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...
ITAT ruled that taxing cash deposits as unexplained credit under Section 68 when underlying sales are already accepted by AO and VAT authorities amounts to illegal double taxation. Decision confirmed that source of demonetised currency deposits was clearly traceable to regular business receipts.
ITAT Mumbai deleted a Rs.34.65 crore addition under Section 68 for unsecured loans, ruling that requirement to prove source of source only applies from A.Y. 2013-14 onwards. Tribunal held that proving the identity, genuineness, and creditworthiness of loan creditors was sufficient for year under appeal.
ITAT Chandigarh held that reopening of assessment under section 148 of the Income Tax Act merely on the basis of ‘reasons to suspect’ rather than on ‘reason to believe’ is invalid in the eye of law. Held that passive reliance on third-party intelligence would render the reopening invalid as it reflected merely a ‘reason to suspect’.
The ITAT confirmed the CIT(A)’s pragmatic decision to restrict an addition of ₹8.21 crore for unexplained cash deposits to a 5% profit margin on the total deposits. This estimation was deemed reasonable, considering the nature of the assessee’s pottery trading business where full documentation was absent, balancing commercial reality with revenue protection.
The ITAT Mumbai deleted an addition of Rs.85.05 lakh, ruling that Long-Term Capital Gain (LTCG) on the sale of M/s Pine Animation Ltd. shares was genuine. The Tribunal held that demat-backed transactions through banking channels cannot be rejected merely based on a general Investigation Wing report.
The ITAT ruled the reassessment void because the AO failed to verify Insight data against the taxpayer’s filed return, leading to a factual mismatch and generic reasons for reopening. The decision confirms that mechanical satisfaction based on unverified information lacks the “live link” required for a valid Section 147 jurisdiction.
The ITAT Ahmedabad confirmed additions totaling over ₹4.78 crore for unexplained partners’ capital and unsecured loans. The Tribunal ruled that the firm failed to discharge its onus under Section 68 by relying on unaudited and unsubstantiated documents.
The ITAT Delhi quashed reassessment orders for three assessment years (AY 2011-12, 2015-16, 2016-17) based on fundamental legal flaws. The ruling confirms that reassessments are invalid if initiated on wrong or substituted reasons, if they are time-barred (following the Supreme Court’s concession in the Rajeev Bansal case), or if they proceed without valid statutory sanction from the competent authority.
The ITAT Delhi upheld the deletion of a Rs.1.83 crore addition for alleged bogus loans, ruling that uncorroborated WhatsApp chats and retracted search statements cannot override documentary evidence. The Tribunal affirmed the loans were genuine, noting the assessee provided full proof of identity, creditworthiness, and genuineness via audited accounts, bank statements, and TDS on interest paid to the NBFC lenders.
The ITAT Kolkata deleted the Rs.10.25 crore addition made under Section 68, ruling that an addition cannot be sustained solely on a survey statement that was subsequently retracted, citing coercion. The court found the loans were genuine, routed through banking channels, supported by evidence, and later repaid with TDS deducted interest.
