ITAT Mumbai dismissed Revenue’s appeal, confirming that Rs.14.11 crore surplus from perpetual sale of film rights, copyrights, and intellectual property to a third party should be taxed as Long Term Capital Gain (LTCG), not Business Income.
In the case of Deepak Jain v. Income Tax Department, the ITAT Delhi held that the BMA cannot be applied to foreign companies and bank accounts that ceased to exist before 1 July 2015, and that once proceedings were pursued under the IT Act rather than the BMA, the revenue may not shift to BMA under doctrine of election.
Tribunal held that when sales are accepted and supported by evidence, entire purchases cannot be disallowed. Only the profit element can be added, restricting disallowance to ₹8,075 as per Bombay High Court’s ruling in Mohammad Haji Adam & Co.
ITAT Special Bench rules that may in Black Money Act Sec 43 means penalty is discretionary, not mandatory, requiring AO to consider assessee’s explanation before levy.
ITAT Mumbai sets aside CIT(E) order, holding Mohanji Bharat Welfare Foundation’s 80G registration application was timely, interpreting the six-month deadline from provisional approval expiry.
The ITAT Pune set aside a best judgment assessment (u/s 144) that arbitrarily estimated an 8% net profit for a poultry farm and disallowed interest expense. The Tribunal ruled that substantive justice requires a fresh adjudication, remanding the case to the AO to allow the assessee a fair chance to present audited books and evidence.
ITAT Agra deleted additions on gifts received from real sisters, holding that when identity, genuineness, and creditworthiness are proven, Section 68 cannot apply to family gifts made out of natural affection.
The Tribunal sustained the addition due to the AO’s rejection of the books under s.145, which was warranted by the assessee’s non-submission of separate purchase/sale and MRP details for country liquor and IMFL. The ITAT found the 10 estimated GP rate reasonable, falling within the normal range for the liquor trade, and confirmed the addition.
ITAT Pune held that filing a revised return after the Department detects wrong deductions is not voluntary. Since the assessee acted only after detection, penalty u/s 270A(9) for misreporting was rightly imposed at 200% of tax.
ITAT Pune held that reopening based on old investigation data was invalid where transactions were already verified under Section 153A. The Tribunal found the penny stock gains genuine as supported by Demat, bank, and STT records.
