The Tribunal ruled that rental receipts could not be shifted to income from other sources without any change in facts. Long-standing acceptance of house property treatment required the Department to follow consistency.
The Tribunal set aside a ₹18.48 crore addition under Section 56(2)(x) after noting that the nature of the property as stock-in-trade was never examined. The matter was remanded to verify whether the asset was business inventory, in which case the provision would not apply.
The Tribunal held that where identical facts existed in earlier years, the addition for alleged bogus purchases must follow past precedent. It restricted the addition to 5 percent, applying the principle of consistency.
Emphasising the principle against double taxation, the Tribunal held that amounts taxed in members’ hands cannot again be assessed in the society’s hands, subject to factual verification.
The Tribunal held that IGST refund on exports requires factual verification through ledger evidence. The issue was remanded to the Assessing Officer for limited examination.
The issue was whether sale proceeds of inherited jewellery could be taxed as unexplained cash credits. The Tribunal held that valuation reports, affidavits, and banking records sufficiently explained the source, leading to deletion of the Section 68 addition.
The Tribunal upheld restriction of disallowance where interest-free funds were higher than tax-free investments. It reaffirmed that no interest disallowance arises in such circumstances.
The Tribunal examined whether a cash addition under section 69 could rest solely on an Excel sheet seized from a third party. It held the addition unsustainable due to lack of corroborative evidence and violation of natural justice.
The Tribunal held that long-term capital gains from listed share sales could not be treated as bogus merely due to high profits. In the absence of contrary evidence, additions under Sections 68 and 69C were deleted.
ITAT Mumbai held that artificial profits or losses arising from Client Code Modification in share transactions carried out in F&O segment requires transaction-wise reconciliation. Accordingly, matter restore to the file of AO.
