Levied on Cash Deposits if Assessee explained Source

Deoyani Movies Pvt. Ltd. Vs ITO (ITAT Pune)

Deoyani Movies Pvt. Ltd. Vs ITO (ITAT Pune) No Penalty can be Levied on Cash Deposits if Assessee Explained its Source from Earlier Withdrawal and Recorded in Books of Accounts Simply because cash deposited in the bank is a little more than the cash sales, it cannot call for any addition, what to talk of […]...

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No Section 54B exemption if new land not purchased within a period of 3 years

Bhagwan Keshu Sakhare Vs ITO (ITAT Pune)

Bhagwan Keshu Sakhare Vs ITO (ITAT Pune) The issue under consideration is whether CIT is correct in denial of exemption u/s 54B of the Act? In the present case, the case of assessee is selected for limited scrutiny under CASS for the reason of “Deduction claimed under the head capital gains”. After claiming deduction for […]...

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Payment for VRS to employees prior to Section 35DDA Insertion fully allowed

Foseco India Limited Vs DCIT (ITAT Pune)

The issue under consideration is whether the payment made by the company to its employees under the Voluntary Retirement Scheme (VRS) is allowed as deduction?...

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ITAT dismisses ex-parte order of CIT denying Section 80G exemption

Dnyanranjan Shikshan Prasarak Mandal Vs CIT Exemptions (ITAT Pune)

Whether the ex-parte order of the CIT(Exemptions) denying 80G exemption is justified in law? ITAT dismissed ex-parte order of CIT(E) on the basis of principles of natural justice...

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Section 54F: Reinvestment in name of wife allowed but not in the name of son

Sakharam Bhondve Vs ITO (ITAT Pune)

Sakharam Bhondve Vs ITO (ITAT Pune) The issue under consideration is whether the deduction u/s 54F for reinvestment against Capital gain in the name of wife and son will be allowed or not? As per the judgement of the Hon’ble Bombay High Court in the case of Kamal Wahal (supra): “It also noted that a […]...

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No Section 263 revision for difference of opinion between AO & CIT

Maharashtra Engineering Vs PCIT (ITAT Pune)

Issues have been examined by the A.O and just because the opinion as arrived by the A.O is at a variation of the opinion of the learned Pr. CIT, would not grant the learned Pr. CIT the powers of revision u/s 263 of the Act....

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No Section 147 Assessment in absence of reasons for escapement of income

Kailash Kanhaiyalal Gidwani Vs ACIT (ITAT Pune)

Existence of reasons for escapement of income are sine qua non to embark upon the assessment or reassessment u/s 147 of the Act. Change or no change of opinion, as argued by the ld. DR, are the factors to be considered after fulfilling the jurisdictional condition of there being an escapement of income, in the absence of which no assessme...

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CIT (A) cannot admit additional evidences without calling remand report from AO

ITO Vs Manish Jeevan Bhaliya (ITAT Pune)

The appeal preferred by the Revenue. The issue under consideration is with regard to the bogus purchases conducted by the assessee and as per revenue CIT(Appeals) has erred in granting relief to the assessee without dealing specifically with the facts of the case and even not calling for any remand report from the Assessing Officer....

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Tax credit to be granted in the year in which income is assessed

M/s. Mahesh Software Systems Vs ACIT Pune (ITAT Pune)

Many a times, we come across cases where the invoice has been raised close to the cut-off date, i.e. closer to the end of a financial year and the customer has accounted for and paid the invoice amount, as well as deducted and deposited the tax at applicable rates in the subsequent financial year....

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No section 68 addition for loan transaction with father on mere suspicion

Girish Madhukar Rathi Vs DCIT (ITAT Pune)

The issue under consideration is that confirming the addition made u/s 68 by A.O. in respect of the loan taken from father of the appellant on mere suspicion....

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Section 80P deduction allowable to co-op credit societies despite loans to nominal members

Sarroday Gramin Bigarsheti Sahakari Path Sanstha Maryadit Vs ITO (ITAT Pune)

Assesse-cooperative society registered under the Maharashtra Co-op. Society Act, 1960 was entitled for exemption under section 80P on giving of loans to members/nominal members as the definition of  ‘member’ given in section 2(19) of the Maharashtra Co­operative Societies Act took within its sweep even a nominal member, associate me...

