The Tribunal held that estimating profit at 20% of turnover in a milk trading business was arbitrary and unsupported by industry realities. It restricted the gross profit rate to 5%, recognising wastage, spoilage, and thin margins typical to the trade.
The Tribunal ruled that when purchases are disallowed as non-genuine without questioning the source of payment, section 69C cannot be invoked. A plausible disallowance under section 37(1) cannot be revised under section 263 merely to change the charging provision.
The AO treated loan substitution via group restructuring as an accommodation entry. ITAT ruled that repayment by a holding company backed by bank trails and confirmations cannot be taxed as unexplained credit.
ITAT Mumbai quashed reassessment for AY 2017-18 as notice issued after three years lacked mandatory sanction under Section 151(ii), holding approval by Pr.CIT insufficient under post-2021 law.
The Supreme Court held that the inclusion of a tainted official in the selection committee created a reasonable apprehension of bias. The key takeaway is that even one biased member vitiates the entire selection process.
Revenue failed to produce a Section 153C satisfaction note showing the date of handing over seized material. ITAT treated the notice date as the deemed search date and held AY 2012-13 beyond jurisdiction.
The issue was whether an assessment could survive when statutory notices were issued in the name of a deceased person. The Tribunal held such notices invalid and quashed the entire assessment.
The case involved share capital raised at a high premium based on unexecuted projects and circular fund routing. ITAT held that failure to prove creditworthiness and genuineness justified addition under Section 68.
The Tribunal considered whether a penalty can stand independently while the core addition is pending fresh adjudication. It ruled that penalty cannot precede final determination of income and must be deleted at this stage.
The Tribunal examined whether the AO formed an independent belief before reopening. Finding verbatim reasons and rubber-stamp approval, it set aside the reassessment and consequential penalty.
