Depreciation can’t be claimed on Undivided Share of Land: ITAT [Read Order]

In a significant ruling, the Income Tax Appellate Tribunal (ITAT) has held that depreciation under section 32 of the Income Tax Act, 1961 cannot be allowed on an undivided share of land. The assessee, in...

Non-Recording of Satisfaction Note and Absence of Nexus between Reassessment, ITAT erred in remitting issues on Merit: Delhi HC [Read Judgment]

The High Court of Delhi held that the impugned order passed by the ITAT suffers from perversity in so far as it refused to allow the assessee to urge the grounds by way of an...

Scrutiny Assessment without Notice is Defective in Law: ITAT [Read Order]

While upholding an order passed by the Commissioner of Income Tax (Appeals), the Delhi bench of the Income Tax Appellate Tribunal (ITAT) has held that scrutiny assessment under section 143(2) cannot be passed without serving...

No Exempt Income Received or Receivable, No Disallowance under Section 14A: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT), Mumbai held that Section 14A of the Income Tax Act, 1961 will not apply if no exempt income is received or receivable during the relevant previous year. The assessee...

Bonus allocated to Policyholders is not Taxable as Income from Insurance Company: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT), while granting relief to Max New York Life Insurance Company Ltd, held that the addition made by the income tax department treating bonus allocated to the policyholders as taxable...

Appeal cannot be disposed Ex-parte without discussing Merits of the Case: ITAT [Read Order]

The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has recently held that the Commissioner of Income Tax (Appeals) shall discuss the merits of the case while passing an ex-parte order. Coming to the...

Tax Authorities should consider Documentary Evidence before confirming Addition for Cash Credits: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT) has held that though the onus is cast upon the assessee to prove the cash credits received by it, the tax authorities shall consider all the documentary evidence brought...

Assessee can’t be denied benefit of 50% Deduction merely because Assessee’s son name is also there in Purchase Document: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT) held that the assessee can not be denied the 50% of deduction under Section 54 of the Income Tax Act, 1961 merely because the name of assessee’s son is...

ITAT set aside Orders for Addition by Lower Authorities on Lack of Documentary Evidence [Read Order]

The Income Tax Appellate Tribunal (ITAT) held that the addition cannot be sustained without any documentary evidence on record, accordingly the finding of the lower authorities on the issue in dispute was set aside. The...

Assessment without giving Notice is bad in Law: ITAT

The Income Tax Appellate Tribunal (ITAT) held that assessment framed by the Income Tax Officer (ITO)  without giving notice is bad in law. The assessee filed the return of income for the assessment year 2013-...

Reduction in Price of Stock-in-Trade can be allowed while Computing Business Income only in Trading Account: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT) held that a reduction in the price of the stock-in-trade can be allowed while computing business income only in trading accounts. But, if such a provision is made outside...

Interest from Fixed Deposit taxable as ‘Other Income’: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT) held that income from interest is chargeable to tax as ‘income from other sources’ under Section 56 of the Income Tax Act. The assessee made fixed deposits with various...

Deduction allowable even If Capital Gain is not disclosed in Original Return: ITAT [Read Order]

In an assessee-friendly ruling, the Income Tax Appellate Tribunal (ITAT), Hyderabad bench has recently observed that the assessee is eligible for deduction under section 54F of the Income Tax Act even if he did not...

ITAT deletes addition for Unexplained Jewellery supported by Purchase Bills and Books of Accounts [Read Order]

The Income Tax Appellate Tribunal (ITAT) deleted the addition by Commissioner of Income Tax (CIT)(A) on account of unexplained jewellery in the light of the fact that the jewellery seized was supported by purchase bills...

ITAT upholds Addition of 12.5% for taking Bills without Delivery of Goods [Read Order]

The Income Tax Appellate Tribunal (ITAT) upheld the decision of CIT(A) where 12.5% for taking bills without delivery of goods. The assessee, Vijay B Shah (HUF) is engaged in the trading of iron and steel....

No Capital Gain Tax on Amount Received by Retiring Partner: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT) held that a retiring partner took only money towards the value of his share on retirement and when there was no distribution of capital assets going to the partners,...

Order passed by AO in absence of valid search is bad in law: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT) held that an order passed by  Assessing Officer (AO) under Section 153A of the Income-tax Act, 1961 be held bad in law in the absence of any valid search...

Profit Element embedded in Purchases would be subjected to Tax, not the entire Amount: Bombay HC

The Bombay High court held that the profit element embedded in purchases would be subjected to tax and not to the entire amount. The division bench comprising Justices Milind N Jadhav and Ujjal Bhuyan was...

Expenses incurred on Demise / Birthday Greetings / Congratulating some politicians not allowable as Business Expenditure: ITAT [Read Order]

The Pune bench of the Income Tax Appellate Tribunal (ITAT) has held that the expenses incurred on the demise, birthday greetings and congratulating some politicians are not eligible for a tax deduction as business expenditure...

Taxpayer can Opt a Method resulting in Lowest Tax Liability, When Two Alternatives are Available: ITAT [Read Order]

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT), in an assessee-friendly ruling, held that if there exist two methods for tax payment, the assessee can opt the method which would result in the...

No Obligation to pay Advance Tax if Assesses denies his Income Tax Liability: ITAT [Read Order]

The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has recently held that no obligation can be imposed on the assessee to pay advance tax if he alleges that his income is not taxable...