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IT Support Services to Indian Entities by Foreign company cannot be taxed in India

Faurecia Systems D'echappement Vs ACIT (ITAT Pune)

The issue raised by the assessee challenging the action of AO in holding the income from providing IT support services as taxable for fees for technical services....

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Stamp duty value considered as full value of consideration if amount received via bank

Jagdish Dhanajirao Jadhav Vs ITO (ITAT Pune)

It is evident that the benefit of first proviso would be allowed only if the condition as stipulated in second proviso is satisfied. In other words, the stamp value on the date of agreement to sell shall be considered as full value of consideration only if the amount of consideration or part of such consideration was received by the asses...

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License Fees received for use of IT Parks assessable as Business Income

DCIT Vs Magarpatta Township Development and Construction Company Limited (ITAT Pune)

Assessee is a company which had undertaken development of integrated township. The assessee had claimed the license fees received from the persons for the use of the IT Parks provided along with various infra structural and other facilities and services under the head 'Income from business'. However, the AO had considered the same under t...

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ITAT explains Provisions of Clubbing of Income of Wife with Husband

Uday Gopal Bhaskarwar Vs ACIT (ITAT Pune)

Uday Gopal Bhaskarwar Vs ACIT (ITAT Pune) ITAT explains Provisions of Clubbing of Income of Wife with Husband- Allows Losses of F&O Business of Wife to be clubbed with Income of Husband Where the spouse (husband) of an individual (wife) transfers some assets otherwise than for adequate consideration or in connection with an agreement ...

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Gain on Transfer of development rights of a plot cannot be treated as Short term for delay in registration of Acquisition

Jawahar Hiralal Jethani Vs DCIT (ITAT Pune)

Whatever rights the assessee acquired in the said plot started from 1997, during which year the substantial payment for purchase consideration was also made. The said consideration was recognized in the later registered document, which established the case of assessee of having acquired the rights way back in 1997. Accordingly, the gains ...

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DRP cannot set aside any proposed variation or issue any direction for further enquiry and passing of assessment order

Tieto India (P.) Ltd. Vs DCIT (ITAT Pune)

It was held that DRP’s direction to the AO for carrying out a fresh examination of the claim of the assessee u/s.10A of the Act is in violation of the clear mandate of the provisions and hence cannot be countenanced....

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TDS credit allowable in A.Y. in which corresponding income is assessable

Mahesh Software Systems Pvt. Ltd. Vs ACIT (ITAT Pune)

The AO has relied on sub-rule (1) of section 37BA for denying the benefit of TDS during the year under consideration. This part of the Rule provides that the credit for TDS shall be given to the person to whom payment has been made or credit has been given on the basis of information relating to TDS furnished by the deductor. What is mate...

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Validity of addition on issue which was not the basis for selection of case under CASS

Ganadhiraj Mazoor Sahakari Sanstha Ltd. Vs ITO (ITAT Pune)

In the absence of any permission received from Pr. CIT or the CIT, there was no merit in the order of AO in making addition on an issue which was not the basis for selection of case under CASS....

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TDS not deductible on Software Purchased with mere ‘right to use’ 

DDIT - International Taxation Vs Tetra Pak India Pvt. Ltd. (ITAT Pune)

Assessee had only purchased software internally developed by non-resident and non-resident had not passed the copyright and only ‘right to use’ had been given to assessee and as such ‘right to use’ was akin to purchase of copyrighted article and in the absence of purchase of any copyright in the article, the assessee could not be ...

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No Addition for Difference in opening and closing cash balance if no unexplained cash was introduced

ACIT Vs Chaudhary Cars Pvt. Limited (ITAT Pune)

After considering audited balance-sheet, opening cash balance and closing cash balance, AO had not doubted closing cash balance of cash as on 31-3-2011. Also, assessee had pointed out that over all cash balance had remained the same. Thus, lesser opening cash balance as on 1-4-2002 did not call for any addition during the year under consi...

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Addition for cash deposits only if source of deposits remains unexplained

Rajesh Madanlal Partani Vs ACIT (ITAT Pune)

Addition on account of cash deposits can be made only if the source of the deposits remains unexplained. If, on the other hand, the cash deposits in the bank are from the regular books of account maintained by the assessee, then such transactions cannot be said to be unexplained....

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No Section 40(a)(ia) for Non TDS deduction if Payee paid tax to government

Sai Pushpa Sharada Alliance Vs ITO (ITAT Pune)

Second proviso to section 40(a)(ia) is retrospective in nature and in such circumstances, if payee has paid tax to government account then payer cannot be held liable for non-deduction of TDS....

