The ITAT Mumbai canceled seven revisionary orders under section 263, ruling that for completed (unabated) assessments under section 153A, the Principal Commissioner of Income Tax (PCIT) cannot make additions or disallowances, such as challenging an 80IC deduction, without finding incriminating material during the search. The Tribunal reaffirmed that the PCIT’s power under $s.263$ cannot be used for a mere roving inquiry.
ITAT Jaipur held that gain not realized during the year under consideration cannot be taxed under the head capital gain or as income under the head profit and gains of business or profession by valuing unsold scrips at market value.
The case addressed the disallowance of Rs.1.89 Cr, which the AO treated as a donation to other trusts and deemed income under S 11(3). The ITAT deleted the addition, ruling that payments made to other NGOs for executing charitable projects under the Trust’s supervision and control constitute genuine application of income, not donation.
The central issue was the validity of a reassessment that led to additions for bogus purchases and unexplained cash. The ITAT confirmed the entire reassessment was void because the AO failed to issue the mandatory notice under S 143(2), affirming the deletion of all additions.
Raigad CGST Commissionerate issued SOPs for taxpayer grievance redressal, introducing open house meetings, local seminars, and escalation procedures for timely issue resolution.
ITAT Mumbai ruled that government incentives to promote industrial development in disaster-hit Kutch and modernization under TUF scheme are capital receipts. Revenue’s appeal was dismissed, reaffirming purpose test from Ponni Sugars and Sahney Steel.
The case addressed the disallowance of Rs.2.21 Cr on dealer foreign tour expenses, which the AO questioned for lack of formal agreements. The ITAT confirmed the deletion of the addition, ruling the expenses were genuine business promotion and commercially expedient under S 37(1) particularly since a similar scheme was accepted for the holding company.
ITAT Hyderabad held that deduction claimed under section 43B of the Income Tax Act supported by necessary documentary evidences is allowable. Accordingly, deduction allowed to the extent relevant evidences are furnished.
The case addressed a Rs.605 Cr addition under Section 68 for alleged bogus sales, where the AO didn’t reject the books. The ITAT remanded the matter, directing the AO to recompute income by applying the average three-year Gross Profit rate on sales, establishing that entire sales cannot be taxed as unexplained credits when books aren’t rejected.
Gujarat High Court held that reopening of assessment based on direction of CIT(A) cannot be sustained since the period of limitation prescribed under section 149(1) of the Income Tax Act has expired. Accordingly, reassessment notice u/s. 148 quashed and petition is allowed.
