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...
ITAT Delhi held that commission paid to foreign agents for procurement of orders do not fall under Technical, Managerial or consultancy services. Accordingly, TDS not deductible on commission paid to such foreign agents.
Analysis of the ITAT Ahmedabad’s ruling on Bharatbhai Makwana Vs PCIT. Delving into the implications of incorrect terminologies in tax audit reports relating to granule purchases.
Explore the key details and implications of ITAT Ahmedabad’s ruling on the Shanti Multilink Pvt. Ltd. Vs PCIT case concerning the validity of an assessment order under section 263.
ITAT Chennai held that deduction of TDS vis-à-vis amortization of discount on debentures needs fresh adjudication in the light of additional evidences filed by the revenue. Accordingly, matter restore back.
The recent ITAT Delhi ruling in the Shantiniketan Properties Pvt. Ltd. vs. ACIT case allows high-interest payments under commercial expedience, refuting disallowance under Section 40A(2) of the Income Tax Act.
ITAT Delhi held that disallowance of expenditure on adhoc basis, as a percentage of gross profit, without any specific findings is baseless and liable to be deleted.
ITAT Bangalore held that expenditure towards Employees Stock Option Plan (ESOP) is allowable deduction u/s 37 of the Income Tax Act.
ITAT Chennai held that for invoking provisions of section 40A(2)(b), AO has to bring on record some comparable cases of similar nature to allege that hire charges paid by the assessee is unreasonable and excessive, when compared to market rates. In absence of the same, addition is unsustainable.
The profit margin forgone by assessee could not be held to be expenditure in creating intangible or goodwill as there was no expenditure incurred by assessee except those that were set out in the profit and loss account and disallowing such expenditure by AO and consequently arriving at a positive total income chargeable to tax was without any basis and not in accordance with law.
A.O while working out disallowance under section 40A(2)(b), had though observed that the payment of salary to the aforementioned two related parties in question was found to be excessive, but had fundamentally erred by not opining as to what as per him was the fair market value of the service which were being rendered by the aforementioned related persons, considering which the payments made to them by the assessee were to held as excessive.