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Section 54F: ITAT allows Date of possession of new house instead of date of sale agreement / registration

Ayushi Patni Vs DCIT (ITAT Pune)

 Since final consideration was paid and the possession of flat was received within a period of one year prior to the date of transfer of capital asset, then the same should be considered as the date of purchase, so as to allow the benefit of deduction under section 54F to assessee....

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Section 234E: Assessee not liable for late filing charges for the period prior to June, 2015

Gangamai College of Engineering Vs ACIT, CPC (TDS) (ITAT Pune)

Assessee could not be held liable for levy of late filing charges under section 234E for the period prior to June, 2015 in the absence of amendment to section 200A, which was brought on Statute from 1-6-2015....

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Section 54B Deduction not claimed in return- Can CIT(A) Allow

ITO Vs Smt. Uma Dnyanoba Bhintade (ITAT Pune)

ITO Vs Smt. Uma Dnyanoba Bhintade (ITAT Pune) The limited issue which arises in the present appeal filed by Revenue is against directions of CIT(A) in allowing the benefit claimed under section 54B of the Act by Assessing Officer, in case the assessee has fulfilled all the conditions laid down in the said section. Admittedly, […]...

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Delay due to improper legal advice should be condoned

DCIT Vs Atlas Copco (India) Limited (ITAT Pune)

DCIT Vs Atlas Copco (India) Limited (ITAT Pune) The assessee has raised a legal ground challenging the validity of assessment order passed u/s.143(3) r.w.s. 144C of the Income-tax Act, 1961 (hereinafter also called `the Act’). The moot point is as to whether such a long delay deserves condonation. At this stage, it is relevant to [&hell...

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No penalty for income declared in original return filed within time U/s. 139(1) post Survey

DCIT Vs Dr. Ravindra Babasaheb Kadam (ITAT Pune)

DCIT Vs Dr. Ravindra Babasaheb Kadam (ITAT Pune) The issue in the present ground is with respect to levy of penalty u/s 271(1)(c) of the Act. It is an undisputed fact that additional income of Rs.1.49 crores was offered by the assessee during the course of survey conducted on 12.01.2012. It is also a fact […]...

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Ex-Gratia Payment to prematurely retiring despite absence of Scheme allowable

DCIT Vs Prathamik Shikshak Sahakari Bank Ltd. (ITAT Pune)

DCIT Vs Prathamik Shikshak Sahakari Bank Ltd. (ITAT Pune) Brief facts relating to the issue are that the Assessing Officer was of the view that in the absence of any scheme formulated by the assessee bank, the amount paid as ex-gratia to prematurely retiring employees was not to be allowed as deduction. The case of […]...

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Section 54F exemption cannot be denied merely because bills & vouchers were not produced

Shri Govind Gangadhar Sabane Vs The Income Tax Officer (ITAT Pune)

Shri Govind Gangadhar Sabane Vs ITO (ITAT Pune) There is no dispute to the fact that one capital asset was sold and thereafter, new house was constructed. That both the Revenue Authorities in their respective orders have agreed that the Inspector had visited the site and has reported that residential house has been constructed consisting ...

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AO bound to compute total income in conformity with ALP determined by TPO

M/s. Carraro India Private Limited Vs DCIT (ITAT Pune)

In view of section 92CA(4) as substituted by Finance Act, 2007 w.e.f. 1-6-2007, AO was bound by the order passed by TPO as he is required to compute total income in conformity with the ALP determined by TPO....

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No Deemed Dividend if Assessee was not a Shareholder when amount been advanced

ACIT Vs M/s. Bhaawani Shankar Ginning Factory (ITAT Pune)

ACIT Vs M/s. Bhaawani Shankar Ginning Factory (ITAT Pune)  The issue in the present ground is with respect to addition u/s 2(22)(e) of the Act. It is an undisputed fact that assessee had received loan from Mahesh Ginning Pvt. Ltd., in which both the partners of the assessee also held 18.19% shares each. We find […]...

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Addition on non-CASS issues without obtaining due permission from superior authorities not sustainable

Nazare Vikas Karyakari Seva Shakari Society Ltd Vs ITO (ITAT Pune)

Addition on non-CASS issues made without obtaining due permission from superior authorities was in contravention of CBDT guidelines and, therefore, could not be sustained....

