Tribunal holds that Section 28 interest forms part of compensation for compulsory acquisition and cannot be taxed as income from other sources. Confirms exemption under Section 10(37).
Reassessment notice issued beyond statutory time limit under Section 148 was invalid; Tribunal quashed proceedings for A.Y. 2013-14, emphasizing procedural compliance.
The ITAT held that without a condonation petition, a 300-day delay cannot be excused. The ruling underscores that delay must be justified before merits—including Section 80P—can be considered.
The Tribunal held that the revision was invalid because the assessment caused no loss to Revenue, as agricultural income was exempt and the Assessing Officer had made adequate inquiries. The order under section 263 was therefore set aside.
Appeal delayed by 252 days due to counsel’s oversight was condoned by ITAT citing reasonable diligence. Tribunal then reduced unexplained cash addition under Section 69A to ₹1.8 lakh using a fair estimation method.
The Tribunal rejected the Revenue’s argument that TOLA extended the time for issuing notice, holding that for A.Y. 2015-16 the limitation expired on 31.03.2019. Consequently, the 21.04.2021 notice lacked legal authority. Key takeaway: TOLA does not revive time-barred assessments.
The Tribunal held that the penalty under Section 271B must be deleted because the quantum addition on which it depended was no longer in existence. With the foundational assessment gone, the penalty had no legal justification. The decision underscores the principle that penalty actions fail when their basis disappears.
The ITAT Rajkot ruled that exporters with turnover below ₹10 crore are equally eligible for 80HHC deductions, following the Supreme Court’s Avani Exports ratio. The Tribunal held that retrospective amendments cannot deny benefits to smaller exporters. The full deduction claimed by the assessee was restored, overturning AO and CIT(A) adjustments.
Given the assessee’s admission of incorrect turnover and failure to get accounts audited, the Tribunal found income estimation justified. However, finding that the AO’s 4% rate was slightly high and unsupported by specific defects, it revised the rate to 3.5%. Key takeaway: estimation must be justified and proportionate to facts on record.
ITAT held that reassessment notices under sections 147/148 were invalid as the reasons were vague and lacked tangible evidence. Reopening cannot be used merely to verify or scrutinize transactions without proper justification.
