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Landmark Rulings

ITAT Mumbai — Direct Tax

2,432 rulings

  1. ITAT Mumbai · 27 Jan 2020
    The CIT(A) has also gone through the case and restricted the bogus purchase to the extent of 12.5% of ₹ 1,97,383/- i.e.24,672/-. However, at the time of argument, the Ld. Representative of the assessee has no objection to restrict the addition to the extent of 12.5% of the bogus purchase. Anyhow, on seeing the facts and circumstances, it seems quite justifiable to restrict the addition to the extent of 12.5% of the bogus purchase. We nowhere found any illegality and infirmity in the order passed by CIT(A) in question.

    ACIT-27 (3), MUMBAI VERSUS RASHMIKANT V. SHAH 310/12, MUMBAI

    (2020) TaxCorp(LJ) 20896 (ITAT-MUMBAI) · https://taxcorp.in/FileOpenDT.aspx?ID=81519&Category=ITAT&CategoryType=Zip

  2. ITAT Mumbai · 25 Jan 2020
    S. 226(3): Undue haste in recovery of disputed demands by issue of s. 226(3) garnishee notices, in respect of which the hearing of appeal as also the stay petition is already concluded, is indeed inappropriate. The revenue authorities should have at least waited the disposal of the stay petition. Interim stay granted and garnishee proceedings placed under suspension till the disposal of the stay petition

    Cleared Secured Services Pvt Ltd vs. DCIT

    (2020) TaxCorp(LJ) 20894 (ITAT-MUMBAI) · Section 226(3)

  3. ITAT Mumbai · 24 Jan 2020
    Since participation fees for attending seminar is not taxable in India, the question of TDS on aforesaid payment does not arise. Thus, disallowance u/s. 40(a)(I) is deleted.

    Roche Diagnostics India Pvt. Ltd Vs The Assistant Commissioner of Income Tax-11(1)(1)

    (2020) TaxCorp(LJ) 20889 (ITAT-MUMBAI) · Section 195

  4. ITAT Mumbai · 23 Jan 2020
    As long as the difference between the value adopted by the stamp valuation authority and the actual consideration received or accrued to the assessee on the transfer of the asset (other than a capital asset) is not in excess of five percent, then such difference is to be ignored and the profits and gains on transfer of the asset has to be worked out on the basis of the actual consideration received or accruing to the assessee.

    WELFARE PROPERTIES P. LTD. VERSUS DCIT-13 (3) (1), MUMBAI

    (2020) TaxCorp(LJ) 20876 (ITAT-MUMBAI) · https://taxcorp.in/FileOpenDT.aspx?ID=81432&Category=ITAT&CategoryType=Zip

  5. ITAT Mumbai · 23 Jan 2020
    Even if the purchases are found to be bogus, however, the entire purchases cannot be added if the sales are not doubted or disputed. In such circumstances, the addition can be made by applying the gross profit rate of normal purchases. Thus, in our considered opinion, the decision of the Assessing Officer in making addition applying the profit rate is in consonance with various judicial precedents available on the issue.

    NAVNIDHI STEEL AND ENGINEERING CO. P. LTD. VERSUS PRINCIPAL COMMISSIONER OF INCOME TAX, CIRCLE–5, MUMBAI

    (2020) TaxCorp(LJ) 20875 (ITAT-MUMBAI) · https://taxcorp.in/FileOpenDT.aspx?ID=81430&Category=ITAT&CategoryType=Zip

  6. ITAT Mumbai · 22 Jan 2020
    Such an undue haste in recovery of the disputed demands, in respect of which the hearing of appeal as also the stay petition is already concluded, is indeed inappropriate. The revenue authorities should have at least waited for the disposal of the stay petition.

    Cleared Secured Services Pvt Ltd Vs Deputy Commissioner of Income Tax

    (2020) TaxCorp(LJ) 20873 (ITAT-MUMBAI)

  7. ITAT Mumbai · 21 Jan 2020
    The powers of the Tribunal to grant stay on collection/ recovery of demands, during the pendency of appeal, cannot be exercised in a routine manner simply on the basis of an assessment of prima facie merits in the appeal, nonetheless, grants out of turn hearing and fixes the matter for February 24th.