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Penalty not leviable if vagueness & ambiguity in recording of satisfaction

Chandu Laxman Chavan Vs DCIT (ITAT Pune)

Chandu Laxman Chavan Vs DCIT (ITAT Pune) While levying penalty, the Assessing Officer invoked only the charge of “furnishing inaccurate particulars of income”. It is evident that while recording satisfaction the Assessing Officer was not clear in his mind as to which charge u/s. 271(1) (c) is to be invoked for initiating penalty. The ...

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Reassessment based on Documents already in hand of AO not Valid

DCIT Vs Sovereign Pharma Pvt. Ltd. (ITAT Pune)

DCIT Vs Sovereign Pharma Pvt. Ltd. (ITAT Pune) A bare perusal of reasons for reopening would show that the Assessing Officer has erred in invoking the provisions of section 148 r.w.s. 147 after the expiry of four years to cover up his own follies. It is not the case of Revenue that the assessee has […]...

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Growing of hybrid seeds is Agricultural Activity

DCIT Vs Genuine Seeds Pvt. Ltd (ITAT Pune)

DCIT Vs Genuine Seeds Pvt. Ltd (ITAT Pune) The CIT(A) while deciding the issue in the present case had in turn, relied on the decision of Pune Bench of Tribunal in ACIT Vs. Ajeet Seeds Ltd. (supra), which has been confirmed by the Hon’ble High Court. Consequently, we hold that growing of hybrid seeds in […]...

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Section 54B does not specify that entire land should be used for cultivation

Rajendra Bastimal Chordiya Vs ITO (ITAT Pune)

Rajendra Bastimal Chordiya Vs ITO (ITAT Pune) The issue in the present ground is with respect to the denial of claim of deduction u/s 54B of the Act for the reason that the land was not cultivable. We find that the reason for denying the claim of deduction u/s 54B of the Act was for […]...

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Reassessment not valid if Reason for issuing reassessment notice not furnished to assessee

Shri Gulab L. Bodke Vs ITO (ITAT Pune)

When a notice under section 148 is issued, the proper course of action for the assessee is to file return and if he so desires, to seek reasons for issuing notices and AO is bound to furnish reasons within a reasonable time. On receipt of reasons, the assessee is entitled to file objections to issuance of notice and the AO is bound to dis...

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Section 54B Deduction cannot be denied if AO not conducted any enquiry about use of land for Agriculture

ITO Vs Mukesh Champaklal Shah (ITAT Pune)

ITO Vs Mukesh Champaklal Shah (ITAT Pune) The definition of capital asset excludes agricultural land and certain criteria have been placed in this statue to qualify the land as agricultural land. The facts on records demonstrate that both the parties have accepted the land to be an agricultural land. The 7/12 extracts clearly demonstrates...

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Revisionary jurisdiction cannot be exercised against Void order

Pioneer Distilleries Limited Vs Pr. CIT (ITAT Pune)

Pioneer Distilleries Limited Vs Pr. CIT (ITAT Pune) In the present set of facts where the Commissioner himself has given a finding that the re-assessment proceedings have not been correctly carried out against the assessee and the Assessing Officer has failed to fulfill his obligation, then under such circumstances where, he has also held...

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No addition of notional annual rent of unsold flats held in stock-in-trade

M/s. Kolte Patil I-Ven Townships, Pune Limited Vs ACIT (ITAT Pune)

M/s. Kolte Patil I-Ven Townships Vs ACIT (ITAT Pune) The issue in the present case is with respect to addition under the head ‘income from house property’ on the 32 unsold flats/shops by the assessee. It is an undisputed fact that assessee is in the business of Civil Engineers, Builders and Developers and had in […]...

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If Authorised representative is empowered by assessee to appear before authorities,every concession was binding on assessee

M/s. K. S. Cold Storage Vs ACIT (ITAT Pune)

Once assessee empowers his Authorised represntative to appear before authorities, all of authorised representatives concessions were binding on assessee and there was no need to ignore any concession made by Authorised representative and personally call upon assessee to make concession in every case....

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MA is maintainable only if appeal is pending and not admitted

Shri Ratanlal C. Bafna Vs JCIT (ITAT Pune)

Shri Ratanlal C. Bafna Vs JCIT (ITAT Pune) When appeal has been filed before the Hon’ble High Court, the appeal is admitted and substantial question of law has been framed in the said appeal, then the Tribunal cannot recall the order. In the present case since the appeal against the order of the Tribunal has […]...

