The Tribunal held that reassessment initiated solely on the basis of an audit objection, without any independent application of mind, is invalid. Such reopening lacks the mandatory reason to believe and cannot sustain in law.
Sales already offered to tax cannot be added again under section 68. With stock movement evidenced and books not rejected, treating recorded turnover as unexplained cash credit was held unsustainable.
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 held that revision under section 263 was invalid where the MAT adjustment arose mechanically from a transition amount already examined in an earlier year, and no fresh error was shown.
The Tribunal held that remanding an assessment under the amended section 251(1)(a) is legally valid. The key takeaway is that appellate remand powers now have clear statutory backing.
The Tribunal held that while interest on enhanced compensation was taxable as per settled law, the exemption claim for land compensation required verification. The matter was remanded for fresh examination.
Failing to report transporter details in your quarterly TDS return was a procedural error, not a tax deduction failure. Since assessee was not liable to deduct tax (thanks to the declarations), Section 40(a)(ia)—which applied only when tax is deductible but not deducted—could not be invoked.
The Tribunal ruled that withdrawing a deduction in response to a Section 148 notice does not erase underreporting. Penalty for misrepresentation under Section 270A was upheld.
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.
