Category: Income Tax

Wrong amount of income accumulation mentioned in Form-10 due to clerical error – ITAT deleted addition made by AO  In a recent judgment, ITAT Guwahati has deleted addition made due to wrong amount of income accumulation u/s 11(2) was mentioned in Form 10 due to clerical error and …

CBDT extends cut off date for investment by Twelve sovereign wealth funds / Pension Funds from 31st March 2024 to 31st March, 2025. CBDT has issued Notifications whereby cut off date for investment by twelve Sovereign Wealth Funds / Pension Funds has been extended for claiming exemption u/s …

Appeal against inadequacy of sentence passed by special court in income tax prosecution cases dismissed by High Court  In a recent judgment, Hon’ble Karnataka High Court has dismissed the appeal filed by the Income Tax Department against inadequacy of sentence passed by special court in prosecution cases under …

CPC order u/s 143(1) is appealable and hence the doctrine of merger with order u/s 143(3) do not arise – ITAT In a recent judgment, ITAT Chennai has held that CPC order u/s 143(1) is appealable and hence the doctrine of merger with order u/s 143(3) do not …

Merely increasing agriculture expenditure & reducing agriculture income will not result in income from other sources – ITAT In a recent judgment, ITAT Bengaluru has held that increasing or decreasing of any agriculture expenditure is irrelevant if income of the assessee is solely agriculture in nature & merely …

Expenses for making house habitable are not renovation expenses and hence qualified for exemption u/s 54 In a recent order, the ITAT Delhi has held that when house was purchased in inhabitable condition and expenditure was necessary for the proper electrification, water facilities, wood work, glass work, etc.. …

Claiming depreciation on revalued cost of assets after conversion of partnership firm into company Supreme Court dismissed Special Leave Petition of Income Tax Department   In a recent order, the Hon’ble Supreme Court has dismissed the Special Leave Petition (SLP) of the Income Tax Department  challenging claim of …

Commercial expediency – Expression “for the purposes of the business” is wider than “for the purpose of earning profits” – ITAT In a recent judgment, Ahmedabad ITAT has allowed an expenses u/s 37(1) considering Commercial expediency holding that the expression given in section 37 “for the purposes of …

“LIC Mutual Fund” not ‘Public Financial Institution’, interest payable can not be disallowed u/s 43B In a recent judgment, Hon’ble Calcutta High Court has held that “LIC Mutual Fund” is not “Public Financial Institution” u/s 43B therefore interest payable can not be disallowed on the ground of non-compliance …

Issue decided on merits by ITAT cannot again be subject matter of reopening of assessment under section 147 In a recent judgment, ITAT Delhi has held that once the issue has been decided on merits by the Tribunal, being the highest fact finding authority and a categorical finding …