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Deity is a juristic person & have status of individual for taxation

Vijaya Durga Devi Trust Vs DCIT (ITAT Pune)

Vijaya Durga Devi Trust Vs DCIT (ITAT Pune) It is an undisputed fact that the trust has been created in the year 1968 and as per the trust deed, the entire income is to be used for the upkeep of Deity. It is also an undisputed fact that the Deity is the sole beneficiary of […]...

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Notice u/s 143(2) is invalid if it is issued but not served

Anil Kisanlal Marda Vs ITO (ITAT Pune)

Since no effort was made by AO to serve another notice u/s. 143(2) before the deadline after returning from postal authorities the original notice u/s 143(2) thus, the jurisdictional condition of `service’ of notice u/s. 143(2) and not its `issue’ was not satisfied  and accordingly, assessment order passed in absence of a valid juris...

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Section 54F exemption allowable if construction completes within a period of three years from the date of transfer of original asset

Shri Sohanlal Mohanlal Bhandari Vs ACIT (ITAT Pune)

Shri Sohanlal Mohanlal Bhandari Vs ACIT (ITAT Pune) Adverting to the facts of the instant case, it is seen from pages 5 and 6 of the impugned order that the assessee acquired land in two parts for construction of a new residential house, viz, the first part of the plot purchased on 11.10.2010 and the […]...

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Consideration for Transfer of copyrighted software cannot be taxed as royalty

Ms. Sandvik Tooling Sverige AB Vs DCIT (ITAT Pune)

Ms. Sandvik Tooling Sverige AB Vs DCIT (ITAT Pune) The assessee is non-resident and was providing software services to Sandvik Asia Ltd. and also was providing IT support services to the said concern. The question which arises in the present appeal is whether the consideration received by assessee from the payer i.e. Sandvik Asia Pvt. [&h...

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Deduction U/s. 80-IB(10) allowable to both owner & land developer

ITO Vs Ms. Skyline Developers (ITAT Pune)

Assessee who had contributed land and  engaged in the development of housing project with developer for development of the land was eligible for claiming deduction under section 80-IB(10) as both owner as well as developer were eligible for deduction under section 80-IB(10)....

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Assessment in the name of non-existent company was invalid

Amdocs Development Centre India LLP Vs DCIT (ITAT Pune)

he assessment order passed in the name of non-existent entity, i.e., Amdocs Business Services (P) Ltd. was invalid and subsequent proceedings arising therefrom were vitiated. The assessment made in the name of non-existent company was, therefore, invalid and unsustainable in the eye of law....

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Revisionary power U/s. 263 cannot be exercised on ground not covered in Re-Opening

Gulab Badgujar (HUF) Vs CIT (Central) (ITAT Pune)

Gulab Badgujar (HUF) Vs CIT (Central) (ITAT Pune) The question which arises is the exercise of revisionary jurisdiction by the Commissioner of Income Tax under section 263 of the Act against the order passed under section 143(3) r.w.s. 147 of the Act, wherein the assessment proceedings were re-opened on specific reasons recorded for re-op...

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Addition for deemed rent of unsold flats cannot be made to Builder

M/s. Kolte Patil Developers Limited Vs DCIT (ITAT Pune)

M/s. Kolte Patil Developers Limited Vs DCIT (ITAT Pune) The issue in the present case is with respect to addition under the head ‘income from house property’ on the 32 unsold flats/shops by the assessee. It is an undisputed fact that assessee is in the business of Civil Engineers, Builders and Developers and had in […]...

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ITAT condones delay in filing appeal as sufficient cause for delay was exist

Mercedes Benz Education Academy Vs ITO (ITAT Pune)

The main plea of assessee was that because of multiplity of proceedings going on before different authorities filing of captioned appeal was delayed. The AR for the assessee had filed before ITAT an events chart of various assessment proceedings / appellate proceedings between the period 28.12.2007 to 21.05.2015, on which date the appeal ...

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TDS not deductible on Payment of Wharfage Charges

M/s. Angre Port (P) Ltd. Vs ITO (ITAT Pune)

M/s. Angre Port (P) Ltd. Vs ITO (ITAT Pune) Wharfage charges are charged from the assessee and in such case, we hold that there is no use of land but even if it was held that there is any use of land, then the same was incidental but such payments could not be treated as […]...

