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 : Income without satisfactory explanation is taxed at a special high rate under Section 115BBE. The provisions place strict liabilit...
Income Tax : An overview of Sections 68-69D of India's Income-tax Act, which empower tax authorities to assess unaccounted income from unexplai...
Income Tax : A Comprehensive Analysis of Undisclosed Incomes under Sections 68 to 69D of the Income-tax Act, 1961, Taxation of these Incomes Un...
Income Tax : ITAT Surat held that rural agricultural land falls outside Section 2(14), deleting capital gains and related additions....
Income Tax : ITAT Hyderabad held that gold deposit agreements produced after the survey, without contemporaneous evidence or book entries, coul...
Income Tax : A belated filing of Form 3CLA was a curable procedural defect and could not deprive an assessee of weighted deduction under sectio...
Income Tax : ITAT Chennai held that loose sheets and estimates alone cannot justify an addition under Section 69B without independent corrobora...
Income Tax : The Chennai ITAT held that excess stock found during a survey could not be taxed as unexplained investment when it had been accoun...
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 ITAT ruled that additions under Section 69 based solely on third-party statements and unverified documents cannot stand. Key takeaway: credible, corroborated evidence is essential for tax assessments.
Tribunal clarified that a DVO report, being an estimation, cannot form sole basis for additions under Section 69B. Without proof of actual extra expenditure by assessee, such additions are legally unsustainable.
ITAT Delhi upheld deletion of additions under Section 68 after the assessee proved identity, creditworthiness, and genuineness of lenders. Interest disallowance was also deleted as loans were repaid and taxed transactions verified.
ITAT Chennai upheld that immovable property transfers within family through registered settlement deeds are exempt under Section 56(2)(x). The AO’s view that such transfers were non-bona-fide was rejected.
The Tribunal held that the Assessing Officer rightly accepted excess stock and cash disclosed during survey as business income after enquiry. Section 115BBE was not applicable, and PCIT’s revision under Section 263 was invalid.
ITAT Bangalore ruled that excess stock admitted during a survey is taxed as business income only if a direct nexus to regular business is proven; otherwise, it’s taxed as undisclosed income under Section 115BBE. The verdict split across two assessment years based on whether the disclosure was linked to sales or simply admitted as unexplained.
The ITAT Mumbai quashed reassessment proceedings, declaring the assessment order void ab initio due to critical procedural failures, including the use of a manual DIN and jurisdictional violation of the Faceless Assessment regime. This ruling affirms the mandatory nature of CBDT Circular No. 19/2019 for all tax orders.
ITAT Mumbai fully deleted Rs.7.23 crore in additions made under Sections 69A, 69B, and 69C following a search. The Tribunal ruled that the black diary entries, initially treated as unexplained expenditure, money, and investment, were actually reconciled with the audited ledgers of the LLP, rendering the AO inference as mere conjecture.
ITAT Mumbai held that reassessment orders issued outside the Faceless Scheme and without a valid DIN were void ab initio, striking down additions under Sections 69A/69B.
Mumbai ITAT deleted a ₹4.20 lakh addition, quashing the reassessment because the addition was based solely on uncorroborated, retracted search statements and “dumb documents.” The tribunal ruled that once retracted, statements lose evidentiary value without independent verification.
