Income Tax : This guide explains when penalties can be imposed under various provisions of the Income-tax Act, 1961. It also outlines the appli...
Income Tax : This guide explains how unexplained cash credits under Section 68 and related provisions can attract steep taxation under Section ...
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 : ITAT Kolkata deleted the Section 68 addition, holding that share application money already assessed in subscribers' hands cannot b...
Income Tax : Calcutta HC dismissed the Revenue's appeal after the remand report confirmed the disputed receipt was sale proceeds of investments...
Income Tax : ITAT Delhi held Section 68 cannot apply to sale proceeds of disclosed investments already recorded in books. Revenue's appeals wer...
Income Tax : ITAT Delhi held Section 68 inapplicable where shares were disclosed in an earlier year and sale proceeds were already offered as i...
Income Tax : ITAT Agra held Section 44AD could not apply where turnover exceeded the limit, adopted past profit history, allowed telescoping an...
Income Tax : CBDT has instructed tax officers to uniformly apply Sections 68 to 69D and Section 115BBE after a C&AG audit found inconsistencies...
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 ITAT ruled that failure to produce confirmations from debtors did not justify additions where sales, ledger accounts, and sample invoices were already on record. It directed deletion of the additions after finding no contrary evidence from the Revenue.
The Gujarat High Court set aside the reassessment after finding that the Assessing Officer failed to provide specific reasons for treating bank credits as unexplained cash credits under Section 68. The matter was remanded for fresh adjudication.
The ITAT Delhi held that cash deposits representing recorded business sales could not be treated as unexplained under Section 68 when the books of account and trading results had been accepted. It deleted the addition relating to demonetisation cash deposits.
The ITAT held that limitation under Section 153B had to be computed from the searched person’s last panchanama, making the assessments time-barred. The assessment orders were therefore quashed.
The Tribunal held that the addition under Section 68 could not be sustained because the assessee produced complete documentary evidence supporting the share transactions. It ruled that the Assessing Officer failed to bring any cogent material to rebut the evidence or justify denial of Section 10(38) exemption.
The ITAT Hyderabad upheld deletion of a ₹68.75 crore Section 68 addition after finding that the partner had established the source of capital contribution through sale proceeds of land. The Tribunal held that documentary evidence sufficiently explained the capital introduced into the firm.
The ITAT upheld deletion of a ₹6.25 crore addition after finding that the loans were received and repaid through banking channels and supported by documentary evidence. It held that the assessee had established the identity, genuineness, and creditworthiness of the lenders.
The Tribunal held that Rule 11UA gives the assessee the exclusive option to choose the valuation method for unquoted shares. While the AO may examine the DCF valuation, he cannot discard it and adopt the NAV method on his own.
The ITAT held that registration granted under Section 12AA before completion of assessment entitled the trust to claim exemption for the earlier assessment year under the proviso to Section 12A(2). It also deleted the addition on donations.
This guide explains when penalties can be imposed under various provisions of the Income-tax Act, 1961. It also outlines the applicable penalty amounts for different types of tax defaults and compliance failures.
