The Tribunal ruled that duty drawback income recognized on cash receipt basis cannot be taxed on accrual, as consistent accounting practice caused no revenue loss.
The Tribunal held that AO must recompute capital gains considering purchase cost, indexation, and stamp duty, instead of merely adding the section 50C deemed value difference.
ITAT Rajkot partly allowed appeal, directing that 90% of cash deposited during demonetisation be accepted as explained, with only 10% taxable under normal income tax.
The Tribunal found that notices lacking classification as limited, complete, or manual scrutiny violated CBDT instructions. As a result, the assessment under section 143(3) was quashed as void ab initio.
ITAT held that Section 263 cannot be invoked when the AO has already examined the issues and applied his mind. Key takeaway: Mere preference for deeper enquiry does not make an assessment erroneous.
The Tribunal found no proof that the trust spent funds on a specific community. The matter was remanded for a fresh review of its 12AB and 80G applications.
Rajkot ITAT deleted an addition of ₹94.81 lakh, holding that interest received under Section 28 of Land Acquisition Act is accretion to compensation, not interest taxable under Section 56(2)(viii). Since acquired land was rural agricultural land (not a capital asset), compensation, including Section 28 interest, is wholly exempt from tax.
The ITAT Rajkot set aside reassessment proceedings initiated under Section 148 against a firm that had previously converted into a private limited company. The Tribunal held that a notice issued in the name of a non-existent entity strikes at the root of jurisdiction and renders the entire assessment void ab initio.
The ITAT Rajkot set aside the addition of ₹16.99 lakhs in Long Term Capital Gain (LTCG) against the assessee, who acted only as a Power of Attorney (POA) holder for the property sale. The Tribunal remitted the matter to the Assessing Officer for fresh adjudication, noting the assessee was not the property owner or seller.
ITAT ruled that a resident individual, opting for new tax regime with income below ₹7 lakhs, is eligible for full S 87A rebate, even if their income includes STCG under S 111A3 Court held that no statutory bar existed for Assessment Year 2024-25, invalidating system-driven denial by CPC.
