Deduction of interest income of co-operative housing society from deposits with co-operative banks - Co-operative bank as co-operative society for deduction purposes Eligibility of a co-operative housing society for deduction under section 80P(2)(d) in respect of interest earned on deposits with co-operative bank - HELD THAT: - Following Ashok tower "D" Co. Op. Housing Society Ltd. [2024 (7) TMI 84 - ITAT MUMBAI] the Tribunal held that a co-operative bank in Maharashtra is also a co-operative... ... ...

Penalty u/s 271D - Cash refund of trade advance - loan or deposit u/s 269SS Applicability of section 269SS and penalty u/s 271D to cash received as refund of a trade advance paid to a supplier in earlier years - HELD THAT: - A cash receipt which represents refund of a trade advance paid in earlier years cannot be characterised as acceptance of a loan or deposit and, therefore, would not attract section 269SS or penalty under section 271D. However, the documents produced to establish the chara... ... ...

TDS credit for income offered to tax in earlier years - Percentage completion method of revenue recognition Entitlement to TDS credit where the related real-estate revenue had been recognised and offered to tax in earlier assessment years under the percentage completion method - HELD THAT: - The assessee was eligible for credit of TDS reflected in Form 26AS where the corresponding revenue had already been offered to tax in earlier assessment years. Since reconciliation of the TDS claimed with... ... ...

Disallowance u/s 14A of interest on investments yielding exempt income - Recording of satisfaction before disallowance of indirect expenditure relating to exempt income - Deductibility of contributions to employees' welfare fund - Deductibility of employees' PF and ESI contributions Disallowance of interest on investments yielding exempt income - Presumption of investment from own funds - Disallowance u/s 14A where the assessee's own funds exceeded such investments - HELD THAT: - ... ... ...

Depreciation on capital expenditure - Disallowance of expenditure relating to exempt income - Actual cost of depreciable assets Depreciation on capitalised moulds and tools - Depreciation on moulds and tools, the expenditure on which had been treated as capital in nature - HELD THAT: - The assessee's claim for depreciation related to the cost of moulds and tools treated by the Assessing Officer as capital expenditure, and not to assets for which depreciation had already been allowed. The ... ... ...

Deduction of interest income from co-operative banks under section 80P(2)(d) - Status of credit co-operative society as co-operative bank Entitlement of a credit co-operative society to deduction of interest income earned from co-operative banks, where the deduction was denied on the footing that the society was a co-operative bank - HELD THAT: - The issue whether the interest income earned by the co-operative society from the co-operative banks qualifies for deduction is now settled by the d... ... ...

Fair market value of immovable property for capital gains as on 01.04.2081 - computation of LTCG - Reference to Departmental Valuation Officer for valuation HELD THAT: - The assessee had produced no evidence supporting the adopted fair market value, while the guidance value furnished by the Sub-Registrar's Office could not invariably represent the fair market value. Correct valuation therefore required determination through a reference to the Departmental Valuation Officer. [Paras 7] T... ... ...

Accommodation entry transactions - identified beneficiaries and proof of commission income Assessment of income from accommodation entries where the beneficiaries, transactions and rate of commission were not completely substantiated - HELD THAT: - The Tribunal found that the assessee had not furnished complete documentary evidence regarding the beneficiaries and the transactions, including those outside the identified group concerns. Applying the jurisdictional High Court's propositio... ... ...

Tax deduction at source on interest paid by co-operative banks - Specific provisions overriding general exemption - scope of section 194(3)(v) Whether a co-operative bank was required to deduct tax at source on interest exceeding the prescribed threshold paid to co-operative housing societies during the relevant period?- HELD THAT: - The specific provisions governing interest payments by a co-operative society engaged in banking business prevail over the general exemption available to co-oper... ... ...

Accommodation entries - addition u/s 68 - assessment of bank credits and commission income - Unexplained share application money - Unexplained cash deposits Unexplained share application money - Admission of additional evidence - Addition in respect of share application money where the assessee failed to furnish supporting particulars of the subscribers - HELD THAT: - The additional evidence consisted only of ledger confirmation and did not include particulars necessary to substantiate the sh... ... ...

