ITAT Allows Depreciation Claim On Non Compete Fee, Deletes Penalty
4 months, 4 weeks ago

ITAT Allows Depreciation Claim On Non Compete Fee, Deletes Penalty

Live Law  

The Delhi Bench of Income Tax Appellate Tribunal has allowed the claim of depreciation on non-competing fees.The bench of Yogesh Kumar U.S. and Pradip Kumar Kedia has deleted the penalty imposed pursuant to the addition of Rs. 21,89,970 made on account of disallowance of depreciation on noncompeting fees.The assessment order came to be passed. The bench of Yogesh Kumar U.S. and Pradip Kumar Kedia has deleted the penalty imposed pursuant to the addition of Rs. The assessment order came to be passed against the assessee by making disallowance on account of depreciation claimed on non-compete fee of Rs.

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History of this topic

High Court Rules on Goodwill as Expenditure, Allows Depreciation on Acquisition
2 months ago

High Court Rules on Goodwill as Expenditure, Allows Depreciation on Acquisition

Live Law  

The Delhi High Court has ruled that goodwill is not 'income' but rather 'expenditure' for acquisition of assets and therefore, an assessee is entitled to charge depreciation on the amount spent towards it. The court cited Commissioner of Income Tax, Kolkata v. Smifs Securities Ltd. (2012) to support its decision.

Bank Charges & Bank Guarantee Charges Wrongly Included As Interest: ITAT
4 months, 3 weeks ago

Bank Charges & Bank Guarantee Charges Wrongly Included As Interest: ITAT

Live Law  

The Delhi Bench of Income Tax Appellate Tribunal has held that bank charges and bank guarantee charges do not partake in the character of interest and had been wrongly included as interest while making disallowance under section 14A of the Income Tax Act.The bench of G.S.Pannu and Kul Bharat has observed that the assessee had disallowed the. The Delhi Bench …

Non-Compete Fee To Be Treated As “Revenue Receipt” From 01.04.2003: ITAT
6 months, 2 weeks ago

Non-Compete Fee To Be Treated As “Revenue Receipt” From 01.04.2003: ITAT

Live Law  

The Mumbai Bench of Income Tax Appellate Tribunal has held that the non-competitive fee received by the assessee is treated as 'revenue receipt' in the hands of the assessee but only post-amendment, i.e., w.e.f. The assessee and the department were in appeal before the Tribunal, challenging the order of the CIT, where the Tribunal set aside the issue of receipt …

I-T Authority Fails To Consider Reason For Difference In Sale Consideration & Stamp Duty: Mumbai ITAT Deletes Penalty Levied U/s 270A For Under-Reporting Of Income
7 months, 2 weeks ago

I-T Authority Fails To Consider Reason For Difference In Sale Consideration & Stamp Duty: Mumbai ITAT Deletes Penalty Levied U/s 270A For Under-Reporting Of Income

Live Law  

Noting that neither the Assessing Officer nor the CIT have taken into consideration the explanation offered by the Assessee during the assessment proceedings in relation to the difference in the sale consideration and the stamp duty valuation of immovable property, the Mumbai ITAT deleted the penalty levied u/s 270A of the Income tax Act for under-reporting of income. Accordingly, the …

ITAT Cases Weekly Round-Up: 31 March To 6 April 2024
8 months, 2 weeks ago

ITAT Cases Weekly Round-Up: 31 March To 6 April 2024

Live Law  

Case Title: Zila Parisad verses Addl. Case Title: Kishorkumar Bhalara verses The Principal Commissioner of Income Tax On finding that the PCIT has held the assessment order passed by AO as erroneous and prejudicial to the interest of the Revenue simply based on incorrect assumption of facts, the Rajkot ITAT directed to set aside the order passed u/s 263 of …

ITAT Cases Monthly Round-Up: March 2024
8 months, 3 weeks ago

ITAT Cases Monthly Round-Up: March 2024

Live Law  

Filing Return By Due Date U/s 139 Is Mandatory For Political Party To Claim Exemption U/s 13A: Delhi ITAT Refuses To Stay Recovery Against Congress Party Case Title: Indian National Congress Verses Deputy Commissioner of Income Tax While holding the argument that an assessee is entitled to a stay on the recovery proceedings on payment of 20% of the demand …

Penalty Imposed U/s 271A On Wrongful Consideration Of Facts Merits To Be Deleted: Jaipur ITAT
9 months, 1 week ago

Penalty Imposed U/s 271A On Wrongful Consideration Of Facts Merits To Be Deleted: Jaipur ITAT

