ITAT Hyderabad held that an unsigned sale agreement cannot automatically justify higher capital-gains additions. The AO must verify actual receipt of funds before confirming any addition.
The dispute concerned rejection of explanation for cash deposits due to lack of documentation. The Tribunal ruled that evidence relating to sale of inherited assets was vital and must be examined afresh by the tax authorities.
ITAT Hyderabad held that invocation of revisionary jurisdiction under section 263 of the Income Tax Act unsustainable since AO has taken plausible view. Accordingly, assessment order is neither erroneous nor prejudicial hence revision order quashed.
The ITAT Hyderabad held that section 144C cannot override outer time limits under section 153. Assessments passed beyond statutory deadlines are void, reinforcing strict compliance with limitation periods.
Tribunal ruled that examining purchases was permissible under limited scrutiny for sales mismatch. However, the 3% profit estimation was found arbitrary and sent back for fresh computation.
The Tribunal held that a Section 148 notice issued after three years was invalid because the escaped income was below ₹50 lakh, making the reopening beyond limitation.
ITAT held that entire cash deposits of a business correspondent cannot be treated as unexplained income without verification. The AO must examine whether deposits were bank collections or the assessee’s own money.
ITAT held that failure to claim TDS credit in the return is only a procedural lapse. Once TDS is reflected in Form 26AS, credit must be granted after verifying corresponding income.
ITAT ruled that cash recorded in a partner’s name during survey cannot be taxed in his hands when the amounts relate to the firm’s land sales and are recorded in the firm’s books. The key takeaway: assess income in the correct entity.
ITAT held that the obligation to receive cash was rooted in an agreement executed before the 2015 amendment to Section 269SS. Since reasonable cause existed, penalty under Section 271D was not sustainable.
