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

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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 the lower authorities had concluded that the said expenses incurred by the assessee could not be assigned to a specific asset and that they must be allowed as revenue expenditure in conformity with the applicable Accounting Standard. While holding that the expenses incurred by the assessee were indirect costs incurred by it towards the development of its real estate business, the High Court rejected the contention of the revenue department that since the expenses were of an 'enduring nature', therefore, they must be capitalized to the cost of the project. The Revenue does not dispute that these expenses are not a direct cost of the specific project but are indirect costs incurred by the Assessee for development of its real estate business. Ruling that the said expenses were in the nature of general administration cost and selling cost, as classified by the Guidance Note issued by ICAI, the High Court held that since the expenses were incurred by the assessee for its business, they qualified for deduction as revenue expenditure.

Real Estate Expenses Tax Court Income Tax Revenue Cost Project High Department Estate Real Expenditure Itat Icai Assessee Revenue Expenditure Incurred Developer Deductible  developer  deductible  expenditure  estate  court  cost  revenue  real  tax  assessee  incurred  department  delhi  project  high  expenses

History of this topic

S.144C IT Act | AO Not Having Info About Pending Objections Before Dispute Resolution Panel No Grounds To Sustain Final Assessment Order: Delhi HC
5 days, 11 hours ago

S.144C IT Act | AO Not Having Info About Pending Objections Before Dispute Resolution Panel No Grounds To Sustain Final Assessment Order: Delhi HC

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The Delhi High Court has made it clear that a Final Assessment order passed by the Income Tax Authorities under Section 143 of the Income Tax Act, 1961 is not sustainable, if it is passed in ignorance of pending objections before the Dispute Resolution Panel. It said, “.notwithstanding the lack of information with the AO, if an objection has been …

Assessee Can Confine Settlement Under Direct Tax Vivad Se Vishwas Act To Disputes Which Were Subject Matter Of Its Appeal: Delhi HC
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1 week, 3 days ago

Assessee Can Confine Settlement Under Direct Tax Vivad Se Vishwas Act To Disputes Which Were Subject Matter Of Its Appeal: Delhi HC

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The Delhi High Court has held that under the Direct Tax Vivad Se Vishwas Act, 2020, an Assessee is entitled to confine the settlement of disputes which were subject matter of its appeal, and exclude the disputes which were subject matter of the Revenue's appeal for the same assessment year. It thus allowed a real estate company's plea against the …

Billing Assessments Pertaining Electricity Not In Jurisdiction Of Consumer Courts : Delhi State Commission
2 weeks, 4 days ago

Billing Assessments Pertaining Electricity Not In Jurisdiction Of Consumer Courts : Delhi State Commission

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The Delhi State Commission, presided by Justice Sangita Dhingra Sehgal, Ms. Pinki held that the Consumer Protection Act prevails over the Electricity Act only in cases of inconsistency; complaints are limited to issues such as unfair trade practices, restrictive trade practices, deficiencies in service, or overcharging, which does not contain 'billing assessments'. Brief Facts of the Case The complainant had …

Grants For Daily Expenses Are Not Consideration For Services Rendered By Assessee, Not Liable To Tax: Kerala High Court
3 weeks, 6 days ago

Grants For Daily Expenses Are Not Consideration For Services Rendered By Assessee, Not Liable To Tax: Kerala High Court

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The Kerala High Court stated that financial grants provided to the assessee for covering daily operational expenses do not qualify as payment for any services that the assessee might be providing and are not liable to tax. The Bench of Justice Gopinath P. observed that “The assessee has only received grants to meet its day-to-day expenses including salary, allowances etc. …

Grants For Daily Expenses Are Not Consideration For Services Rendered By Assessee, Not Liable To Tax: Kerala High Court
3 weeks, 6 days ago

Grants For Daily Expenses Are Not Consideration For Services Rendered By Assessee, Not Liable To Tax: Kerala High Court

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The Kerala High Court stated that financial grants provided to the assessee for covering daily operational expenses do not qualify as payment for any services that the assessee might be providing and are not liable to tax. The Bench of Justice Gopinath P. observed that “The assessee has only received grants to meet its day-to-day expenses including salary, allowances etc. …

Assessing Officer Not Required To Examine Commercial Expediency Of Transaction When Evaluating Assessee's Explanation U/S 68 Of IT Act: Delhi HC
1 month ago

