Tribunal overruled CIT(A), following Madras High Court precedent, and treated proceeds from sale of Silver Oak trees as agricultural income. Human cultivation, not wild growth, defines agricultural income.
ITAT set aside dismissal due to delay, restoring appeal to ensure proper examination of disputed additions. Appellate authority must provide speaking orders considering all submissions.
Court held that an income tax assessment issued after the assessee’s death is null and void, emphasizing the legal heir’s right to contest the order.
The Delhi ITAT rejected the TPO’s proposed uplift and held that the interest rate charged on the loan to the Jordan AE aligned with the Jordan Central Bank rate. The ALP at 3.55% was accepted, deleting the proposed TP adjustment.
ITAT condoned a 23-day delay and quashed the ex-parte order of NFAC, sending the appeal back for fresh adjudication. Appeals must be decided on merits even if delayed, prioritizing fairness.
ITAT held that the reassessment notice issued after the assessee’s death raised jurisdictional issues. Legal grounds like issuance to a deceased must be adjudicated before proceeding with assessments.
ITAT held that before treating high-value purchases as bogus, authorities must verify supplier’s GST status, ITC claims, and money trail. Key takeaway: Procedural diligence is required for large-scale disallowances.
The Court allowed the assessee one more opportunity to contest an ex-parte addition under Section 68, emphasizing the need for fair hearing and natural justice.
The Tribunal held that issues like capitation fee or misuse of funds are assessment matters, not grounds for denying registration under Section 12AA. The ruling confirms that the Commissioner must limit inquiry to objects and genuineness of activities.
The Tribunal clarified that income from events, totaling less than 20% of gross receipts, does not disqualify a GPU institution from claiming Section 11 exemption. The Assessing Officer’s and CIT(A)’s denial was set aside, as membership fees were not commercial income. Exemption was granted, confirming the society’s charitable status.
