Recent Income Tax Court decesions.

 

·         Mumbai ITAT held that no disallowance of reinsurance payments to foreign re-insurers under section 37(1) and/ or 40(a)(ia) of the Income-tax Act, 1961.

 

·         The Bangalore Bench ITAT  has held that Tax Deduction at Source (TDS) is not applicable to reimbursement of salary based on the cost to cost without any profit element and cannot attract TDS Liability u/s 195 of Income Tax Act,1961.

 

·         The ITAT Delhi has held that the addition due to mismatch between the Books of Accounts and Form 26AS can be made only on the embedded portion of the profit.

 

·         The Delhi Bench of  ITAT  has held that fulfillment of twin conditions is mandatory for invoking the jurisdiction u/s 263 

 

·         The Chennai bench of the ITAT has held that a mere mistake in the filing of return of income would not result into enhancement of income of the assesse

 

·         The ITAT Delhi bench has held that the penalty under sections 271D and 271E of the Income Tax Act, 1961 cannot be leviable on receipt of cash loan from family members to meet business exigencies 

 

The ITAT, Mumbai bench has held that the amount of interest under section 234C of the Income Tax Act, 1961 shall be calculated on the basis of the “returned income” and not on the “assessed income”