The issue was whether reopening based only on portal information is valid. The Tribunal held that absence of independent inquiry and tangible material vitiates reassessment and nullifies the addition.
The tribunal held that any adjustment while processing a return under Section 143(1) requires prior intimation to the assessee. Disallowance made without issuing such notice is invalid in law.
The tribunal held that large cash deposits in bank accounts cannot be taxed as unexplained income when the assessee proves he acted only as a commission agent. Only commission income, and not gross deposits, is taxable in such cases.
ITAT Ahmedabad held that repayment of a shareholder’s own deposit, even if used for political donation, is not deemed dividend u/s 2(22)(e) as no company funds were advanced.
The Tribunal ruled that interest earned on Government grants parked under official directions cannot be divorced from the original grant. Denial of exemption was found to defeat the purpose of section 10(23C)(iiiab), leading to relief for the assessee.
Cash deposits during demonetisation were held to be business receipts already recorded as sales in audited books. The tribunal ruled that taxing the same receipts again under Section 68 amounts to double taxation.
The ruling clarifies that denial of charitable exemption for delayed Form 10B goes beyond Section 143(1). If verification is needed, it cannot be resolved through mechanical processing adjustments.
Deductions under Sections 54B and 54F were denied without examining crucial evidence. The tribunal remanded the matter for fresh adjudication after considering all documents and legal issues.
Income earned from sanitation, gardening, and waste management contracts was treated as charitable. The tribunal held such receipts furthered environmental objects under Section 2(15).
Cash deposits during demonetisation were treated as unexplained as no genuine business need for holding large idle cash was shown. The tribunal upheld the Section 68 addition, stressing proof of necessity and cash retention.
