During the pendency of assessment proceedings assessee died and notice u/s. 142(1) dated 12.03.2022 has been issued to legal heir/representative of the assessee as per provisions u/s. 159.
Assessee could not have been subjected to additions in case of search/survey operations merely on basis of statement recorded under section 132(4) unless and until some corroborative evidence was found in support of such admission.
In response to the notice under Section 263, assessee argued that the issue had already been examined during reassessment proceedings and that the AO had taken a plausible legal view.
ITAT Ahmedabad held that amount written-off towards non-recoverable advances given to employees which are incidental to business operations qualifies as deductible business expenses under section 37 of the Income Tax Act.
On appeal before ITAT it was submitted that that the case of assessee has been squarely covered under First Proviso of Section 50C of the Act and thus the sale consideration fixed on date of agreement has to be considered as full valuation of consideration towards transfer of property.
In the matter abovementioned ITAT referred to the AO to examine the allowability of the claim u/s 11 of the Act in view of the decision of the Hon’ble Apex Court in the decision of ACIT Vs. Ahmedabad Urban Development Authority, (2022) 449 ITR 1 (SC).
Assessment completed u/s. 143(3) r.w.s. 144 for AY 2010-11 after making of addition of Rs. 36,092/- on account of wrong claim of deduction u/s. 24 and Rs. 23,43,705/- was also disallowed on account of unexplained cash credit u/s. 68 of the Act, Rs. 24,22,305/- on account of unaccounted receipts from Shiva Phrama Ltd. and Rs. 2,06,883/- on account of unaccounted receipts received from various companies.
ITAT Ahmedabad held that revisionary proceeding under section 263 of the Income Tax Act quashed since enquiry already conducted by AO during the course of assessment proceedings. Accordingly, appeal allowed.
ITAT Ahmedabad held that the interest earned on the investment made with the Coopearitve Society which was carried out the banking business is eligible for deduction under section 80P(2)(d) of the Income Tax Act.
ITAT Ahmedabad held that co-operative society is eligible for deduction under section 80P(2)(d) of the Income Tax Act towards interest income earned from investment in other co-operative bank. Accordingly, deduction allowed and appeal by revenue dismissed.
