ITAT Weekly Round Up\r\n\r\n

This weekly round-up highlights key decisions by the Income Tax Appellate Tribunal (ITAT) reported from June 14 to June 22, 2024, on Taxscan.in:\r

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S.80G(5)(iv) Exemption: The Calcutta ITAT ruled in favor of the Income Tax Bar Association, allowing exemption as the application was filed within CBDT’s extended deadline, despite procedural errors by the CIT (Exemption).\r

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Re-assessment Quashed: The Delhi ITAT quashed reassessment proceedings against Chaudhary Stone Crusher, noting that the firm had sold its property before the issuance of the notice under Section 148.\r

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Invalid Assessments: The Delhi ITAT held that assessments under Section 153A without mandatory approval are invalid, emphasizing the need for proper approval procedures.\r

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CSR Deduction: The Raipur ITAT ruled that Corporate Social Responsibility (CSR) expenses are eligible for deduction under Section 80G, remanding the matter for reconsideration.\r

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Share Application Money: The Kolkata ITAT deleted the addition of unexplained share application money, confirming the creditworthiness of share subscriber companies.\r

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Unaccounted Sales and Purchases: The Bangalore ITAT ruled that additions based solely on loose slips are invalid, emphasizing the need for substantial evidence.\r

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Agricultural Land: The Delhi ITAT held that the purchase of agricultural land does not fall under the definition of a capital asset, thus Section 56(2)(x) does not apply.\r

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Excess Stock: The Chennai ITAT held that discrepancies in excess stock during normal business operations should be treated as business income, not under Section 69B.\r

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Capital Gains Exemption: The Mumbai ITAT ruled that the date of possession of an under-construction property, not the date of allotment, determines eligibility for capital gains exemption under Section 54.