ITAT ruled on multiple issues in a tax appeal. Interest paid on ...

Late TDS Interest Not Deductible Under Section 201(1A); Search-Based Additions Invalid Without Incriminating Evidence

February 22, 2025

Case Laws Income Tax AT

ITAT ruled on multiple issues in a tax appeal. Interest paid on late TDS deposits under s.201(1A) was held non-deductible as it neither qualifies as business expenditure nor compensatory payment. Regarding additions in unabated assessment years during search proceedings, following SC precedent in Abhisar Buildwell, additions were deleted due to lack of incriminating material. Notice under s.153C was upheld valid as search warrant and panchnama were not issued in assessee's name. Addition under s.69C was deleted as CIT(A) found sufficient opening cash balance as of 01.04.2017 to justify transactions, and AO failed to prove actual cash payments versus mere projections.

View Source

← Previous Next →

ITAT ruled on multiple issues in a tax appeal. Interest paid on ...

Late TDS Interest Not Deductible Under Section 201(1A); Search-Based Additions Invalid Without Incriminating Evidence

February 22, 2025

Case Laws Income Tax AT

You may also like:

Interest paid on late payment of TDS - allowable deduction u/s 37(1) or not? - Interest on delayed payment of TDS cannot be allowed as deduction. - The interest...

Addition on the basis of declaration made by assessee during a search action u/s 132 - The ITAT found no merit in the revenue's arguments, noting that the addition was...

The ITAT Delhi ruled on an assessment u/s 153A, focusing on additions u/s 68 and undisclosed sources based on the Assessee's bank statement. The Tribunal found no...

Levy of late filing fee u/s. 234E - Due to certain technical error committed (incorrect interchanging of PAN numbers of buyer and seller in online filing of Statement...

The assessee failed to file the quarterly returns of TDS within the prescribed time for the period Q3 of FY 2012-2013. Consequently, the Deputy Director of Income Tax,...

Interest on late deduction of TDS due to stay order passed by High Court - Assessee not to be treated in default - for the stay period no Interest u/s 201(1A) - SC

Valuation by DVO - addition based on estimated cost disregarding actual cost as per books - applicability of section 142A before amendment - non-rejection of books - AO...

Additions u/s 153A solely based on a sketchy statement of an accountant u/s 132(4), which in turn is based on a confessional statement of a director in a previous...

Income Tax: Proposed amendment to increase simple interest rate from 1% to 1.5% per month or part thereof on late payment of tax collected at source (TCS) to government...

Legality of search and seizure conducted at the residential premises of the petitioner - The High Court meticulously analyzed the legislative intent and statutory...

Assessment u/s 153A - Addition based on the valuation report - completed assessment - nature of material found in the course of search which led to impugned additions -...

Assessment u/s 153A - Addition of unapproved purchases based on peak calculation - the aforesaid addition is not based on any incriminating documents or material found...

ITAT quashed additions made under section 153A for AY 2013-14 to 2015-16 due to absence of incriminating material found during search proceedings. The Tribunal...

Disallowance on account of interest paid on delayed payment of TDS - as the tax deducted at source (TDS) is not in the nature of the income tax which is required to be...

Assessment u/s 153C - Additions made by revenue based on search findings in group cases of M/s SRS mining and its partners - The Tribunal noted that the AO of the...

Quick Updates: