Assessment order was quashed because ITO who issued the Section 143(2) notice exceeded their pecuniary limits as prescribed by CBDT instructions. This decision provides a key takeaway that the jurisdiction limit set by the CBDT for assigning cases to ITOs versus higher-ranking officers is mandatory, and a breach invalidates the assessment proceedings.
The Delhi ITAT sustained a Rs.42.98 lakh addition for unexplained expenditure found in a seized diary, ruling that the entries proved a sufficient nexus to the assessee under Section 292C. However, the Tribunal provided partial relief by directing the lower tax rate under the pre-amendment Section 115BBE to be applied for AY 2015-16.
The ITAT confirmed the reopening u/s 147/148 beyond the four-year limit was valid, as information from the wife’s assessment about the joint account constituted a new and tangible reason to believe income escaped. Despite upholding the reopening, the Tribunal granted significant taxpayer relief by accepting documentary evidence for property-related transactions and reducing the addition to a minimal amount.
The Tribunal directed the CIT(E) to grant Section 12A registration, holding that the Commissioner exceeded jurisdiction by focusing on commercial aspects like fee levels and profitability at the registration stage. The ruling confirms that only the genuineness of the objects and activities must be examined when processing a charitable trust’s application.
Citing lack of sufficient cause for condonation, the Tribunal ruled that even charitable entities cannot escape limitation rules, dismissing the appeal filed after over six years.*
The Pune ITAT quashed a Section 263 revision, holding that interest earned by a credit society from deposits in co-operative banks qualifies for the Section 80P deduction as part of business income. The ruling affirms that the AO’s acceptance of the claim, being a plausible view based on precedents, cannot be set aside merely because the PCIT holds a different opinion.
The ITAT Mumbai restored a long-term capital gains case to the AO to freshly verify additional documents, including BMC certificates, submitted to substantiate a Rs.1.41 crore claim for cost of improvement on a property sale. The Tribunal acknowledged that BMC and architect records can decisively corroborate construction claims on old properties, overriding the prior technical rejection.
The ITAT Pune ruled that a reassessment initiated under sec.147/148, even for non-filers who later filed a return, is void ab initio if the mandatory 143(2) notice is not issued. The Tribunal set aside the cash deposit addition and remanded the matter for fresh adjudication, reinforcing that 143(2) notice is a jurisdictional requirement.
ITAT Chennai allowed AM International Holdings’ claim for ₹60.94 lakh software expenses, ruling that the reimbursement paid to a group company, Tamil Nadu Petroproducts Ltd., for terminating an unsatisfactory IT contract was a legitimate business expenditure under Section 37(1) of the Income Tax Act, 1961.
Primary Agricultural Credit Co-operative Society Vs ITO (ITAT Bangalore) Rectification Can’t Rewrite Scrutiny Order — ITAT Quashes 80P Disallowance for Co-op Society; ITAT Bangalore sets aside rectification disallowing 80P deduction – delay condoned for co-operative society Assessee, a Primary Agricultural Credit Co-operative Society, filed return for AY 2020-21 declaring NIL income after claiming deduction u/s 80P(2)(a)(i) […]
