The decision reiterates that the Revenue must prove that borrowed funds were actually used for non-business purposes. In absence of such proof, interest paid to banks remains allowable.
It was ruled that under-reported revenue cannot be inferred solely from service tax data when no defects are found in regularly maintained books. Income must be assessed on real income principles supported by enquiry and evidence.
Coca Cola India Inc. Vs DDIT (ITAT Delhi) ITAT Delhi held that final assessment order passed beyond period of limitation prescribed under section 144C(13) read with section 153 of the Income Tax Act is liable to be quashed and hence set aside. Facts: The present adjudication involves a batch of six appeals pertaining to the same […]
The issue concerned valuation of royalty for bundled services. ITAT held that faulty comparables vitiated the CUP analysis and ordered fresh benchmarking.
The Tribunal held that Section 54B requires purchase by the assessee himself. Investment in agricultural land in the wife’s name does not qualify for deduction.
ITAT held that share capital additions cannot rest on an inspector’s report not shared with the assessee. Matter remanded for fresh examination in line with natural justice.
ITAT held that Section 68 cannot be invoked where donors are identified with names, PAN, ITRs, and confirmations. Such donations cannot be treated as unexplained cash credits or anonymous income.
The Tribunal examined whether repayment of earlier loans could be taxed as unexplained money. It held that once loans were accepted as genuine and repayment sources were explained, no addition could survive.
The case examined whether the Assessing Officer could reject a DCF valuation. The Tribunal held that commercial valuation choices, if legally prescribed and supported, cannot be second-guessed.
The Tribunal held that gratuity liability transferred to another employer on employee transfer constitutes valid discharge. Deduction cannot be denied merely because payment was not made directly to the employee.
