Assessee Entitled To Additional Depreciation On The Power Plant And Installed Windmill: Delhi ITAT
2 years, 7 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 the Income Tax Act. The assessing officer made the disallowance on account of additional depreciation under the provisions of section 31 of the Income Tax Act. The assessee is entitled to additional depreciation on the power plant and the windmill installed during the year.

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History of this topic

Rule 8D Of IT Rules Can Be Invoked Only If Assessee's Computation Of Expenses Attributable To Earning Exempt Income Is Found Inadequate: Delhi HC
3 weeks, 2 days ago

Rule 8D Of IT Rules Can Be Invoked Only If Assessee's Computation Of Expenses Attributable To Earning Exempt Income Is Found Inadequate: Delhi HC

Live Law  

The Delhi High Court has held that recourse to Rule 8D of the Income Tax Rules, 1962 for computing disallowance under Section 14A of the Income Tax Act is available only if the Assessee's computation of expenses attributable to earning exempt income, is found to be inadequate. Aggrieved, the Assessee preferred an appeal before the Commissioner of Income Tax which …

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

Income Tax Deduction Allowable To Interest Income 'Attributable' To Cottage Industry Business: ITAT
4 months, 3 weeks ago

Income Tax Deduction Allowable To Interest Income 'Attributable' To Cottage Industry Business: ITAT

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The Chennai bench of Income Tax Appellate Tribunal has held that the income tax deduction allowable to interest income 'attributable' to cottage industry business.The bench of S.S. Viswanethra Ravi and S. R. Raghunatha has observed that the assessee is a 'cottage industry' and the interest income earned by the assessee is in its regular course of. The Chennai bench of …

ITAT Weekly Round-Up: 11 To 17 August 2024
4 months, 3 weeks ago

ITAT Weekly Round-Up: 11 To 17 August 2024

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ITAT Declines To Stay Cancellation Of Exemption Notification To Legal Initiative For Forest And Environment Trust Case Title: Legal Initiative For Forest And Environment Versus PCIT The Delhi Bench of Income Tax Appellate Tribunal has dismissed the stay application filed by assessee-LIFE Trust against the withdrawal/cancellation of registration for exemption granted under section 12A/12AA/12AB from FY 2013-14 onwards. ITAT Allows …

AO Can't Disregard ITAT's Direction To Re-examine Issue By Referring To CBDT Circular: Delhi High Court
5 months, 1 week ago

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

Live Law  

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 …

ITAT Allows Depreciation Claim On Non Compete Fee, Deletes Penalty
5 months, 2 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. …

Income Tax Deduction Allowable On Expenditure Incurred On Warranty Claim: ITAT
6 months, 4 weeks ago

Income Tax Deduction Allowable On Expenditure Incurred On Warranty Claim: ITAT

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The Delhi Bench of Income Tax Appellate Tribunal has held that the income tax deduction is allowable on expenditures incurred on warranty claims.The bench of Kul Bharat and M. Balaganesh has relied on the decision of the Supreme Court in the case of Rotork Controls India Ltd., in which it was held that if the facts establish or show that. …

Direct Tax Cases Weekly Round-Up: 02 To 08 June 2024
7 months ago

Direct Tax Cases Weekly Round-Up: 02 To 08 June 2024

Live Law  

Delhi High Court Once Issue Of Arm's Length Remuneration Settled By TPO, Question Of Ascertaining Existence Of PE Is Academic; Delhi High Court Quashes Reassessment Proceedings Case Title: Progress Rail Locomotive Inc. Exemption Allowable On Donations Made By One Charitable Trust To Other Charitable Institutions For Temporary Period: Delhi High Court Case Title: Commissioner Of Income Tax Versus M/S Jamnalal …

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

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, 3 weeks 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 …

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

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

Live Law  

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 …

ITAT Deletes Addition On Availing Accommodation Entries In Shape Of LTCG As It Was Not Recorded In Books Of Accounts
1 year ago

ITAT Deletes Addition On Availing Accommodation Entries In Shape Of LTCG As It Was Not Recorded In Books Of Accounts

Live Law  

The Indore Bench of Income Tax Appellate Tribunal has deleted the addition of availing accommodation entries in the shape of Long Term Capital Gain as it was not recorded in the books of accounts.The bench of Vijay Pal Rao and B.M. The Indore Bench of Income Tax Appellate Tribunal has deleted the addition of availing accommodation entries in the shape …

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 Income Tax Addition Of Rs.2.30 Crores As AO Failed To Mention Investment Outside The Books Of Accounts
1 year, 1 month ago

ITAT Deletes Income Tax Addition Of Rs.2.30 Crores As AO Failed To Mention Investment Outside The Books Of Accounts

Live Law  

The Delhi Bench of Income Tax Appellate Tribunal has deleted the income tax addition of Rs. 2.30 crores as the Assessing Officer did not mention any investment outside the books of accounts.The bench of Astha Chandra and N. K. Billaiya has observed that the assessee has explained the investment duly reflected in its bank statement, and. The bench of Astha …

ITAT Quashes Income Tax Addition In Respect Of Immovable Property Warranting Revision By The PCIT
1 year, 5 months ago

ITAT Quashes Income Tax Addition In Respect Of Immovable Property Warranting Revision By The PCIT

