The ITAT Delhi set aside the CIT(A)’s order deleting a Rs.16.10 Cr unsecured loan addition against Nitin Garg, remanding the issue to the AO. The Tribunal found the CIT(A) erred by not requesting a remand report to verify the lender’s creditworthiness and the source of funds, despite the assessee’s non-compliance during assessment.
The ITAT Delhi ruled in DCIT Vs Jai Jai Ram Singh Infrastructure that shuttering material constitutes a homogenous ‘plant’ and not a ‘purely temporary erection.
ITAT Delhi deletes Rs. 52.65 Cr notional interest addition, affirming only real income is taxable. It allows Rs. 20.18 Cr theft loss and Rs. 12.09 Cr flood/expiry loss on unsaleable inventory.
Delhi ITAT ruled that a Rs. 3.74 Cr tax addition on suppressed profit was illegal. Extrapolating income beyond the search date without evidence is impermissible.
Delhi ITAT ruled that Pratt & Whitney’s overseas aircraft engine repair is not Fees for Technical Services (FTS) as it fails the DTAA’s “make-available” test. The ₹242 Cr demand was deleted.
Assessee has preferred the present appeal mainly assailing validity of final assessment order dated 30.06.2022 on the ground of limitation. It is contested that the Dispute Resolution Panel (DRP) issued directions u/s. 144C(5) of the Act on 23.03.2022, the Assessing Officer (AO) passed final assessment order on 23.06.2022.
ITAT Delhi held that provision of section 54F of the Income Tax Act are beneficial provision and the same has to be applied as per the peculiar situation of each case. Here, exemption u/s. 54F granted in spite of delay in construction of residential property since it was beyond the control of the assessee.
Read how the ITAT ruled the AO violated natural justice by ignoring confirmations and evidence for bank receipts and share sale proceeds. The Tribunal confirmed the deletion of all additions related to loans and advances.
Reassessment order passed under Section 147/143(3) was quashed on the ground that no notice under Section 143(2) was issued after the assessee filed the return in response to notice under Section 148, rendering the assessment void ab initio.
ITAT Delhi held that addition towards undisclosed source of income cannot be sustained merely because this amount is not reported in Tax Audit Report since transaction is duly recorded in books of accounts.
