ITAT Weekly Round Up

This weekly round-up analytically summarises the key stories related to the Income Tax Tribunal (ITAT) reported at Taxscan.in during the previous week from January 31 to February 5, 2022. Madhavi Raksha Sankalpa Vs. CIT(E) The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) while quashing an order of the Commissioner of Income Tax (Exemptions), held that an order passed without giving the assessee an opportunity to hear shall amount to a violation of natural justice. M/s Sahara City Homes Vs. ITO The Income Tax Appellate Tribunal (ITAT), Lucknow Bench, has deleted the addition made u/s 69C and 68 of the Act. The coram headed by the Vice President A.D.Jain and Accountant Member, T.S.Kapoor has deleted the addition u/s 69C and 68 of the Act and held that the direction issued by the CIT(A) to the Assessing Officer to reopen the assessment for Assessment Year 2011-12 is held to be unsustainable and is hereby expunged. Gujarat Nippon Enterprises Vs. ITO The Income Tax Appellate Tribunal (ITAT), Ahmedabad bench has held that no disallowance can be made for interest expenses if the investment was made to acquire the controlling interest in the company. ITO Vs. Supre Hospitality Services Limited The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench has deleted the addition of profits from suppressed sales, on account of unpaid service tax liability. The coram of Judicial Member, Madhumita Roy and Accountant Member, Annapurna Gupta has held that all particulars relating to income were disclosed by the assessee, as is evident, in the tax audit report itself reflecting the impugned unpaid tax liabilities. Further Explanation 1 to section 271(1)(c) of the Act deems concealment of income when ,with respect to a fact material to the computation of income, the explanation of the assessee is either false or not bonafide and unsubstantiated. Godha Realtors Vs. ACIT The Income Tax Appellate Tribunal (ITAT), Bangalore bench has held that mere ‘agreement to sell’ would not result in the transfer of assets for the purpose of computing the amount of capital gain under the Income Tax Act, 1961. Foreign Network Logistics Vs. ACIT The Bangalore bench of the Income Tax Appellate Tribunal (ITAT), while considering an appeal challenging the addition of excess share premium under section 68 of the Income Tax Act, 1961 has held that the Assessing Officer cannot change the method of valuation of shares when the assessee was following a different method of valuation. Dr. Krishna Prasad Mikkilineni Vs. DCIT The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) has held that no capital gain can be computed in the hands of the assessee (landowner) on the ground that only permissive possession was allocated to the developer under the Joint Development Agreement (JDA). Sophia Automotive Pvt. Ltd. Vs. ITO The Income Tax Appellate Tribunal (ITAT), Chennai bench has held that the depreciation cannot be claimed on the factory building leased out to earn the rental income taxable as “Income from House Property” under the provisions of the Income Tax Act, 1961. DCIT Vs. M/s. Mapsa Tapes Pvt. Ltd. The Income Tax Appellate Tribunal (ITAT), Delhi Bench has held that the assessee discharged its onus to prove all shareholders were corporate entities, duly assessed to tax but Income Tax Department failed to Rebut. M/s.Sameer Granites Pvt.Ltd. Vs. ACIT The Banglore Bench of Income Tax Appellate Tribunal (ITAT) while remitting the issue of levy of fee under Income Tax Act to CIT(A) held that Delay should be condoned unless mala fides on conduct of party. Gogad Fabrics Vs. ACIT/ DCIT The Income Tax Appellate Tribunal (ITAT), Jodhpur has held that the National Faceless Appeal Centre, (NFAC) shall pass a speaking order even if the assessee fails to represent him before it during the time of the hearing. Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.

ITAT Weekly Round Up

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