Live Law  

The Delhi Bench of the Income Tax Appellate Tribunal has quashed the income tax addition in respect of immovable property, warranting revision by the PCIT.The bench of Anubhav Sharma and M. Balaganesh has observed that AO, after making adequate inquiries, proceeded to make an addition for alleged money receipts on a protective basis in the hands of. The Delhi Bench …

Assessee Entitled To Claim Depreciation In Respect Of Assets On The Actual Cost Of Assets: Bombay High Court
1 year, 6 months ago

Assessee Entitled To Claim Depreciation In Respect Of Assets On The Actual Cost Of Assets: Bombay High Court

Live Law  

The Bombay High Court has held that the assessee is entitled to claim depreciation in respect of any assets based on the actual cost of the assets.The bench of Justice K.R. The Bombay High Court has held that the assessee is entitled to claim depreciation in respect of any assets based on the actual cost of the assets. Sathaye observed …

Income From The Sale Of RECs Is Capital In Nature, Is Not Subject To Taxation: ITAT
1 year, 6 months ago

Income From The Sale Of RECs Is Capital In Nature, Is Not Subject To Taxation: ITAT

Live Law  

The Amritsar Bench of the Income Tax Appellate Tribunal has held that the income from the sale of Renewable Energy Certificates is classified as capital in nature and is not subject to taxation.The bench of Anikesh Banerjee and M. L. Meena observed that all the modes of incentives were in the nature of entitlements received to improve. The Amritsar Bench …

NLU-Delhi Is Not Engaged In Business: ITAT Quashes Income Tax Penalty
1 year, 7 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 …

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 …

Section 14A Disallowance Not Warranted If No Exempt Income Is Earned: ITAT
1 year, 10 months ago

Section 14A Disallowance Not Warranted If No Exempt Income Is Earned: ITAT

Live Law  

The Delhi Bench of the Income Tax Appellate Tribunal has held that the disallowance under Section 14A of the Income Tax Act is not warranted if no exempt income is earned.The two-member bench of Anubhav Sharma and Anil Chaturvedi has observed that Section 14A envisages that there should be actual receipt of income, and hence Section 14A of the Act. …

Any sum paid to an employee as a bonus or commission to be allowed as a deduction: ITAT Delhi
2 years, 2 months ago

Any sum paid to an employee as a bonus or commission to be allowed as a deduction: ITAT Delhi

Live Law  

The Delhi Bench of the Income Tax Appellate Tribunal has held that any sum paid to an employee as a bonus or commission for services rendered has to be allowed as a deduction.The bench of Saktijit Dey has observed that the reasonableness of the payment or the adequacy of services rendered by the employee is not relevant factors in deciding …

ITAT Allows 60% Depreciation On ATM machines As Applicable To Computer Software
2 years, 3 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 …

Amendment To Section 36(1)(va) Of Income Tax Act Is Prospective In Nature: Delhi High Court
2 years, 5 months ago

Amendment To Section 36(1)(va) Of Income Tax Act Is Prospective In Nature: Delhi High Court

Live Law  

The Delhi High Court has allowed the assessee- TV Today Network Ltd.'s claims for deduction of expenses in nature of 'consumption incentive' offered to the advertisers for booking more The Bench, consisting of Justices Manmohan and Manmeet Pritam Singh Arora, reiterated that the 'due date', in case of delay by the assessee in depositing the employees' contribution to Provident Fund …

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 …

ITAT Directs AO To Allow Depreciation On Molasses Tanks By Making The Correct Computation Of New Assets
2 years, 6 months ago

ITAT Directs AO To Allow Depreciation On Molasses Tanks By Making The Correct Computation Of New Assets

Live Law  

The Kolkata Bench of the Income Tax Appellate Tribunal, consisting of Aby T Varkey and Girish Agarwal, has directed the assessing officer to allow the depreciation on molasses tanks by making the correct computation of new assets. The CIT, in respect of the claim of depreciation on the molasses tank, directed the AO to allow depreciation after verifying that 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 …

Galvanised Solar Structure Manufactured And Cleared For Initial Setting Up Of Solar Power Plants Exempted From Excise Duty: CESTAT
2 years, 7 months ago

Galvanised Solar Structure Manufactured And Cleared For Initial Setting Up Of Solar Power Plants Exempted From Excise Duty: CESTAT

Live Law  

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal has held that galvanised solar structures manufactured and cleared for the initial setting up of solar power plants are exempted from excise duty. During an audit, the department noticed that the clearance of galvanised solar structures falling under Central Excise Tariff Heading 5 7308 2019 was being done …

AO's claim That The Assessee Is Only Into Job Work And Not Manufacturing Rejected, Deduction Allowed By ITAT Delhi
2 years, 9 months ago

AO's claim That The Assessee Is Only Into Job Work And Not Manufacturing Rejected, Deduction Allowed By ITAT Delhi

Live Law  

The Delhi Bench of the Income Tax Appellate Tribunal while allowing the deduction under Income Tax Act has rejected the claim of AO that the assessee is only into job work and not manufacturing. The assessee electronically filed its return of income, declaring nil income after claiming a deduction under section 80IC of the Income Tax Act. During the course …

ITAT Disallows 'Mixed Used Charges' For Regularising Usage Of Residential Premises For Commercial Purposes Against House Property Income
2 years, 10 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, …

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