The Tribunal clarified that section 292BB only cures defects in service of notice, not complete absence of a valid jurisdictional notice. Participation in proceedings cannot validate an assessment initiated by an incompetent authority.
The Tribunal upheld taxation of rental receipts as income from house property because the companys principal object was not property letting. It ruled that business income treatment cannot be claimed merely based on incidental objects in the memorandum.
The Tribunal found that inadvertent allotment of two PANs led to duplication of bank accounts and misreporting of income. Proper reconciliation was directed before making any addition.
The Tribunal ruled that loans from salaried relatives with disclosed income and banking trails satisfy identity, creditworthiness and genuineness. The Section 68 addition was therefore unsustainable.
The reassessment was struck down because it relied exclusively on third-party search material. The ruling clarifies that section 153C, not section 147, must be invoked where incriminating evidence emerges from another persons search.
The Tribunal ruled that when all statutory documents are on record and unchallenged, section 68 cannot be invoked. Suspicion cannot substitute proof in share capital cases.
The Tribunal held that a clerical error in the tax audit report, later corrected through a revised report, cannot be the basis for disallowance under section 143(1). Automated adjustments must reflect correct facts.
The Tribunal ruled that an assessment based on a notice issued beyond the AO s pecuniary authority is unsustainable. Compliance with CBDT jurisdiction instructions was held mandatory.
The Tribunal held that unsecured loans cannot be treated as unexplained once lenders confirm transactions and respond to section 133(6) notices. Suspicion without evidence cannot justify section 68 additions.
The Tribunal held that assets received under a compliant scheme of demerger cannot be taxed under Section 56(2)(x). Transactions covered by Section 47 exemptions fall outside the scope of deemed income.
