Holding that actions prescribed by statute must be performed only in the specified manner, the Tribunal deleted the penalty. The case reinforces the importance of lawful service of notices before penal action.
The issue was whether a housing society could intervene in insolvency proceedings. The Court held that societies are distinct juristic entities and lack standing unless recognised as creditors or authorised representatives. The ruling clarifies strict limits on participation at the pre-admission stage.
Additions were deleted after finding that the Revenue relied on presumptions rather than tangible proof. The decision reinforces that the burden to prove undisclosed income lies on the tax authorities.
The case examined whether full purchase disallowance was justified without rejecting books of account. The Tribunal held that in such circumstances, only a reasonable profit element could be added.
Although the assessee quoted the wrong provision in the appeal form, the challenge was clearly against a scrutiny assessment. The Tribunal ruled that procedural lapses cannot defeat a valid statutory appeal.
The Tribunal found that estimating agricultural income solely on standard yield figures ignores real-world farming variables. The assessment was partly modified by limiting the addition to ₹50,000.
The Tribunal examined whether provision for salary arrears arising from the Sixth Pay Commission was contingent or accrued. It held that the liability had accrued for services rendered and was allowable as an ascertained liability.
The Tribunal ruled that VAT collected but not credited to the profit and loss account cannot be treated as taxable income. Once substantially paid to the government, such liability cannot be added again as trading receipts.
The issue was whether reassessment remains valid when no Section 143(2) notice is issued after a return is filed in response to Section 148. ITAT held such reassessment void, confirming that Section 143(2) is a mandatory jurisdictional requirement.
The Tribunal held that when the Assessing Officer disagrees with FMV supported by a registered valuer, a reference to the DVO is mandatory. Reliance solely on stamp duty rates was found improper, and the matter was remanded for fresh valuation.