Live Law  

On finding that the CIT has not rebutted the contention that the assessee was dealing in share investment and not in the business activities, the Jaipur ITAT deleted the penalty imposed u/s 271A of the Income Tax Act. The Bench comprising of Sandep Gosain and Dr. M. L. Meena observed that, “when the assessee has filed a return on account …

Once ITO Accepted Income Earned Which Is Totally Based Upon Depreciation Plus 15% Markup, There Is No Reason To Deny Cost: Delhi ITAT
9 months, 1 week ago

Once ITO Accepted Income Earned Which Is Totally Based Upon Depreciation Plus 15% Markup, There Is No Reason To Deny Cost: Delhi ITAT

Live Law  

Finding that the assessee had arrangement with its AE for billing cost plus 15%, which has been duly billed during the year and entire depreciation cost plus 15% has been billed to the AE, the New Delhi ITAT allowed the depreciation claimed by assessee. The Bench of Shamim Yahya and Challa Nagendra Prasad observed that “When the Revenue is accepting …

Voluntary Disallowance Of Expense U/s 40(A)(ia) Is No Basis To Treat Taxpayer As 'Assessee In Default' U/s 201(1): Delhi ITAT
10 months, 2 weeks ago

Voluntary Disallowance Of Expense U/s 40(A)(ia) Is No Basis To Treat Taxpayer As 'Assessee In Default' U/s 201(1): Delhi ITAT

Live Law  

On finding that voluntary disallowance of expense u/s 40 of the Income Tax Act is not a ground to treat the assessee as 'assessee in default' u/s 201, the Delhi ITAT deleted the addition of chargeable interest u/s 201 as well as the treatment of 'assessee in default' u/s 201. The Bench comprising Anubhav Sharma and M. Balaganesh observed that, …

Section 54 Deduction Can't Be Disallowed Merely For Not Depositing LTCG In Capital Gain Account Scheme: ITAT
1 year ago

Section 54 Deduction Can't Be Disallowed Merely For Not Depositing LTCG In Capital Gain Account Scheme: ITAT

Live Law  

The Delhi Bench of Income Tax Appellate Tribunal has held that deduction under Section 54 of the Income Tax Act cannot be disallowed merely for not depositing long-term capital gain that was not deposited in the capital gain account scheme.The bench of Saktijit Dey and M. Balaganesh has adopted a hyper-technical approach while dealing with. The Delhi Bench of Income …

ITAT Deletes Penalty For Default In Not Deducting TDS On Foreign Remittances
1 year ago

ITAT Deletes Penalty For Default In Not Deducting TDS On Foreign Remittances

Live Law  

The Jaipur Bench of Income Tax Appellate Tribunal has deleted the penalty levied for default in not deducting TDS on foreign remittances.The bench of Sandeep Gosain and Rathod Kamlesh Jayantbhai has observed that the assessee has deliberately not avoided TDS and there is no contumacious conduct on the part of the assessee.The ITO has passed an. The Jaipur Bench of …

Defects In Statement Of Reportable Account Rectified Within The Time Limit: ITAT Deletes Penalty
1 year, 4 months ago

Defects In Statement Of Reportable Account Rectified Within The Time Limit: ITAT Deletes Penalty

Live Law  

The Chennai Bench of the Income Tax Appellate Tribunal has deleted the penalty as the defects in the statement of the reportable account were rectified within the time limit.The Bench of V. Durga Rao and Manjunatha, G. has observed that the provisions of sub-section of Section 285BA of the Income Tax Act mandate that the defect be rectified. The Chennai …

NLU-Delhi Is Not Engaged In Business: ITAT Quashes Income Tax Penalty
1 year, 6 months ago

NLU-Delhi Is Not Engaged In Business: ITAT Quashes Income Tax Penalty

Live Law  

The Delhi Bench of the Income Tax Appellate Tribunal has quashed the penalty under Section 271B of the Income Tax Act on the grounds that the NLU-Delhi is not engaged in "business" and exists solely for educational purposes.The bench of Anubhav Sharma and Anil Chaturvedi has observed that to justify invoking the mandate of Section 44AB, it. The Delhi Bench …

ITAT Deletes Income Tax Addition Towards ESOP
1 year, 7 months ago

ITAT Deletes Income Tax Addition Towards ESOP

Live Law  

The Mumbai Bench of the Income Tax Appellate Tribunal has deleted the income tax addition towards ESOP.The bench of Amit Shukla and Padmavathy S. has observed that ESOP expenses are capital in nature.The appellant/assessee company is engaged in the manufacturing of branded FMCG products, namely foods and beverages and home and personal care. The Mumbai Bench of the Income Tax …

