Income Tax : Summary of Section 40A disallowances, including payments to related parties, cash payments, gratuity provisions, non-statutory fun...
Income Tax : Understand nuances of claiming tax deductions on payments to relatives in business. Learn how Section 40A(2) of Income Tax Act, 19...
Income Tax : The issue under consideration in this write up is whether disallowance u/s 40(a)(ia), 40A & 43B of Income Tax Act, 1961 are at...
Income Tax : Introduction Section 40A(2) of Income Tax Act, 1961 deals with payments to relatives and associated persons. It provides that wher...
Income Tax : The ITAT held that the Assessing Officer wrongly compared dissimilar email marketing services to determine excess payment. The rul...
Income Tax : The Tribunal reversed additions made towards alleged suppressed rent and bogus salary expenses. It emphasized factual consistency,...
Income Tax : The issue was whether revision under section 263 could be invoked when the Assessing Officer had accepted a legally possible view....
Income Tax : The tribunal held that where the Assessing Officer conducted exhaustive enquiries and applied his mind in a 153C assessment, revis...
Income Tax : Restoring the Assessing Officer’s findings, the Tribunal ruled that excessive salary to related directors can be disallowed when...
Income Tax : Notification No. 8/2020-Income-Tax- CBDT has notified Other electronic modes by inserting New Income TAx Rule 6ABBA. It also amend...
Explains how ITAT Pune held that unsecured loans prior to 01.04.2023 do not require proving the lender’s source of funds, leading to deletion of a ₹1.62 crore addition.
The Tribunal held that cash deposits during demonetisation were supported by genuine cash sales of damaged rice, verified through stock records, GST filings, and insurance assessments. The AO’s allegation of bogus sales under Section 68 was rejected for lack of evidence. The ruling confirms that suspicion cannot override documented business transactions.
Summary of Section 40A disallowances, including payments to related parties, cash payments, gratuity provisions, non-statutory fund contributions, and marked-to-market losses under tax rules.
The Base Metal Chemicals vs ACIT case examines the validity of large tax additions made by the AO on conversion charges, partner payments, under-invoiced sales, and stock valuation. The key issue was whether the additions were based on commercial reality or mere presumption.
The Ahmedabad ITAT set aside a ₹1 lakh penalty under Section 271BA, ruling that failure to electronically file the Form 3CEB transfer pricing report was a mere technical and procedural default. Crucially, the report was prepared before the search and later physically filed with the Transfer Pricing Officer (TPO).
ITAT Ahmedabad deletes arbitrary disallowances under Section 40A(2)(b), emphasizing AO’s burden to prove excessiveness in related party transactions.
ITAT Jaipur held that exercise of revisionary power under section 263 of the Income Tax Act on the basis of audit objection is not tenable in law. Accordingly, initiation of proceedings liable to be quashed.
Assessee submitted share valuation report which was not as per rule 11UA but valuation of shares was done as per ‘Adjusted Net Asset Method and as per ‘future earning analysis.
The assessee filed its original return of income which was taken for scrutiny assessment and regular assessment order under section 143(3) of the Act was passed on 29-12-2011.
ITAT Ahmedabad held that addition towards bogus purchases made without proper verification of facts but just on the basis of suspicion, surmises and unverified information unjustified and liable to be deleted.
