Income Tax : Section 145(3) allows rejection of books if accounts are unreliable or standards are not followed. The key takeaway is that specif...
Income Tax : The Tribunal held that cash deposits cannot be treated as unexplained income unless books of account are formally rejected under s...
Income Tax : Learn about various types of income tax assessments under Sections 143, 144, and 147, their procedures, time limits, and taxpayer ...
Income Tax : Summary of statutory deadlines for issuing income tax notices (Sec 143, 147) and completing assessments, reassessments, and appeal...
Income Tax : Understand the three core processes of Indian Income Tax: Rectification of mistakes (Sec 154), the four types of Assessment (Summa...
Income Tax : Starting October 1, 2024, Commissioners (Appeals) will gain new powers to set aside and refer best judgment assessments back to As...
Income Tax : ITAT Hyderabad holds 12.5% profit estimation on ₹2.52 crore bank credits excessive; rejects commission agent claim due to lack o...
Income Tax : ITAT Hyderabad holds that Section 249(4)(b) cannot bar appeal where no income is admitted and no advance tax is payable; sets asid...
Income Tax : The Tribunal restored the case as the CIT(A) confirmed additions without granting adequate opportunity of hearing. It held that fa...
Income Tax : The tribunal held that cash deposits cannot be treated as unexplained when sufficient recorded cash receipts exist. Once books sup...
Income Tax : The High Court quashed assessment and penalty orders after finding notices were sent to an incorrect email address. It held that i...
Income Tax : ITAT Chandigarh held that ITO Ward-3(1), Chandigarh had no jurisdiction to issue notice to an NRI and hence consequently the asses...
ITAT Ahmedabad held that reassessment under Section 147 cannot be based on vague or unverified information; specific transactions must be identified to justify additions.
The Tribunal held that additions for cash deposits and property purchase were sustained without considering key bank records. The matter was sent back for fresh verification.
ITAT Hyderabad held that addition towards cash deposited during demonetization period cannot be approved since explanation of assessee is rejected without verification and also Standard Operation Procedures [SOP] provided in CBDT instruction No. 3/2017 dated 21/02/2017 also not followed. Accordingly, matter set aside to file of AO.
ITAT Indore held that the order under section 127 of the Income Tax Act made out by authorities, without serving notice upon assessee, would be invalid and inoperative. Accordingly, action undertaken by AO u/s. 147/148 will also be illegal.
The Tribunal removed the interest disallowance after holding that the assessee’s earlier favourable ruling covered the issue. Key takeaway: once a factual issue is already adjudicated in the assessee’s own case, consistency must be maintained.
The Tribunal held that the ₹2.5 Cr flat investment was fully explained through agreement details and a DHFL housing loan, leaving no basis for an addition. Penalty u/s 271(1)(c) was remanded for fresh examination since the foundation for concealment no longer survived.
The Tribunal held that additions made by treating real estate receipts as capital gains required fresh verification. The case was remanded as the earlier order failed to examine the assessee’s claim of business income under section 44AD.
Tribunal held that earlier expense disallowances were excessive and reduced them to 10% of turnover. The ruling emphasizes that lack of supporting documents justifies estimation but requires reasonable limits.
The Tribunal found that the CIT(A) did not examine or reason with respect to substantial documentary evidence submitted by the assessee. The case was remanded to the AO for fresh adjudication to ensure proper evaluation of bank statements, ledger entries, and receipts.
The Tribunal noted that the cash was seized in a case involving narcotics, making the assessees story of property-related pooling of funds implausible. With no credible corroboration and significant inconsistencies, the addition under section 69A was upheld. The ruling stresses that factual context can outweigh self-serving explanations.
