{"id":24347,"date":"2021-01-17T10:30:52","date_gmt":"2021-01-17T05:00:52","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=24347"},"modified":"2021-01-18T11:00:07","modified_gmt":"2021-01-18T05:30:07","slug":"orders-passed-by-income-tax-appellate-tribunal-itat","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/orders-passed-by-income-tax-appellate-tribunal-itat\/","title":{"rendered":"Necessary Orders Passed By Income Tax Appellate Tribunal (ITAT) that You Must Know!"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The Income Tax Appellate Tribunal was\nconstituted on 25 January 1941 on the basis of Section 5A of the Income Tax\nAct, 1922. Since its establishment, ITAT has been working very hard leaving\nsignificant changes due to the expansion &amp; extension of its jurisdiction. <\/p>\n\n\n\n<p>The Income Tax Act, 1961 has not made any specific changes in the constitution or in the functioning of tribunals. There is no doubt about the fact that the functioning of Income Tax Appellate Tribunal has contributed towards the development of other Appellate Tribunals. The following are the various orders passed by the Income Tax Appellate Tribunal this month.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Necessary-Orders-Passed-By-Income-Tax-Appellate-Tribunal-ITAT-that.png\" alt=\"Necessary Orders Passed By Income Tax Appellate Tribunal\" class=\"wp-image-24362\" width=\"521\" height=\"531\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Necessary-Orders-Passed-By-Income-Tax-Appellate-Tribunal-ITAT-that.png 985w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Necessary-Orders-Passed-By-Income-Tax-Appellate-Tribunal-ITAT-that-294x300.png 294w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Necessary-Orders-Passed-By-Income-Tax-Appellate-Tribunal-ITAT-that-768x784.png 768w\" sizes=\"(max-width: 521px) 100vw, 521px\" \/><\/figure><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/orders-passed-by-income-tax-appellate-tribunal-itat\/#Addition_of_Unabated_Assessment_without_Incriminating_Seized_Material_for_Assessment_US_153A_Is_Not_Sustainable\" >Addition of Unabated Assessment\nwithout Incriminating Seized Material for Assessment U\/S. 153A Is Not\nSustainable<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/orders-passed-by-income-tax-appellate-tribunal-itat\/#Reimbursement_of_a_Surplus_Amount_of_wagesRemuneration_in_accordance_with_Companies_Act_1956_cant_be_considered_the_Income_of_Assessee\" >Reimbursement of a Surplus Amount\nof wages\/Remuneration in accordance with Companies Act, 1956, can\u2019t be\nconsidered the Income of Assessee<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/orders-passed-by-income-tax-appellate-tribunal-itat\/#Grant_for_registration_if_no_evidence_found_against_the_trust_activities_not_carried_out_genuinely\" >Grant for registration, if no\nevidence found against the trust activities not carried out genuinely &nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/orders-passed-by-income-tax-appellate-tribunal-itat\/#Brief_Facts_of_the_Case\" >Brief Facts of the Case<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/orders-passed-by-income-tax-appellate-tribunal-itat\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Addition_of_Unabated_Assessment_without_Incriminating_Seized_Material_for_Assessment_US_153A_Is_Not_Sustainable\"><\/span>Addition of Unabated Assessment\nwithout Incriminating Seized Material for Assessment U\/S. 153A Is Not\nSustainable<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Income Tax Appellate Tribunal (ITAT), Mumbai Bench held that the\naddition of unabated assessment without incriminating seized material for\ninspection under section 153A is not sustainable.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Party Name<\/h3>\n\n\n\n<p>Shri Dinesh Salecha (Appellant) versus Dy. Commissioner of Income\nTax Central was Respondent<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Facts of the case<\/h3>\n\n\n\n<p>The assessee being an individual, filed her <a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\"><strong>income tax return<\/strong><\/a> for an assessment year 2008-09 on dated 31<sup>st<\/sup> July 2008, declaring total income of 3, 90,830. On dated 11 June 2103 a search and seizure action was taken against the RSBL group under section 132 of Acton, and the assessee was also covered.<\/p>\n\n\n\n<p>The notice under section 153 A of the Act was issued. The assessee\nunder section 143(3) r\/w section 154A of the Act was completed in the case of\nall the years on dated 28<sup>th<\/sup> march 2016, on an income of 29,50,830\n(A.Y. 2008-09); 45,76,360(A.Y 2009-10) and 30,16,628 (A.Y. 2011-12). &nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Issue of the Case<\/h3>\n\n\n\n<p>Whether the assessee can challenge the jurisdiction of assessment in\nterms of section 153A in respect of any search material?