    Kersiwood Holdings Limited Vs Asst. Commissioner of Income Tax

    (2020) TaxCorp(LJ) 20871 (ITAT-MUMBAI)

  8. ITAT Mumbai · 21 Jan 2020
    The issue as regards allowability of depreciation on goodwill is no more res integra. Assessee's depreciation claim on the excess of payment over net assets, capitalised as goodwill in the books of accounts is found to be in order.

    Tam Media Research Pvt. Ltd. Vs ITO

    (2020) TaxCorp(LJ) 20863 (ITAT-MUMBAI)

  9. ITAT Mumbai · 17 Jan 2020
    When the FMV of the tenancy right as on 1st April 1981 is available, there is no valid reason to discard it and adopt the cost of acquisition as per reverse indexation method merely because it is more beneficial to the assesse.

    Ajay Indrajit Thakore Vs ACIT

    (2020) TaxCorp(LJ) 20840 (ITAT-MUMBAI)

  10. ITAT Mumbai · 17 Jan 2020
    The TDS and corresponding income assessable to tax is so much interlinked that divorcing them and considering on standalone basis would result in a distorted tax/interest liability of the assessee under the Act.

    Greatship (India) Ltd Vs DCIT

    (2020) TaxCorp(LJ) 20839 (ITAT-MUMBAI)

  11. ITAT Mumbai · 17 Jan 2020
    We restore this issue to the file of the Assessing Officer to adopt the tax rate as specified in India–USA DTAA in the light of the decision of the Hon’ble Special Bench in the case of ACIT v. Clough Engineering Ltd and the decision of the Hon'ble Jurisdictional High Court in the case of the DIT(IT) v. Credit Agricole Indosuez.

    CITIBANK OVERSEAS INVESTMENT CORPORATION C/O DELOITTE HASKINS & SELLS LLP VERSUS DY. CIT (INTERNATIONAL TAXATION) – 2 (1) (1), MUMBAI AND (VICE-VERSA)

    (2020) TaxCorp(LJ) 20831 (ITAT-MUMBAI) · https://taxcorp.in/FileOpenDT.aspx?ID=81324&Category=ITAT&CategoryType=Zip

  12. ITAT Mumbai · 17 Jan 2020
    Assessing Officer has already initiated proceedings for imposition of penalty under section 271(1)(c) of the Act. That being the case, the argument of the learned Authorised Representative that the Assessing Officer has not initiated penalty proceedings under section 271(1)(c) of the Act on the basis of the specific reasoning of learned Commissioner (Appeals) on which a part disallowance under section 10A of the Act was made, in our view, is hyper–technical and superfluous. Therefore, it does not merit consideration.

    AURO GOLD JEWELLERY PVT. LTD. VERSUS DY. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE–5 (2), MUMBAI

    (2020) TaxCorp(LJ) 20830 (ITAT-MUMBAI) · https://taxcorp.in/FileOpenDT.aspx?ID=81325&Category=ITAT&CategoryType=Zip

  13. ITAT Mumbai · 17 Jan 2020
    While upholding 10% of addition in respect of the amount distributed, the DRP have clearly observed that the TPO was not justified in making addition to the extent of 50%. DRP held that consumer numbers represent a key parameter for deciding the amount or placement charges and in the facts and circumstances of the case held that allocation made by the assessee with respect to the total placement charges received is fair and proper.

    HATHWAY CABLE AND DATACOM LTD. VERSUS DCIT-12 (2) (2), MUMBAI.

