ITAT condones delay in filing appeal as the assessee’s police duties prevented timely submission, restoring the matter for adjudication on merits.
ITAT Mumbai ruled that non-resident investments sourced from foreign salary cannot be treated as unexplained income, deleting ₹2 crore addition under Section 69.
The High Court dismissed the Revenue’s appeal, affirming that the assessee discharged the initial onus under Section 68 by proving the lender’s identity and creditworthiness via banking channels and subsequent repayment with interest. It was held that doubts regarding the lender’s own creditors are irrelevant for the assessee’s assessment prior to the 2022 amendment, provided the primary transaction is genuine.
The ITAT Delhi upheld the allowance of management fees after verifying proper documentation and business purpose, emphasizing that payments to a parent company are deductible if fully supported.
The ITAT Delhi invalidated the reopening of an income tax assessment because the assessee had filed a complete return and the AO failed to record valid reasons, highlighting the need for proper statutory compliance in reassessment.
The ruling held that hired infrastructure and fit-outs form part of immovable property and therefore constitute a mixed supply under leasing or rental services. The supply was classified under Heading 9973 and taxed at 18%.
The ITAT remanded a case where a charitable society’s 80G(5) registration was rejected because incidental sales were misclassified as business income. The Tribunal emphasized evaluating the society’s charitable purpose and proper documentation.
The ITAT Delhi partly allowed the appeal as the AO/TPO selected a company that failed the turnover filter for transfer pricing. Key takeaway: Transfer pricing adjustments must follow proper comparability filters and FAR analysis.
The Tribunal held that shifting a disclosed loss from business to speculation does not amount to under-reporting when the quantum of loss is fully accepted. Since the tax liability remained Nil and no suppression was alleged, section 270A could not be invoked. The penalty was therefore deleted in full.
SC found that issuing tax notices for periods before takeover violated the ruling that all non-included claims are extinguished upon approval of the resolution plan. The recovery proceedings were set aside.
