The Tribunal condoned a 298-day delay in filing appeal, holding that substantial justice must prevail over technicalities. It deleted additions on exempt gratuity and commuted pension, ruling they cannot be taxed as salary.
Revenue argued that control and fixed hours created employment. The Tribunal ruled that such controls ensure discipline and contract enforcement, not employment. Result: TDS under Section 194J sustained.
The Revenue treated cash deposits as unexplained under Section 69A despite matching withdrawals and opening cash balance. The Tribunal ruled that redeposit of available cash cannot be taxed as unexplained income.
ITAT rejected the tax authority’s approach of increasing asset values on the assumption of appreciation. Fair market value under Section 56 must be based on book values as mandated by Rule 11UA.
The reassessment was challenged for want of proper approval. The Tribunal ruled that ritualistic sanction under Section 151 defeats jurisdiction and renders the reopening void.
The authority cancelled existing registration without invoking the procedure under Section 12AB(4). The Tribunal ruled that supersession of registration requires proof of specified violations and due process. In its absence, cancellation was illegal.
ITAT ruled that property transferred under a bona fide family settlement is outside the scope of Section 56(2)(vii). Such arrangements are not treated as taxable gifts even if formalised through a gift deed.
The assessee challenged jurisdiction for lack of notice under Section 143(2). The Tribunal held that once the belated return was invalid, assessment under Section 144 was lawful.
The ITAT ruled that ad-hoc estimation of sundry creditors as ceased liabilities is not permissible when purchases and trading results are accepted. Section 41(1) can be invoked only on proven remission or cessation, not assumptions.
The authorities compared intra-group commission rates without economic analysis. The Tribunal ruled that such an approach leads to invalid transfer pricing adjustments.
