Addition made to be deleted if no lease rental received for relevant assessment year: ITAT

Addition made to be deleted if no lease rental received for relevant assessment year: ITAT The assessee along with two others had purchased two immovable properties which were leased to M/s. IBIBO Group Private Limited. As per the lease agreement, the lease rentals are to be paid from the date of handing over the building … Read more

Approval by higher authority to reopen assessment is to prevent arbitrary exercise of power: ITAT

Approval by higher authority to reopen assessment is to prevent arbitrary exercise of power: ITAT The assessee is a partnership firm engaged in the business of ginning and pressing cotton. The return of income for the year under consideration was filed declaring a total income of Rs. 5,14,300. The said return was selected for scrutiny … Read more

ITAT refuses to condone delay

Delay in filing Tax Appeal as Signed appeal documents misplaced by tax consultant: ITAT refuses to condone delay During the course of assessment dates under section 143(3) of the Act, the AO observed that the assessee had claimed a bogus short term capital loss of Rs. 35,33,650, and when the same was brought to the … Read more

Wrong claim of Sec 54B and 54F exemption invites rigors of penalty: ITAT

Wrong claim of Sec 54B and 54F exemption invites rigors of penalty: ITAT During the assessment year, assessee along with his brother Shri Ramesh Chand sold agricultural land for a consideration of Rs.38,44,75,000/-. Assessee has 50% share therein. While filing the return of income assessee claimed deduction u/s 54F and 54B of the Income Tax … Read more

A mere mismatch of cash in cash book and Audited BS cannot be treated as undisclosed income: ITAT

A mere mismatch of cash in cash book and Audited BS cannot be treated as undisclosed income: ITAT The facts in brief are that the assessee in the present case is an individual and engaged in the activity of tours and travelling. The assessee in his balance sheet as on 31 March 2011 has shown … Read more

Only the right person is liable to be taxed and not the wrong person

Only the right person is liable to be taxed and not the wrong person The brief facts of the case is that during the scrutiny proceedings, the Assessing Officer observed that assessee is the beneficiary of accommodation entry provided by Shri Pravin Kumar Jain-Group.Therefore, Assessing Officer, after considering the reply of the assessee and as … Read more

Functionality test not description to be applied for determining type of Asset block for Depreciation

Functionality test not description to be applied for determining type of Asset block for Depreciation The grounds deals with the disallowance of depreciation / additional depreciation claimed on plant and machinery amounting to Rs.8,23,073. The AO restricted the depreciation claimed on air conditioners, telephones, office equipments and canteen equipments by treating these assets as furniture … Read more

Addition not justified when no corroborative or tangible material found from premises of assessee: ITAT

Addition not justified when no corroborative or tangible material found from premises of assessee: ITAT The assessee is engaged in the business of real estate and in the assessment year 2006-07 subsequent to a search and seizure operation conducted under section 132(1) of the Income Tax Act, 1961 on the Motia Group of cases, Zirakpur. … Read more