Assessing Officer Not Required To Examine Commercial Expediency Of Transaction When Evaluating Assessee's Explanation U/S 68 Of IT Act: Delhi HC

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The Delhi High Court has made it clear that once an assessee offers explanation about nature and source of a credit transaction standing in its books, the burden of proof to show that such explanation is unsatisfactory shifts on the Assessing Officer.A division bench of Justices Vibhu Bakhru and Swarana Kanta Sharma further held that in evaluating the transaction so …

[S.263 IT Act] Revisionary Power Can Be Invoked When Order Meets Twin Conditions Of Being Erroneous, Prejudicial To Interest Of Revenue: Delhi HC
1 month, 1 week ago

[S.263 IT Act] Revisionary Power Can Be Invoked When Order Meets Twin Conditions Of Being Erroneous, Prejudicial To Interest Of Revenue: Delhi HC

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The Delhi High Court has held that in order to invoke Section 263 of the Income Tax Act, 1961, the Principal Commissioner must satisfy “twin conditions”, i.e. A division bench of Justices Vibhu Bakhru and Swarana Kanta Sharma observed, “Twin conditions have to be met for assuming jurisdiction under Section 263 of the Act, and the PCIT has to form …

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

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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.

AO Can't Disregard ITAT's Direction To Re-examine Issue By Referring To CBDT Circular: Delhi High Court
4 months, 3 weeks ago

AO Can't Disregard ITAT's Direction To Re-examine Issue By Referring To CBDT Circular: Delhi High Court

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The Delhi High Court has held that the assessing officer cannot disregard the direction of the Income Tax Appellate Tribunal to re-examine the issue by referring to the circular issued by the Central Board of Direct Taxes.The bench of Justice Yashwant Varma and Justice Ravinder Dudeja has observed that since the additional grounds had come to be accepted by the …

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

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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 …

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

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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. …

ITAT Weekly Round-Up: 14 To 20 July 2024
5 months ago

ITAT Weekly Round-Up: 14 To 20 July 2024

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Final Assessment Passed Within Two Days Of Issuing Intimation, Violation Of 143 IT Act : Mumbai ITAT Case Title: Add More Real Estate Developers LLP verses The Asst. Loans Brought Forwarded Can't Form Basis For Addition In Current Year if Genuineness Is Established: Mumbai ITAT Case Title: Arun Babulal Shah verses CIT Appeal NFAC Finding that the genuineness of loan …

AO Can't Review Its Own Order: Delhi High Court
5 months, 2 weeks ago

AO Can't Review Its Own Order: Delhi High Court

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The Delhi High Court has held that the Assessing Officer cannot review its own order.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed in the extract of the impugned corrigendum that no new material has been found by the department, which would warrant reopening the assessment. The bench of Justice Yashwant Varma and Justice Purushaindra Kumar …

Order Of ITSC Final And Conclusive For AY For Which Application Has Been Filed: Delhi High Court
5 months, 2 weeks ago

Order Of ITSC Final And Conclusive For AY For Which Application Has Been Filed: Delhi High Court

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The Delhi High Court has held that the order of the Income Tax Settlement Commission is final and conclusive for a particular assessment year for which the application has been filed.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that the order of the ITSC is deemed to be conclusive for all the matters pertaining to …

Expenditure Incurred By Way Of Addition To Buildings, Electrical Fittings On Leasehold Premises Is Capital Expenditure: Kerala High Court
6 months, 3 weeks ago

Expenditure Incurred By Way Of Addition To Buildings, Electrical Fittings On Leasehold Premises Is Capital Expenditure: Kerala High Court

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The Kerala High Court has held that the expenditure that was incurred by the appellant/assessee by way of addition to buildings and electrical fittings on leasehold premises was in the nature of capital expenditure and not revenue expenditure.The bench of Justice Dr. A.K. According to the Assessing Authority and the First Appellate Authority, the expenditure that was incurred by the …

Unexplained Expenditure Addition Merely Based On CBIC Instruction Not Sustainable: Delhi High Court
7 months, 1 week ago

Unexplained Expenditure Addition Merely Based On CBIC Instruction Not Sustainable: Delhi High Court

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The Delhi High Court has deleted the addition for unexplained expenditure, which was based on the instruction issued by the Central Board of Indirect Taxes and Customs.“Merely proceeding on the basis that CBIC is an apex body and therefore, information provided by it cannot be doubted, without even identifying or meaningfully analyzing such information, is wholly insufficient to. The Delhi …

