This ruling addresses a massive tax demand raised by CPC under Section 143(1) based solely on a clerical error in the original Form 3CD. The ITAT set aside the orders, holding that natural justice mandates the assessee be heard and the correct audit report considered before imposing such a significant liability.
Kolkata ITAT ruled in DCIT vs. Jupiter International that a ₹6.7 crore addition in an unabated tax year was illegal. Jurisdiction under Section 153A fails without seized, incriminating material, per SC precedent.
ITAT Kolkata held that penalty paid to private entities/ third parties towards breach of contract is the usual course of business and doesn’t involve payment of penalty for infraction of any law hence disallowance made under Explanation to Section 37(1) of the Income Tax Act is unwarranted.
Relying on the jurisdictional High Court precedent, the Tribunal quashed the entire crore addition, holding that service of the notice beyond the statutory limitation date is a fatal flaw. The decision emphasizes that procedural compliance with the time limit is mandatory and cannot be waived.
The ITAT Kolkata confirmed the deletion of a ₹4.04 Cr addition under Section 68 against Eskag Sanjeevani, ruling that documented unsecured loans received and fully repaid through banking channels cannot be deemed bogus.
Invalid 143(2) notice format kills assessment. Kolkata ITAT quashes s.143(3) assessment (Pankhuri Mishra Vs ITO) as notice didn’t specify scrutiny type (limited/complete) per CBDT mandate.
Kolkata ITAT rules that delayed Form 67 filing isn’t fatal to FTC claim. FTC is a substantive right under Section 90; Rule 128’s timeline is directory, not mandatory.
ITAT Kolkata restricts disallowance of painting business expenses to 20%, ruling that entire disallowance for lack of vouchers was excessive given the ongoing business activity.
ITAT Kolkata deleted the ₹1.31 lakh unexplained cash addition during demonetisation, ruling the deposit was reasonably sourced from the assessee’s disclosed rental income received in cash.
The ITAT Kolkata restored a 464-day delayed appeal (AY 2017-18) to the AO for fresh adjudication but imposed a conditional ₹50,000 cost on the assessee for consistent non-cooperation.
