ITAT Allows Section 80P Deduction on Interest from Bank Deposits, Applying “Vegetable Products” Doctrine Issue Whether interest income earned by a Co-operative Society (specifically a Cane Development Union) from surplus funds deposited in scheduled/nationalized banks qualifies for deduction under Section 80P(2) of the Income Tax Act, or if it should be treated as “Income from… Read More »
ITAT Allows Section 80P Deduction on Interest from Bank Deposits, Applying “Vegetable Products” Doctrine Issue Whether interest income earned by a Co-operative Society (specifically a Cane Development Union) from surplus funds deposited in scheduled/nationalized banks qualifies for deduction under Section 80P(2) of the Income Tax Act, or if it should be treated as “Income from… Read More »
Subscription Fees for Database Access & Administration Fees are Not Royalty; ITAT Allows Appeal Issue Whether “Administration Fees” received by the US-based assessee from its Indian Reporting Body (MSAI) for maintaining the IMEI database constitute “Royalty” under Section 9(1)(vi) of the Act and Article 12(3) of the India-USA DTAA. Whether “Subscription Fees” received for granting… Read More »
Protective Assessment Quashed: No Protective Addition Without a Substantive One Issue Can the Revenue department frame a “protective” assessment against an assessee (by adding alleged accommodation entries and commission income) under Section 147/148 proceedings without establishing or discussing who the corresponding “substantive” addition has been made against? Facts Assessee: Sh. Surendra Kumar Jain. Assessment Year:… Read More »
Protective Assessment Quashed: No Protective Addition Without a Substantive One Issue Can the Revenue department frame a “protective” assessment against an assessee (by adding alleged accommodation entries and commission income) under Section 147/148 proceedings without establishing or discussing who the corresponding “substantive” addition has been made against? Facts Assessee: Sh. Surendra Kumar Jain. Assessment Year:… Read More »
ITAT Upholds CIT(A)’s Order; Presumptive Taxation u/s 44AE and 44AD Allowed for Transport Business Issue Whether the assessee, engaged in the business of providing transport services, is entitled to declare income under the presumptive taxation schemes of Section 44AE (for plying goods carriages) and Section 44AD (for other business) simultaneously, especially when receipts are primarily… Read More »
ITAT Allows Section 80P Deduction on Bank Interest Income; Favours Assessee Amidst Conflicting HC Views Issue Whether interest income earned by a cooperative society from surplus funds deposited in nationalized/scheduled banks constitutes business income eligible for deduction under Section 80P(2), or if it falls under “Income from Other Sources,” thereby denying the deduction. Facts Assessee:… Read More »
ITAT Upholds Section 271B Penalty for Failure to Audit Accounts; No “Reasonable Cause” Shown Issue Whether the penalty levied under Section 271B of the Income-tax Act for the failure to get books of account audited as required under Section 44AB is sustainable when the assessee fails to provide any satisfactory explanation or “reasonable cause” for… Read More »
ITAT Upholds Section 271B Penalty for Failure to Audit Accounts; No “Reasonable Cause” Shown Issue Whether the penalty levied under Section 271B of the Income-tax Act for the failure to get books of account audited as required under Section 44AB is sustainable when the assessee fails to provide any satisfactory explanation or “reasonable cause” for… Read More »
ITAT Restricts Demonetization Addition to ₹7 Lakhs; Rules Enhanced Tax Rate u/s 115BBE is Prospective Issue Quantum: Whether cash deposits of ₹78 lakhs made during the demonetization period constitute unexplained money under Section 69A, considering the assessee’s business in handicrafts and exports. Tax Rate: Whether the enhanced tax rate under Section 115BBE (introduced via the… Read More »