It was held that neither the AO nor the appellate authority provided any factual basis for estimating disallowance. The ruling confirms that estimation must be backed by evidence.
The dispute involved whether the Varanasi Bench could adjudicate an appeal arising from a Kolkata-based assessment. The Tribunal held that filing before an incorrect Bench is fatal and parties must approach the jurisdictional Tribunal.
The Tribunal held that section 69C cannot be invoked when expenditure is recorded in books and its source is not in doubt, even if part of the claim is disallowed.
The Tribunal held that additional evidence accepted by the appellate authority must be examined by the Assessing Officer. Allowance based only on banking payments and charitable status was found inadequate.
The ITAT set aside a ₹1.86 crore addition under section 69A for unexplained deposits, noting the deposits were likely student fees. The ruling emphasizes the need to verify exempt income before making tax additions.
ITAT Varanasi held that principles of natural justice demand that both the parties, i.e. assessee as well as AO, shall be given opportunity of being heard, before being condemned and any prejudice is caused. Impugned order not satisfying the same is liable to be set aside.
Dive into Anuradha Pandey’s case vs. ITO (ITAT Varanasi). ITAT’s scrutiny on investment source from closing stock and debtors. Analysis of the disputed addition and its resolution
Held that rectification application u/s 154, after ROI being processed u/s 143(1)(a), for any typographical/ technical mistake reflected higher income than real income should be accepted by AO to verify the correctness of the total income of assessee
Assessee cannot be permitted to adopt a modus operandi and giving an accounting treatment to GST without passing through profit and loss account to circumvent provisions of section 43B
Held that estimating past savings as Rs. 6,00,000, without any basis, instead of Rs. 9,03,900 and also ignoring the evidences produced for the same. Addition of the same deleted.
