#income tax deduction

Primary credit cooperative societies can claim tax deductions under Section 80P(2)(d) for interest earned on deposits with other cooperative banks, affirming that such income qualifies as business income derived from cooperative activities. This ruling reinforces the scope of cooperative-specific tax benefits and provides clarity for thousands of rural financial institutions across India.

The ITAT Cochin has ruled that to claim deduction under Section 80-IB(10), a housing project must be developed on a plot of at least one acre, with no portion allocated to personal residence or non-housing structures. This clarifies a critical eligibility criterion for developers seeking tax incentives, impacting project planning and land consolidation strategies across residential real estate.

ITAT Kolkata rules that when a donee institution’s approval under Section 35(1)(ii) is cancelled retrospectively, donations made by taxpayers while the approval was active and in good faith remain deductible. This protects legitimate claimants from being penalized for administrative actions taken after the fact, reinforcing legal certainty for corporate philanthropy in scientific research.

The ITAT Delhi has ruled that corporate social responsibility (CSR) donations meeting Section 80G conditions qualify for tax deduction, rejecting the Revenue’s attempt to disallow them under Section 37(1). This clarifies that Chapter VI-A benefits are independent of business expense disallowances, protecting companies that fulfill statutory CSR obligations while seeking legitimate tax incentives.

ITAT Delhi rules that CSR expenditures qualify for deduction under Section 80G, even if the claim is raised for the first time in appeal after Section 143(1) processing. The tribunal relied on the Supreme Court's Goetze (India) Ltd. precedent, reinforcing that appellate authorities must entertain additional claims not made during initial assessment.

ITAT Mumbai rules that Form 3CL issued by DSIR and already part of the Assessing Officer’s record cannot be dismissed as additional evidence in rectification proceedings under Section 154. The ruling mandates consideration of pre-existing documents for income tax deductions, impacting taxpayers relying on DSIR approvals.

Madras High Court ruled that income tax deduction in motor accident compensation must align with the deceased's actual tax liability, not an arbitrary figure. The court modified the award from Rs. 49.28 lakh to Rs. 47.73 lakh, emphasizing statutory compliance in loss of dependency computations under the Motor Vehicles Act. This sets a precedent for precise tax adjustments in compensation calculations.

MP High Court rules that income tax liability must be deducted from the deceased's gross income when computing loss of dependency under the Motor Vehicles Act. The judgment clarifies that compensation awards must reflect net income, not gross earnings, impacting all motor accident claims involving taxable incomes.

The ITAT Ahmedabad has ruled that corporate social responsibility donations made to institutions approved under Section 80G(5) are eligible for tax deduction, even when the expenditure is mandated under Section 135 of the Companies Act. This prevents double disallowance - once under Section 37(1) as non-business expenditure and again under Section 80G as ineligible donation - clarifying that statutory CSR obligations do not negate charitable intent for tax purposes. The decision impacts all companies balancing compliance with tax planning under the Income Tax Act.

The Andhra Pradesh High Court ruled that under Section 3A(2) of the National Highways Act, 1956, a brief description of the proposed acquisition is sufficient-physical attachment of the plan is not mandatory as long as it is available for public inspection. This lowers administrative burdens on NHAI and state agencies while preserving landowners' right to inspect plans, reinforcing procedural fairness in highway acquisition.

ITAT Ahmedabad holds that co-operative societies remain eligible for Section 80P deduction even if they fail to file income tax returns, remanding the case for fresh assessment. The ruling underscores that procedural non-compliance cannot override substantive tax exemption entitlements for co-operative societies under the Income Tax Act.

ITAT Mumbai has ruled that corporate social responsibility donations qualify for deduction under Section 80G of the Income Tax Act if made to an approved entity, regardless of whether the expense was claimed as a business deduction under Section 37. This clarifies that CSR spending can be treated as charitable contribution for tax purposes, opening a critical pathway for companies to optimize compliance without double-counting expenditures.

ITAT Ahmedabad rules that charitable trusts can claim deductions under Sections 11 and 12 of the Income Tax Act even if Form 10B is filed after the due date, provided it is submitted with the return and the audit is completed. The ruling emphasizes substantive compliance over rigid procedural timelines, offering relief to trusts facing disallowances for minor delays.

ITAT Nagpur rules that a taxpayer’s deduction under Section 35(1)(ii) of the Income Tax Act cannot be disallowed merely because the research institution’s approval was cancelled after the donation was made. The ruling reinforces statutory protection for taxpayers relying on valid approvals at the time of donation, preventing retrospective disallowance of legitimate claims.

When an employer issues a correct Form 16 but fails to ensure accurate TDS reflection in Form 26AS due to administrative error, the law holds the employer responsible-not the taxpayer. The J&K and Ladakh High Court mandates rectification within one month and requires the government to refund the withheld tax with interest, establishing that bureaucratic negligence cannot shift the burden to employees.