The Tribunal held that notional interest cannot be taxed where sufficient interest-free funds exist and no real income has accrued. The Revenue’s challenge to deletion of interest addition was dismissed.
The Tribunal held that for an unabated assessment year, additions under Section 153A must be based on incriminating material found during search. Since no such material linked to the loan was found, the Section 68 addition was deleted.
The Tribunal ruled that the enhanced tax rate under Section 115BBE cannot be applied retrospectively for demonetisation-period transactions. As the tax effect at normal rates fell below the monetary limit, the Revenue’s appeal was dismissed.
The Tribunal recognised that funds could not be used due to a High Court injunction. Such legally restrained non-utilisation cannot be treated as a statutory violation.
The Tribunal ruled that inventory figures from a management Excel sheet, without quantity details or physical verification, cannot form the basis of an addition. Properly recorded GST-compliant sales explained the variance.
The Revenue argued AMP functions required separate compensation under DEMPE principles. The Tribunal rejected this, holding that consistent past rulings prevail absent material factual change.
Holding that justice requires a reasoned order after hearing both sides, the Tribunal remanded the appeals. Continued non-cooperation may still permit ex parte disposal.
The appeals involved common challenges to reassessment proceedings across several years. As CIT(A) had not ruled on these issues, the Tribunal ordered a remand for fresh decision.
The addition was based on suspicion arising from third-party misconduct. The Tribunal reiterated that income tax additions cannot rest on presumptions alone.
The decision reiterates that section 150 is subject to section 150(2) and cannot revive time-barred or jurisdictionally invalid assessments. Directions to reopen were struck down as unlawful.
