The Tribunal ruled that accepting share capital and unsecured loans without proper verification violates Section 68 requirements. It upheld the Principal CITs revision order, stating that failure to investigate renders the order prejudicial to revenue.
Relying on precedents including rulings of the Delhi High Court, the Tribunal held that extrapolation across years is impermissible. The addition was struck down as being based on assumption rather than evidence.
The Tribunal held that disallowance of interest for non-deduction of TDS cannot be automatic when paid to an NBFC. The Assessing Officer must first verify whether the payee has offered the income to tax.
The tribunal held that cash deposits were largely explained through earlier withdrawals and business receipts. Only an estimated 10% addition was sustained, and harsh taxation under section 115BBE was ruled out.
Reopenings based on assumptions, conjecture, or generalized allegations were struck down. The ruling reiterates that reasons must show tangible material, application of mind, and a live nexus with escaped income.
It was ruled that the Assessing Officer’s own finding of circular trading negates the application of bogus purchase jurisprudence. In the absence of evidence of sham transactions, estimated profit additions cannot survive.
The issue was rejection of trust registration as non-maintainable without hearing. The Tribunal ruled that due opportunity must be granted and remanded the matter for fresh consideration.
The issue was an appellate order passed with facts, year, and income of another assessee. The Tribunal held the order void and directed a fresh decision in the correct case.
The issue was whether a penalty can survive when the notice does not specify the exact charge. The Tribunal held that a vague notice vitiates the entire penalty proceedings, even where AMT liability exists.
The issue was whether an ex parte appellate order could stand without proper hearing. The Tribunal held that lack of opportunity vitiated the order and remanded the case for fresh adjudication.
