The ITAT granted relief by ruling that the higher tax rate under Section 115BBE cannot be applied to income voluntarily disclosed during a survey if no specific unexplained cash credit or investment section (like 68 or 69) was invoked. The Tribunal held that the disclosed income remains taxable, but only at normal tax rates.
The ITAT refused to condone the Revenues 100-day delay in filing an appeal, holding that busy officer or bureaucratic delay does not constitute sufficient cause. The Tribunal emphasized that the law of limitation binds Government departments equally, and vague excuses are not acceptable.
The ITAT ruled that loose, uncorroborated diaries maintained by a third party are dumb documents and cannot be the sole basis for major tax additions or the denial of Section 11 exemption for a charitable trust. The Tribunal emphasized that suspicion is not a substitute for proof, and denying Section 11 requires concrete evidence of a violation under Section 13.
The Tribunal confirmed a co-operative banks use of a mixed accounting system (mercantile/receipt basis) for NPA interest, prioritizing consistency and adherence to RBI/NABARD prudential norms over the AOs theoretical objection. This ruling solidifies that regulatory requirements trump mechanical accounting changes.
ITAT Bangalore held that delay of 1265 days in filing of an appeal not condoned since negligence on part of the lawyer is not sufficient cause. Accordingly, appeal of the assessee dismissed by not condoning the delay.
Judicial ruling confirms that investment source for property purchased by a homemaker was genuine. The ITAT found that the entire consideration had a clear trail from the son’s account, reversing the mechanical addition made by lower authorities.
Tribunal holds that reasonableness under Section 40A(2)(b) must be benchmarked against prevailing market rates for unsecured loans, not against lower-risk secured bank rates.
Club income not taxable if mutuality is proven: ITAT directs re-verification of cash deposits and identity of contributors/beneficiaries, setting aside an assessment based on the estimated 10% income addition.
ITAT Bangalore deleted a Rs.34.50 lakh addition u/s 69A, accepting the exporter’s explanation that cash deposits during demonetization were genuine customer advances for flowers, which were fully disclosed.
Bangalore ITAT condones 98-day delay and restores penalty appeals u/s 271D/271E, directing CIT(A) to re-examine the genuine nature of cash received and repaid to a paternal uncle for education.
