ITAT held that additions under Section 68 cannot be made for an unabated year unless incriminating material is found during search. Share premium additions based only on books and enquiries were rightly deleted.
The Tribunal held that inadvertent mistakes in filing Form 10AB cannot defeat a trust’s right to exemption. Registration was directed where objects and activities were never disputed.
Holding Section 54F to be a beneficial provision, the Tribunal applied settled judicial principles to allow exemption where substantive conditions were met, directing deletion of the capital gains addition.
The Tribunal held that share capital received from promoters cannot be treated as unexplained under section 68 without tangible evidence. Mere suspicion about source of funds or share premium is insufficient.
The Tribunal held that an unsigned notice under Section 148 is invalid and does not confer jurisdiction on the Assessing Officer. Consequently, the entire reassessment and additions were quashed as void ab initio.
Once the reassessment was quashed for jurisdictional and limitation defects, the Revenues appeal on merits became infructuous. The decision underscores the primacy of legal compliance in reassessment cases.
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.