Unexplained Expenditure Addition Merely Based On CBIC Instruction Not Sustainable: Delhi High Court
7 months, 1 week ago

Unexplained Expenditure Addition Merely Based On CBIC Instruction Not Sustainable: Delhi High Court

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The Delhi High Court has deleted the addition for unexplained expenditure, which was based on the instruction issued by the Central Board of Indirect Taxes and Customs.“Merely proceeding on the basis that CBIC is an apex body and therefore, information provided by it cannot be doubted, without even identifying or meaningfully analyzing such information, is wholly insufficient to. The Delhi …

Failure Of Dept. To Comply With ITAT's Order: Delhi High Court Directs Dept. To Remove Demands, Penalty From ITBA portal
8 months ago

Failure Of Dept. To Comply With ITAT's Order: Delhi High Court Directs Dept. To Remove Demands, Penalty From ITBA portal

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The Delhi High Court has held that the Department has failed to comply with Income Tax Appellate Tribunal's Order in passing a fresh assessment order within the stipulated time.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that the underlying rationale of the Legislature behind the enactment of Section 153 of the Income Tax Act and …

Commission Expenses Can Be Allowed If Taxpayer Satisfies Rendering Of Services By Commission Agents And Income From Same Is Shown In Return: Mumbai ITAT
8 months, 1 week ago

Commission Expenses Can Be Allowed If Taxpayer Satisfies Rendering Of Services By Commission Agents And Income From Same Is Shown In Return: Mumbai ITAT

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While deleting the addition made u/s 68 of the Income Tax Act, the Mumbai ITAT directed the assessee to file the details of the services rendered by the commission agents for availing the commission payment from the assessee. The ITAT clarified that if the assessee satisfies the AO about the services rendered by these commission agents and that they had …

Direct Tax Cases Weekly Round-Up: 7 April To 13 April 2024
8 months, 1 week ago

Direct Tax Cases Weekly Round-Up: 7 April To 13 April 2024

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Delhi High Court Case Title: Agra Portfolio Pvt. Case Title: Saksham Commodities Limited Versus Income Tax Officer The Delhi High Court has held that a reopening or abatement would be triggered only upon the discovery of material that is likely to “have a bearing on the determination of the total income” and would have to be examined bearing in mind …

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

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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 …

Assessment By AO Can't Be Termed As Prejudicial To Interest Of Revenue If It Doesn't Result In Any Loss To Revenue: Indore ITAT
8 months, 3 weeks ago

Assessment By AO Can't Be Termed As Prejudicial To Interest Of Revenue If It Doesn't Result In Any Loss To Revenue: Indore ITAT

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On finding that the facts of the case do not warrant application of section 263 of the Income Tax Act, the Indore ITAT set aside the revision order passed by PCIT and restored the original assessment-order passed by the AO. In the light of those rulings, the AO has rightly assessed the income at normal rates of tax, hence there …

Direct Tax Cases Weekly Round-Up: 17 To 23 March 2024
8 months, 4 weeks ago

Direct Tax Cases Weekly Round-Up: 17 To 23 March 2024

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Delhi High Court Case Title: National Association Of Software And Services Companies Versus Deputy Commissioner Of Income Tax Circle 2 The Delhi High Court has held that a 20% pre-deposit demand is not a precondition for consideration of a stay application during the pendency of the first appeal. Case Title: The Salem Urban Co-operative Bank limited Versus The Income Tax …

Accepting Submissions Of Assessee Cannot Be Said As Faulty If Assessment Was Made By National E-Assessment Centre: Indore ITAT Quashes Sec 263 Order
9 months ago

Accepting Submissions Of Assessee Cannot Be Said As Faulty If Assessment Was Made By National E-Assessment Centre: Indore ITAT Quashes Sec 263 Order

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While holding the revision-order passed by PCIT as invalid, the Indore ITAT recently clarified that I-T authorities cannot punish the assessee by merely saying that the payee has not filed income-tax return. The Bench of Vijay Pal Rao and B.M Biyani observed that “the action of AO in accepting the replies/ submissions of assessee cannot not lack bona fides and …

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

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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 …

Once Reassessment Framed By AO Is Not Sustainable,Order U/s 263 Seeking To Revise Reassessment Is Not Acceptable: Delhi ITAT
9 months, 1 week ago

