The Mumbai ITAT held that a mismatch in loan repayment figures arising from an unpresented cheque could not automatically justify addition under Section 68. The Tribunal directed limited verification of subsequent payment before deciding the taxability issue conclusively.
The Tribunal held that differences between customs assessable value and invoice value cannot automatically justify additions under Section 69C. The ruling clarifies that actual unexplained expenditure must first be proved by the Revenue.
The Bangalore ITAT held that revision proceedings under Section 264 are intended to provide relief to taxpayers and cannot worsen their position. The Tribunal struck down an enhanced addition made after remand proceedings during demonetisation cash deposit verification.
PCIT had erroneously mixed up the scope of renewal proceedings with cancellation proceedings under Section 12AB(4). Further, Settlement Commission itself had accepted the charitable nature and genuineness of the assessee’s activities and PCIT (Central) was found to lack jurisdiction to adjudicate the issue of renewal/cancellation of registration.
The Bangalore ITAT held that the Assessing Officer cannot estimate additional profit merely due to a fall in net profit ratio when books of account are not rejected. The Tribunal ruled that suspicion over self-made vouchers without concrete evidence cannot justify arbitrary additions.
The Bangalore ITAT held that once a notice under Section 143(2) initiates regular scrutiny assessment, the Department cannot subsequently resort to summary processing under Section 143(1). The Tribunal quashed massive GST-related adjustments as being without jurisdiction.
ITAT Delhi upheld deletion of disallowance under Section 40A(3) after finding that payments were made to multiple labourers and no individual payment exceeded statutory limit. Tribunal accepted that bulk transfers were only administrative in nature.
ITAT Delhi confirmed deletion of addition on alleged diversion of interest-bearing funds, holding that hypothetical or notional income cannot be brought to tax. The ruling relied on the principle that only real income is taxable.
ITAT Indore set aside the appellate order denying TDS credit after the assessee produced Form 16A and Form 26AS showing deduction and payment of tax by the deductor. The matter was remanded to the Assessing Officer for verification and grant of eligible credit.
The ITAT Ahmedabad held that a demolished and uninhabitable structure could not be treated as a residential house for Section 54F purposes. The Tribunal upheld the assessee’s eligibility for capital gains exemption.