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Levy of penalty is not warranted in case of Vague Charges

Zaheer Abdulhamid Mulani Vs ITO (ITAT Pune)

Zaheer Abdulhamid Mulani Vs ITO (ITAT Pune) The sanctity in terms of natural justice with regard to this proposition is that the assessee under the scheme of welfare legislation which is embedded in the Income Tax Act, 1961 should get an opportunity to prepare himself for the defense as regards to the exact charge on which […]...

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ALV of unsold units held as stock in trade cannot be taxed under house property

M/s. Shree Balaji Ventures Vs ITO (ITAT Pune)

M/s. Shree Balaji Ventures Vs ITO (ITAT Pune) It is apparent that the view point bolstered by the authorities that Annual Letting Value in respect of unsold properties lying with the assessee as a stock in trade, should be determined u/s. 23 of the Act, cannot be countenanced in the hue of the later judgments […]...

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Date of possession of flat is date of actual purchase for claiming exemption u/s 54F

Ayushi Patni Vs DCIT (ITAT Pune)

Ayushi Patni Vs DCIT (ITAT Pune) Whether the assessee is eligible for claiming exemption u/s 54F in respect of residential flat / house for which the assessee has entered into an agreement for purchase more than one year before the date of transfer of capital asset? The dates qua, transfer of capital asset, execution of […]...

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Transfer cannot be considered merely on the basis of registered agreement

Appasaheb Baburao Lonkar Vs ITO (ITAT Pune)

Appasaheb Baburao Lonkar Vs ITO (ITAT Pune) Wherein the initial contract was between the parties on the ground that the assessee would get permission of other co-owners numbering about 13 so as to transfer immovable asset to the purchasers. This was the basic condition of the said agreement between the parties. Admittedly, the said permis...

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Denial of exemption U/s. 11 to registered Trust for mere non- producing evidence of registration U/s. 12A/12AA is invalid

Rotary Club of Poona Downtown Charitable Trust Vs ITO (E) (ITAT Pune)

In the present case, the assessee trust has made ample efforts for procuring information from the Department regarding duplicate copy of registration certificate. The Department was not able to provide any copy of the registration certificate. ...

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Penalty for delay in filing TDS return due to technical glitches is invalid   

Pravin Chatarbhuj Bajaj Vs Addl. CIT (TDS) (ITAT Pune)

Pravin Chatarbhuj Bajaj Vs Addl. CIT (TDS) (ITAT Pune) The case of the assessee before us is that the delay in submission of e-TDS return was because of strict requirement of e-filing of the statement and filing of such e-TDS return in this year PAN of person on whose behalf tax is collected were required […]...

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Document seized at group company place cannot be held to be belonging to assessee

Ekdanta Land Pvt. Ltd. Vs ITO (ITAT Pune)

Ekdanta Land Pvt. Ltd. Vs ITO (ITAT Pune) It is a settled issue that the seized papers seized from the premises of Jai Corp Group and others cannot be relied upon for making additions in the hands of the land aggregators whose names appeared in the said documents. It is not the case of the […]...

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Subsidy received for setting up of new unit is capital receipt

M/s. Alkoplus Producers Pvt. Ltd. Vs DCIT (ITAT Pune)

On going through the language of the Explanation 10, it is manifest that it is attracted only when the object of the Scheme is to subsidize the cost of an asset and not otherwise. If the object of the Scheme is to accelerate the industrial development of the State, then the case is not caught within the mandate of the Explanation 10....

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Reassessment invalid if notice U/s. 143(2) not issued after notice u/s 147/148

ITO Vs S. M. Batha Education Trust (ITAT Pune)

ITO Vs S. M. Batha Education Trust (ITAT Pune) In the absence of pending return of income, the provisions of section 143(2) of the Act is clear that notice can be issued only when a valid return is pending for assessment. Reassessment proceedings is invalid if notice U/sec.143(2) is issued prior to filing of return […]...

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Order U/s. 201(1) & 201(1A) after one year in case of non-residents was void-ab-initio

Atlas Copco (India) Limited Vs DCIT (ITAT Pune)

Where payments in the nature of royalty/fee for technical services (FTS) were made to non -residents, an order u/s. 201 passed after one year from the end of the financial year in which the proceedings were initiated was void ab initio and liable to be quashed....

