Unsigned Sanction Invalidates Reassessment; Profit Element Taxable on Unaccounted Sales

J Kumar Infraprojects Ltd Vs DCIT (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT) Mumbai has delivered its decision in the case of J. Kumar Infraprojects Ltd. v. DCIT (ITA Nos. 4147 to 4153 & 4585 to 4593/Mum/2024, dated 3 July 2025) for assessment years 2016–17 to 2022–23, covering multiple issues including disallowances of expenditure, additions for unexplained money, and validity of reassessment proceedings. 1. Disallowance of Salary to Spouses of Employees and Professional Fees – Section 37(1) The Assessing Officer (AO) had disallowed salaries paid to employees’ spouses,...