Tag: ITAT Ahmedabad

Application of percentage completion method of accounting of real estate business was incorrect as the project was not in the nature of construction contract In a recent judgment, ITAT Ahmedabad held that following the ICAI guidance note, application of the percentage completion method of accounting for revenue recognition …

Allowance of an incorrect claim in a later year cannot be used to justify the non-disallowance in an earlier year – ITAT In a recent judgment ITAT Ahmedabad has held that the allowance of an incorrect claim in a later year cannot be used to justify the non-disallowance …

Use of words, “either and or” in recording reasons to believe shows Ao was unsure of the facts and initiated proceedings in mechanical manner – ITAT In a recent judgment, ITAT Ahmedabad held that use of words, “either and or” in reasons to believe reveals that the Assessing …

ITAT deleted addition on account of employer contribution to LIC for purchasing an annuity policy for assessee-payable in future In a recent judgment, ITAT Ahmedabad held that merely because the employer chose to contribute to LIC to effect an annuity for the future benefit of the employee, the …

Contingent liabilities not debited to profit and loss account cannot be added merely on the basis of disclosure in the tax audit report – ITAT  In a recent judgment, ITAT Ahmedabad deleted adjustment made by CPC u/s 143(1)(a) holding that contingent liabilities which are not debited to the …

No fault in invoking Revisionary jurisdiction u/s 263 to direct AO to issue correct penalty notice by modifying the reassessment order – ITAT  In a recent judgment, ITAT Ahmadabad has held that the revisionary jurisdiction invoked u/s 263 by directing the Assessing Officer to issue correct penalty notice …

Agricultural land cannot be taken out of the purview of section 56(2)(x) of the Income Tax Act, 1961 (the Act) which uses the term “immovable property”.  In a recent judgment, ITAT Ahmedabad has held that agricultural land cannot be taken out of the purview of section 56(2)(x) of …

Penalty 2711c Immunity Explanation5A for Belated Return u/s 139(4). Immunity available to assessee who has filed belated return of income u/s 139(4)-held by ITAT Ahmedabad. Case Law Details: IT(SS)A.No.24/RJT/2013 Hitesh Mulchand Doshi (Appellant) vs. ACIT (Respondent) Date of Order/Judgment: 16/05/2016 Important Judgments Cited: ITO Vs. Gope M. Rochlani, …

In a recent order, ITAT Ahmedabad has held that the credit of self assessment tax paid which has the same effect as advance tax, and tax deducted or collected at source, can not be denied for the purpose of charging interest upon the assessee under section 234A. Case Details: …

ITAT, Ahmedabad has held that sale of shops by the assessee which were distributed on dissolution of partnership firm amounts to capital gain not business income. Case Details: ITA.No.1239/Ahd/2012 Asstt. Year: 2008-2009  DCIT vs. Mafatlal Nathalal Patel Date of Order: 01/04/2016 Brief Facts of the Case: The assessee was partner in …