The ITAT Mumbai held that where additions were based on seized material from a third-party search, proceedings should have been initiated under Section 153C and not Section 147. The assessment was declared invalid.
The Tribunal held that the entire unaccounted turnover from alleged on-money receipts cannot be treated as taxable income. It ruled that reasonable hidden expenditure must be considered while estimating profits.
The ITAT Mumbai held that the doctrine of merger did not bar revision under Section 263 because the applicability of Section 50C was never considered during the reassessment or appellate proceedings. It upheld the revision while directing fresh consideration of the property’s valuation through the prescribed statutory mechanism.
ITAT Mumbai held that Compulsorily Convertible Debentures could not be treated as equity merely to deny interest deductions. The Tribunal deleted the ₹76.45 crore transfer pricing adjustment arising from such recharacterization.
The ITAT Mumbai restored the matter to the Assessing Officer after noting that the assessee had not explained the source of investments in deposits and foreign currency purchases. Fresh adjudication was directed after granting a reasonable opportunity of hearing.
The dispute concerned whether dividend received on capital reduction by a foreign subsidiary could trigger restrictions under Section 115BBDA. ITAT held that the statutory conditions of Section 115BBDA were not satisfied, and therefore the assessment order could not be treated as erroneous or prejudicial to revenue.
The ITAT Mumbai held that when the reason recorded for reopening an assessment does not ultimately result in any addition, the Assessing Officer cannot make an addition on a completely different issue.
The Mumbai ITAT held that an addition under Section 68 cannot be made solely on the basis of a retracted statement alleging accommodation loans when documentary evidence proves identity, creditworthiness, and genuineness.
The Mumbai ITAT held that Section 263 cannot be invoked merely because the Assessing Officer accepted income without making an addition after conducting enquiries. The ruling clarifies that revisionary powers require a lack of enquiry, not just a difference of opinion over the adequacy of verification.
The Mumbai ITAT held that reassessment proceedings under Section 147/148 were invalid where the case was based on search material requiring action under Section 153C. The ruling reinforces that search-related assessments for third parties must follow the special procedure under Section 153C, not regular reassessment provisions.
