ITAT Pune ruled that investments in mutual funds and tax-free bonds should not form part of the investment pool for Rule 8D(2)(ii) calculations. The Assessing Officer was directed to verify the details and recompute the disallowance. Both appeals were partly allowed for statistical purposes.
The Tribunal ruled that Section 263 does not permit the PCIT to substitute his opinion for that of the Assessing Officer when two legally sustainable views exist. A revision based solely on a different interpretation of taxability is unsustainable.
ITAT Agra held that reassessment proceedings framed using a PAN surrendered years earlier were invalid. Since the assessment was based on a non-existent PAN, the entire proceedings were quashed.
Mumbai ITAT ruled that investment in rights relating to a specific residential flat under a redevelopment project qualifies for Section 54 relief. The Tribunal held that beneficial provisions should receive a liberal interpretation when substantial compliance is established.
The Agra ITAT held that disallowance of employees’ PF and ESI contributions could not be made through Section 143(1) processing when the legal position was unsettled. The ruling emphasizes that highly debatable issues fall outside the scope of prima facie adjustments.
The Chandigarh ITAT held that deduction under Section 54 cannot be restricted merely because the new residential property is jointly held with a spouse. The decisive factor is the source of investment, which in this case originated entirely from the assessee.
The Agra ITAT held that an independent addition under Section 69A was unsustainable when the AO had accepted the assessee’s declared business income. The Tribunal directed reconsideration of the deposits after evaluating the business receipts.
The Kerala High Court permitted the Official Liquidator to prematurely close fixed deposits to facilitate payment of dividends to creditors. The Court also approved related steps necessary for completing the disbursement process.
The Tribunal held that transfer pricing analysis should focus on international transactions rather than entity-level profitability where segmental data is available. The case was remanded for fresh consideration of comparables and ALP determination.
The Madras High Court held that Section 125 cannot be invoked where the GST law specifically provides for late fee under Section 47 for non-filing defaults. The ruling clarifies that general penalty provisions operate only in the absence of a specific penalty mechanism.
