This ruling addresses a massive tax demand raised by CPC under Section 143(1) based solely on a clerical error in the original Form 3CD. The ITAT set aside the orders, holding that natural justice mandates the assessee be heard and the correct audit report considered before imposing such a significant liability.
The Delhi ITAT ruled that a tax addition based on a vague name in uncorroborated loose papers is invalid without direct evidence linking it to the assessee. The decision emphasizes that suspicion from such dumb documents cannot replace concrete proof in tax assessments.
ITAT Agra holds surrendered jewellery and cash as business income, not unexplained under Sections 69A/69B; Revenue’s appeal dismissed.
Where temporary loans received and repaid through banking channels, with identity and creditworthiness of lender proved, the sa,e could not be treated as unexplained cash credits under Section 68. Reliance on third-party statements without cross-examination was invalid.
Compounding fees collected from illegal mining, transportation, and storage of minerals constituted a ‘transfer of rights’ and consequently attracted Tax Collection at Source (TCS) under Section 206C(1C) as it involved parting with an interest in the mine.
ITAT Jaipur held that surrendered income during survey cannot be treated as unexplained income or money u/s. 69 & 69A of the Income Tax Act and tax in accordance with provisions of section 115BBE. The same has to be assessed to tax under ‘business income’.
ITAT Delhi held that assessment under section 153A of the Income Tax Act based on common approval under section 153D of the Income Tax Act is non-est in the eye of law. Hence, the same is liable to be quashed.
ITAT Delhi held that mere presence of blank cheque without there being any other evidence, proving earning of any income or making of any capital transaction, the same cannot be treated as income. Accordingly, ground raised by revenue dismissed.
The Tribunal held that since the Delhi High Court had restored the Industrial Park’s original Rs. 80 IA approval, the subsequent disallowance based on the quashed withdrawal was invalid. This affirms that a valid judicial ruling overrides the Central Government’s withdrawal order, securing the tax benefit for the taxpayer.
This ITAT Rajkot decision clarifies that when an assessee establishes a clear nexus between past bank withdrawals and subsequent demonetisation cash deposits, the high tax rate under Section 115BBE is not applicable. The Tribunal, citing a Gujarat HC judgment, deleted the entire addition except for a 5% estimated profit to balance revenue interest and taxpayer evidence.