Tax Cases Weekly Round-Up: 07 May to 13 May, 2023
1 year, 7 months ago

Tax Cases Weekly Round-Up: 07 May to 13 May, 2023

Live Law  

Supreme Court Case Title: Heinz India Limited v The State of Kerala Citation: 2023 LiveLaw 411 The Supreme Court Bench has held that prickly heat powders fall under the category of ‘medicated talcum powder’ and not ‘medicine’ for the purpose of sales tax under Kerala General Sales Tax Act, 1963. Chhattisgarh High Court Case Title: M/s Nava Raipur Atal Nangar …

Non-Compete Fee Related To Profession Is Made Taxable Only w.e.f. AY 2017-18: ITAT
1 year, 8 months ago

Non-Compete Fee Related To Profession Is Made Taxable Only w.e.f. AY 2017-18: ITAT

Live Law  

The Delhi Bench of the Income Tax Appellate Tribunal has held that a non-compete fee related to a profession is made taxable only with effect from AY 2017–18, and the non-compete fee in relation to a profession for periods prior to AY 2017–18 would be treated as a capital receipt.The bench of Astha Chandra and Shamim Yahya has decided in …

In Absence Of Proper Show Cause Notice To The Assessee, There Is No Merit In Levy Of Penalty: ITAT
1 year, 8 months ago

In Absence Of Proper Show Cause Notice To The Assessee, There Is No Merit In Levy Of Penalty: ITAT

Live Law  

The Delhi Bench of the Income Tax Appellate Tribunal has held that where the initiation of penalty is one limb and the levy of penalty is another limb, then in the absence of proper show cause notice to the assessee, there is no merit in the levy of penalty.The bench of Anil Chaturvedi and Yogesh Kumar Us has relied on …

ITAT Bangalore Holds Expenditure Incurred By Flipkart Towards ESOP Is Eligible For Deduction Under S. 37 Of ITA
1 year, 9 months ago

ITAT Bangalore Holds Expenditure Incurred By Flipkart Towards ESOP Is Eligible For Deduction Under S. 37 Of ITA

Live Law  

The Bangalore Bench of the Income Tax Appellate Tribunal has allowed the appeal of Flipkart India against disallowance of over Rs.15.5 Crore of expenses claimed by it under Section 37 of the Income Tax Act, 1961, towards Employee Stock Ownership Plan. Flipkart pleaded before the ITAT that the CIT had erred in confirming the disallowance of the expenditure incurred on …

No Disallowance Shall Be Made With Respect To Chargeable Sum Paid To A Foreign Company Without Deduction Of Tax: ITAT.
1 year, 9 months ago

No Disallowance Shall Be Made With Respect To Chargeable Sum Paid To A Foreign Company Without Deduction Of Tax: ITAT.

Live Law  

The Delhi Bench of Income Tax Appellate Tribunal has held that no disallowance shall be made to the assessee in regards to the chargeable sum paid by the assessee to a foreign company without deduction of tax. Billaiya and Yogesh Kumar held that the second proviso to clause of S. 40 of the Income Tax Act provides that in cases …

Orissa High Court Allows Deduction To The Co-operative Society Involved In The Business Of Banking
1 year, 10 months ago

Orissa High Court Allows Deduction To The Co-operative Society Involved In The Business Of Banking

Live Law  

The Orissa High Court has granted the deduction to the Co-operative Society engaged in the banking business.The division bench of Chief Justice Dr. S. Muralidhar and Justice M. S. Raman has observed that the tribunal was justified in making further classification while interpreting Section 80P of the Income Tax Act by treating it to be different from the primary agriculture …

ITAT Sustains Disallowance As Cash Payment Exceeds Rs. 20,000 To Single Party In Single Day
1 year, 11 months ago

ITAT Sustains Disallowance As Cash Payment Exceeds Rs. 20,000 To Single Party In Single Day

Live Law  

The Chennai Bench of the Income Tax Appellate Tribunal has sustained the disallowance under section 40A of the Income Tax Act as a cash payment exceeds INR 20,000 to a single party in a single day.The two-member bench headed by Mahavir Singh and G. Manjunatha has observed that Section 40A, which has been amended w.e.f. The Chennai Bench of the …

Expenses Towards Advertisement, Brokerage And Commission, Incurred By A Real Estate Developer; Deductible As Revenue Expenditure: Delhi High Court
2 years, 1 month ago