Once Reassessment Framed By AO Is Not Sustainable,Order U/s 263 Seeking To Revise Reassessment Is Not Acceptable: Delhi ITAT

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While allowing the appeal of assessee in respect of the fact that whether the PCIT had validly assumed his revision jurisdiction u/s 263 of the Income Tax Act, 1961, both in law and on facts, the New Delhi ITAT held that the PCIT erred in assumption of jurisdiction u/s 263 of the Income Tax Act, 1961. The Bench of the …

Income Tax Deduction Available On Excise Duty Claim As It Does Not Amount To Double Deduction: Bombay High Court
10 months, 2 weeks ago

Income Tax Deduction Available On Excise Duty Claim As It Does Not Amount To Double Deduction: Bombay High Court

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The Bombay High Court has held that excise duty paid and included in the closing stock has to be claimed separately as a deduction; otherwise, the appellant would not be claiming the entire excise duty paid in the year of its payment. The ITAT has held that the appellant was not entitled to the deduction representing the excise duty claimed …

Careless Attitude Of AO: Kolkata ITAT Deletes Addition Made Without Examining Nature Of Expenditure
10 months, 2 weeks ago

Careless Attitude Of AO: Kolkata ITAT Deletes Addition Made Without Examining Nature Of Expenditure

Live Law  

On finding that expenses were incurred for the business purposes during the course of business, for which assessee has submitted all basic details which was not cross verified by the AO, the Kolkata ITAT deleted the addition made by AO. The Member of the ITAT comprising Rajpal Yadav and Girish Agrawal observed that “the inquiry at the end of the …

Without Pointing Out Any Specific Defect In Audited Books Of Accounts AO Can't And Should Not Make Any Estimated Addition: ITAT
1 year ago

Without Pointing Out Any Specific Defect In Audited Books Of Accounts AO Can't And Should Not Make Any Estimated Addition: ITAT

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The Delhi Bench of Income Tax Appellate Tribunal has held that without pointing out any specific defect in the audited books of accounts, the AO cannot and should not make any estimated addition.The bench of Kul Bharat and N. K. Billaiya has observed that the expenses claimed by the assessee were also test-checked, and while making the addition, the. The …

Employee Can’t Be Penalised For Non-Deposit Of TDS By Employer: Delhi High Court
1 year ago

Employee Can’t Be Penalised For Non-Deposit Of TDS By Employer: Delhi High Court

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The Delhi High Court has held that the employer of the petitioner or assessee, having failed to perform his duty to deposit the deducted tax with the department, cannot be penalized. It would always be open for revenue to proceed against the employer of the petitioner for recovery of the deducted tax.The bench of Justice Rajiv Shakdher and Justice Girish …

Delhi High Court Grants Assessee An Opportunity To Adduce Evidence On Qualification, Experience, Work Profile Of Employees To Avoid Section 40A(2) Disallowance
1 year, 1 month ago

Delhi High Court Grants Assessee An Opportunity To Adduce Evidence On Qualification, Experience, Work Profile Of Employees To Avoid Section 40A(2) Disallowance

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The Delhi High Court has granted the assessee an opportunity to adduce appropriate evidence—documentary or otherwise—before the Assessing Officer in order to establish its claim regarding educational qualification, experience, work profile, and in particular the duties discharged by the concerned persons to justify the claim of the appellant or assessee qua payment of salary to the. The Delhi High Court …

IT And Admin Services By Singapore Entity To Its Affiliate In India Can’t Be FTS: Delhi High Court
1 year, 1 month ago

IT And Admin Services By Singapore Entity To Its Affiliate In India Can’t Be FTS: Delhi High Court

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The Delhi High Court has held that information technology and other administrative services provided by the respondent or assessee to its affiliate in India could be construed as fees for technical services.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that services offered by the respondent or assessee to its Indian affiliates did not come within the. …

Subscription Fee Received By Deloitte Exempted From Tax On Principle Of Mutuality: Delhi High Court
1 year, 2 months ago

Subscription Fee Received By Deloitte Exempted From Tax On Principle Of Mutuality: Delhi High Court

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The Delhi High Court has held that subscription fees received by Deloitte are exempted from tax on the principle of mutuality.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the expression “mutuality” flows from the expression “mutual”, which indicates reciprocity of arrangement in which the concerned parties have reciprocal rights or understanding. The Delhi High Court …

