The Tribunal held that an AO cannot treat a return filed in response to a Section 148 notice as non-est while using it as the base for computing the final income. Following High Court precedent, the ITAT confirmed that once the return is taken into account for assessment, the issue of Section 143(2) notice becomes a prerequisite, making the assessment void.
The ITAT deleted the addition of Rs. 73 lakh on the unrealized surrender value of Keyman Insurance Policies, ruling that notional or hypothetical income cannot be taxed. Since the matured policy value was already offered to tax, taxing the value of unmatured policies would amount to double taxation.
ITAT Mumbai orders AO to re-investigate crore unexplained cash deposits in egg trade. CIT(A)’s deletion was reversed due to failure to secure a remand report.
CESTAT Mumbai set aside the denial of IGST benefit, applying GST Council and TRU clarification that all goods under heading 3822 are covered. Concessional rate of 12% now applies, with recalculation of interest and penalty.
CESTAT quashes penalty on stainless steel import, ruling that BIS certification wasn’t mandatory as the Bill of Lading date preceded the Quality Control Order’s effective date.
ITAT Kolkata deletes a lakh addition made u/s 69A against an interior decorator, ruling the amount cannot be taxed as unexplained money if already offered to tax.
The Income Tax Appellate Tribunal (ITAT), Delhi, allowed a retired individual’s appeal, deleting an addition of made under Section 69A of the Income Tax Act, 1961
The ITAT deleted transfer pricing adjustments for Advertisement, Marketing, and Sales Promotion (AMP) expenses, confirming no international transaction existed with the AE. The ruling held that the Bright Line Test (BLT) is invalid and that since the entity-level TNMM was accepted, no separate AMP adjustment was permissible.
The ITAT ruled that the Rs. 5.97 crore received by a charitable trust for a cultural event were tax-exempt donations, not business income hit by Section 2(15) proviso. The Tribunal held that TDS deduction or invoice issuance does not change the essential charitable character of the receipt, relying on a binding Delhi High Court judgment.
The ITAT confirmed the deletion of a Rs.1.84 crore addition on demonetisation cash deposits, ruling they were genuine sales proceeds. The Tribunal held that since the audited books were accepted and the cash increase was explained by business changes, the addition based on mere suspicion was invalid and caused double taxation.
