Tribunal overruled CIT(A), following Madras High Court precedent, and treated proceeds from sale of Silver Oak trees as agricultural income. Human cultivation, not wild growth, defines agricultural income.
The order was remanded after ITAT found the CIT(A) overlooked core issues including validity of belated 148 return, applicability of 153C, and cross-examination rights.
The tribunal held that brought-forward losses and unabsorbed depreciation remain in the books until fully absorbed and must be allowed as reduction under Section 115JB. The ruling rejects the Revenue’s stand and upholds the CIT(A)’s deletion of the addition.
Tribunal held that MEIS/MLFPS rewards are capital receipts, not income under sections 2(24)(xviii) or 28. The ruling confirms that export-linked duty scrip sales are non-taxable when meant for market expansion.
Tribunal held that Section 54F allows exemption only for one residential unit. The assessee’s claim for a second flat was rejected, affirming that multiple units do not qualify unless treated as a single house.
The Tribunal held the reassessment invalid as NFAC completed the process without issuing a mandatory notice under section 148A. It ruled that an assessment is void when the jurisdictional notice is issued by one authority but finalized by another.
The Tribunal ruled that the AO’s imposition of ₹30,000 was contrary to Section 272A(1)(d), which permits only ₹10,000 per statutory default. As only one true default existed, the excess penalty was deleted. Key takeaway: penalty must be grounded strictly in statutory authority, not administrative repetition.
The Tribunal held that penalty under section 270A could not stand because the JPACK ledger titled “SABARI” was not proven to belong to the assessee. The ruling emphasises lack of corroborative evidence and inconsistencies in the seized material.
ITAT Chennai struck down a protective addition of ₹14.91 Cr made u/s 69, citing invalid u/s 153C jurisdiction. No substantive assessment existed in the companies’ hands for AY 2014-15, reinforcing that protective additions require year-wise satisfaction and corroborative evidence.
Tribunal confirmed that powers to question “source of source” under section 68 exist only from 01-04-2023. Additions on unsecured loans and student deposits were deleted, while TDS disallowance was remanded.
