ITAT in Mumbai quashed a tax assessment reopening, ruling it was based on a change of opinion without new material. The tribunal also deleted a Rs. 8.46 crore addition of notional interest, affirming that hypothetical income cannot be taxed.
The ITAT Kolkata has ruled that an addition under Section 68 of the Income Tax Act cannot be made on share capital received from group companies when the assessee provides comprehensive documentary evidence, even if the directors of the investing companies do not appear in person.
The ITAT ruled that a CIT(A) must independently verify evidence before deleting a tax addition, even if the AO fails to provide a remand report.
The ITAT Visakhapatnam condoned a 284-day delay and restored the appeal of an MLA whose auditor had passed away. The tribunal ruled that the CIT(A) was wrong to dismiss the case for non-prosecution and must adjudicate on the merits.
ITAT Mumbai dismisses Krishna Residency CHS’s appeal, refusing to condone a 2240-day (over six-year) delay. The tribunal found the society’s explanations for the delay contradictory and unsubstantiated, upholding the lower authority’s decision.
The ITAT ruled that a PCIT cannot use Section 263 to revise an assessment order that is “non-est” in law due to a procedural defect.
The ITAT Mumbai has ruled that interest on borrowed funds used for capital reduction is a valid business expense under Section 36(1)(iii) of the Income Tax Act. The tribunal also clarified that the buyback tax under Section 115QA cannot be applied to capital reduction transactions completed before the June 1, 2016 amendment.
The ITAT Raipur quashed the reopening of an assessment under Section 147, ruling that search-based cases on third-party material must be initiated under Section 153C.
ITAT Kolkata set aside a tax addition under Section 56(2)(x), ruling that the AO must offer a DVO valuation before relying solely on the property’s stamp duty value.
The ITAT Visakhapatnam dismissed an appeal due to persistent defects. The ruling high-lights that failing to submit mandatory documents and fees can lead to an outright dismissal.