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Declaration of additional incomes when AO confronted with details of Form No. 26AS attract penalty

Manoj S. Gugale Vs ITO (ITAT Pune)

Assessee had declared additional incomes when AO confronted with details of Form No. 26AS , it could not be said that declaration of income by assessee was voluntary, therefore, levy of penalty under section 271(1)(c) on account of concealment was justified, especially in view of the fact that similar income had been earned and duly offer...

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Payment of professional fee to trustees who are doctors allowable

Parkar Medical Foundation Vs ACIT (ITAT Pune)

rofessional fee paid to the trustees, who were qualified doctors were allowable as deduction as it could not be held to be for the direct or indirect benefit of trustees....

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Addition based on documents seized from other company premises not sustainable if documents not belongs to assessee

Ekdanta Land Pvt. Ltd. Vs ITO (ITAT Pune)

Papers seized fro the premises of Group Company could not be relied upon for making additions in the hands of the assessee whose names appeared in the said documents....

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Bogus Purchase: ITAT held addition of 3% of GP as reasonable

ACIT Vs Shri Akshay Rajesh Samdariya (ITAT Pune)

ACIT Vs Shri Akshay Rajesh Samdariya (ITAT Pune) The solitary issue raised in the appeal by the Revenue and Cross objections by the assessee is against addition deleted/confirmed on account of bogus purchases. The Assessing Officer in re-assessment proceedings made addition of Rs. 2,78,55,984/- as bogus purchases purportedly made by the a...

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Scope of limited scrutiny cannot be extended without approval of administrative CIT

Suresh Jugraj Mutha Vs Addl. CIT (ITAT Pune)

Suresh Jugraj Mutha Vs Addl.CIT (ITAT Pune) Conclusion: It is outside the jurisdiction of AO converting the limited scrutiny case like the present one to the unlimited one without the approval of Administrative Commissioner of Income Tax. Facts – Assessee filed the return and the case was taken up for limited scrutiny for the purpose [&...

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No STCG in case insurance claim less than amount of actual expenditure on re-construction

M/s. K.S. Cold Storage Vs ACIT (ITAT Pune)

Where the amount of insurance claim was less than the amount of actual expenditure incurred on re-construction/renovation, no short term capital gain u/s. 45(1A) could be charged under such circumstances....

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ITAT deletes penalty on Cash loan taken from unorganized finance sector to repay lenders

M/s. P.R. Associates Vs ACIT (ITAT Pune)

M/s. P.R. Associates Vs ACIT (ITAT Pune) We find that the assessee specifically submitted before the AO during the course of penalty proceedings, which fact has also been captured in the penalty order, that its business was inoperative for the last 7 years and it had already borrowed loans from Shree Suvarna Sahakari Bank Ltd. […]...

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Web hosting charges are not in the nature of royalty: ITAT

EPRSS Prepaid Recharge Services India P. Ltd. Vs ITO (ITAT Pune)

Web hosting charges are not in the nature of royalty and accordingly not covered within the scope of Explanation 2 (iva) of section 9(1)(vi)...

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Disallowance of business expenditure due to temporary discontinuation of business unsustainable

M/s. Mula Pravara Electric Co-op. Society Ltd. Vs DCIT (ITAT Pune)

As intention of assessee to continue the business was clear, business expenditure including, depreciation as claimed by the assessee could not be disallowed due to temporary restrictions....

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Mere low profitability of recipient firm not relevant to apply section 40A(2)(b)

Sharp Designers and Engineers India Pvt. Ltd. (Formerly Khinvasara Investments Pvt. Ltd.) Vs ACIT (ITAT Pune)

Sharp Designers and Engineers India Pvt. Ltd. (Formerly Khinvasara Investments Pvt. Ltd.) Vs ACIT (ITAT Pune) AO had not brought any comparables from market to make out that the case that impugned payment was excessive or unreasonable within the meaning of section 40A(2)(b) and based his conclusion merely on low profitability of recipient...

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‘Right to collect toll’ being intangible asset eligible to depreciation U/s. 32(1)(ii)

ITO Vs M/s. Ashoka Highways (Bhandara) Ltd. (ITAT Pune)

Depreciation on right to collect toll being infrastructure and not on toll road, where cost incurred for development and construction of infrastructure facility was a right in nature of intangible asset falling within purview of section 32(1)(ii). Order of AO in amortizing expenditure over period of facility and allowing the same was reve...