Delhi High Court Upholds Sales Tax Demand Against Berger Paints On Stock Variations
1 year, 2 months ago

Delhi High Court Upholds Sales Tax Demand Against Berger Paints On Stock Variations

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The Delhi High Court has upheld the sales tax demand against Berger Paints on stock variations.The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that the discrepancies in the sales figures as well as the physical stock were not explained by the appellant. The Delhi High Court has upheld the sales tax demand against Berger Paints on …

Department Can Bring Expenditure Incurred In Earlier Years To Be Taxed In Subsequent Years On Grounds Of Bogus Expenditure: ITAT
1 year, 7 months ago

Department Can Bring Expenditure Incurred In Earlier Years To Be Taxed In Subsequent Years On Grounds Of Bogus Expenditure: ITAT

Live Law  

The Delhi Bench of the Income Tax Appellate Tribunal has observed that the department can bring expenditures incurred in earlier years to be taxed in subsequent years on grounds of bogus expenditure.The bench of B. R. R. Kumar has observed that the department can bring the expenditure incurred in the earlier years to be taxed in the subsequent years if …

Assessment Order Issued Without DIN, Invalid; S. 292B Of ITA Not Applicable: Delhi High Court
1 year, 8 months ago

Assessment Order Issued Without DIN, Invalid; S. 292B Of ITA Not Applicable: Delhi High Court

Live Law  

The Delhi High Court has upheld the order of the Income Tax Appellate Tribunal where it had set aside the assessment order issued by the Income Tax Department without quoting the Document Identification Number. The court ruled that Paragraph 4 of the 2019 Circular clearly provides that any communication, including the communication of assessment order, which is not in conformity …

Appearance Of AR Not Enough For Presuming Service On Assessee Under S. 292BB Of ITA: Orissa High Court
1 year, 10 months ago

Appearance Of AR Not Enough For Presuming Service On Assessee Under S. 292BB Of ITA: Orissa High Court

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The Orissa High Court has deprecated the Income Tax Authority who, despite being informed that the assessee was in judicial custody, failed to serve a notice upon him through the Superintendent of the concerned jail, in the proceedings initiated against the assessee under Section 263 of the Income Tax Act, 1961. The Court further ruled that appearance of the authorized …

Expenditure On Development Of New Product, Shown As 'Capital Work In Progress'; Deductible As Revenue Expenditure, If Project Is Subsequently Abandoned: Bombay High Court
2 years ago

Expenditure On Development Of New Product, Shown As 'Capital Work In Progress'; Deductible As Revenue Expenditure, If Project Is Subsequently Abandoned: Bombay High Court

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The Bombay High Court has ruled that the expenditure incurred on development of a new product, in respect of the same business already carried on by the assessee, which subsequently failed to come into existence and was abandoned, is eligible for deduction as revenue expenditure. The bench of Justices Dhiraj Singh Thakur and Abhay Ahuja observed that though the assessee …

Department Is Not Allowed To Travel Beyond The Issues Involved In Limited Scrutiny Cases: ITAT
2 years ago

Department Is Not Allowed To Travel Beyond The Issues Involved In Limited Scrutiny Cases: ITAT

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The Delhi Bench of the Income Tax Appellate Tribunal has held that the department is not allowed to travel beyond the issues involved in limited scrutiny cases.The two-member bench of N.K. The Delhi Bench of the Income Tax Appellate Tribunal has held that the department is not allowed to travel beyond the issues involved in limited scrutiny cases. The assessee …

Tax Cases Weekly Round-Up: 6 November to 12 November 2022
2 years, 1 month ago

Tax Cases Weekly Round-Up: 6 November to 12 November 2022

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Delhi High Court Expenses Towards Case Title: Commissioner of Income Tax versus Somnath Buildtech Pvt. Rajasthan High Court Case Title: Pooja Agarwal Versus Commissioner of Income Tax-1 The Rajasthan High Court has held that the Income Tax Appellate Tribunal is the last fact-finding authority and is bound to follow the directions issued by the High Court in pith and substance. …

Delhi High Court Allows Deduction To PVR On Difference Between Market Price & Issue Price Of ESOP
2 years, 3 months ago

Delhi High Court Allows Deduction To PVR On Difference Between Market Price & Issue Price Of ESOP