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Order Passed <\/h3>\n\n\n\n<p>The Coram of the house including of Ram Lal\nNegi and Shamim Yahya while setting aside the orders and deleting the additions\nnoted that the addition made in the assessment orders passed by the assessing\nofficer under section 153A without reference to any incriminating material\nfound search is not sustainable has also been expounded by the Supreme Court in\nthe case of CIT v\/s Singhad technical education Society.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Interpretation<\/h3>\n\n\n\n<p>In other words, the reference is to that assessment in whose case\nassessment under section 143(3) cannot now be done. It is not at all the case\nof the revenue that in appeals which have been claimed as unabated here there\nwas time for assessment under section 143(3). <\/p>\n\n\n\n<p>In this view of the matter, in our considered opinion, the submission of the learned council of the assesee succeeds that the addition in case of unabated assessment without reference to incriminating seized material for assessment\/s 153A is not sustainable on the touchstone of above said Hon\u2019ble Jurisdiction H.C decision.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/new-income-tax-slab-determines-on-salary-of-rs-8-10-lakhs-p-a\/\">The New Income Tax Slab Determines on Salary of Rs. 8 Lakhs and Rs 10 Lakhs Per Annum <\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reimbursement_of_a_Surplus_Amount_of_wagesRemuneration_in_accordance_with_Companies_Act_1956_cant_be_considered_the_Income_of_Assessee\"><\/span>Reimbursement of a Surplus Amount\nof wages\/Remuneration in accordance with Companies Act, 1956, can\u2019t be\nconsidered the Income of Assessee<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Bench of the Income Tax Appellate Tribunal (ITAT), Ahmadabad held that the excess amount of remuneration refunded as per the provisions of the <strong><em>Companies Act, 1956<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_1956\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> cannot be held as income of the assessee.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Party Name<\/h3>\n\n\n\n<p>Vadodra (Appellant) versus Rajamannar Thennati (Respondent)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Brief Facts of the Case<\/h3>\n\n\n\n<p>The assessee, Rajamannar Thenti as a\nfull-time director of the company was employed with Sun Pharma Advance Research\nCompany Limited for a maximum of Rs. 3.5 crores in accordance with the resolution\nprecede under the annual general meeting of the company. &nbsp;<\/p>\n\n\n\n<p>Since there, &nbsp;was a limit for payment of wages\/remuneration\nto a full-time director as per the Companies Act, 1956, the company has made an\napplication to the Ministry of Corporate Affairs, Govt. India to approve\nfull-time director&#8217;s salary as per the resolution passed at the annual general\nmeeting on dated 31st July 2012. <\/p>\n\n\n\n<p>However, Government of India has approved\nthe salary of the full-time of director for a short period of time. The company\nhad given a second application to the central government to approve the\nadditional salary; and there was no response from the central government.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Issue of the Case<\/h3>\n\n\n\n<p>Whether the refund of salary\ncan be considered as income accessible to tax or not? <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Order Passed <\/h3>\n\n\n\n<p>The coram of Mahavir Prasad and Amarjit Singh considered that the refund was done only for the purpose of complying with the provisions of the Companies Act, 1956. Therefore, in view of the legal requirement contained in the provisions of the Companies Act, 1956 while upholding this order, the assessee has returned the excess amount of remuneration.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Grant_for_registration_if_no_evidence_found_against_the_trust_activities_not_carried_out_genuinely\"><\/span>Grant for registration, if no\nevidence found against the trust activities not carried out genuinely &nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Hon\u2019ble Income Tax Appellate Tribunal (ITAT),\nBangalore bench held that the application for registration to be granted in\ncase no satisfactory evidence found &nbsp;by\nthem that clearly showing the acts of the trust are not performed genuinely.