ITAT Kolkata held that addition of sales reversal entry alleging the same as unexplained expenditure is unjustified and unsustainable in law.
Alleged interest income is from the Fixed Deposits, which were made by the assessee in the course of business and in order to comply the statutory requirements of the West Bengal Cooperative Societies Act, 2006. Therefore, the same should be treated as part of the business income and is eligible for deduction under section 80P(2)(a)(i) of the Act and should not be treated as income from other sources.
Read the detailed analysis of the ITAT Kolkata’s ruling in the case of Community For Social Work vs. ITO, highlighting jurisdictional discrepancies in the assessment process under the Income-tax Act.
ITAT Kolkata held that provisions of section 40A(3) of the Income Tax Act doesn’t apply to cash payments when ultimately the amount is deposited in the bank account of the payee.
If no cash is involved , section 68 of the Act treating as share capital/share premium as unexplained cash credit is wrong as transaction of allotment of shares by way of book adjustment and provisions of section 68 of the Act are not attracted.
Assessee tried to recover forfeited money and when all efforts to recover forfeited money went in vain the same been claimed as expenditure
ITAT Kolkata held that as reasons to believe, as recorded by AO, for reopening of the assessment under section 148 of the Income Tax Act is not supplier to the assessee, it will be construed that no valid notice is served and hence the proceedings are liable to be set aside.
ITAT Kolkata held that penalty u/s 271(1)(c) of the Income Tax Act not leviable as computation of income resulting into higher income is only a difference of opinion.
ITAT Kolkata held that education cess and Secondary and higher Secondary Education cess being part of the tax is not allowable as deduction.
Ld. Sr. DR had raised an objection stating that issues relating to the ground of appeal taken in the present case falls under the exception clause contained in the said CBDT circular and, therefore, has to be heard on merit. To this effect, a report was called from the Ld. AO to make a submission as to how the present appeal is covered under the exception clause contained in the CBDT circular.
