Income Tax : The Tribunal held that cash deposits during demonetisation cannot be treated as unexplained when backed by audited books, invoices...
Income Tax : ITAT Bangalore held that profit cannot be estimated arbitrarily when regular books of account are maintained and not rejected unde...
Income Tax : A large spousal gift exemption was denied due to failure in proving genuineness, creditworthiness, and source of funds. The ruling...
Income Tax : Income without satisfactory explanation is taxed at a special high rate under Section 115BBE. The provisions place strict liabilit...
Income Tax : ITAT held spousal gift taxable under Section 68 due to lack of evidence on genuineness, bank trail, and donor capacity despite Sec...
Finance : The Supreme Court upheld a Will executed in favour of the testator’s sister despite objections from his wife and children. The C...
Income Tax : Tribunal reiterated that credits brought forward from earlier financial years cannot ordinarily be taxed under Section 68 in subse...
Goods and Services Tax : Allahabad High Court ruled that while authorities could verify documents during transit, absence of an e-Tax Invoice did not confe...
Income Tax : The Tribunal observed that the assessee had repaid the unsecured loan along with interest after deducting TDS and the lender had o...
Income Tax : Tribunal ruled that future projections under DCF method cannot be tested solely against later actual financial performance. It obs...
Income Tax : Assessing Officers should follow the sequence as noted below for applying provisions of section 68 of the Act: Step 1: Whether the...
The dispute concerned treatment of frequent cash deposits collected from customers for recharge services. The Tribunal affirmed that income should be estimated at 8% where records and compliance were lacking.
The Tribunal examined whether entire purchases from untraceable suppliers could be added to income. It held that only the embedded profit element can be taxed, not the full purchase value.
The ruling clarifies that if purchases, stock, and trading results are accepted and books are not rejected, sales proceeds cannot be taxed as unexplained cash credits.
Additions based on third-party statements alleging circular trading were rejected as they did not refer to the assessee or show any cash trail. The ruling underscores that suspicion cannot replace evidence.
The ruling clarifies that unsecured loans taken and repaid during the same year through banking channels cannot be treated as unexplained credits. Proper documentation and repayment negate allegations of bogus loans
Holding in favour of the assessee, the Tribunal clarified that high-rate taxation under section 115BBE requires clear proof of bogus receipts. Suspicion based on third-party searches is insufficient.
It was ruled that under-reported revenue cannot be inferred solely from service tax data when no defects are found in regularly maintained books. Income must be assessed on real income principles supported by enquiry and evidence.
Tribunal held that unsecured loans cannot be treated as unexplained where confirmations, bank statements, and tax returns establish identity, creditworthiness and genuineness through banking channels.
It was ruled that the Assessing Officer’s own finding of circular trading negates the application of bogus purchase jurisprudence. In the absence of evidence of sham transactions, estimated profit additions cannot survive.
The Tribunal held that where purchases are not disputed and books are not rejected, the entire sale consideration cannot be added as unexplained income. Since the assessee had already offered profits to tax, the addition was deleted.
