Income Tax : Income without satisfactory explanation is taxed at a special high rate under Section 115BBE. The provisions place strict liabilit...
Income Tax : Courts have clarified that purchases cannot be disallowed without proper evidence. Genuine transactions supported by documents can...
Income Tax : ITAT held that section 69 cannot be invoked where purchases are duly recorded in books and paid through banking channels, making t...
Income Tax : Detailed overview of penalties under various sections of the Income Tax Act, covering defaults in tax payment, reporting, document...
Income Tax : Delhi ITAT deleted a 69C unexplained expenditure addition for alleged bogus purchases, ruling that when corresponding sales are ac...
Income Tax : The Tribunal held that disallowance of interest cannot be finalized when the validity of underlying loans is still under appeal. I...
Income Tax : The issue was whether purchases could be treated as bogus based on investigation reports. ITAT held that when documentary evidence...
Income Tax : The Tribunal held that purchases cannot be treated as bogus when supported by invoices, bank payments, and GST records. It ruled t...
Income Tax : The issue was whether income from hybrid seed production on leased land qualifies as agricultural income. The Tribunal held that o...
Income Tax : The issue was whether reassessment is valid without proper service of notice. The Tribunal held that absence of valid service make...
ITAT Indore deleted a Rs.1.46 crore addition made under Section 69C via rectification, ruling that the AO wrongly invoked the section. The commission payments reported in the audit form were a pass-through on behalf of clients, not the assessee’s claimed business expenditure, meaning the deduction of TDS didn’t imply an unrecorded expense.
The ITAT Mumbai dismissed the Revenue’s appeal, ruling that the deletion of a ₹65 lakh addition under Section 68 was proper because the taxpayer established the identity, creditworthiness, and genuineness of the loan transactions. The Tribunal accepted that the loans were received and repaid through banking channels, backed by confirmations, bank statements, and audited financials.
The ITAT deleted an addition under Section 69 for unexplained investment in property. The tribunal held that authorities couldn’t ignore the sale deed and bank statements proving the co-owner (husband) made the payments in a preceding year, even in ex-parte proceedings.
ITAT Kolkata quashed the reassessment for two assessment years, ruling it was invalid as the reopening occurred beyond the four-year limit from the original scrutiny assessment without any allegation of the taxpayer failing to disclose material facts. This aligns with the Supreme Court’s mandate under the first proviso to Section 147.
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.
Detailed overview of penalties under various sections of the Income Tax Act, covering defaults in tax payment, reporting, documentation, and TDS/TCS compliance with prescribed penalty amounts.
The Income Tax Appellate Tribunal (ITAT), Pune, in Mahendra Prakash Pawar Vs ITO, deleted an addition of ₹21.69 lakh made under Section 69C for unexplained credit card payments. The court accepted the assessee’s explanation that cash deposits came from his brother’s transportation business for fuel purchases.
Tribunal held that when sales are accepted and supported by evidence, entire purchases cannot be disallowed. Only the profit element can be added, restricting disallowance to ₹8,075 as per Bombay High Court’s ruling in Mohammad Haji Adam & Co.
ITAT Pune held that reopening based on old investigation data was invalid where transactions were already verified under Section 153A. The Tribunal found the penny stock gains genuine as supported by Demat, bank, and STT records.
ITAT Jaipur held that gain not realized during the year under consideration cannot be taxed under the head capital gain or as income under the head profit and gains of business or profession by valuing unsold scrips at market value.
