The issue was whether dividend income loses s.10(34) exemption due to violation of s.11(5). ITAT held that income excluded under Chapter III never enters s.11 computation, so dividend remains exempt.
The Tribunal held that when sales are accepted and purchases are unverifiable, only the embedded profit can be taxed. Full disallowance of purchases was found unsustainable.
The Tribunal held that advances linked to regular business dealings such as sale of timeshare weeks cannot be taxed as deemed dividend, reaffirming that commercial transactions fall outside section 2(22)(e)
ITAT Mumbai held that disallowance under section 14A of the Income Tax Act cannot exceed the amount of exempt income earned by the assessee during the year under consideration. Accordingly, the matter is restored back to file of AO for exercising the computation of disallowance u/s 14A.
The issue was whether alleged non-genuine purchases justified higher additions despite accepted sales. The Tribunal held that only the profit element can be taxed when purchases are not treated as wholly bogus.
The Tribunal ruled that section 220(2) interest cannot be charged where the original demand notice showed nil demand, holding that interest arises only after a valid section 156 notice.
The dispute centered on whether a reassessment notice was time-barred and sanctioned by the correct authority. The Tribunal held that the reply period under section 148A must be excluded, bringing the notice within three years and validating the sanction.
The issue was whether a reassessment notice issued after the prescribed time limit was valid. The Tribunal held that notices for the relevant year issued after the cut-off date were barred by limitation, rendering the reassessment void.
The ITAT held that revision under Section 263 was invalid because the Assessing Officer had conducted detailed enquiries into goodwill depreciation. A plausible view taken after scrutiny cannot be branded as erroneous.
The Tribunal held that interest earned by a co-operative housing society from deposits with a co-operative bank is eligible for deduction, as the bank continues to be a co-operative society.
