The Tribunal held that suspicion or reference to unconnected investigations cannot justify denying legitimate interest expenditure. It reiterated that opening balances accepted in earlier years cannot be treated as non-genuine in a subsequent year without contrary evidence.
The ITAT held that an assessee’s procedural lapses cannot override statutory entitlement to deductions under section 10A. The AO must verify substantive conditions, including STPI registration and export realization, before rejecting a claim.
The ITAT held that reassessment notices issued without the correct statutory sanction under section 151(ii) are void ab initio, emphasizing that procedural compliance is crucial before examining merits of the case.
The Tribunal upheld the deletion of ₹5.85 crore addition under Section 40A(3), confirming that payments to meat producers under Rule 6DD(e)(ii) are exempt.
Reopening Based on Incorrect LTCG Information Invalid; Long-Held Penny-Stock Shares Treated as Genuine — ITAT Mumbai Quashes Additions
The Court reviewed bogus purchases of Rs. 4.65 crore, confirming the purchases as unverifiable but reduced the income estimation from 12.5% to 8%. The appeal was partly allowed, providing relief to the assessee.
The ITAT Mumbai ruled that income already taxed under a proprietorship cannot be taxed again in a partnership, deleting the estimated 2% addition by CIT(A).
ITAT Delhi upheld that failure to pass a speaking order on objections under GKN Driveshafts makes reassessment void, dismissing Revenue’s appeal for AY 2012-13
ITAT Kolkata held that an employee cannot be denied TDS credit if the employer fails to deposit deducted tax. Once TDS is deducted from salary, it is deemed paid, and the employee’s liability does not arise. The Tribunal directed full TDS credit and deletion of the demand.
Tribunal held that AO had conducted detailed inquiries on a partner’s debit balance and correctly accepted it as capital withdrawal, not a loan. PCIT’s revision under Section 263 was based on assumptions and a change of opinion, not any factual error. The order was quashed.
