PCIT initiated a Section 263 revision over AO’s failure to disallow cash payments under Section 40A(3). ITAT held that since AO had conducted adequate inquiry and taken a plausible view, revision was an invalid overreach and quashed order. The ruling affirms that a mere difference in opinion doesn’t satisfy twin conditions for invoking Section 263.
The PCIT challenged the assessment order under Section 263 over the AO’s acceptance of goodwill depreciation, warranty provision, and CSR-linked 80G deduction. The ITAT quashed the revision, finding the AO conducted due inquiry and adopted a plausible legal view on all three claims. The ruling confirms that an assessment order based on due inquiry cannot be revised merely on a difference of opinion.
ITAT Agra remanded a TDS short-deduction case for the second time, finding that both the AO and CIT(A) failed to comply with the Tribunal’s earlier binding directions to verify if deductees had paid taxes.
ITAT Agra granted partial relief on a cash deposit addition, accepting ₹60,000 as explained, ruling that money received back from previous advances through banking channels constitutes the assessee’s own money returned.
ITAT Delhi quashed reassessment proceedings for AY 2013-14 and 2015-16, ruling that notices issued after the extended final deadline of June 24, 2022, were time-barred under Section 149, following the Rajeev Bansal ruling.
Tribunal held that where Form 67 is submitted before the completion of assessment, foreign tax credit must be allowed even if the filing was delayed. It observed that neither the Act nor Rule 128(9) imposes disallowance for delay.
ITAT Indore deleted a ₹2 lakh addition for cash deposited during demonetisation, citing CBDT Instruction No. 3/2017 which bars verification for deposits up to ₹2.5 lakhs by individuals.
Levy of Integrated Goods and Services Tax (IGST) on ocean freight under Cost, Insurance, and Freight (CIF) contracts was unsustainable in law as such a tax constituted double taxation contrary to the principle of composite supply under the GST law.
Delay of 447 days by the Income Tax Department in filing an appeal was condoned against the acquittal of an accused in a tax evasion case, observing that the delay was caused by a bona fide mistake and disruptions during the COVID-19 pandemic.
Madras High Court held that non-responding to notice and non-appearance on hearing due to fact that notices were uploaded only through GST portal and there was no service of notice via physical mode. Accordingly, order set aside on ground of violation of principles of natural justice.
