Tribunal upholds disallowance of ₹76 lakh paid for regularizing building deviations, ruling such compounding fees are penalties under Section 37(1) and not deductible.
Tribunal ruled that amendments to Section 11(3) of Income Tax Act are prospective. Accumulated charitable funds utilized within permitted 5+1 years cannot be taxed, overturning prior additions.
The Tribunal dismissed Revenue appeals for AYs 2006-07 and 2007-08 as the corporate debtor is under CIRP. Section 14(1) moratorium bars all proceedings, ensuring compliance with the Insolvency and Bankruptcy Code.
The AO reopened the assessment relying on external investigation without verifying facts, misclassifying the advance as unexplained income. Tribunal dismissed Revenue appeal and confirmed CIT(A) order.
ITAT Delhi allowed the appeal after noting the CIT(A) ignored a revised Tax Audit Report proving timely PF/ESI payments. Key takeaway: revised audit reports must be considered before confirming disallowances under Section 36(1)(va).
ITAT Delhi restored the appeal to CIT(A) after the assessee challenged notice issuance beyond limitation and under wrong section. Key takeaway: adherence to correct procedure is crucial in income tax assessments.
Disallowances under Section 40A(3) were challenged as cash payments were made on holidays and for labor. Tribunal directs reassessment considering business exigency and genuine transactions.
Despite CIT(A) noting missing ITRs, Tribunal allowed TDS credit on the Rs. 1 crore part payment. Decision reinforces that TDS on income already taxed must be recognized and credited.
The Tribunal ruled that when a 143(3) assessment merely adopts 143(1) figures without examining adjustments, taxpayers can still appeal the 143(1) intimation. Key takeaway: merger does not automatically block appeals.
ITAT modified CIT(A)’s 20% addition on alleged bogus purchases to 15%, considering actual sales and material usage. The ruling ensures only profit embedded in disputed purchases is taxed.
