ITAT Delhi decides: Can deduction u/s 43 be disallowed for service tax if it is not routed through P&L account?

Issue: Whether CIT(A)’s Order upholding the AO’s Disallowance under Section 43B on account of non-payment of service tax, hold good? Case name:  Vikon Engineering Pvt. Ltd. v. ACIT Background The assessee company filed its return of income for the AY 2010-11 on 28.09.2010 declaring total income at INR 3,73,34,500/-. The AO made the following adjustments:  … Continue reading ITAT Delhi decides: Can deduction u/s 43 be disallowed for service tax if it is not routed through P&L account?

ITAT Mumbai decides: Can TPO ignore the benchmarking method proposed by the Assessee without providing valid reasoning for suggesting an alternate method?

Issue: Whether DRP’s confirmation of the TPO’s proposed adjustment to the ALP holds good? Case Name: Brinks India Pvt. Ltd. v. DCIT Background The assessee is a part of Brinks Global Services, which provides global risk management and secures logistics for valuables.The assessee company filed its return of income for the assessment year (AY) 2012-13 … Continue reading ITAT Mumbai decides: Can TPO ignore the benchmarking method proposed by the Assessee without providing valid reasoning for suggesting an alternate method?

ITAT Mumbai Decides: Can Value of Strategic Investments be considered while computing the amount of disallowance under Section 14A?

Case: Aryadoot Transport(P) Ltd. v. DCIT Issues: Whether CIT(A) erred in confirming the disallowance of INR 7.15 Lakhs by the AO?Whether the value of strategic investments should be taken into account while computing disallowance amount under Section 14A? Background The assessee carried out the business of providing truck trailers.He was assessed for the year, 2015-16, … Continue reading ITAT Mumbai Decides: Can Value of Strategic Investments be considered while computing the amount of disallowance under Section 14A?

Whether the Assessee can claim deduction under Section 35(2AB), without complying with all its conditions?

Case name: Phoneix Medical Systems Pvt. Ltd. v. ACIT Forum: Chennai ITAT Background The assessee manufactures engineering goods. While assessing the income for AY 2015-16, the AO, disallowed INR 3,01,754 under the head travelling expenses, INR 10,25,000 towards donation under the head other expenses u/S. 37 and INR 61,200 for penalty paid on sales tax. … Continue reading Whether the Assessee can claim deduction under Section 35(2AB), without complying with all its conditions?

Whether the CIT(A) erred in directing the AO/TPO to apply nil rate as arm’s length interest rate on outstanding receivables from Associated Enterprise?

Case: Addl. CIT v. Axis Risk Consulting Services Pvt. Ltd. Forum: Delhi ITAT Access all the links in this article by signing up for free with Riverus Research Map for income tax here. Background The assessee is an IT company which entered into international transactions with its Associated Enterprise. The assessee used the Transactional Net Margin … Continue reading Whether the CIT(A) erred in directing the AO/TPO to apply nil rate as arm’s length interest rate on outstanding receivables from Associated Enterprise?

Whether depreciation allowance of earlier years can be adjusted in the relevant assessment year if no business being carried out in the relevant assessment year?

Case: DCIT v. Liquidator, M/s Petrofils Cooperative Ltd. Forum: Ahmedabad ITAT Access all the links in this article by signing up for free with Riverus Research Map for income tax here. Background This appeal by the revenue to the ITAT clubs similar claims pertaining to the following Assessment Years: 2004-05, 2009-10, 2011-12 and 2012-13. For the … Continue reading Whether depreciation allowance of earlier years can be adjusted in the relevant assessment year if no business being carried out in the relevant assessment year?

Is it incumbent on the assessee to prove genuineness and creditworthiness of investors in investments received in cash?

Case Name: Deepak Petrochem Ltd. V. DCIT See Similar case: CIT v. Ajay Kumar Gupta Background The assessee filed its income tax return for the AY 2002-03, declaring total loss of INR 29,31,379. Authorities scrutinized the aforementioned return and it was revealed that the authorized share capital of the assessee had been increased to INR … Continue reading Is it incumbent on the assessee to prove genuineness and creditworthiness of investors in investments received in cash?

Whether expenses pertaining to brokerage incurred by a builder can be deductible as expenses?

Case: The PR Commissioner of Income Tax v. DLF Home Developers, Forum: Supreme Court Background: Supreme Court Dismisses Revenue’s Appeal [SLP(C)] to Disallow brokerage related expenses. Given below is the summary of the case when appealed in Delhi HC for reference along with all the related links. Case: The PR Commissioner of Income Tax v. … Continue reading Whether expenses pertaining to brokerage incurred by a builder can be deductible as expenses?

Can the principal payment which has been made towards the finance lease be considered as revenue expenditure?

Case: M/s NIIT Limited v. The DCIT, New Delhi Background Assessee is a public limited company engaged in the business of information technology education and knowledge solutions.The assessee filed returns of income for the year 2009-2010 declaring INR 25.81Cr as income and claimed a deduction of INR 50,09,835 in respect of payment of the principal … Continue reading Can the principal payment which has been made towards the finance lease be considered as revenue expenditure?

Whether the Assessee can claim an amount which was spent on giving gifts to medical practitioners as a deduction?

Case: Shine Pharmaceuticals v. DCIT (Ahmedabad ITAT) Background The assessee did not make employees’ contribution as mandated by the ESIC by the given due date.  The AO added INR 3,79,404 to the assessee’s income due to this non-compliance.The AO further disallowed the expenditure of INR 19,45,443 to be claimed as a deduction. The assessee had … Continue reading Whether the Assessee can claim an amount which was spent on giving gifts to medical practitioners as a deduction?