The Tribunal ruled that without rejecting the books or identifying concrete discrepancies, expenses cannot be disallowed on an ad-hoc basis. The Revenues appeal challenging deletion of the addition was therefore dismissed.
Supreme Court held that seniority of direct recruit is to be counted from the date of their initial appointment and not from the date when they were put on probation. Accordingly, present appeals are allowed and order of High Court set aside.
The Tribunal held that cash deposits recorded in regular books of account cannot be treated as unexplained investments under section 69. Since the books were not rejected and no contrary evidence was produced, the addition was deleted.
ITAT Delhi held that while selecting the comparables transactions or entities, in case of international transactions, the basis should be one of similarity with the control transactions/entities and mere broad similarity is not sufficient.
The Tribunal held that although estimation of income was justified due to absence of books and non-filing of return, applying the 8% presumptive rate automatically was excessive. Considering the nature of the garment business, it reduced the estimated profit to 6.5% of bank credits.
The Tribunal held that determining exemption eligibility after retrospective registration is not a simple computational adjustment. Such matters cannot be decided at the return processing stage under section 143(1).
The Tribunal held that mere non-response to notices issued to vendors cannot justify disallowance of large business expenses when documentary evidence and accepted turnover exist. The issue was remanded to the Assessing Officer for proper verification.
The Tribunal ruled that admitting additional evidence without seeking a remand report from the Assessing Officer breaches Rule 46A. The matter was sent back to the AO for reconsideration after examining the evidence.
ITAT held that delay in filing Form 9A cannot automatically result in denial of exemption under Section 11. The issue was sent back for reconsideration after examining the condonation application before the Commissioner.
Supreme Court held that public servant can be duly convicted under the Prevention of Corruption Act, 1988 on the basis of evidence inspite of the fact that co-accused is acquitted of conspiracy charges.
