ITAT Mumbai upheld 12.5% addition on alleged bogus purchases, ruling that only profit element can be taxed since sales were accepted; full disallowance or 25% addition was held excessive and unjustified.
ITAT held that where sales are not disputed, entire purchases cannot be disallowed. Only 15% profit element was taxed, reinforcing that tax applies to real income, not gross receipts.
The Tribunal held that unfinished properties classified as work-in-progress cannot be subjected to notional rent under section 23. Since construction was incomplete, the addition was deleted as legally unsustainable.
The Tribunal held that the Assessing Officer cannot examine issues beyond the scope of limited scrutiny without approval. Since total deposits were assessed instead of only demonetization deposits, the addition was invalid and deleted.
The case examined whether compensation paid to exit prior agreements was a sham arrangement. The Tribunal ruled it was a valid business decision that enabled higher sale consideration.
The Tribunal quashed reassessment proceedings as they were based on a mere change of opinion without any fresh tangible material. It held that re-examining already scrutinized facts does not justify reopening under section 147.
The Tribunal held that an unsigned agreement without corroboration cannot be treated as incriminating material. Proceedings under section 153C were declared invalid.
The Tribunal held that payments and delivery handled by the assessee’s PA indicated control over the transaction. The absence of evidence supporting the daughter’s role led to confirmation of addition.
The appeal involved a legal challenge regarding absence of notice under Section 143(2). The Tribunal held that failure to adjudicate this issue required fresh consideration and remanded the matter.
The Tribunal ruled that absence of an irrevocability clause in the trust deed is not sufficient to reject registration. It relied on High Court precedent to set aside the order. The decision protects trusts from technical rejection.
