The tribunal confirmed liability for Hawala transactions under FEMA but reduced the penalty from Rs. 23 Cr to Rs. 7 Cr, emphasizing proportionality in enforcement.
The ITAT held that capital gains under Section 50C cannot be mechanically applied where a sale deed is alleged to be an erroneous document and no real transfer occurred. The case was remanded to verify whether the transaction was actually a gift with no consideration or possession transfer.
The case involved reassessment based on alleged cash payment for property. The Tribunal held that basic fact-checking is mandatory before confirming a ₹71.23 lakh addition under Section 69A.
The Supreme Court held that High Courts cannot examine whether a cheque was issued for a debt while quashing proceedings. The statutory presumption under Section 139 must be rebutted only during trial.
ITAT Mumbai held that additions made on substantive and protective basis merely on the strength of BUP IDs, internal identifiers, and presumptive opening deposits are unsustainable. Accordingly, appeal of revenue dismissed.
The ITAT held that documented share transactions through recognised exchanges cannot be treated as bogus without contrary proof. General investigation reports and suspicion were held insufficient to sustain additions.
Calcutta High Court held that reassessment proceedings initiated under section 148 of the Income Tax Act based on the same survey material which was already accepted by AO in earlier proceedings is not sustainable in law. Accordingly, reassessment proceedings cannot be sustained.
The Tribunal held that operational suspension and status quo directions do not permit nil valuation of stock. Proper valuation is mandatory under the mercantile system.
The ITAT held that once an assessee’s premises are searched, proceedings must be under Section 153A. Invoking Section 153C in such cases is a jurisdictional error.
This case explains why related party transactions require heightened audit scrutiny under SA-550. The key takeaway is that influence and control, not just legal structure, determine audit risk and disclosure obligations.