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Exemption U/s 54B allowable on Jirayat type of agricultural land as it was cultivable land

Murtuza Shabbir Jamnagarwala Vs ITO (ITAT Pune)

Murtuza Shabbir Jamnagarwala Vs ITO (ITAT Pune) Conclusion: Assessee was entited for exemption u/s. 54B as the land transferred by assessee was “Jirayat” type of agricultural land and the same was cultivated land as “Jowar crop” was grown on the same in last four years in line. Held: Assessee, along with other two co-owners, enter...

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Payment For Removal of Encumbrances Deductible U/s 48(1)

Shri Dinar Umeshkumar More Vs ITO (ITAT Pune)

Payment for removal of encumbrances is deductible u/s 48 (1) as expenses incurred wholly and exclusively in connection with transfer. Accordingly, value of flat allotted to Shri Uday should be accordingly reduced from the full value of consideration u/s 48....

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ALP Adjustment of International Transaction Restricted to AEs

Terex India (P) Ltd. Vs DCIT (ITAT Pune)

Adjustment on account of arm’s length price (ALP) of international transaction is restricted only to the extent of international transaction with associated enterprises (AE). ...

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No addition for jewellery for mere non-match with description in Wealth-tax returns

Rajkumar B. Agarwal Vs DCIT (ITAT Pune)

Rajkumar B. Agarwal Vs DCIT (ITAT Pune) No addition on account of jewellery items on seized documents did not tally with description of jewellery in Wealth-tax returns in case total weight of jewellery was same Conclusion: Where total gold jewellery in weight found at the time of search matched with the earlier declarations made by [&hell...

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Exemption U/S 54B Available for Purchase of Agricultural Land in Son’s Name

Balu Vitthal Kharate Vs ACIT (ITAT Pune)

Balu Vitthal Kharate Vs ACIT (ITAT Pune) Amendment to section 55A is effective from 01.07.2012 and the same doesn’t have retrospective effect. Exemption u/s 54B cannot be denied on the base that the land was purchased in son’s name when the new land was used for agricultural purpose. FACTS – Assessee, along with 5 other […]...

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Capital Gain from Penny Stocks: ITAT remanded case back to CIT(A)

Shamim Imtiaz Hingora Vs ITO (ITAT Pune)

Shamim Imtiaz Hingora Vs ITO (ITAT Pune) It is an undisputed fact that the shares involved are Penny Stocks and the Assessing Officer did not find any mistake in the documentation furnished by the assessee. The Assessing Officer alleges that the documentation is self-serving. After considering both sides ITAT held that there is need for [...

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Section 54F deduction not available on failure to deposit unutilized amount in CGS account by due date

Uddhav Krishna Bankar Vs ITO (ITAT Pune)

Assessee was not entitled to claim of deduction under section 54F as assessee had failed to deposit the unutilized amount of capital gains in the capital gains scheme account by the due date of filing of return of income....

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No TDS on Payment to Amazon for Web-Hosting as same is not Royalty

EPRSS Prepaid Recharge Services India Pvt. Ltd. Vs ITO (ITAT Pune)

EPRSS Prepaid Recharge Services India Pvt. Ltd. Vs ITO (ITAT Pune) Tribunal further observed that there was no amendment in the DTAA between the two countries analogous to the Explanation 5 to section 9(1) of the Act and accordingly Amazon was not chargeable to tax in respect of Web hosting charges received from the assessee […]...

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No exemption U/s 54F on failure to deposit unutilized amount of capital gain within time

Shri Sameer Vithalrao Ghanwat Vs ITO (ITAT Pune)

Assessee is not entitled to the claim of deduction under section 54F of the Act as the assessee has failed to deposit the unutilized amount of capital gains in the capital gains scheme account by the date of filing of return of income....

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ITAT on section 80-IA(4) deduction claimed by filing revised return

Sharp Designers and Engineers India Pvt. Ltd. Vs ACIT (ITAT Pune)

Assessee’s case with both original and revised returns filed in time was placed in a better position, therefore, deduction under section 80-IA was allowable, despite the same was claimed through filing of revised return....

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Web hosting charge payment to Amazon Web Services do not constitutes royalty

EPRSS Prepaid Recharge Services India P. Ltd. Vs ITO (ITAT Pune)

Assessee was only using services provided by Amazon and was not concerned with the rights in technology. The fees paid by assessee was for use of technology and cannot be said to be for use of royalty,...

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