The Tribunal held that denial of effective cross-examination in proceedings founded on statements and investigation reports caused serious prejudice to the Customs Broker. Since the revocation proceedings lacked procedural fairness, the impugned order was set aside.
The Tribunal upheld the denial of deduction under Section 80GGC after finding that the political donation formed part of an alleged accommodation entry arrangement. The ruling emphasised that deductions may be denied where investigative findings indicate a lack of genuineness and remain unrebutted by the taxpayer.
The ITAT Mumbai held that when the reason recorded for reopening an assessment does not ultimately result in any addition, the Assessing Officer cannot make an addition on a completely different issue.
The Mumbai ITAT held that an addition under Section 68 cannot be made solely on the basis of a retracted statement alleging accommodation loans when documentary evidence proves identity, creditworthiness, and genuineness.
The Mumbai ITAT held that reassessment proceedings under Section 147/148 were invalid where the case was based on search material requiring action under Section 153C. The ruling reinforces that search-related assessments for third parties must follow the special procedure under Section 153C, not regular reassessment provisions.
The ITAT Delhi ruled that the CIT(A) cannot reclassify an addition under a different provision of the Income-tax Act without issuing a specific notice to the taxpayer. The decision reinforces the limits of appellate powers and upholds principles of natural justice.
The Tribunal ruled that audited books and quantitative reconciliation supported the genuineness of agricultural commodity purchases. In the absence of contrary evidence, arbitrary disallowance of purchases could not be sustained.
The Delhi ITAT held that additions made on transactions unrelated to the reasons recorded for reopening were beyond the Assessing Officer’s jurisdiction. The reassessment addition was therefore deleted.
Inter/Intra Circle Remittance Balance represented only internal transfer and reconciliation entries relating to assets and stock in transit between different Circles of the Assessee company. Since no expenditure or deduction had been claimed and the balances did not represent any real income or loss, the addition of Rs.1527.40 crores made by the AO and confirmed by the CIT(A) was deleted.
The High Court held that appeals concerning the adequacy of sentence should be presented before the jurisdictional Sessions Court. It permitted withdrawal of the appeal with liberty to pursue the appropriate forum.
