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Sales Accepted, Books Not Rejected: ITAT Cuts Bogus Purchase Addition to 5%

June 11, 2026 252 Views 0 comment Print

The Tribunal held that a 12.5% disallowance could not be sustained when the Assessing Officer neither rejected the books of account nor disputed the sales. The key takeaway is that additions must be supported by proper findings and evidence.

Part Payment Through Bank Does the Trick: ITAT Deletes Section 56(2)(vii) Addition Despite 7-Year Gap in Registration

June 11, 2026 81 Views 0 comment Print

Despite a significant gap between the agreement and registration dates, ITAT granted relief under the first and second provisos to Section 56(2)(vii). The key takeaway is that timely banking-channel payments pursuant to the agreement are crucial for claiming the benefit.

ESOP Discount Allowed as Liability Accrues Over Vesting Period: ITAT Bangalore

June 11, 2026 210 Views 0 comment Print

The ITAT Bangalore upheld deduction of ESOP expenditure under Section 37, holding that the liability arising from employee stock options is an ascertained business expense. The Tribunal followed the Karnataka High Court ruling in Biocon Ltd. despite pending appeals before the Supreme Court.

No Section 68 Addition for Demonetization Cash Deposits Supported by Recorded Sales: ITAT Delhi

June 11, 2026 192 Views 0 comment Print

The ITAT Delhi held that cash deposits during the demonetization period could not be treated as unexplained credits when they originated from duly recorded business sales accepted by the Revenue. The Tribunal upheld deletion of the addition under Section 68.

Appeal Dismissal Under Section 249(4)(b) Invalid Without Advance Tax Liability: ITAT Hyderabad

June 11, 2026 147 Views 0 comment Print

ITAT Hyderabad held that dismissal of an appeal under section 249(4)(b) was unjustified where the assessee claimed that the receipts were exempt retirement benefits and no advance tax liability arose. The matter was remanded to the AO to verify the nature and taxability of the amounts reflected in Form 16.

CIT(E) Cannot Judge Hospital Tariffs to Decide Charity: ITAT Restores Reliance Hospital Trust’s U/s 12AB Registration

June 11, 2026 612 Views 0 comment Print

The Tribunal ruled that premium rooms, higher tariffs, and specialized medical facilities cannot by themselves establish a profit motive. Charitable status must be tested on statutory criteria rather than perceptions of affordability or luxury.

ITAT Upholds FBT Additions on Employee-Related free tickets, hospitality, conveyance, goods & lodging

June 11, 2026 105 Views 0 comment Print

The ITAT Delhi held that free tickets, hospitality, conveyance, goods, and lodging expenses attracted Fringe Benefit Tax under the applicable provisions. However, it ruled that rejection of the assessee’s claims did not automatically justify penalty.

ITAT Quashes Section 153C Assessments as Satisfaction Note Was Recorded After 1st April 2021

June 11, 2026 225 Views 0 comment Print

Delhi ITAT held that assessments under Section 153C were invalid where the satisfaction note for the non-searched person was recorded after 01.04.2021. The Tribunal ruled that Section 153C(3) barred such proceedings, rendering the assessments void.

No Interest Disallowance When Own Funds Exceed Investments: ITAT Grants Major U/s 14A Relief

June 11, 2026 111 Views 0 comment Print

The Tribunal held that no interest disallowance under Rule 8D(2)(ii) could be made where the assessee’s interest-free funds substantially exceeded its investments. It reaffirmed that the Revenue must establish a direct nexus between borrowings and exempt-income investments.

Suspicion Is Not Evidence: ITAT Deletes Rs. 3.68 Crore ‘On-Money’ Addition Based on Flat Allotment Letters

June 11, 2026 252 Views 0 comment Print

The Tribunal found that none of the purchasers examined by the Department had admitted making cash payments to the assessee. In the absence of statements, receipts, diaries, or other incriminating material, the allegation of on-money remained unsubstantiated. The addition based on presumptions was therefore set aside.

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