ITAT Kolkata Judgments — August 2017

The Tribunal held that transactions between closely related persons like husband and wife do not fall under the definition of 'any other person' for the purpose of Section 269T. Therefore, the penalty imposed was deleted.

The Tribunal dismissed the assessee's appeal, confirming the addition of Rs. 11,44,900/- due to the failure to substantiate the claim. The Tribunal also dismissed the Revenue's appeal, upholding the deletion of the addition of Rs. 34,82,972/- based on the principle that the expiry of limitation does not extinguish a debt.

The Tribunal held that the sales tax payment of Rs. 80,048/-, though relating to a prior period, was allowable under Section 43B as it was paid within the due date of filing the return. It also held that the disallowance under Section 40(a)(ia) was not justified as the TDS was deposited before the due date of filing the return, benefiting from the retrospective amendment of the Finance Act, 2010.

The Tribunal allowed the claim for truck arrangement expenses, stating the disallowance was based on assumptions. It also allowed repair and maintenance expenses and unlifted coal deduction, finding the AO and CIT(A) proceeded on a wrong basis. A portion of the Section 35D deduction was disallowed as it pertained to share capital fees.