Relying on Supreme Court precedent, the Tribunal held that the IBC has overriding effect over the Income-tax Act. The decision confirms that tax appeals cannot survive once insolvency proceedings are approved.
Applying judicial relief on Section 115BBE, the remaining tax demand fell below the prescribed threshold. The ruling reiterates that revenue appeals must be dismissed when tax effect is below CBDT limits.
The Tribunal ruled that purchases cannot be treated as bogus merely because suppliers did not reply to Section 133(6) notices. When books are audited, evidence is produced, and sales are accepted, disallowance under Section 69C is unsustainable.
The Tribunal ruled that cash deposited during demonetisation came from genuine business sales already offered to tax. It held that taxing the same amount again under Section 68 and Section 115BBE would amount to impermissible double taxation.
The ITAT held that once a resolution plan is approved under the IBC, income-tax proceedings cannot continue. Revenue appeals challenging deletion of additions were dismissed.
The addition was set aside as no cash was found, traced, or shown to be received by the assessee. Mere suspicion or inference cannot substitute proof under section 69A.
The Tribunal held that estimating commission income without corroborative evidence is unsustainable. Audited accounts and consistent interest income showed genuine business activity, leading to deletion of the addition.
The Assessing Officer made an ALP adjustment on interest despite the assessee having already added back the full amount under thin capitalization rules. The Tribunal ruled that TP provisions cannot be applied where no expenditure is claimed.
Alleged additions for suppressed sales, disallowances, and capital gains were rendered void once the revision order was quashed. The case underscores the doctrine of consequential invalidity.
The ITAT held that assessments framed beyond the permissible ten-year block under Section 153C are without jurisdiction. Since the satisfaction note fixed the deemed search year later, earlier years were invalidly assessed.
