The Tribunal held that accounting treatment in the Profit and Loss Account does not determine taxability of a receipt. Principal loan waiver remained non-taxable despite being shown as extraordinary income in accounts.
The Tribunal rejected the Department’s argument that BSNL VRS payments were only voluntary retirement benefits. It held that the compensation fell within Section 10(10B) as retrenchment compensation.
Mumbai ITAT held that discounts offered on gift cards and gift vouchers became an actual expenditure when the instruments were sold and could not be treated as contingent liability. The Tribunal allowed the deduction after noting that unutilised amounts were later offered to tax.
Gujarat High Court observed that additions in bogus purchase cases should be confined to the income component embedded in such transactions rather than the entire purchase amount.
The Calcutta High Court held that reassessment notices for AY 2015-16 issued after the amended limitation period under Section 149 were without jurisdiction. The Court ruled that the extended ten-year period could not apply without material showing escaped income exceeding Rs. 50 lakh.
The Tribunal held that the facts relating to delayed revised return in Shriram Investments were distinguishable and therefore did not bar consideration of the assessee’s agricultural land exemption claim.
The Court ruled that consistency in tax litigation presupposes an informed and deliberate decision by authorities. Mere failure to raise an issue in one year due to oversight does not bar future appeals.
Chennai ITAT held that variations between Insight Portal data and GSTR-2A could not automatically establish unexplained expenditure under Section 69C. The Tribunal ruled that no addition could be sustained without evidence of actual unrecorded expenditure.
Delhi CESTAT held that an importer who accepted enhanced valuation and paid duty without protest could not later challenge the assessment in appeal. The Tribunal found the acceptance of US $2.30 per kg valuation to be unconditional.
The Supreme Court dismissed the Revenue’s challenge against the Delhi High Court ruling on duty drawback accrual, MODVAT credit treatment, and raw material consumption additions. The HC had largely ruled in favour of the assessee.
