This weekly round-up analytically summarizes the key judgments reported at Taxscan.in by the Income Tax Appellate Tribunal (ITAT) from the 1st to the 7th of May 2022.
ITAT, Delhi held that the amendments to sections 43B and 36(1)(va) of the Income Tax Act, 1961 cannot have a retrospective effect since the provisions impose liability on the assessee since the legislature has not specifically said so.
ITAT, Lucknow held that the clerical mistakes in audit report form 10B can be rectified and the same shall not be a ground to deny tax exemption to the assessee. The court observed that by such an inadvertent mistake the claimant does not gain anything and is an occurrence of human error.
ITAT, Delhi held that amount received from the Indian Associate for ‘Support Service’ is not ‘Fees for Included Services’ and is not liable to tax.
ITAT, Delhiwith respect to the right to receive built-up area under the Join Development Agreement has directed Assessing Officer to examine the entire gain that has to be considered as a long-term capital gain.
ITAT, Bangalorehas held that the Tribunal cannot recall an order by invoking Rule 25 of the Appellate Tribunal Rules, 1963 merely on the ground of non-appearance of the assessee during the hearing of the appeal.The reasons furnished by the party for the non-appearance could not be considered a sufficient cause.
ITAT, Bangalore as interim relief to Infosys has extended the stay order for six months in a case involving the income tax demand of approx. Rs.1535 crore as nearly 34% of the demand had already been paid.
ITAT, Bangalore held that the advances given for purchase of land in the normal course of business of carrying on real estate development, if not recoverable could be allowed as either trading loss under S.28 of the Income Tax Act, 1961 or as expenditure under S.37 of the Act.
ITAT, Ahmedabad held that the undisclosed sale consideration of the property can be subject to tax as “capital gain”under the provisions of S.48 of the Income Tax Act (1961), and not as ‘other income’.
ITAT, Ahmedabad held that the Commissioner (Appeals) shall condone the delay and dispose the appeal on merits if the assessee has not acted in a mala-fide manner in order avoid unnecessary burden to the assessee.
ITAT, Mumbai held that the Provident Fund dues paid after the due date under statute but before filing Income Tax Return (ITR) is deductible from business income.
ITAT, Bangalore has held that the wife is eligible for capital gain exemption in respect of money given for the acquisition of the property either directly to the builder or as reimbursement to her husband.
ITAT, Ahmedabad held that the concept of deemed rent cannot be applicable to the properties which are treated as ‘stock-in-trade’ of a business.
ITAT, Bangalore held that the Tax Deduction at Source (TDS) is not applicable to commission for professional service by Nonresident.
ITAT, Bangalore condoned a delay of 1037 days in filing appeal for the reason that the assessee could not file appeal due to a wrong professional advice.
ITAT, Ahmedabad held that there is no prohibition in law in accepting of cash gifts by NRIs from the family members and the addition cannot be made by the income tax department alleging the same as an ‘unusual practice’.
ITAT, Ahmedabad held that the outstanding balances cannot be suspected as bogus when the payments to parties were made through banking channel.
ITAT, Bangalore held that the capital gain exemption under section 54F is allowable on the amount spent on interiors, renovation, furnishing etc.
ITAT, Delhi held that the reimbursement of expenses by Indian Associate for training and workshops for its new joiners is not Fees for Included Services.
ITAT, Bangalore held that a foreign subsidiary company not providing technical knowledge to the assessee and holds that outsourcing charges are not taxable as Fees for Technical Services (FTS) under the Act and as Fees for Included Services (FIS) under the India-US Tax Treaty.
ITAT, Kolkata held that no sufficient reason to prove income escaped assessment and dismissed revenue appeal for reopening the assessment.
ITAT, Delhi held that the Assessing officer cannot give benefit to the assessee for non-cooperation in providing audited financials of associated enterprises (AE).
ITAT, Mumbai held that Transfer Pricing Officer (TPO) adopts wrong Gross Profit Margin of comparable company and deletes Transfer pricing adjustment in respect of international transaction.
ITAT, Mumbai held that the expenses incurred on legal, professional, travelling and boarding are allowable as business expenditure of the assessee.
ITAT, Ahmedabad held that the transfer pricing adjustments is not applicable to interest free loans and advances by assessee to Associated Enterprises.
While granting exemption under section 10(37) of the Income Tax Act to the assessee, the Delhi bench of the Income Tax Appellate Tribunal has held that the interest received on enhanced compensation under S.28 of the Land Acquisition Act is part of compensation and hence is not taxable.
ITAT, Mumbai has restricted the disallowance to 12.5% for the purchases made by the assessee from grey market against the 100% disallowance made by the income tax Dept.
ITAT, Ahmedabad has quashed an assessment order and asked the AO to re-consider the matter afresh by observing that the closure of business is a reasonable cause for non-cooperation of assessee with the income tax proceedings.
ITAT, Bangalore held that the object of the Trust cannot be characterized as religious object especially when it does not make a distinction between caste, creed, race, religion, etc.
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