The Tribunal clarified that CPC could not make prima facie adjustments denying Section 80P deduction before the Finance Act, 2021 amendment. The disallowance made in 2019 was held invalid and deleted.
The Tribunal clarified that under the pre-amended law, accumulated income could be applied within five years or the immediately following year. Utilization within the sixth year barred taxation in AY 2023-24.
The ruling confirms that transactions with banks involve third parties, defeating the identity required for mutuality. While sustaining taxability, the Tribunal permitted a 5% estimated expense deduction to compute real income.
The Tribunal upheld 200% penalty under Section 270A for misreporting income through ineligible deductions. Admitted incorrect claims were treated as conscious misrepresentation, not a bonafide error.
The ITAT held that interest earned by a co-operative credit society on bank deposits qualifies as business income. Such income is eligible for deduction under Section 80P(2)(a)(i).
The ITAT ruled that dismissing an appeal solely for non-compliance is contrary to law. The appellate authority is obligated to frame issues and pass a reasoned order on each ground raised.
Observing that the assessee invested the entire share of sale proceeds within two years and obtained possession, ITAT Pune allowed Section 54B exemption. The addition under Section 69A was consequently deleted.
The Tribunal restored the matter after holding that dismissal of the appeal without giving a chance to explain delay and cash deposits was not justified.
The Tribunal held that a plea of defective return due to unpaid tax cannot be accepted without examining the underlying income. The matter was remanded to verify whether the income was correctly reported or belonged to another year.
The ITAT ruled that once the assessee establishes the source of investment, addition for unexplained investment cannot survive. Direct payment by a financier through demand draft explained the transaction.
