The Tribunal upheld disallowance of political donation deductions where the assessee failed to prove genuineness and the transactions were linked to suspected accommodation entries. The ruling reinforces the burden on taxpayers to substantiate claims under section 80GGC with credible evidence.
The Tribunal remanded the case after finding that the addition was made solely on Investigation Wing inputs without proper verification or disclosure of details to the taxpayer.
The ruling clarified that increased expenditure in one year, by itself, does not permit partial disallowance. The Assessing Officer must demonstrate lack of business purpose or genuineness.
The High Court held that quick repayment alone cannot establish a paper transaction when identity, creditworthiness, and genuineness are proved through records.
The Tribunal held that adverse regulatory findings alone cannot justify tax additions when client code modification trades are already recorded in the books and profits are disclosed.
The Appellate Tribunal held that delay can be condoned without a formal application if sufficient cause is evident from the record, allowing insolvency proceedings to continue on merits.
The Appellate Tribunal held that once insolvency is initiated by admitting a bank’s default, the suspended director cannot later challenge the validity or limitation of that very claim.
The decision clarifies that the statutory suspension under Section 10A applies only to corporate debtors and does not prevent insolvency proceedings against personal guarantors.
The High Court ruled that penalty proceedings arising from search and initiated in assessment are governed by appeal-linked limitation rules. A penalty passed within six months from receipt of the tribunal order was held valid.
The tribunal held that an appeal cannot be rejected merely due to a clerical mistake in mentioning the wrong section in Form No. 35. The matter was remanded for fresh decision on merits, reinforcing the duty of appellate authorities to adjudicate substantively.
