The case examined rejection of registration due to filing Form 10A instead of Form 10AB. The Tribunal held that clerical or procedural mistakes cannot defeat substantive entitlement of old trusts.
The dispute concerned taxability of gains from sale of land located outside municipal boundaries. The Tribunal ruled that such land remains agricultural in nature and is not chargeable to capital gains.
The Assessing Officer disallowed expenses merely alleging cash payments without evidence. The Tribunal ruled that expenses supported by records and banking transactions cannot be disallowed on presumptions.
The issue concerned reopening based on notices never validly served on the assessee. The Tribunal held that defective service of notices strikes at the root of jurisdiction and invalidates the reassessment.
Relying on precedents including rulings of the Delhi High Court, the Tribunal held that extrapolation across years is impermissible. The addition was struck down as being based on assumption rather than evidence.
The Tribunal held that once business receipts are taxed on an estimated basis, separate additions for payments and assets from the same receipts are impermissible. Only a net-profit estimation was sustained, deleting multiple cascading additions.
The tribunal accepted that allotment confers enforceable capital rights capable of transfer. The ruling clarifies that proceeds from such transfers must be assessed under capital gains, not deemed income.
The Tribunal held that disallowance of interest for non-deduction of TDS cannot be automatic when paid to an NBFC. The Assessing Officer must first verify whether the payee has offered the income to tax.
Levy of interest under sections 234B and 234C on income arising from an APA. Interest was deleted as APA income crystallises only on signing, making advance-tax estimation impossible.
The dispute involved taxing unexplained increases in partners capital in the firms assessment. The Tribunal affirmed that such additions, if any, can only be examined in the hands of partners and not the partnership firm.
