ITAT deleted the addition after holding that a retracted statement alone could not justify it where documentary evidence supporting purchases remained uncontroverted.
Provisions that were typically restricted or viewed as contingent become fully deductible business expenses the moment they were quantified, crystallized, and physically paid out before the tax return filing deadline. Revenue could not arbitrarily disallow a flat percentage of direct operational or employee welfare expenses based on general suspicion.
ITAT held that low declared income alone cannot negate creditworthiness where loans were genuine, documented, received and repaid through banking channels.
ITAT held that mandatory interest can still be examined for correct computation. CIT(A)’s ex parte dismissal without merit-based adjudication was set aside.
ITAT restored an appeal after finding the delay was linked to notices sent to a former consultant and directed fresh disposal on merits after hearing.
ITAT held that a clerical error in selecting the wrong ITR column cannot defeat an otherwise valid deduction under Section 80P(2)(a)(i).
ITAT Surat held that rural agricultural land falls outside Section 2(14), deleting capital gains and related additions.
ITAT held no TDS was required as the Revenue failed to prove the services made technical knowledge available under the India-US DTAA.
The ITAT held that Section 54 exemption must be examined separately for each residential house sold. The benefit cannot be restricted to one new house merely because multiple houses were transferred.
ITAT held that failure to obtain a tax audit does not automatically justify rejecting books and estimating profit at 8% without proper examination.
