ITAT Holds Revisionary Order Passed Without Mentioning DIN As Invalid
2 years, 4 months ago

ITAT Holds Revisionary Order Passed Without Mentioning DIN As Invalid

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The Kolkata Bench of the ITAT has quashed the revisionary order passed by the Income Tax Authority without quoting the Document Identification No. The Bench, consisting of Mr. Sanjay Garg and Mr. Girish Agrawal, held that since the order passed by the Income Tax Authority failed to mention the DIN in its body, therefore, the said order was "invalid and deemed to have never been issued", as provided under the said CBDT Circular. The revenue department added that there are certain exceptional circumstances mention in the said CBDT Circular No.19/2019 with respect to quoting of the DIN; and that there were certain technological and other difficulties faced by the revenue department in generating, allotting and quoting the DIN, which cannot make the lawful proceedings conducted and completed by the Income Tax Authorities as invalid. The ITAT further noted that there was no reference in the said order to the fact that the order was issued manually without a DIN, for which the written approval of the Chief Commissioner or the Director General of Income Tax was required to be obtained in terms of the said CBDT Circular. Hence, the ITAT held that since the said order passed by the CIT failed to mention the DIN in its body, and thereby failed to adhere to the CBDT Circular No.

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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 …

ITAT Weekly Round-Up: 11 To 17 August 2024
4 months 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
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 …

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 …

ITAT Half Yearly Digest: January To June 2024 - PART II
5 months, 1 week ago

ITAT Half Yearly Digest: January To June 2024 - PART II

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Failure To Produce Share Certificate Is No Basis To Doubt Share Purchase Transaction: Mumbai ITAT Refers Art 265 Of Constitution Case Title: Shantaben Fathechand Mehta verses Income-tax Officer Referring to Article 265 of the Constitution of India, the Mumbai ITAT remanded the case to the file of AO with direction to verify factual aspects, pertaining to the purchase of the …

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 …

Final Assessment Made By AO After Expiry Of One Month Of Receiving Directions From Dispute Resolution Panel, Is Time Barred: Chennai ITAT
7 months ago

Final Assessment Made By AO After Expiry Of One Month Of Receiving Directions From Dispute Resolution Panel, Is Time Barred: Chennai ITAT

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The Chennai ITAT recently held that the final assessment order dated Nov 21, 2017 passed after expiry of one month from the end of the month in which the DRP directions were received by the Revenue is barred by limitation and hence, “passed wholly without jurisdiction and therefore, null in the eyes of law”. Section 144C of Income tax Act …

Income Tax Authority Should Refrain From Over Analysis Which Leads To Paralysis Of Justice: Bombay High Court
7 months, 2 weeks ago

Income Tax Authority Should Refrain From Over Analysis Which Leads To Paralysis Of Justice: Bombay High Court

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The Bombay High Court, while setting aside the order of the Income Tax Appellate Tribunal, held that the authority should refrain from overanalyzing, which leads to paralysis of justice.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that the ITAT failed to appreciate the spirit in which the order dated August 23, 2022, was passed by …

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 …

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 …

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

ITAT Cases Monthly Round-Up: March 2024

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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 …

ITAT Cases Weekly Round-Up: 10 To 16 March 2024
9 months ago

ITAT Cases Weekly Round-Up: 10 To 16 March 2024

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Case Title: Balduhak Co-operative Agriculture Service Society verses ITO Finding that that the assessee is a Cooperative Society which was engaged in providing short term credit facility to its members, the Chandigarh ITAT ruled that interest income has been earned on deposits placed with a co-operative society and duly eligible for deduction under section 80P of the Income tax Act. …

PCIT Cannot Enlarge Scope Of Limited Scrutiny By Invoking Sec 263: Chennai ITAT
9 months, 1 week ago

PCIT Cannot Enlarge Scope Of Limited Scrutiny By Invoking Sec 263: Chennai ITAT

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Finding that the case of assessee was selected for limited scrutiny by the AO, the Chennai ITAT ruled that the PCIT cannot enlarge the scope of limited scrutiny u/s 263 of the Income tax Act. The Bench of V. Durga Rao and Manjunatha, G. observed that “it is not a fit case to invoke the provisions of section 263 of …

