ITAT Ahmedabad

Assessee not liable to justify source of source of money received by him

Mahipal Ishwarlal Sottany Vs ITO (ITAT Ahmedabad)

Assessee is not expected to prove the genuineness of the cash deposited in the bank accounts of those creditors because under law the assessee can be asked to prove the source of the credits in its books of account but not the source of the source...

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Assessment Order passed on Dead Person is Void ab Initio

Late Shri Keshavlal Somnath Panchal Through Widow & Legal Heir Vs ITO (ITAT Ahmedabad)

Service of notice upon a dead person under section 142(1) would not authorise him to assume jurisdiction to pass assessment order on the L/Rs. also....

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Mere Form No. 3CEB filing cannot make assessee liable for Section 92BA investigation

Ashish Subodhchandra Shah (HUF) Vs PCIT (ITAT Ahmedabad)

Merely because a prescribed Form No. 3CEB was filed in accordance with Rule 10E r.w.s. 92BA of the Act would not make an assessee susceptible to onerous investigation proceedings on such transactions where the assessee prima facie demonstrates that Section 92BA of the Act is wholly inapplicable in any manner at the first instance...

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Where own funds exceeds investment, no disallowance of interest can be made u/s 14A

Gujarat State Energy Generation Ltd. Vs ACIT (ITAT Ahmedabad)

Gujarat State Energy Generation Ltd. Vs ACIT (ITAT Ahmedabad) Held that if the assessee can demonstrate the availability of surplus interest free funds for making investments that are generating tax free income, disallowance under Section 14A of the Act would not be justified. In this case, the own fund of the assessee exceeds the amount ...

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Validity of addition for Undervaluation/Understatement/ Shortage of closing stock

Shyam Cotsyn India Ltd. Vs ITO (ITAT Ahmedabad)

Shyam Cotsyn India Ltd. Vs ITO (ITAT Ahmedabad) Understatement of stock or unrecorded sale If the assessee has overvalued its closing stock of the earlier assessment year which suggests that amount of profit was increased by that amount or the loss was decreased by the same amount of that assessment year. As such the effect […]...

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A.O. cannot refer the matter to DVO to reduce FMV

Shri Dinesh Khodidas Patel HUF Vs ITO (ITAT Ahmadabad)

Shri Dinesh Khodidas Patel Vs ITO (ITAT Ahmadabad) The issue under consideration is whether A.O. is correct in referring the matter to DVO to find FMV by rejecting valuation report submitted by assessee? In the present case, assessee sold a land along with others co-owners. It had submitted the valuation report as on 1-4-1981 of […...

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ITAT allows set-off of Derivative losses against Business Income

Magic Share Traders Ltd Vs ITO (ITAT Ahmedabad)

Magic Share Traders Ltd Vs ITO (ITAT Ahmedabad) The issue under consideration is whether a company dealing in ‘derivatives’ could be considered as engaged in speculative business as per Section 73 or not? In the present case, the assessee seeks set off of losses arising from derivative losses as non-speculative business losses. The Re...

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For some bogus purchases Entire purchases can’t be added to income

Sonal Parekh Vs ITO (ITAT Ahmedabad)

Sonal Parekh Vs ITO (ITAT Ahmedabad) The issue under consideration is whether the addition under section 69C for Bogus purchases are justified in law? In the give case, A.O. has received the information from VAT department that the assessee is dealing with Hawala dealers for some purchases and hence he has re-open the assessment. AO [&hel...

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Trust to accumulate 25% of income derived from property before application

Indian Medical Association Vs ITO (ITAT Ahmedabad)

Indian Medical Association Vs ITO (ITAT Ahmedabad) Having regard to the plain language of the above provision, it is clear that a charitable or religious trust is entitled to accumulate twenty-five per cent, of its income derived from property held under trust. For the present purposes, the donations the assessee received, would constitut...

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CIT(A) cannot dismiss an appeal in a summary manner

Kaushalkumar G Patel Vs ITO (ITAT Ahmedabad)

On perusal of the impugned orders would indicate that the ld.CIT(A) has simply concurred with the  AO  without formulating specific points and taking note of details available before the Id.CIT(A). In a way, the appeals were dismissed in summary manner. This act is amounting to miscarriage of justice. This exercise of power at the end o...

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