The Bangalore ITAT ruled that a 20% profit estimation was excessive for an assessee without maintained books. It held that past profit trends are the best guide and restricted the estimation to 8% of turnover.
The ITAT Bangalore ruled that a partner’s sworn statement alone is not enough to make tax additions. Corroborating evidence is required for unexplained cash and loans.
ITAT Bangalore ruled that an omission to claim a tax rebate under Section 87A is a valid reason to file a revised return. The taxpayer was granted the rebate.
ITAT Rajkot held that appellate authorities have power to entertain fresh claim and accordingly, claim of erroneously addition to computation of income accepted and direction given to AO to determine taxable income of assessee afresh.
The ITAT Bangalore remitted a case on trust registration, ruling that proposed activities and infrastructure spending can be considered genuine charitable activities.
ITAT Delhi following the decision of Delhi HC in assessee’s own case held that profit earned on sale/redemption of investment is not chargeable to tax. Accordingly, appeal allowed to that extent.
ITAT Chennai held that the amount gifted by the brother cannot be treated as unexplained. Accordingly, addition u/s. 69 of the Income Tax Act deleted to that extent. In the result, the appeal is partly allowed.
The ITAT Bangalore has ruled that a charitable trust’s spending on land and building is for charitable purposes. Learn how this decision affects trust registration and tax exemptions in India.
It is settled proposition of law that CBDT circulars are binding on department and it has to be strictly followed by officers of department. AO cannot be permitted to travel beyond the issues for which case was selected for limited scrutiny without taking mandatory permission from concerned PCIT or Pr.CCIT.
Even if a house property is vacant for the whole of the current year, but it is let out in earlier years, then benefit of vacancy allowance u/s 23(1)(c) must be allowed and no addition towards notional rent can be made by applying section 23(1)(a) of the Income Tax Act 1961. Vivek Jain v ACIT [337 ITR 74 (AP)] distinguished.
