The Tribunal held that cash gifts received from relatives covered under section 56(2)(vii) cannot be taxed as unexplained credits. Once identity, creditworthiness, and genuineness are proved, section 68 has no application.
The issue was whether Section 153C proceedings could continue when seized material was handed over after 01.04.2021. The Tribunal ruled that such notices are barred by law, rendering the assessment void.
The Revenue treated seized cash entries as unexplained income under Section 69A. The Tribunal ruled that receipts from agricultural activities are exempt and cannot be taxed merely based on seized notings.
The Tribunal held that penalty cannot survive where sales were already offered to tax and later added again under section 68. The key takeaway is that double taxation cannot result in penalty when no tax was sought to be evaded.
The tax authorities denied Section 54 relief citing delay in completing construction. The Tribunal ruled that Section 54 is a beneficial provision and does not mandate full completion within three years.
The issue was whether an assessment is valid when notice under Section 143(2) is issued by an officer lacking pecuniary jurisdiction. The Tribunal held such notice invalid and quashed the assessment as void ab initio.
The issue was whether share capital could be added in a completed assessment without seized evidence. The Tribunal held that in an unabated year, additions are barred absent incriminating material.
The Tribunal ruled that denying Section 80P deduction is unjustified when the underlying interest income itself does not exist. Notional income cannot defeat statutory deductions.
This ruling clarifies that repayment of loan with interest, coupled with documentary proof, negates allegations of unexplained cash credit. Mere suspicion without defects in evidence cannot sustain an addition.
The Tribunal held that a reassessment notice issued to a company already struck off from the ROC is invalid. Since the entity had ceased to exist, the entire reassessment and assessment proceedings were quashed.