Payee Who Has Considered Amounts Received By Payer In Its Return & Paid Taxes On Same, Can't Be Treated As In Default U/s 201(1): New Delhi ITAT
9 months, 1 week ago

Payee Who Has Considered Amounts Received By Payer In Its Return & Paid Taxes On Same, Can't Be Treated As In Default U/s 201(1): New Delhi ITAT

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On finding that CIT has failed to consider all submission of assessee and evidences placed on record, the New Delhi ITAT restored the matter back to file of AO for fresh adjudication regarding the TDS deduction u/s 194J or u/s 194C of the Income Tax Act, 1961 on the payments made towards maintenance of X-Ray machine and CVC machine. However, …

A Trust Is Not Barred From Getting Approval U/S 80G In Future Because It Has Not Opted For It Previously: Kolkata ITAT
10 months, 2 weeks ago

A Trust Is Not Barred From Getting Approval U/S 80G In Future Because It Has Not Opted For It Previously: Kolkata ITAT

Live Law  

The Kolkata ITAT ruled that simply because a trust/charitable institution has not opted for getting benefits under the Income-tax Act, then such institution is not barred in future from applying from registration/approval under the relevant provisions. As per the brief facts of the case, the assessee trust, duly registered u/s 12A, applied for provisional approval u/s 80G which was granted …

Reopening Initiated On Basis Of Wrong Reasons Renders Very Assessment As Invalid: Mumbai ITAT
10 months, 2 weeks ago

Reopening Initiated On Basis Of Wrong Reasons Renders Very Assessment As Invalid: Mumbai ITAT

Live Law  

On finding the reasoning behind the Assessment made by the Assessing Officer to be wrong, the Mumbai ITAT allowed the assessee's appeal against the order of Commissioner of Income Tax and National Faceless Appeal Centre. It is fact on record that assessee has filed its return of income and Assessing Officer has accepted the same.” “The assessment order is bad …

Assessment Order Passed Beyond Sec 144C(4) Is Time Barred If Objections To Draft Order Were Filed After Expiry Of Limitation As Per Sec 144C(2): Delhi ITAT
11 months ago

Assessment Order Passed Beyond Sec 144C(4) Is Time Barred If Objections To Draft Order Were Filed After Expiry Of Limitation As Per Sec 144C(2): Delhi ITAT

Live Law  

Noticing that the draft assessment order was passed on Mar 4, 2022 and the assessee filed objection before the DRP on Apr 6, 2022 which was beyond the due date provided for filing objection, the Delhi ITAT held the assessment order to be time-barred being passed beyond Section 144C of Income tax Act, 1961 time-limit. Since the final Assessment Order …

Initiation Of Revision Proceedings By Issuing Show Cause Notice And Passing Revision Order Without DIN Are Invalid: ITAT
1 year, 1 month ago

Initiation Of Revision Proceedings By Issuing Show Cause Notice And Passing Revision Order Without DIN Are Invalid: ITAT

Live Law  

The Ahmedabad Bench of Income Tax Appellate Tribunal has held that the initiation of revision proceedings by issuing show cause notice and passing a revision order without a Document Identification Number is invalid.The bench of T.R. The Ahmedabad Bench of Income Tax Appellate Tribunal has held that the initiation of revision proceedings by issuing show cause notice and passing a …

ITAT Quashes Income Tax Addition In Respect Of Immovable Property Warranting Revision By The PCIT
1 year, 4 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 …

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

Live Law  

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 …

Delay By State To Issue Necessary Certificates: ITAT Quashes Revision Order
1 year, 10 months ago

Delay By State To Issue Necessary Certificates: ITAT Quashes Revision Order

Live Law  

The Calcutta Bench of Income Tax Appellate Tribunal has quashed the revision proceedings initiated in the name of the deceased person.The revenue department acted quickly after receiving the legal heir certificate, according to the two-member bench of George Mathan and Arun Khodpia. The revenue department acted quickly after receiving the legal heir certificate, according to the two-member bench of George …

When AO Has Taken One Of The Possible Views The PCIT Is Prohibited From Adopting Different View: ITAT
1 year, 11 months ago

When AO Has Taken One Of The Possible Views The PCIT Is Prohibited From Adopting Different View: ITAT

