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 Delhi ITAT set aside an ex-parte assessment, remanding the Rs.13.74 lakh cash deposit case back to the AO for fresh verification. The ruling gives the taxpayer an opportunity to substantiate the deposits using a cash flow statement tracing the source to earlier large bank loan withdrawals.
ITAT Delhi held that cash-in-hand reflected in audited books remains valid even if no return was filed for the prior year, deleting the entire unexplained cash addition.
ITAT Delhi partly allowed assessee’s appeal, reducing unexplained income from ₹10.08 crore to ₹2.22 crore and lowering commission on inter-mediated transactions from 3% to a fair 1%, emphasizing verification of cash and cheque entries under same code.
ITAT Delhi held that sales made to Jyoti Products were genuine, supported by ledgers and invoices. The 25% disallowance by the AO under Section 37 was deleted, as Section 37 applies only to business expenditure, not sales transactions.
ITAT Raipur held that matter regarding unexplained money addition under section 68 of the Income Tax Act restored back as basic ingredients required u/s 68, i.e., identity / creditworthiness of the investors and genuineness of transactions not satisfactorily explained.
The ITAT deleted a protective addition under Section 68 for cash deposits after finding the same income was already declared and taxed in the partners’ individual returns, rendering the firm’s assessment redundant.
The ITAT ruled that the PCIT wrongly invoked Section 263 by relying on unverified external information (e.g., SEBI data and license suspension claims) to label purchases as bogus, without providing this information to the assessee for rebuttal. The tribunal deleted the revisionary order, confirming that the PCIT acted illegally by presuming facts and ignoring the documentary proof of purchase genuineness.
The ITAT Mumbai held that the denial of the right to cross-examine a third party whose statement forms the foundation of a tax addition constitutes a serious violation of natural justice, citing the Supreme Court. The Tribunal set aside the 68 additions of 1.56 crore (across two years) and remanded the case to the AO for de novo assessment with mandatory opportunity for cross-examination.
The Income Tax Appellate Tribunal (ITAT), Delhi, upheld the addition of ₹19.06 Cr (AY 2011-12) and ₹17.53 Cr (AY 2012-13) to Raheja Developers Limited’s income. The ITAT confirmed the finding that the sale of 22 shops to M/s Sagar Trade Links Pvt. Ltd. (STPL) was a bogus transaction involving a shell company to route the developer’s own unaccounted funds back into its books as sale consideration.
ITAT Ahmedabad held that unexplained credit additions cannot be sustained where HUF’s bank transactions are fully documented, and reassessment beyond four years without failure to disclose material facts is invalid.
