The Tribunal held that when no other income source exists, bank deposits linked to business cannot be taxed separately. Estimation must reflect commercial realities of the trade.
Learn how SEBI regulations shape derivatives trading in India, including position limits, intraday rules, and what they mean for F&O traders.
The case involved rejection of cash deposits due to alleged improbability of holding cash. The Tribunal ruled that presumptions cannot override a registered sale deed and disclosed capital gains.
The Tribunal emphasized that registration decisions must consider all relevant evidence. Mechanical rejection without full appraisal was held unsustainable.
Unexplained cash deposits and rent discrepancies led to rejection of books under section 145(3). However, the Tribunal held that estimating profits at 1% was excessive and moderated it to 0.50%.
he Tribunal held that unsecured loans could not be treated as unexplained cash credits when identity, creditworthiness, and genuineness were duly proved. Consistency with earlier rulings involving the same lenders led to deletion of the addition.
The Tribunal held that section 56(2)(vii)(b) applies automatically when stamp value exceeds purchase price. However, it remanded the matter for DVO valuation to ensure fair determination of market value.
The dispute concerned enhancement of house property income based on an unsigned lease found during search. The Tribunal held that such a document has no evidentiary value and cannot support additions.
The Tribunal held that cash deposits reflecting routine business transactions cannot be treated wholly as unexplained income. Only the profit element embedded in such receipts is taxable.
The tax authorities disallowed Bhandara expenses assuming a religious character without concrete evidence. The Tribunal held that mere suspicion cannot override the accepted fact of food being provided to the needy.
