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Judiciary

ITAT Delhi Quashes Reassessment Beyond Four Years for Lack of Disclosure Failure

June 6, 2026 261 Views 0 comment Print

ITAT Chennai held that reopening an assessment after four years based on issues already examined during scrutiny amounted to an impermissible change of opinion. The key takeaway is that reassessment cannot be used as a tool to review a concluded assessment without fresh tangible material.

ITAT Deletes Section 115BBE Tax as Surrendered Income Was Disclosed Before Amendment

June 6, 2026 339 Views 0 comment Print

The Assessing Officer examined the audited books, balance sheet, and supporting records but did not identify any discrepancy or reject the accounts. ITAT held that, in such circumstances, invoking Section 115BBE was unsustainable.

Penny Stock Addition Fails: ITAT Says Suspicion Cannot Replace Evidence

June 6, 2026 417 Views 0 comment Print

The Tribunal deleted the addition after finding that the taxpayer had furnished complete documentary evidence of purchase and sale of shares. The ruling emphasizes that suspicion, however strong, cannot replace legally admissible evidence.

Borrowed Satisfaction: ITAT Quashes Penny Stock Additions in Multiple Family Cases

June 6, 2026 582 Views 0 comment Print

ITAT Delhi held that reassessment based solely on Investigation Wing reports without independent enquiry is invalid. The ruling emphasizes that borrowed satisfaction cannot justify reopening under Section 147.

Statement Alone Cannot Justify ‘On-Money’ Addition: ITAT Mumbai

June 6, 2026 1251 Views 0 comment Print

The Tribunal ruled that statements of builder group officials, without corroborative evidence against the purchaser, cannot form the sole basis for addition. The decision reinforces the principle that third-party statements must be independently verified.

Genuine ITR Mistake Cannot Lead to Tax on Wrong Income: ITAT Mumbai

June 6, 2026 231 Views 0 comment Print

The Tribunal accepted that the taxpayer was pursuing rectification remedies and therefore condoned the delay in filing the appeal. The key takeaway is that genuine efforts to resolve disputes through alternative legal remedies can justify delay condonation.

Accepted Disclosure Cannot Be Treated as Misreporting for Penalty Purposes: ITAT Surat

June 6, 2026 228 Views 0 comment Print

The Revenue sought to levy penalty despite accepting the revised income declared by the assessee. ITAT held that accepted disclosures do not automatically amount to misreporting and cannot justify penalty under Section 270A.

Reassessment Quashed as AO Taxed Capital Gains Instead of Recorded Escapement Issue

June 6, 2026 267 Views 0 comment Print

The ITAT held that reassessment cannot be sustained when additions are ultimately made on issues not mentioned in the recorded reasons for reopening. The AO’s jurisdiction failed because no valid addition survived on the original escapement issue.

Section 54 Relief Allowed on Construction Cost as New House Was Built Within Statutory Period

June 6, 2026 195 Views 0 comment Print

Tribunal held that purchase of land outside the prescribed period does not automatically disqualify exemption on construction of a residential house. Construction expenditure incurred within the time limit prescribed under Section 54 may still qualify for deduction. The issue was remanded for verification of actual construction costs.

ITAT Delhi Deletes Demonetisation Addition for Cash Sales Properly Recorded in Books

June 6, 2026 207 Views 0 comment Print

The Tribunal emphasized that once sales are entered in regular books and supported by stock records, the burden shifts to the Revenue to prove them false. In the absence of such proof, Section 68 could not be invoked.

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