Live Law  

The Mumbai Bench of the Income Tax Appellate Tribunal, while quashing the revision order, held that when the Assessing Officer has taken one of several possible views, the Principal Commissioner of Income Tax is prohibited from adopting a different view.The two-member bench of Aby V. Varkey and B.R. The Mumbai Bench of the Income Tax Appellate Tribunal, while quashing the …

ITAT Allows Section 80G Deduction To The Trust Which Is Not Substantially Religious
2 years ago

ITAT Allows Section 80G Deduction To The Trust Which Is Not Substantially Religious

Live Law  

The Pune Bench of the Income Tax Appellate Tribunal has allowed the deduction under Section 80G of the Income Tax Act to the trust, which is not substantially religious.The two-member bench headed by R.S. The Pune Bench of the Income Tax Appellate Tribunal has allowed the deduction under Section 80G of the Income Tax Act to the trust, which is …

Section 260A IT Act -Appeal Only Lies Before High Court Within Whose Jurisdiction The Assessing Officer Is Situated: Supreme Court
2 years, 1 month ago

Section 260A IT Act -Appeal Only Lies Before High Court Within Whose Jurisdiction The Assessing Officer Is Situated: Supreme Court

Live Law  

The Supreme Court reiterated that an appeal under Section 260A of the Income Tax Act against orders of Income Tax Appellate Tribunal lies only before the High Court within whose territorial jurisdiction the assessing officer is located.As per Section 260A of IT Act, an appeal shall lie to the High Court from every order passed in appeal by the Appellate …

Income Tax Assessment made by a non-jurisdictional officer is void: Kolkata ITAT
2 years, 1 month ago

Income Tax Assessment made by a non-jurisdictional officer is void: Kolkata ITAT

Live Law  

The Kolkata Income Tax Appellate Tribunal has held that the income tax assessment made by a non-jurisdictional officer is null and void.The two-member bench of Sonjoy Sarma and Rajesh Kumar has observed that in the case of a non-corporate assessee in non-metro cities, the ITR filed up to Rs. The Kolkata Income Tax Appellate Tribunal has held that the income …

Housing Credit To Poor Through Borrowings From Financial Institutions; Not A Charitable Activity: ITAT
2 years, 3 months ago

Housing Credit To Poor Through Borrowings From Financial Institutions; Not A Charitable Activity: ITAT

Live Law  

The Chennai Bench of the Income Tax Appellate Tribunal has ruled that grant of housing credit by the assessee trust to the lower strata of society, financed solely through the funds borrowed from financial institutions, is not a charitable activity and thus the assessee cannot be registered as a Charitable Trust under Section 12AA of the Income Tax Act, 1961. …

Addition Made By AO Despite Issue Pending Before AAR; Assessment Order Not Void: ITAT
2 years, 3 months ago

Addition Made By AO Despite Issue Pending Before AAR; Assessment Order Not Void: ITAT

Live Law  

The Bangalore Bench of the Income Tax Appellate Tribunal has ruled that an assessment order passed by an Assessing Officer, deciding on an issue pending before the AAR, in contravention of the mandate laid down in Section 245R of the Income Tax Act, 1961, would not make the entire assessment order void. The Bench of N. V. Vasudevan and Chandra …

Failure Of Assessee To Explain Identity And Creditworthiness Of Creditors And Genuineness Of Transaction: ITAT Sustains Addition
2 years, 3 months ago

Failure Of Assessee To Explain Identity And Creditworthiness Of Creditors And Genuineness Of Transaction: ITAT Sustains Addition

Live Law  

The Allahabad Bench of the Income Tax Appellate Tribunal has sustained the addition as the assessee failed to explain the identity and creditworthiness of the creditors and the genuineness of the transaction. The AO made additions to the income of the assessee towards unexplained deposits and cash credits. The assessee filed a second appeal with the tribunal, and the tribunal …

Appeals Against ITAT Order Will Lie Only Before The High Court Within Whose Jurisdiction The Assessing Officer Is Situated: Supreme Court
2 years, 4 months ago

Appeals Against ITAT Order Will Lie Only Before The High Court Within Whose Jurisdiction The Assessing Officer Is Situated: Supreme Court

Live Law  

Settling a crucial issue, the Supreme Court, on Thursday, held that appeals against orders of Income Tax Appellate Tribunal will lie only before the High Court within whose jurisdiction the assessing officer is situated. The Apex Court clarified that even if the case is transferred in exercise of power under Section 127 of the Income Tax Act, which enables a …

