The Delhi ITAT held that the full value of unaccounted sales cannot automatically be treated as taxable income. It restricted the addition to an estimated profit element of 3% on the sales detected during the search.
Addition of capital gain was deleted as impugned land being agricultural land situated beyond the prescribed municipal limits and having retained its agricultural character, was outside the ambit of “capital asset” under section 2(14)(iii) and therefore no capital gains could have been charged on transfer thereof.
The ITAT held that investments which did not generate exempt income during the year cannot be considered for Rule 8D disallowance. The ruling reiterates that only income-yielding investments are relevant for Section 14A computation.
The ITAT Ahmedabad held that isolated WhatsApp messages and electronic communications cannot, by themselves, support additions in search assessments. The Tribunal deleted several additions because no corroborative evidence established actual cash transactions. The ruling underscores that suspicion cannot replace proof in tax proceedings.
ITAT Ahmedabad held that penalty under Section 43 of the Black Money Act could not be imposed when foreign assets were subsequently disclosed in returns filed under Section 153A. The Tribunal relied on the principle that such returns substitute the original returns.
The Delhi ITAT held that notifications issued under TOLA extending limitation periods applied only to specified statutes and not to Black Money Act assessments. As a result, the assessment order passed beyond the statutory deadline was quashed.
The Delhi ITAT held that reassessment proceedings were invalid where the Assessing Officer made additions unrelated to the reasons initially recorded for reopening. The consequential penalty proceedings were also set aside.
Inter/Intra Circle Remittance Balance represented only internal transfer and reconciliation entries relating to assets and stock in transit between different Circles of the Assessee company. Since no expenditure or deduction had been claimed and the balances did not represent any real income or loss, the addition of Rs.1527.40 crores made by the AO and confirmed by the CIT(A) was deleted.
The Delhi ITAT held that electricity charges paid to statutory authorities in the ordinary course of business qualify as deductible expenditure under Section 37(1). The ruling reiterates that routine operational expenses incurred exclusively for business purposes are allowable deductions.
The ITAT Bangalore held that additions under Section 68 could not be sustained without proper examination of bank statements, PAN details, confirmations, and other supporting evidence. The matter was remanded for fresh consideration.
