The ITAT confirmed the revision, ruling the AO’s failure to restrict the deduction to the DSIR-approved amount in Form 3CL was an error contrary to the amended law, causing prejudice to the revenue. Post-2016 amendments make this verification mandatory.
The ITAT Ahmedabad remanded Dhananjay Tradelink Pvt. Ltd.’s case for fresh assessment, directing the AO to reverify ₹14.39 crore in unsecured loans and creditors under Section 68.
The Tribunal deleted an addition of capital gains, noting the AO’s error in taxing the entire sale consideration in one co-owner’s hands when her actual share was minimal and below the basic exemption limit.
The ITAT Ahmedabad annulled reassessment proceedings as the notice under Section 148 was issued beyond the surviving limitation period prescribed under TOLA and clarified in Rajeev Bansal (SC).
The Tribunal held that where an assessee’s accounting method is consistent, and gross margins remain stable over the years, the AO cannot substitute his subjective judgment for the businessman’s discretion without proving the expenditure is bogus or for non-business purposes.
ITAT Ahmedabad deletes Rs.11.27 lakh addition for penny stock investment, ruling the Revenue failed to prove the investment originated from the assessee’s own unexplained funds under Section 69B.
The ITAT ruled against mechanically confirming a large addition under Section 69C, stating that tax authorities must genuinely distinguish between procedural discrepancies and fraudulent inflation. The case was sent back, underscoring that documentary proof is essential before penalizing for purchase differences.
The ITAT ruled that the CIT(A) cannot set aside a reassessment order framed under Section 147 read with Section 144B, as the limited power to remand only applies to best-judgment assessments under Section 144. The Tribunal sent the penny stock LTCG case back, directing the CIT(A) to decide the appeal strictly on its merits.
It was held that regarding section 80-IA issue, Tribunal relied on its own earlier orders in assessees own cases for AYs 2014-15 and 2016-17. It held that since the power plant was transferred as part of a court-approved amalgamation, the assessee was entitled to step into the shoes of the amalgamating company and claim the deduction.
ITAT Ahmedabad deletes Rs.8.14 lakh addition, ruling that AO’s estimation of agricultural expenses using an unrelated 40% benchmark was arbitrary and unsustainable in law.
