Explore how DCIT vs. Claris Lifesciences Limited case sets precedent for setting off deemed short-term capital gain on sale of depreciable against long-term capital loss.
ITAT Ahmedabad overturns AO’s decision, ruling that penny stock sale cannot be treated as unaccounted income if the purchase is genuine. Details of the case and verdict provided.
In a case involving share purchase discrepancies, ITAT Mumbai directs the AO to re-calculate tax liabilities after verifying relevant documents. Full text of the order provided.
ITAT Ahmedabad held that amount received as confirming party on sale of right is considered as receipts on sale of capital asset and accordingly, income is held as income from long term capital gain.
ITAT Indore held that assessment done after considering replies/ submissions of the assessee cannot be said to be faulty. AO has taken a plausible view after considering replies/ submissions and hence revisional jurisdiction u/s. 263 of the Income Tax Act not warranted.
The mere receipt of funds from M/s Solvent Real Estate Pvt. Ltd. did not constitute tangible evidence of income escapement by the assessee. Despite efforts by the assessee to provide explanations and evidence, the AO failed to conduct independent inquiries and relied solely on the information received.
ITAT Mumbai held that for initiation of search assessment on the ‘other person’ recording of valid satisfaction note as required under section 153C of the Income Tax Act is mandatory. In absence of the same, subsequent framing of assessment order u/s 153C/143(3) of the Act is null in the eyes of law.
Bisharpara Kodalia Cooperative Credit Society Ltd vs ITO: Kolkata ITAT rules that CPC’s adjustment of Sec 80P deduction pre-April 2021 is beyond its jurisdiction.
The Tribunal recognized the mandate under section 250(6), requiring the appellate authority to state points in dispute and provide reasons for its decision. However, the Commissioner’s order lacked adherence to these requirements, rendering it unsustainable.
Arijit Chakraborty vs ITO: Kolkata ITAT deletes addition made by AO upon capital gains by adopting value of property as per DVO’s report.
