Bombay High Court set aside reassessment proceedings for AY 2016–17 as the sanction was granted by an unauthorized officer, holding that approval must come from senior authorities under Section 151(ii).
Bombay High Court held that reassessment for AY 2016–17 was invalid as the sanction was not obtained from the competent authority mandated under Section 151(ii) of the Income-tax Act.
ITAT Rajkot held that a one-day delay in filing objections before the DRP should not defeat justice. The Tribunal condoned the delay and remanded the case for fresh adjudication, emphasizing that natural justice must prevail over technical lapses.
The ITAT Delhi quashed a Rs.5 lakh addition for unrecorded cash sales, ruling that WhatsApp chats are inadmissible as evidence without the mandatory certificate under Section 65B of the Indian Evidence Act. The decision establishes that unverified electronic data cannot sustain tax additions, citing the Supreme Court’s ruling in Arjun Panditrao Khotkar.
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.
ITAT Dehradun held that penalty u/s 271(1)(c) was invalid as the AO failed to specify whether it was for concealment or inaccurate particulars, showing lack of application of mind.
The Mumbai ITAT deleted the interest disallowance, applying the principle of consistency because the Revenue had previously accepted the assessee’s classification of net interest income under Income from Other Sources in earlier scrutiny assessments. The court found no justification to deviate from this accepted treatment for the current year.
The ITAT Delhi affirmed that a substantial increase in cash sales during demonetisation is insufficient grounds for a Section 68 addition when books of accounts are not found defective. The ruling confirms that genuine cash sales, properly recorded and matching stock/VAT records, cannot be treated as unexplained cash credits.
ITAT Delhi held that a donor cannot be denied deduction merely because the political party failed to record the donation. Verified payment through bank qualifies for 80GGC relief.
The ITAT Rajkot ruled that a political donation made through a banking channel cannot be disallowed if the donor provides complete evidence of the payment and the recipients registration. The Tribunal held that the donor cannot be penalized for the recipient political party’s failure to report the amount in its own return.