Revision for erroneous and prejudicial assessment order - Deduction for corporate social responsibility expenditure under section 80G - Debatable issue and plausible view HELD THAT: - Revision under section 263 requires both an erroneous assessment order and prejudice to the interests of the revenue. The Assessing Officer had specifically called for, and the assessee had furnished, details and supporting evidence concerning the deduction claimed under section 80G; consequently, the assessment... ... ...

TDS exemption on interest paid by co-operative banks to co-operative societies - Late fee for delayed TDS statements u/s 234E TDS exemption on interest paid by co-operative banks to co-operative societies - Deduction of tax at source on interest paid by a co-operative bank to co-operative societies - HELD THAT: - The exemption from tax deduction on interest paid by one co-operative society to another continues to apply to a co-operative bank. The Tribunal also noted the Bombay High Court deci... ... ...

Revisionary jurisdiction under section 263 - Deduction under section 80G for corporate social responsibility contributions HELD THAT: - The assessee had disclosed the relevant facts during assessment, and the Assessing Officer had considered the claim with specific reference to the corporate social responsibility expenditure. An assessment order cannot be treated as erroneous and prejudicial to the interests of the Revenue merely because the revisional authority takes a different view where t... ... ...

Validity of reassessment proceedings - Limitation for reassessment notice where escaped income is below statutory threshold Validity of the reassessment notice issued beyond the limitation prescribed for cases where the alleged escaped income is below the statutory monetary threshold - HELD THAT: - The additional legal ground was admitted as it went to the root of the matter and required no further factual verification. Since the alleged escaped income was below the statutory threshold, a rea... ... ...

Validity of reassessment notice issued beyond three years without approval u/s 151 HELD THAT: - The notice under section 148 was issued after three years from the end of the assessment year, and the approval obtained for its issue was admittedly contrary to section 151. The jurisdictional defect went to the root of the reassessment proceedings. [Paras 6] The notice under section 148, the consequential reopening proceedings and the reassessment order were quashed. Final Conclusion: The r... ... ...

Specified authority for reassessment sanction after expiry of three years - Jurisdictional validity of reassessment notice - Validity of reassessment notice issued after the extended period, where approval was granted by the Principal Commissioner instead of the higher authority specified under section 151(ii) - HELD THAT: - Sanction of the appropriate specified authority is a condition precedent to assumption of jurisdiction for issuing a reassessment notice. Where the three-year period for ... ... ...

Capital-gains exemption u/s 54F for reinvestment in spouse's/wife's name - HELD THAT: - The jurisdictional High Court [2017 (8) TMI 285 - PUNJAB AND HARYANA HIGH COURT] had settled, against the assessee, the corresponding question under the pari materia provision of section 54B. Applying that position, the Tribunal found no apparent illegality in the disallowance of the section 54F claim. [Paras 3] The disallowance of the section 54F claim was held not to suffer from apparent illegali... ... ...

LTCG - Nature of land sold - Determination of whether the transferred land was a capital asset or rural agricultural land excluded from the definition of capital asset HELD THAT: - The lower authorities had not undertaken the necessary factual examination of the land's exact location, its distance from the relevant municipal or cantonment limits on the date of transfer, the notifications applicable during the year under consideration, and the nature and use of the land. The conflicting ma... ... ...

Applicability of section 43CA to pre-enactment allotment of flats - Deductibility of interest on borrowed capital for real-estate stock-in-trade - Foreign-exchange loss on consultancy charges Applicability of section 43CA to pre-enactment allotment of flats - Addition u/s 43CA in respect of flats allotted and agreed to be sold before the provision became operative - HELD THAT: - The documentary record established that booking amounts were received, allotment was made and the agreements were e... ... ...

Penalty for claim of exemption of interest on enhanced land compensation - Debatable issue HELD THAT: - The taxability of interest on enhanced compensation for land was a debatable issue on which divergent judicial views existed. The assessee could therefore not be subjected to penalty merely because the claimed exemption was not accepted in reassessment. [Paras 2] Final Conclusion: The appeal was allowed and the impugned penalty was deleted.... ... ...