The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) allowed tax deductions under section 80G of the Income Tax Act, 1961 for donations received by public trusts for recycling plastic waste in the case of Huhtamaki Foundation. The foundation’s application for approval under section 80G was rejected by the Commissioner of Income Tax, citing commercial nature of the foundation’s recycling activities. However, the ITAT ruled in favor of the foundation, stating that its environmental preservation goals met charitable criteria and set aside the denial of approval.
In another case, the Ahmedabad bench of the ITAT observed that initiation of revision proceedings by issuing Show Cause Notice (SCN) without Document Identification Number (DIN) is invalid in the case of M/s. Nova Properties Private Limited. The company faced scrutiny for sales turnover disparities, and the ITAT granted the appeal filed by the Assessee.
The ITAT also held that income tax authorities cannot determine how much expenditure should have been incurred for the purpose of business in the case of Serco India Pvt. Ltd. The tribunal overturned the Commissioner of Income Tax (Appeals)’s decision to uphold and increase additions in assessments, emphasizing the entity’s business judgment and the genuineness of sundry creditors.
In a separate case, the ITAT directed the Assessing Officer to consider the stamp duty value on the date of the letter of allotment for making additions under section 56(vii) (b) of the Income Tax Act, 1961 in the case of Rekha Singh. The appeal involved scrutiny of a jointly purchased property, with the tribunal considering the timing and joint ownership for assessment.
Source Taxscan
