ITAT Delhi directs the exclusion of the Rs. 84.95 lakh Transfer Pricing adjustment from the Book Profits (u/s 115JB), citing the Supreme Court’s ruling in Apollo Tyres Ltd. that the AO cannot tamper with the net profit determined under the Companies Act, except for specified adjustments.
Delhi ITAT allowed an assessee’s appeal, holding that an addition for bogus purchases couldn’t be sustained solely on the supplier’s wrongly reported GST data (Rs. 76.10 lakh).
ITAT Delhi ruled that cash deposits during demonetization, already reflected in the assessee’s books, cannot be treated as unexplained income under Section 68. Entire Rs.53.51 lakh addition was deleted, ensuring no double taxation.
ITAT Delhi Strikes Down Addition: Sale share cannot be treated as an unsecured loan (u/s 68). The tribunal deletes the Rs. 1.41 Cr addition on sale consideration receipt, remanding the s. 54F deduction claim for limited verification.
ITAT Delhi ruled that an AO’s belief based on incorrect assumptions—such as the non-filing of a return—cannot form a valid basis for reopening. Cash deposits fully disclosed in audited accounts were held legitimate.
Mumbai ITAT set aside a PCIT’s u/s 263 order, ruling that allowing Section 80G deduction on CSR donations to an approved entity is a debatable issue, which cannot be revised, thereby restoring the AO’s original assessment.
ITAT Mumbai ruled AO cannot override TPO’s ALP for SDTs, allowing full Section 80IA deduction for captive power sales. Confirms Vireet on 14A/115JB.
Mumbai ITAT allowed Mahindra & Mahindra’s appeal, holding that advertisement and sales promotion expenses of ₹3.26 Cr for ‘Mahindra Parts Plazas’—which were owned and operated by distributors—were revenue in nature and deductible under Section 37(1) of Income Tax Act, rejecting AO’s capitalization.
The court held that objections regarding fraudulent transactions, round tripping, and unstamped documents were triable issues for the arbitrator, not the referral court under Section 11 of the Arbitration and Conciliation Act, 1996.
Mumbai ITAT deleted Rs.8.43 Cr addition u/s68. Assessee proved lenders’ identity, PAN, and bank transfers. Suspicion over creditworthiness cannot replace evidence.