    (2020) TaxCorp(LJ) 20829 (ITAT-MUMBAI) · https://taxcorp.in/FileOpenDT.aspx?ID=81327&Category=ITAT&CategoryType=Zip

  14. ITAT Mumbai · 16 Jan 2020
    There was no new material with the AO to initiate the proceeding u/s 148. When the proceeding u/s 153C has been initiated and subsequently dropped, thereafter on the similar grounds the provisions u/s 147/148 is not liable to be invoked. Assessee took the alternate plea that the notice u/s 147/148 was issued after the expiry of 4 years and no sanction was taken, therefore, the order is not liable to be sustainable in the eyes of law.

    SHRI MOHAN THAKUR VERSUS ACIT, CENTRAL CIRCLE-8 (4), MUMBAI

    (2020) TaxCorp(LJ) 20823 (ITAT-MUMBAI) · https://taxcorp.in/FileOpenDT.aspx?ID=81307&Category=ITAT&CategoryType=Zip

  15. ITAT Mumbai · 16 Jan 2020
    The proprietary concern was succeeded by the legal heirs and the proprietary business was carried on by the legal heirs of the deceased by converting the same into partnership firm there is an inheritance of business and therefore, as per the provisions of the section 78(2) assessee is entitled to set-off business loss/unabsorbed depreciation of the proprietary concern against income of the successor partnership firm.

    INCOME TAX OFFICER – 17 (2) (4), MUMBAI VERSUS M/S. NARSHI NENSHI & SONS AND (VICE-VERSA)

    (2020) TaxCorp(LJ) 20821 (ITAT-MUMBAI) · https://taxcorp.in/FileOpenDT.aspx?ID=81309&Category=ITAT&CategoryType=Zip

  16. ITAT Mumbai · 15 Jan 2020
    Since the proprietary concern was succeeded by the legal heirs and the proprietary business was carried on by the legal heirs of the deceased by converting the same into partnership firm there is an inheritance of business and therefore, as per the provisions of the section 78(2) of the Act assessee is entitled to setoff business loss/unabsorbed depreciation of the proprietary concern against income of the successor partnership firm.

    Narshi Nenshi & Sons Vs ITO

    (2020) TaxCorp(LJ) 20816 (ITAT-MUMBAI)

  17. ITAT Mumbai · 09 Jan 2020
    AO cannot make any addition or disallowance in the final assessment order which was not proposed in the draft assessment order unless such directions are given by DRP.

    SI Group India Limited Vs Dy. Commissioner of Income-tax

    (2020) TaxCorp(LJ) 20794 (ITAT-MUMBAI)

  18. ITAT Mumbai · 09 Jan 2020
    The services rendered by the assessee entailed provision of support services in advising the entities globally on policies and standards based on international best practices support in terms of IT, financial functions, and other business support services. The services in question are independent services on standalone basis, and, as such, article 12(4)(a) does not come into play.

    Kelly Services Inc Vs Deputy Commissioner of International Taxation

    (2020) TaxCorp(LJ) 20793 (ITAT-MUMBAI)

  19. ITAT Mumbai · 10 Jan 2020
    The valuation of shares or for that matter any valuation in itself is a projection of future events or activities and no doubt it has to be done with some accuracy, however no person can project with 100% of accuracy and actual events are highly volatile and highly dependent on so many factors.

    Vodafone M-Pesa Ltd Vs DCIT

    (2020) TaxCorp(LJ) 20792 (ITAT-MUMBAI) · Section 56(2)(viib)

  20. ITAT Mumbai · 09 Jan 2020
    Just giving the note will not serve the purpose. Admittedly the various details which have been referred by the learned CIT(A) were not before the assessing officer. Moreover after noting that he has himself examined the bills he has given a general assumption that expenditure must have been incurred for such transportation. When learned CIT (A) has himself verified the bills there was no need of giving such doubtful observation.

    ASSTT. COMMISSIONER OF INCOME TAX – 1 (1) (1) VERSUS M/S. AECO INDIA PVT. LTD. C/O. KALYANIWALLA & MISTRY KALPATARU HERITAGE

    (2020) TaxCorp(LJ) 20786 (ITAT-MUMBAI) · https://taxcorp.in/FileOpenDT.aspx?ID=81236&Category=ITAT&CategoryType=Zip

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