ITAT Kolkata held that presumptive taxation under Section 44AD was wrongly invoked where the assessee’s turnover exceeded ₹2 crore. The Tribunal clarified that statutory turnover limits must be strictly satisfied before applying presumptive profit provisions.
The Tribunal held that delay in filing the return due to pending probate proceedings was beyond the control of executors. It ruled that such delay constituted a bona fide explanation, leading to deletion of penalty under Section 270A.
The case examined whether transfer pricing adjustments could stand when an APA covered the relevant year. The Tribunal remanded the matter for reconsideration in line with the APA framework.
The Tribunal set aside additions to book profit after ruling that MAT provisions do not apply to banks established under a special statute. It emphasized that such entities are not companies under the Companies Act.
The Tribunal set aside the appellate order as the assessee sought another chance to prove the genuineness of expenses. It directed fresh assessment after proper opportunity of hearing.
The case examined whether purchases can be disallowed when supported by documents and sales are accepted. ITAT held that estimation without rejecting books or independent evidence is unsustainable.
Since most salary payments were accepted, the remaining disallowance was held unjustified. Key takeaway: partial acceptance weakens arbitrary additions.
The Tribunal held that audit under section 44AB depends on turnover, not taxability of income. Exempt entities must still comply if limits are exceeded.
The issue involved arbitrary estimation of income at 20% and 5% of turnover. The Tribunal reduced it to 4% due to lack of supporting comparables and considering business realities. The key takeaway is that estimation must be reasonable and justified.
The tribunal examined whether surcharge applies to private discretionary trusts taxed at maximum marginal rate. It held that surcharge is not applicable where income is below ₹50 lakh, as per Finance Act thresholds.
