ITAT Hyderabad comes down heavily on revenue officials for frivolous appeals

In the case of DCIT v. Shashikala Ramkumar the Hyderabad bench of the ITAT has come down heavily on the revenue officials for not applying their minds while preferring appeals. The Bench remarked that appeals are being filed on grounds that are not meritorious while invoking wrong provisions so as to raise unnecessary demands. Also Read: Unexplained cash … Continue reading ITAT Hyderabad comes down heavily on revenue officials for frivolous appeals

Penalty notice under section 274 must mention the grounds under which penalty is imposed

The Delhi bench of the ITAT has held in the case of Ravina Khurana vs. DCIT that imposing the penalty without mentioning the grounds specified in the notice issued under section 274 of the Income Tax Act is not justifiable and that the AO has to specifically mentioned under which limb of the Act the penalty proceedings … Continue reading Penalty notice under section 274 must mention the grounds under which penalty is imposed

Requirements of Section 263 must be satisfied for CIT to exercise revisionary jurisdiction

ITAT Kolkata has held in the case of Poonam Bhotika vs. ITO Ward 43(1) Kolkata that Commissioner of Income Tax ( CIT ) does not have power under section 263 to remit the matter to the AO without giving a finding that the order was erroneous or prejudicial to the interest of revenue. Also Read: Penalty … Continue reading Requirements of Section 263 must be satisfied for CIT to exercise revisionary jurisdiction

Peripheral Development Expenditure as part of CSR to be considered revenue expenditure

The Kolkata bench of ITAT has held in the case of M/s. Misrilall Mines Pvt. Ltd vs. DCIT CIRCLE 5(1) Kolkata, that peripheral development expenditure as part of CSR is to be considered as revenue expenditure. It also held that if such expenditure was incurred by the company wholly and exclusively for the purposes of the … Continue reading Peripheral Development Expenditure as part of CSR to be considered revenue expenditure

Material found during survey of premises of connected person can be included in block assessment of assessee

In the case of Commissioner of Income Tax, Chennai vs. S. Ajit Kumar, the Supreme Court has held that any material unearthed during a survey at the premises of a connected person can be included in block assessment of the assessee if such survey was conducted simultaneously to proceedings at the assessee's premises. Also Read: … Continue reading Material found during survey of premises of connected person can be included in block assessment of assessee

Assessee may file revised return of income after receiving notice from IT Dept.

ITAT Mumbai in the case of Mahesh H. Hinduja vs. Income Tax Officer Ward–21(3)(3), Mumbai has held that an assessee can file a revised return of income after receiving a notice from the Income Tax authorities, and any tax benefit claimed by the assessee in such return cannot be denied merely because it was claimed … Continue reading Assessee may file revised return of income after receiving notice from IT Dept.

Payment of management charges not allowable as a deduction u/s 40(a)(i)

The Mumbai bench of the ITAT in the case of Lloyd’s Register Quality Assurance Ltd v. Dy. Commissioner of Income Tax has held that disallowance under Section 40(a)(i) cannot be made for payment of management charges under Section 44C of the Income Tax Act,1961. Read More: Assessee may file revised return of income after receiving notice from … Continue reading Payment of management charges not allowable as a deduction u/s 40(a)(i)

Assessee not to be penalized if TDS challan mentions PAN instead of TAN

In the case of Income Tax Officer-2(5) Lucknow vs. M-s Umatech, the Lucknow ITAT has held that there can be no levy of penalty if the assessee has wrongly mentioned their PAN number of the TDS challan instead of the TAN number as this would amount to a mere technical error. Also Read: Broadcast companies not … Continue reading Assessee not to be penalized if TDS challan mentions PAN instead of TAN

Interest u/s 234 cannot be levied if due date of filing return has been extended

The Kolkata ITAT has held in the case of M/s Nidhi Packers Pvt. Ltd v. ITO that revenue cannot charge interest under section 234 of the Income Tax Act from an assessee if they have filed their return within the extended due date of filing returns. Also Read: Assessee not to be penalized if TDS challan … Continue reading Interest u/s 234 cannot be levied if due date of filing return has been extended

AAR ruling could put foreign hotel owners in a tax bind

The Authority for Advance Ruling has ruled in the case of FRHI Hotels & Resorts that based on the degree of exclusive control, discretion and authority exercised by the non-resident company over operations of an Indian hotel could mean that such a hotel constituted a fixed place permanent establishment for the former and its income from operations … Continue reading AAR ruling could put foreign hotel owners in a tax bind