Live Law  

The Delhi High Court has allowed the appeal of PVR Ltd. and allowed the deduction on the difference between the price at which stock options were offered to employees of the appellant company under ESOP and ESPS and the prevailing market price of the stock. The Income Tax Appellate Tribunal has held that the difference between the price at which …

Account Statements And IT Returns Relied On By Arbitral Tribunal, Have Evidentiary Value : Delhi High Court
2 years, 4 months ago

Account Statements And IT Returns Relied On By Arbitral Tribunal, Have Evidentiary Value : Delhi High Court

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The Delhi High Court has ruled that the arbitral award cannot be set aside on the ground that the material relied upon by the Arbitral Tribunal does not measure up to the standards under the Indian Evidence Act, 1872. The Commercial Court held that the Arbitral Tribunal had grossly erred in relying on the Income Tax Return and the bank …

Inland Haulage Charges Received By Shipping Companies Not Taxable As Business Profit: ITAT Mumbai
2 years, 4 months ago

Inland Haulage Charges Received By Shipping Companies Not Taxable As Business Profit: ITAT Mumbai

Live Law  

The Mumbai Bench of ITAT has reiterated that the activity of Inland Haulage is directly connected with the transportation of goods in international traffic and thus, Inland Haulage Charges are not taxable as business profit in India in view of Article 8 of the India-UAE DTAA. The Bench, consisting of Vikas Awasthy and Gagan Goyal, held that since the activity …

Inland Haulage Charges Received By Shipping Companies Not Taxable As Business Profit: ITAT Mumbai
2 years, 4 months ago

Inland Haulage Charges Received By Shipping Companies Not Taxable As Business Profit: ITAT Mumbai

Live Law  

The Mumbai Bench of ITAT has reiterated that the activity of Inland Haulage is directly connected with the transportation of goods in international traffic and thus, Inland Haulage Charges are not taxable as business profit in India in view of Article 8 of the India-UAE DTAA. The Bench, consisting of Vikas Awasthy and Gagan Goyal, held that since the activity …

Explanation To Section 14A Of Income Tax Act Will Not Apply Retrospectively: Delhi High Court
2 years, 5 months ago

Explanation To Section 14A Of Income Tax Act Will Not Apply Retrospectively: Delhi High Court

Live Law  

The Delhi High Court has ruled that the Explanation to Section 14A of the Income Tax Act, 1961, added vide the Finance Act, 2022, cannot be presumed to be retrospective in nature since it is clarificatory in nature and alters the law as it stood earlier. The revenue department submitted before the High Court that the ITAT had relied on …

Expenditure Incurred After Set-Up of Business Is Allowable As Deduction, Even If No Business Income Is Earned By The Assessee : ITAT Chennai
2 years, 5 months ago

Expenditure Incurred After Set-Up of Business Is Allowable As Deduction, Even If No Business Income Is Earned By The Assessee : ITAT Chennai

Live Law  

The Chennai Bench of ITAT has ruled that once the business of an assessee is set-up, all the expenditure incurred by it would be allowable as deduction, notwithstanding the fact that no business income was earned by the assessee during the relevant year. The assessee RBL Hotels submitted before the ITAT that it had duly set-up its business during the …

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 …

Appeal Filed By A Struck Off Company Against The Revenue Department Is Maintainable: ITAT Delhi
2 years, 6 months ago

Appeal Filed By A Struck Off Company Against The Revenue Department Is Maintainable: ITAT Delhi

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The Delhi Bench of ITAT has ruled that an appeal filed by a Company against the order passed by the revenue department does not become infructuous if, thereafter, the Company has been struck off from the Register of Companies. Also, the ITAT observed that the revenue department can recover any tax due from the struck off Company by invoking Section …

Failure Of Assessee To Give Proper Reasons For Not Appearing Before The Tax Authorities: ITAT Imposes Cost
2 years, 6 months ago

Failure Of Assessee To Give Proper Reasons For Not Appearing Before The Tax Authorities: ITAT Imposes Cost

Live Law  

The Banglore Bench of the Income Tax Appellate Tribunal consisting of B.R. Baskaran has imposed a cost of Rs.10,000 on the assessee for the failure to give proper reasons for not appearing before the tax authorities. The ITAT noted that CIT had passed the ex-parte order without hearing the assessee since the assessee had not appeared before him despite being …

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