ITAT Indore

No addition for investment in hundis which were made out from business receipts

Bhandari Hospital and Research Centre (ITAT Indore)

When it was presumed that investment in hundi was bogus in such a situation there was no money available for the investment made by the assessee as such amount surrendered was not available, therefore, this proved that donation was made out of business receipts, which was an allowable expenditure....

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No addition against Vyapam accused as surrendered income duly reflected in books of accounts

Vinod Bhandari Vs PCIT (ITAT Indore)

Where there were two funds one which was already taxed and other had not and there were remittances during the accounting year for a certain sum, the source of which was not indicated then the presumption was that the remittances should have been from the fund which had already suffered tax. Thus, assessee was entitled to the telescoping ...

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Section 271AAB penalty cannot be levied based on defective notice

Ashok Bhatia Vs DCIT (ITAT Indore)

Penalty under section 271AAB levied on the basis of defective notice could not be sustained as  there was no mention about various conditions provided u/s 271 AAB as it was incumbent upon AO to mention in notice issued under section 274 read with section 271AAB as to under which clause of section 271AAB penalty was leviable and that too,...

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Section 263 order based on omitted provision at the time of order not valid

Swastik Coal Corporation Pvt. Ltd. Vs Pr. CIT (ITAT Indore)

Swastik Coal Corporation Pvt. Ltd. Vs Pr. CIT (ITAT Indore) The basis of exercising of revisionary jurisdiction u/s 263 of the Act as per Ld. Pr. CIT is that transfer pricing related issues were not examined by the A.O. since the transaction carried out by the assessee are covered under specific domestic transactions. The contention [&hel...

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Section 271B Penalty Not Leviable for Undisclosed Turnover

Vinay Agrawal Vs ITO (ITAT Indore)

Penalty U/s. 271B of the Income Tax Act, 1961 is leviable for failure to get accounts audited where the turnover / gross receipts exceeds the prescribed limit. Many times it happens that the turnover as per the regular books of accounts remains under the prescribed limit and as such the assessee do not gets the accounts audited U/s. 44AB....

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Addition justified for Receipt of share application money if Genuineness and creditworthiness not proved

M/s. Moira Steel Ltd Vs DCIT (ITAT Indore)

A perusal of financial statement, bank statements and income tax returns of share applicants companies clearly revealed that they had no regular means to invest in the share capital of the assessee company and, therefore, AO was justified in making addition under section 68 on the ground of lack of creditworthiness and genuineness....

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Applying NP rate of 2% based on earlier rates on suppressed receipts justified

Indus Holidays & Tours India (P) Ltd. Vs DCIT (ITAT Indore)

AO was not justified in adding the entire suppressed receipts after rejection of books of accounts while making assessment u/s 153A as CIT(A) was fair enough to apply 2% of net profit rate on the alleged suppressed receipts by taking basis of net profit rate disclosed by the assessee for various assessment years which ranges from 0.5% to ...

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Unabated assessment cannot be reopened u/s 153A in absence of incriminating material

Omprakash Gupta Vs ACIT (Central)- II (ITAT Indore)

Omprakash Gupta Vs ACIT (Central)- II (ITAT Indore) Conclusion: No addition could be made in case of concluded assessments and non abated assessments in absence of an incriminating material discovered during search. Held:  In the assessment order,  AO observed that once search was conducted and notice was issued u/s 153A, AO was bound t...

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Registration u/s 12AA cannot be denied for non-application of income for charitable purposes

Rajiv Gandhi Proudyogiki Vishwavidyalaya Vs CIT (Exemption) (ITAT Indore)

Since objects of assessee were duly charitable in nature and there was no dispute as to genuineness of its activities, therefore,  no registration could be denied under section 12AA merely on the basis that assessee was not carrying out activities for charitable purposes....

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Assessment U/s. 153C invalid if AO fails to records satisfaction note of searched person

Shri Sushil Golecha Vs ACIT (ITAT Indore)

Initiation of assessment proceedings under section 153C in case of other person, i.e., assessee without  issuing proper satisfaction note by AO of the searched person in favour of AO having jurisdiction of such other person, the proceedings initiated u/s 153C  was void-ab-initio....

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