Ahmedabad ITAT held that the Assessing Officer wrongly treated entire business liabilities and receipts as unexplained income. The addition was drastically reduced to estimated profit at 15% of disputed turnover.
The Tribunal held that once the income disclosed in the return filed under Section 148 was accepted without any addition, there could be no allegation of under-reporting or misreporting. The entire penalty of ₹4.91 lakh was deleted.
The Tribunal ruled that corpus donations cannot be taxed merely because Section 12AA registration was granted subsequently. Once registration existed before processing of return, exemption under Section 11 could not be denied.
The Tribunal held that agricultural land situated beyond notified municipal limits is not a capital asset under the Income Tax Act. It deleted the entire capital gains addition arising from sale of such land.
The Tribunal held that amount received on surrender of a pension policy could not be taxed as Income from Other Sources without proper examination of Section 80CCC(2). The entire addition of ₹10.40 lakh was deleted.
ITAT Ahmedabad held that no unexplained investment addition could survive where the booked property deal was cancelled and funds were refunded. The ruling emphasized verification of actual payment flow and subsequent cancellation events.
The Tribunal held that capital introduced in a partnership firm cannot be treated as unexplained merely on suspicion when confirmations, bank statements, and source details are available. The entire addition of ₹29 lakh under Section 69A was deleted.
The ITAT Ahmedabad held that reassessment under Section 147 was invalid because the Assessing Officer reopened the case for fictitious loan entries but made additions for alleged bogus LTCG from penny stock transactions. The Tribunal ruled that changing the basis of reopening is not permissible in law.
ITAT Ahmedabad held that CPC cannot suo motu reclassify an apartment owners association as a co-operative society while processing returns under Section 143(1). The Tribunal deleted the Rs. 97,690 demand after finding the adjustment beyond the scope of prima facie processing.
ITAT Ahmedabad held that reassessment under Section 147 was invalid as the Assessing Officer failed to show independent application of mind or establish a nexus between investigation material and escaped income.
