The Kolkata ITAT held that advances received from flat purchasers in the ordinary course of a real-estate business cannot be treated as unexplained cash credits. The Tribunal ruled that such advances were genuine business liabilities regularly adjusted against sales.
The Kolkata ITAT held that penalty under Section 271(1)(c) cannot be levied where income addition is based on peak credit estimation. The Tribunal ruled that estimated additions do not automatically prove concealment or inaccurate particulars.
The ITAT upheld disallowance of ₹11.71 lakh towards loan processing fees after finding that the loans were obtained for broader business purposes and not for acquiring the property generating rental income. The ruling clarified the limited scope of deductions available under Section 24(b).
The Kolkata ITAT held that a commercial loan repaid within the same financial year along with interest and TDS compliance could not be treated as a bogus accommodation entry under Section 68. The Tribunal ruled that documentary evidence and banking transactions established the genuineness of the loan.
The Tribunal ruled in favour of the assessee after noting that audited financials, PAN, bank statements, ITRs, confirmations, and MCA records of lenders were furnished. The ruling reinforces that documentary evidence can successfully rebut allegations of bogus loans.
The Kolkata ITAT held that the Assessing Officer cannot make arbitrary 10% expense disallowances without identifying specific defects or inflated claims. The Tribunal upheld deletion of ₹2.23 crore addition after finding the disallowance was based purely on guesswork and suspicion.
ITAT Rajkot held that revision under section 263 was not sustainable where the Assessing Officer had already conducted extensive verification of agricultural income and expenses. The Tribunal observed that detailed notices, documentary evidence, and independent inquiries were part of the original assessment proceedings.
Kolkata ITAT observed that suppressed turnover results in savings of rent, salary, and fixed expenses, warranting higher profit estimation, though not at the rate applied by the Assessing Officer.
Kolkata ITAT upheld deletion of addition relating to alleged bogus penny stock loss after finding that the assessee had furnished contract notes, demat records, broker statements, and bank documents supporting the transactions.
The ITAT Kolkata held that delayed filing of Form No. 67 is only a procedural defect and cannot deprive an assessee of Foreign Tax Credit under Section 90 and the India-USA DTAA.
