ITAT Bangalore held that delay in filing appeals caused by major heart surgery and prolonged illness constituted a sufficient cause. It restored the dismissed appeals and directed the CIT(A) not to adopt a hypertechnical approach while deciding condonation requests.
The ITAT Bangalore directed the AO to allow the full deduction under Section 80P(2)(a)(i) for a primary cooperative credit society, holding that the Supreme Court’s ruling in Mavilayi confirms that these societies are not excluded by Section 80P(4). The Tribunal confirmed the society’s income was derived solely from transactions with its members.
The ITAT Bangalore deleted a Rs.7.46 lakh addition made on demonetisation cash deposits, ruling that cash from accounted sales in audited books cannot be deemed unexplained income simply due to being deposited during the demonetisation period. The Tribunal also deleted a Rs.4 lakh addition on lorry cost, finding the refund of an advance was correctly reflected in the genuine cash book.
The ITAT Bangalore set aside an ex-parte assessment, which included additions for low profit and demonetisation cash deposits, after the assessee cited the genuine reason of his son’s death and subsequent health issues for non-compliance. The Tribunal restored the case to the Assessing Officer (AO) to verify the audited books, expenses, and cash sources after giving the assessee a fresh opportunity to be heard.
The ITAT allowed the appeal of a senior NRI, condoning the 1695-day delay because the assessment order was served on a corporate email that became inactive after his contract ended. The case was remanded to the AO for fresh assessment after issuing notice to the taxpayer’s correct personal email, highlighting the priority of natural justice over strict delay excuses.
The ITAT restored the assessee’s appeal, condoning the delay because the NFAC sent crucial communications to a wrong email, thus depriving the taxpayer of an opportunity to be heard. The ruling confirms that the entire appellate proceeding becomes non-est if service of notice is flawed, and the matter must be decided afresh on its merits.
Primary Agricultural Credit Co-operative Society Vs ITO (ITAT Bangalore) Rectification Can’t Rewrite Scrutiny Order — ITAT Quashes 80P Disallowance for Co-op Society; ITAT Bangalore sets aside rectification disallowing 80P deduction – delay condoned for co-operative society Assessee, a Primary Agricultural Credit Co-operative Society, filed return for AY 2020-21 declaring NIL income after claiming deduction u/s 80P(2)(a)(i) […]
The core issue was the denial of Foreign Tax Credit (FTC) due to two contradictory CIT(A) orders, one of which cited the late filing of Form 67. The ITAT ruled that since Form 67 was filed before the end of the Assessment Year as per the amended Rule 128(9), the assessee is entitled to the FTC. This decision confirms the extended time limit for filing Form 67 and upholds the principle that one appellate authority cannot overrule a final order of another appellate authority for the same year.
The ITAT ruled that a cash deposit addition under 69A of the Income Tax Act cannot stand if the source is accepted as business turnover and presumptive profit under Sec.44AD is declared. The tribunal accepted the taxpayers explanation of cash deposits from mobile phone sales, linking them to credit card purchases, but directed an 8% profit rate be applied to the turnover.
In the case of Shobha Welfare Society Vs ITO, the Income Tax Appellate Tribunal (ITAT), Bangalore, partly allowed an appeal, challenging a Rs. 64,98,470 addition under Section 69A of the Income Tax Act.
