ITAT Bangalore quashed Section 263 revision, holding that AOs acceptance of FMV based on valuers report was a plausible view after enquiry and non-reference to DVO or non-initiation of penalty cannot render the order erroneous or prejudicial.
The Tribunal found that additions were made without examining detailed reconciliation and evidence. It remanded the case for fresh verification, emphasizing proper factual analysis.
The Tribunal held that strict correlation between withdrawals and deposits is not required under Section 69. It ruled that reasonable cash availability and explanation based on probabilities is sufficient.
ITAT Bangalore held that interest on bank deposits from operational funds of a co-operative credit society is eligible for deduction u/s 80P, as it is attributable to business activity; reliance on Totgars was held inapplicable.
The Tribunal held that leave encashment relating to government service remains fully exempt under Section 10(10AA). It ruled that later absorption into a PSU does not change the nature of the benefit.
Section 54/54F deduction allowed by ITAT Bangalore despite incomplete documents, as substantive investment in house construction was proven through JDA, sample bills, and bank records-technical lapses cannot defeat genuine exemption claims.
Reassessment quashed by ITAT Bangalore as failure to pass a speaking order on objections violated mandatory procedure under Sections 147/148, rendering entire proceedings invalid in law.
The issue was whether a notice granting less than the statutory minimum time is valid. The tribunal held that giving less than 7 days violates mandatory provisions, rendering the notice and entire reassessment proceedings invalid.
ITAT Bangalore holds Rule 7B governs coffee income, not Rule 7, and remands case for segregation of own-grown vs purchased coffee. Clarifies 40% taxable business income and limits agricultural exemption.
The tribunal examined whether duty drawback should be taxed on accrual or actual receipt. It held that as per law, duty drawback is taxable only in the year of receipt, and additions based on accrual were unsustainable.
