ITAT Kolkata dismissed Rs. 6.52 crore addition under section 68, holding that cash deposits were substantiated by audited books and AO failed to reject accounts or prove them unexplained.
The Tribunal directed a fresh adjudication after the assessee was wrongly credited with company income due to erroneous PAN and 26AS entries, emphasizing fair play over technical delay.
The issue was whether an outstanding loan could be taxed as deemed dividend in a year when no loan was received. The Tribunal held that the decisive factor is the year of payment and remanded the matter for fresh examination.
ITAT Kolkata held that an assessment under section 143(3) is invalid if the section 143(2) notice does not comply with CBDT prescribed formats. The ruling nullifies both the assessment and related revisionary proceedings.
The ITAT held that reassessment beyond four years fails when the reasons do not show the assessee’s failure to disclose material facts.
The Tribunal held that deductions for donations cannot be denied due to later retrospective withdrawal of approval. Genuine donations made when the donee was approved retain tax benefits.
ITAT Kolkata condoned an extraordinary delay in filing appeals, emphasizing that genuine and unavoidable reasons justify late filing, allowing the appeals to proceed for adjudication.
The Tribunal held that conflicting judicial views on Section 10(38) exemption made the issue debatable. Since the assessee disclosed all facts, penalty for concealment could not survive despite later denial of exemption.
Tribunal remanded the case after finding that documentary evidence submitted during assessment was not examined. The matter is sent back for fresh evaluation with an opportunity of hearing.
ITAT Kolkata ruled that WhatsApp chats without corroboration cannot be treated as unexplained income under Section 69A. All additions based solely on chats were deleted, emphasizing the need for tangible evidence.
