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Income Tax : The Tribunal held that reliance on third-party statements without granting effective cross-examination amounted to a violation of ...
Income Tax : ITAT Mumbai held that an addition under Section 69A cannot be sustained when the assessee is denied the opportunity to cross-exami...
Income Tax : Income without satisfactory explanation is taxed at a special high rate under Section 115BBE. The provisions place strict liabilit...
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Income Tax : ITAT Bangalore remanded a Section 69A addition after holding that an APMC commission agent's entire sale proceeds could not be tre...
Income Tax : ITAT Bangalore deleted the Section 69A addition after holding that member details established the source of cash deposits made dur...
Income Tax : ITAT held that negative cash balances do not automatically establish undisclosed income and upheld addition only to the peak negat...
Income Tax : ITAT held that penalty under Section 271D cannot survive where the Assessing Officer failed to record satisfaction in the assessme...
Income Tax : ITAT Allahabad held that estimating gross profit solely on the basis of the subsequent years GP rate is not justified after reject...
Income Tax : CBDT has instructed tax officers to uniformly apply Sections 68 to 69D and Section 115BBE after a C&AG audit found inconsistencies...
The Lucknow ITAT ruled that a cash deposit cannot be treated as unexplained income if the assessees prior cash withdrawals from the bank are greater than the amount deposited. The burden shifts to the Revenue to prove the cash was used elsewhere, which they failed to do in this case.
The ITAT granted relief by ruling that the higher tax rate under Section 115BBE cannot be applied to income voluntarily disclosed during a survey if no specific unexplained cash credit or investment section (like 68 or 69) was invoked. The Tribunal held that the disclosed income remains taxable, but only at normal tax rates.
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 Hyderabad held that cash deposit on account of family settlement needs to be proved with documentary evidences like family settlement deed or relinquishment of property right etc. Matter restored with direction to assessee to submit relevant proof.
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.
ITAT Delhi ruled in favor of Air Con Systems (India) Pvt. Ltd., deleting a ₹62,00,000 addition made under Section 69A of the Income Tax Act. The addition was based solely on notings in an undated loose paper seized from a third party’s residence.
The Tribunal directed the CIT(A) to decide the appeal afresh on its merits, including a ₹75 lakh unexplained cash advance addition, after finding that the earlier dismissal was based purely on a procedural technicality. The ruling emphasizes that the CIT(A) must use their wide powers to adjudicate on merits and cannot reject an appeal at the threshold.
ITAT Hyderabad held that addition towards unexplained money under section 69A of the Income Tax Act is liable to be set aside and matter is remanded back to AO since additional evidences submitted by the assessee needs to be verified by lower authorities.
The issue was a ad-hoc addition on cash deposits sustained by the due to the absence of direct source-to-deposit correlation. The ITAT deleted the addition, holding that once the overall source (like agricultural or business income) is accepted on merits, does not require mathematical one-to-one matching.
The ITAT ruled that crore cash found in a locker during a search was not “unexplained money” because the assessee immediately explained the source as accumulated speculative business income and offered it to tax. The Tribunal held that a disclosed source, even if unrecorded, cannot be forcefully converted into unexplained income.
