The tribunal observed that Way Bills produced by the assessee prima facie supported the claim of business sales. The addition was therefore set aside and restored for fresh verification.
The tribunal deleted the balance addition of ₹91,090 after finding that the amounts represented periodic rental receipts duly disclosed with TDS credit. The key takeaway is that disclosed income cannot be re-taxed as unexplained cash.
The issue was the validity of a penalty notice combining concealment and furnishing inaccurate particulars. The ITAT ruled that vague notices violate natural justice and quashed the penalty.
The ITAT set aside a ₹1.86 crore addition under section 69A for unexplained deposits, noting the deposits were likely student fees. The ruling emphasizes the need to verify exempt income before making tax additions.
The High Court held that the Tribunal exceeded its limited powers under Section 254(2) by recalling a final order on merits. Once the recall was struck down, the original favourable order stood automatically restored.
The ITAT held that equity share purchases routed through the disclosed bank account cannot be treated as unexplained without proper verification. The AO was directed to provide transaction details and re-examine the source to avoid double additions.
The Tribunal held that interest earned by a co-operative credit society from fixed deposits with co-operative banks remains deductible under Section 80P(2)(a)(i). Such interest is attributable to the business of providing credit facilities to members, even after the Totgars ruling.
The Tribunal held that income admitted during search cannot be treated as undisclosed income unless supported by incriminating material found in the search. In the absence of such material, penalty under Section 271AAB cannot be sustained.
Only income supported by cash actually found during search could attract penal consequences. The balance amount, unsupported by incriminating material, was held outside the scope of Section 271AAB.
The Tribunal observed that rejection of audited books and disallowance of labour charges must be backed by concrete defects. Purely ad-hoc estimations based on minimum wages were held improper.
