ITAT Pune held that time limit of six months for filing an application u/s. 80G(5) of the Income Tax Act applies only to trusts which have not started charitable activities and not to trust which has already started charitable activities before obtaining Provisional registration. Accordingly, application held to be valid and maintainable.
ITAT Pune held that failure to deposit the entire amount in the Capital Gains Account Scheme does not defeat Section 54F claim if full investment is made within the stipulated period. The ruling follows Karnataka High Court precedent. The addition of ₹91.45 lakh was deleted.
The Tribunal recalled its earlier order after finding that the assessee’s conditional withdrawal of reopening grounds was not properly considered. The matter was directed for fresh adjudication to address legal and factual issues.
The Tribunal observed that similar deductions were allowed in earlier scrutiny assessments. Finding no error in the Assessing Officer’s view, it annulled the revision proceedings.
The Tribunal held that penalty under Section 271(1)(c) cannot be sustained when income is determined on an estimated basis. In absence of clear concealment, the Rs.5.41 lakh penalty was deleted.
The Tribunal clarified that CPC could not make prima facie adjustments denying Section 80P deduction before the Finance Act, 2021 amendment. The disallowance made in 2019 was held invalid and deleted.
The Tribunal clarified that under the pre-amended law, accumulated income could be applied within five years or the immediately following year. Utilization within the sixth year barred taxation in AY 2023-24.
The ruling confirms that transactions with banks involve third parties, defeating the identity required for mutuality. While sustaining taxability, the Tribunal permitted a 5% estimated expense deduction to compute real income.
The Tribunal upheld 200% penalty under Section 270A for misreporting income through ineligible deductions. Admitted incorrect claims were treated as conscious misrepresentation, not a bonafide error.
The ITAT held that interest earned by a co-operative credit society on bank deposits qualifies as business income. Such income is eligible for deduction under Section 80P(2)(a)(i).
