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...
Income Tax : ITAT Delhi held that the assessee was covered under the search proceedings even though its name did not specifically appear in the...
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 : 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 loose, uncorroborated diaries maintained by a third party are dumb documents and cannot be the sole basis for major tax additions or the denial of Section 11 exemption for a charitable trust. The Tribunal emphasized that suspicion is not a substitute for proof, and denying Section 11 requires concrete evidence of a violation under Section 13.
ITAT Raipur held that since order passed by Pr. CIT u/s. 263 is quashed the addition made by AO u/s. 143(3) r.w.s 263 does no more survive. Therefore, appeal of the assessee allowed and addition made by AO liable to be quashed.
ITAT Raipur held that addition towards unexplained credits on estimated basis should be the average GP rate from the preceding 3 years. In the present case the same is taken as 5% without any basis. Accordingly, matter restored back to file of AO.
The ITAT Delhi ruled that a business’s cash deposits during the demonetisation period were not unexplained under 68, provided they were sourced from genuine sales. The Tribunal deleted the entire addition, holding that the lower authorities stock calculation was flawed and statutory records (VAT, Audited Books) corroborated the sales genuineness.
The issue was whether high cash sales recorded before demonetisation, and subsequently deposited, could be taxed as unexplained income. The ITAT ruled that since the sales were already recorded, audited, and offered for tax, the deposits could not be taxed again under Section 68 or 69. The key takeaway is that when books of accounts are accepted and corroborated by stock and VAT returns, genuine sales receipts cannot be subjected to double taxation based on mere suspicion or averages.
This ITAT ruling draws a clear line: it upheld the legal and evidence-based addition of ₹6.12 lakh for deemed rental income on multiple house properties, but simultaneously deleted the entire ₹5,87,500 addition for unexplained cash credit, condemning the use of arbitrary 50% estimations by tax authorities.
The ITAT significantly reduced an unexplained cash credit addition from Rs. 32.86 lakh to a lump-sum of Rs.4 lakh, reasoning that a regular exporter with maintained books cannot have the entire demonetisation deposit treated as unexplained. Crucially, the Tribunal directed the tax to be computed at normal rates, holding that Section 115BBE (higher tax rate) does not apply to the financial year 2016-17.
Relying on Supreme Court judgments, including Andaman Timber Industries, the ITAT dismissed the Revenue’s appeal, emphasizing that the right to cross-examination is mandatory for any addition based on a third-party statement. Failure to grant this right nullifies the assessment order.
The ITAT Ahmedabad dismissed the Revenue’s appeal, ruling that cash deposits of Rs.9.37 crore made by Arvindbhai Jewellers during demonetisation were not unexplained cash credits under Section 68. The Tribunal held that the Assessing Officer’s rejection of books under Section 145(3) was invalid, as there was no defect in the quantitative stock register, and suspicion alone cannot be a basis for addition.
ITAT Hyderabad rules that once income is estimated by rejecting books, no further addition can be made; ₹31.55 lakh added in liquor business case deleted.
