ITAT held that a loan cannot be treated as unexplained merely on the basis of a third-party search statement. When confirmations, bank statements, and repayment evidence are on record, independent verification by the AO is mandatory.
Revenue’s claim that manufacturing activity was artificially shifted to extend tax benefits was rejected. The Tribunal held that factual expansion and eligible profits were duly established.
With the reassessment notice quashed, the consequential assessment order and demand were automatically annulled. The ruling highlights that taxpayers cannot be burdened where initiation itself is unlawful.
The Tribunal ruled that suspicion based on penny stock lists is insufficient to sustain additions. Revenue must prove real purchase and sale transactions through demat and banking records.
The Tribunal held that where consideration for a flat is paid through banking channels, stamp duty value as on the date of allotment must be adopted. Addition under Section 56(2)(x) based on registration-year valuation was quashed.
Upholding the CIT(A)s order, the Tribunal held that settled law bars additions made without factual verification. The case reinforces strict limits on arbitrary taxation of loan transactions.
The dispute concerned whether internal road works were taxable at 12% or 18% under GST. The High Court set aside the higher rate levy on road works and directed reassessment after considering the public road certificate.
ITAT deleted disallowance of depreciation, loan interest, and fuel expenses after finding cars were registered in the company’s name. Ad-hoc personal use disallowance without evidence was held unsustainable.
The issue concerned an incorrect prayer reproduced in an appellate order. The Tribunal allowed correction and directed insertion of the proper prayer from the application.
The Tribunal held that for years where assessments were already completed, additions under Section 153A cannot survive without incriminating material found during search. Large additions based on third-party statements and assumptions were therefore deleted.
