Siddesh Prabhale Case summary, Income Tax

Is the CIT(A)’S order that provides for a 25% disallowance of bogus purchases is erroneous?

Case: ITO -WD- 3 (1) vs BHADRESH JAYANTILAL SHAH DOMBIVALI, ITAT MUMBAI. Listen to the case summary ITO -WD- 3 (1) vs BHADRESH JAYANTILAL SHAH DOMBIVALI, ITAT MUMBAI here Background: The assesee who was engaged in the business of trading had shown certain bogus purchases against returned income. Consequently, order of re-assessment was passed under … Continue reading Is the CIT(A)’S order that provides for a 25% disallowance of bogus purchases is erroneous?

Siddesh Prabhale Case summary, Income Tax

Is deduction allowed on share in goodwill paid to legal heirs of deceased partner?

Case: WADIA GHANDY AND CO vs ACIT CIR. 16(3), ITAT MUMBAI Listen to the case summary WADIA GHANDY AND CO vs ACIT CIR. 16(3), ITAT MUMBAI here Background: During the assessment proceedings, the Assessing Officer disallowed assesse’s claim of deduction towards payments made to legal heirs of deceased partners. Assessee’s appeal against the said order … Continue reading Is deduction allowed on share in goodwill paid to legal heirs of deceased partner?

Siddharth P. Sharma Case summary, Income Tax

Subscription fee paid to access online database is in the nature of business income

The Mumbai bench of the ITAT has held in the case of Elsevier Information Systems vs. DCIT that the subscription fee paid to access an online database would amount to business income and not royalty or fees for technical services. Revenue’s Arguments: The AO held that providing access to a curated online database of was … Continue reading Subscription fee paid to access online database is in the nature of business income

Siddharth P. Sharma Income Tax, Update

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.

Siddharth P. Sharma Income Tax, Update

Own more than one house? ITAT ruling may give you some relief.

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has ruled in the case of Venkatavarthan N. Iyengar vs. ACIT, Circle-4 Thane that in case a taxpayer owns more than one house, they can choose which house they want to categorise as self occupied in order to reduce their tax liability. As per the ruling, … Continue reading Own more than one house? ITAT ruling may give you some relief.

Siddharth P. Sharma Income Tax, Update

Interest free loan from Employer Taxable: Mumbai ITAT

The Mumbai ITAT in the case of Neha Saraf vs. ACIT Range 13(3) Mumbai has held that interest-free loans extended by an employer are taxable in the hands of an employee as a perquisite. However, the valuation of the taxable benefit or perquisite has to be computed as per the prescribed formula under the Income Tax Act. … Continue reading Interest free loan from Employer Taxable: Mumbai ITAT