It was held that sale consideration from trust property, when donated to charitable institutions, cannot be taxed as income. The ruling confirms protection for genuine charitable application of capital receipts.
The Tribunal held that unexplained cash credit addition cannot survive once identity, genuineness, and creditworthiness are established through documentary evidence. The key takeaway is that mere low income of creditors is insufficient without contrary investigation.
ITAT Delhi held that foreign company receiving consideration for offshore supply of equipment, plant, designs and drawings is not taxable in India since entire transaction has taken place outside India.
Revenue’s claim that manufacturing activity was artificially shifted to extend tax benefits was rejected. The Tribunal held that factual expansion and eligible profits were duly established.
The Tribunal held that for years where assessments were already completed, additions under Section 153A cannot survive without incriminating material found during search. Large additions based on third-party statements and assumptions were therefore deleted.
The addition for alleged cash paid towards property purchase was deleted as the transaction itself stood cancelled. The ruling confirms that cancelled transactions weaken unexplained cash allegations.
The Tribunal upheld reopening and reassessment but reduced the estimated commission income from 2% to 1% due to absence of comparative or segmental justification.
The Tribunal held that amendments to Section 11 cannot retrospectively curtail the utilization window for earlier accumulations. Existing accumulations remain governed by the law in force at the time they were made.
The Tribunal held that when corresponding sales are accepted, a full disallowance of alleged bogus purchases is not justified. It restricted the addition to 6% of the purchase value as a reasonable estimate.
The dispute concerned the head of taxation for interest received on enhanced land compensation. The Tribunal ruled that Section 28 interest is an accretion to compensation and cannot be assessed as income from other sources.
