ITAT Chandigarh held that cash deposits of Rs. 17.29 lakh were merely redeposits of earlier withdrawals. The addition made by the Assessing Officer was deleted as the evidence showed no unexplained income.
ITAT Chandigarh restricted the unexplained cash addition to ₹2.5 lakh, deleting ₹10 lakh in Sher Singh vs ITO for AY 2017–18, citing partial explanation from agricultural and milk income.
The Tribunal directed estimation of income at 8% under Section 44AD after disallowing expenses due to lack of evidence in Friends Transport Carrier vs ITO.
In a ruling on non-maintainability, the ITAT found the CIT(E) erred by cancelling the society’s 12A(1)(ac) application merely through an intimation without granting a mandatory hearing. The case has been sent back for a decision on merits.
ITAT Chandigarh upheld rejection of Endocrine And Breast Surgery Foundation’s Section 12A registration, ruling its activities were unethical and focused on networking with pharma companies rather than genuine charitable work.
ITAT Chandigarh deleted a Rs.20 lakh penalty levied under Section 271D for a cash deposit violating Section 269SS. The Tribunal ruled the deposit was a temporary parking of funds by the father for security, not a loan or deposit.
ITAT Chandigarh ruled that additional income offered by a taxpayer during a survey, derived from business-related discrepancies like excess cash or stock, must be taxed at normal business rates. The tribunal held that the punitive tax rate under Section 115BBE does not apply if the income is clearly established as business income and does not fall under the deemed income provisions (Sections 69 to 69D).
ITAT Chandigarh quashed an assessment order made under Section 143(3) for a pre-search year, holding that after a Section 132 search, the assessment must mandatorily proceed under Section 148 with proper Section 148B approval. The tribunal ruled that the Assessing Officer’s continuation of the scrutiny post-search was a jurisdictional error, making the assessment void ab initio.
ITAT Chandigarh deleted a wrongful addition, condemning tax authorities’ misuse of authority for taxing income a consultant mistakenly declared. The ruling asserts that Income Tax Authorities must assist taxpayers in determining their correct income rather than penalize bona fide errors.
ITAT Deletes ₹19.04 Lakh Addition: Agent’s Cash Deposits Were Company Collections The ITAT ruled that cash deposits of ₹19.04 lakh made by commission agent Shyam Singh Hetta were reconciled collections for his principal, DTM Pvt. Ltd., and deleted the unexplained money addition under Section 69A.
