HC dismisses Revenue's appeal, upholds ITAT order deleting levy of penalty; Holds that when the additions made by the AO pursuant to search u/s. 132 are set aside by ITAT, and consequentially the penalty u/s.271(1)(c) is set aside, no substantial question of law arises for HC to consider u/s. 260-A; Distinguishes SC decision in MAK Data (which held that explanation by assessee that surrender of income was made to buy peace was not sufficient to satisfy Explanation-1 to Sec. 271(1)(c)) on the ground that  in the present case, there is no finding to the effect that no explanation was offered by assessee; Notes that ITAT set aside both the additions made by the AO pursuant to search u/s. 132  following decision of co-ordinate bench in Tata Elxsi as far as issue of Sec. 10B is concerned and on the issue of excess stock, being tax neutral; Revenue argued in support of levy of penalty that surrender of income after a search is conducted cannot be treated as voluntary surrender; HC makes note of assessee's reliance on coordinate bench decision in  Manjunatha cotton & ginning factory wherein it was held that imposition of penalty is not automatic and depends on facts and circumstances of each case.

 Click here to read facts and download copy of HC judgment reported in [TS-5513-HC-2018(Karnataka)-O]

F.NO.225/270/2017/ITA.II

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

North-Block, ITA.II Division New Delhi

Dated the 30^th of June, 2018

Order under Section 119 of the Income-tax Act, 1961

Vide its orders dated 31.07.17, 31.08.17, 08.12.17 & 27.03.18, in file of even number, CBDT had allowed time till 30^th June, 2018 to link PAN with Aadhaar while filing the tax-returns. Upon consideration of the matter, the CBDT further extends the time for linking PAN with Aadhaar till 31^st March, 2019.

ITAT - Interest expenditure on loan availed for purchasing a property to be included as cost of acquisition at the time of computing capital gains u/s 48

Click here to read facts and download copy of ITAT Order reported in [TS-5184-ITAT-2017(Kolkata)-O]

ITAT deletes disallowance u/s. 40(a)(i) on amounts paid towards consultancy and legal service charges; Notes that coordinate bench in the case of Sonic Biochem Extractions disapproved the disallowance u/s. 40(a)(i) when no expenditure was claimed by the assessee and disallowance of depreciation u/s. 32 and held that depreciation cannot be disallowed to the assessee with the help of section 40(a) because section 40(a) is applicable if the assessee has claimed deduction of expenditure mentioned in the section; Assessee was in the pre-commencement stage of setting up the power plants in the year under consideration and had capitalized entire expenditure and did not debit any amount in the profit & loss account;

Click here to read facts and download copy of ITAT Order reported in [TS-7392-ITAT-2018(Ahmedabad)-O]

Instant e-PAN allotment (Beta version) in near to real time is available free of cost for limited period. Individuals (other than minors) with a valid Aadhaar number (with updated Mobile number) can avail the e-PAN allotment facility.

Click here to read more on and access the instant e-PAN allotment facility