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 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 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.
The issue concerned taxation of alleged on-money from sale of land. The Tribunal held that once the land was agricultural and outside section 2(14), capital gains and on-money additions could not survive.
Revenue argued that control and fixed hours created employment. The Tribunal ruled that such controls ensure discipline and contract enforcement, not employment. Result: TDS under Section 194J sustained.
The Revenue treated cash deposits as unexplained under Section 69A despite matching withdrawals and opening cash balance. The Tribunal ruled that redeposit of available cash cannot be taxed as unexplained income.
ITAT rejected the tax authority’s approach of increasing asset values on the assumption of appreciation. Fair market value under Section 56 must be based on book values as mandated by Rule 11UA.
The reassessment was challenged for want of proper approval. The Tribunal ruled that ritualistic sanction under Section 151 defeats jurisdiction and renders the reopening void.
The authority cancelled existing registration without invoking the procedure under Section 12AB(4). The Tribunal ruled that supersession of registration requires proof of specified violations and due process. In its absence, cancellation was illegal.
