The ITAT found the assessee was not required to maintain books under Section 44AA. The recall led to cancellation of the Section 271AAB penalty for commodities trading income.
The Tribunal held that the penalty notice failed to specify the applicable clause under Section 271AAB. It ruled that the omission invalidated the penalty, as the assessee was not informed of the precise charge.
ITAT Jaipur clarified that penalty under section 271AAB is not mandatory and requires proper examination of evidence and explanation by the assessee before imposition. Mere surrender of income does not constitute undisclosed income.
The Tribunal held that projected profitability notes could not be treated as incriminating material and did not establish undisclosed income. Penalty under section 271AAB was therefore cancelled.
The decision clarified that income supported by books, demat records, and banking documents cannot be penalized as undisclosed under section 271AAB. Penalty reduction by CIT(A) was set aside.
Tribunal holds that surrendered LTCG cannot be treated as undisclosed income when fully recorded in books and supported by verifiable documents. Penalty under section 271AAB was therefore not leviable.
Tribunal held that home loans disbursed to buyers did not create a financial debt owed by the developer, as the Tripartite Agreement contained no repayment obligation on the builder. The ruling confirms that banks cannot claim creditor status without an explicit right to payment from the developer.
Explore the benefits and risks of digital gold, including liquidity, storage-free investment, and SEBI’s advisory on platform reliability and regulatory gaps.
The Bombay High Court held that mortgage deeds executed without a prior No Objection Certificate (NOC) from an existing charge holder are voidable, protecting the rights of the first charge holder.
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