The Tribunal validated reopening under Section 147 based on credible post-search information. Proper procedure under Section 148A was followed, making reassessment lawful.
The Tribunal held that the Assessing Officer erred in fully rejecting the assessee’s explanation linking cash deposits to business sales. However, due to incomplete substantiation, a limited addition of ₹8 lakh was sustained.
The Tribunal upheld denial of loss set-off as the statutory eight-year limit for carrying forward capital losses had expired. It ruled that pending litigation does not extend the permissible period under the law.
The Tribunal allowed deduction of royalty paid for use of a logo, noting that no specific defect was found in the supporting evidence. It held that the expenditure could not be disallowed merely on grounds of justification without examining its business purpose.
The Tribunal held that no disallowance under section 36(1)(iii) can be made where loans are advanced from interest-free funds. It observed that availability of own funds and recovery during the year supported the assessee’s claim.
When an entity served both its members and the public, the dominant object test applies. If the regulatory functions lead to borrower protection and financial stability for low-income groups, the GPU status was maintainable.
The Tribunal held that GST collected is not part of income for presumptive taxation under section 44B. It ruled that GST is a statutory levy and cannot be treated as revenue.
ITAT held that share capital addition cannot be sustained where identity, genuineness, and creditworthiness of investors are supported by documents. The Tribunal found no defect in CIT(A)’s order deleting most of the addition.
The Tribunal ruled that an unregistered agreement does not invalidate exemption if possession is taken and payment is made. The term purchase under Section 54 was interpreted broadly.
The Tribunal held that MMR cannot be applied where income is modest and statutory conditions are not met. It directed recomputation without applying higher tax rates.