Expenses Towards Advertisement, Brokerage And Commission, Incurred By A Real Estate Developer; Deductible As Revenue Expenditure: Delhi High Court

Live Law  

The Delhi High Court has ruled that The bench of Justices Manmohan and Manmeet Pritam Singh Arora observed that the dispute involving the year of deduction, which was sought to be postponed by the revenue department, was revenue neutral, having no tax affect and that it did not put the revenue department at any disadvantageous position. The Court noted that …

ITAT Allows 60% Depreciation On ATM machines As Applicable To Computer Software
2 years, 2 months ago

ITAT Allows 60% Depreciation On ATM machines As Applicable To Computer Software

Live Law  

The Chennai Bench of the Income Tax Appellate Tribunal has allowed the 60% depreciation on ATM machines as applicable to computer software.The two-member bench of Sonjoy Sharma and G. Manjunatha has observed that once the assessee is entitled to 60% of depreciation on ATM machines, the Assessing Officer has to work out the depreciation right from. The Chennai Bench of …

ITAT Allows Deduction To ICICI Bank On Interest Expense On Perpetual Bonds
2 years, 2 months ago

ITAT Allows Deduction To ICICI Bank On Interest Expense On Perpetual Bonds

Live Law  

The Mumbai Bench of the Income Tax Appellate Tribunal has allowed ICICI Bank the deduction on interest expense on perpetual bonds.The two-member bench of Kavitha Rajagopal and Amarjit Singh has observed that merely that RBI recognises treating the said debt instruments as additional tier/capital would not change the nature of Innovative Perpetual. The Mumbai Bench of the Income Tax Appellate …

ITAT Allows Deduction On Penalty Levied By SEBI For Shortfall In Margin Money
2 years, 4 months ago

ITAT Allows Deduction On Penalty Levied By SEBI For Shortfall In Margin Money

Live Law  

The Mumbai Bench of the Income Tax Appellate Tribunal has allowed the deduction of the penalty levied by the Securities and Exchange Board of India for a shortfall in margin money. Baskaran has observed that the penalty levied by SEBI for shortfall in margin money cannot be considered as a penalty for violation of any law falling within the ambit …

Other Income Tax Additions In Reassessment Proceedings Cannot Be Sustained If Addition on Primary Grounds Is Not Made: ITAT
2 years, 6 months ago

Other Income Tax Additions In Reassessment Proceedings Cannot Be Sustained If Addition on Primary Grounds Is Not Made: ITAT

Live Law  

The Delhi Bench of the Income Tax Appellate Tribunal consisting of C.N. The assessee/appellant has challenged the validity of the assessment made by the Assessing Officer as the assessment was reopened for escapement of income on account of cash deposits made into the bank account by the assessee. The reasons recorded by the Assessing Officer have reason to believe that …

Assessee Entitled To Additional Depreciation On The Power Plant And Installed Windmill: Delhi ITAT
2 years, 6 months ago

Assessee Entitled To Additional Depreciation On The Power Plant And Installed Windmill: Delhi ITAT

Live Law  

The Delhi Bench of the Income Tax Appellate Tribunal consisting of Yogesh Kumar U.S. and B.R.R. The CIT deleted the addition on account of depreciation made while calculating book profit under section 115JB of the Income Tax Act. The CIT upheld the action of the Assessing Officer in making an addition on account of additional depreciation under section 32 of …

ITAT Disallows 'Mixed Used Charges' For Regularising Usage Of Residential Premises For Commercial Purposes Against House Property Income
2 years, 9 months ago

ITAT Disallows 'Mixed Used Charges' For Regularising Usage Of Residential Premises For Commercial Purposes Against House Property Income

Live Law  

The Delhi Bench of Income Tax Appellate Tribunal has disallowed the 'Mixed Used Charges' for regularising usage of residential premises for commercial purposes against house property income. The two-member bench of N.K.Billaiya and Yogesh Kumar US held that the collection of the annual mixed used charge will not make any difference in the annual let out value of the property, …

Disallowance Can't Be Made On Failure Of Assessee To Deduct TDS If Employee's Commission Shown As Part Of Salary Income: Bombay High Court
2 years, 9 months ago

Disallowance Can't Be Made On Failure Of Assessee To Deduct TDS If Employee's Commission Shown As Part Of Salary Income: Bombay High Court

Live Law  

The Bombay High Court has held that disallowance cannot be made on failure of assessee to deduct TDS if employee's commission is shown as a part of salary income. The Assessing Officer had noted that respondent/assessee had made a provision for commission for the Chairman and the Managing Director of the Company at the year end but not deducted TDS …

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