Revisionary Order Invalid Due to Lack of DIN: ITAT
2 years, 4 months ago

Revisionary Order Invalid Due to Lack of DIN: ITAT

Live Law  

The Kolkata Income Tax Appellate Tribunal has declared the revisionary order passed by the CIT and deemed to have never been issued as it fails to mention Document Identification Number in its body by adhering to the CBDT circular. The two-member bench of Sanjay Garg and Girish Aggarwal observed that there was no reference to the fact that the order …

Tax Cases Weekly Round-Up: 24 July To 30 July, 2022
2 years, 4 months ago

Tax Cases Weekly Round-Up: 24 July To 30 July, 2022

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Supreme Court Case Title : Union of India vs. M/s Filco Trade Centre Pvt. The Karnataka High Courthas directed the Income Tax Department to issue a 'Nil Tax Deduction at Source' Certificate to Flipkart under Section 195 of the Income Tax Act, 1961, with respect to the reimbursements made by it to Walmart Inc. Madras High Court Case Title: M/s.Gharpure …

ITAT Quashes Order Holding Air India An Assesssee In Default For Shortfall In Deduction Of TDS On Payments Made To Its Subsidiary
2 years, 4 months ago

ITAT Quashes Order Holding Air India An Assesssee In Default For Shortfall In Deduction Of TDS On Payments Made To Its Subsidiary

Live Law  

The Mumbai Bench of ITAT has ruled that Air India must be given the benefit of the Proviso to Section 201 of the Income Tax Act, 1961 and hence, it cannot be considered as an assessee in default for shortfall in deduction of TDS on the payments made by it to its subsidiary - Air India Engineering Services Ltd. During …

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 …

Setting Aside Of Assessment Orders By ITAT On Technical Grounds Will Not Lead To Automatic Quashing Of Criminal Complaint: Madras High Court
2 years, 6 months ago

Setting Aside Of Assessment Orders By ITAT On Technical Grounds Will Not Lead To Automatic Quashing Of Criminal Complaint: Madras High Court

Live Law  

The Madras High Court recently held that when an assessment order is quashed by the Income Tax Appellate Tribunal on technical grounds, the same cannot be made a ground to evade criminal prosecution before the concerned court under the Income Tax Act. ii)The assessment order passed by the Assessing Officer, confirmed by the CIT have been set aside by the …

ITAT Final Arbiter Of Facts, Its Order Can Be Interfered With Only If There Is Substantial Question Of Law, Manifest Illegality/ Perversity: Delhi HC
2 years, 7 months ago

ITAT Final Arbiter Of Facts, Its Order Can Be Interfered With Only If There Is Substantial Question Of Law, Manifest Illegality/ Perversity: Delhi HC

Live Law  

Observing that the Income Tax Appellate Tribunal is the final arbiter of the facts, the Delhi High Court has observed that the High Court can interfere with its order only if there is substantial question of law or there is manifest illegality or it suffers from perversity.Justice Manmohan and Justice Dinesh Kumar Sharma was dealing with an appeal challenging the …

Non Production Of Persons Despite Summons Leads To Inference Of Routing Own Money : ITAT Delhi
2 years, 9 months ago

Non Production Of Persons Despite Summons Leads To Inference Of Routing Own Money : ITAT Delhi

Live Law  

The Delhi Bench of ITAT, consisting of members G.S. Pannu and K. Narsimha Chary, has ruled that an Assessing Officer has the power to verify transactions beyond the paperwork submitted by the Assessee under Section 68 of the Income Tax Act, 1961. The Assessing Officer had disallowed expenses and made additions to Assessee's income under Section 68 of Income Tax …

ITAT Cannot Recall Its Order By Invoking Power U/Sec 254(2) Income Tax Act : Supreme Court
3 years ago

ITAT Cannot Recall Its Order By Invoking Power U/Sec 254(2) Income Tax Act : Supreme Court

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The Supreme Court observed that the Income Tax Appellate Tribunal cannot recall orders passed by it invoking power under Section 254 of the Income Tax Act.Section 254 power is only to correct and/or rectify the mistake apparent from the record and not beyond that, the bench comprising Justices MR Shah and BV Nagarathna said.In this case, the ITAT allowed the …

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