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Brief_Facts_of_the_Case\"><\/span>Brief Facts of the Case<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>&nbsp;The assesse, trust \u2018Teachers Academy\nEducation\u2019 came in existence under the Deed of Trust.<\/li><li>The vision of the trust to\nestablish educational establishments in order&nbsp;to provide professional,\ntechnical information technology, medical, and general education trainings\nstarting from the nursery, secondary to degree level educations.<\/li><li>&nbsp;A survey conducted within the premises of the\nassessee and it came to notice before the concerned authority that the assessee\nhas not obtained any of the registration under section 12AA of the Act and yet\nnot filed any income tax returned past 7 years.<\/li><li>The above said findings further\ncommunicated by the concerned DDIT (Inv.) who authorized to conduct a survey\nthrough the Assessing Officer.<\/li><li>Under Legal guidance, the\nassessee filed an application for a grant of registration under section 12 A of\nthe act.<\/li><li>The assessee applied Form 10A\nfor registration under section 12AA of the Act. The assessee also made the\nincome tax returns for Assessment Years 2016-17 and 2017-18.<\/li><li>The assessee filed in\nanticipation of the grant of registration and also claimed exemption under\nsection 11 in respect of surplus of income over expenditure for the aforesaid\nassessment years. <\/li><li>The CIT (E) rejected the request\nand denied the grant of registration. <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Issue of the Case<\/h3>\n\n\n\n<p>Whether the assesse grant pre-requisites for registration under\nsection 12A of the Act and hence the registration should be approved.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Order Passed by the ITAT<\/h3>\n\n\n\n<p>The ITAT observed that the assessee has also given clarification on\nother aspects which will have an impact on the grant of registration under\nSection 12A of the Act. In the impugned order, CIT (E) has neither dealt with\nthose materials nor has it got those materials correct. Under these\ncircumstances, the ITAT observed that the assessee should be given the benefit\nof registration under section 12A of the Act.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Under the orders passed by the concerned ITAT authority related to the grants for registration and allowing or disallowing the assessee under the valid findings pieces of evidences against its questionable activities clearly seems that the ITAT is one of the higher authority under whom the issue related to tax are conferred for justice and in case someone not satisfied with the verdicts of the said authority can move further. Kindly associate with the <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> expert in order to know more about the important orders passed by Income Tax Appellate Tribunal (ITAT).<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/legal-liabilities-meant-under-income-tax-for-minors\/\">What are the Legal Liabilities meant under Income Tax for Minors? <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Income Tax Appellate Tribunal was constituted on 25 January 1941 on the basis of Section 5A of the Income Tax Act, 1922. Since its establishment, ITAT has been working very hard leaving significant changes due to the expansion &amp; extension of its jurisdiction. The Income Tax Act, 1961 has not made any specific changes [&hellip;]<\/p>\n","protected":false},"author":32,"featured_media":24361,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[10,153],"tags":[1438],"acf":{"service_id":"403"},"authorName":"Komal Singh","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/processed.jpeg","authorDescription":"Komal Singh is a Legal scholar, having diverse experience in scripting research papers, articles &amp; dissertations, which serves her main interest &amp; competent in drafting legal documents. She has polished her skills in dealing with the matter related to consumer affairs and now building intelligible Legal Content for Corpbiz.","postViews":4804,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24347"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=24347"}],"version-history":[{"count":12,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24347\/revisions"}],"predecessor-version":[{"id":24366,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24347\/revisions\/24366"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/24361"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=24347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=24347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=24347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}