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...
ITAT Mumbai ruled that additions under section 68 cannot stand in an unabated year without incriminating material from a search. External reports or third-party statements were insufficient, and the full addition was deleted.
The ITAT Hyderabad ruled that unexplained partner capital contributions cannot be treated as income of the firm. Only individual partners’ contributions can be assessed, overturning a Rs. 3.26 crore addition.
The Tribunal held that once the assessee provided prima facie evidence of identity, creditworthiness, and genuineness, the burden shifts to the AO to make independent inquiries. Non-compliance renders additions invalid.
The ITAT Pune remanded a case where the first appellate authority dismissed an appeal ex-parte. taxpayers must be given a fair hearing before dismissal, reinforcing the principle of natural justice.
The ITAT dismissed Revenue’s Section 68 additions, holding that the assessee proved the identity, creditworthiness, and genuineness of lenders. AO’s reliance solely on search statements was rejected.
The Tribunal held that reassessment after four years requires PCIT approval, not Additional CIT. The invalid sanction led to quashing of the Section 148 notice and dismissal of Revenue’s appeal.
The Tribunal held that suspicion or reference to unconnected investigations cannot justify denying legitimate interest expenditure. It reiterated that opening balances accepted in earlier years cannot be treated as non-genuine in a subsequent year without contrary evidence.
Madras High Court held that assessee can raise additional ground of validity of reassessment proceedings in terms of rule 27 of the ITAT Rules. Accordingly, ITAT justified in accepting the ground that reassessment was change of opinion.
Reopening Based on Incorrect LTCG Information Invalid; Long-Held Penny-Stock Shares Treated as Genuine — ITAT Mumbai Quashes Additions
ITAT Mumbai invalidated the reassessment for AY 2008-09 because the notice under section 148 was issued after the statutory limitation period and contained a clerical error in the assessment year. The ruling underscores the necessity of strict procedural compliance for reassessment.
