TODAY'S CASE (DIRECT TAX)

April 05, 2025

++ I-T - Test for checking validity of notices issued u/s 148 under new regime for AYs 2021-22 or prior years is whether period of six years has expired at time of issue of such notice: ITAT

++ I-T - Provisions of section 50C are equally applicable to asset forming block of asset as well: ITAT

++ I-T- Deduction u/s 80P(2)(d) allowed in respect of interest income from cooperative banks, as is settled legal position: ITAT

++ I-T- ad hoc disallowance is invalid where framed without identifying specific issues or non-genuine expenses : ITAT

April 04, 2025

++ I-T - If additions arise from estimation rather than deliberate 'misrepresentation', penalty is unwarranted: ITAT

++ I-T - Disclosure of previously undisclosed income does not absolve assessee from penalty u/s 270A, as income was not reported in original ITR: ITAT

++ I-T- Searc h Assessments and Additions Without Incriminating Material : ITAT

++ I-T - Sec 2(22)(e) is attracted if advances given directly to shareholder or to concern in which shareholder is having substantial interest: ITAT

++ I-T- Additions framed u/s 68 not tenable where assessee substantiates genuineness of loan through banking channels & has confirmations, which were not considered by AO: ITAT

++ I-T- Rental income to be treated as Income from House Property where such income is anciliary; cannot be treated as business income: ITAT

++ I-T - For purpose of computation of disallowance of average value of investment, AO has to take only instrument which gives rise to exempt income: ITAT

++ I-T- Corroborative Evidence and Cross-Examination in Third-Party Search Additions: ITAT

++ I-T - Rejection of books u/s 145(3) is not sustainable if AO's report established that books were complete, supported by evidence, and free from defects: ITAT

++ I-T - If Revenue has failed to establish that LTCG earned by assessee is non-genuine, then addition made u/s 68 is unsustainable: ITAT

++ I-T - If own fund has been utilized for making investments, no disallowance of expenses is to be made u/s 14A: ITAT

April 03, 2025

++ I-T- Anonymous Donation Addition Under Section 115BBC Requires Proper Verification : ITAT

++ I-T- Requirement to Consider All Grounds for Condonation of Delay in Appeals : ITAT

++ I-T - If difference between guidance value as per Sec 50C and market value is less than 10%, then sale consideration of immovable property considered for computation can't be treated as 'under valued': ITAT

++ I-T- Penalty u/s 271(1)(c) unwarranted where assessee promptly rectifies mistakes in ITR & where additional tax liability is negligible: ITAT

++ I-T - Trade advances, which are in nature of commercial transactions, would not fall within ambit of word 'advance' in section 2(22)(e): ITAT

++ I-T- Assessment Order Can Be Revised Under Section 263 If Key Issues Remain Unverified : ITAT

++ I-T- Additions framed u/s 153A based entirely on conjectures and surmises, are not tenable, where they have no particular factual or legal basis: ITAT

++ I-T- As per settled position in law, TDS is not to be deducted on payments being reimbursement of expenses : ITAT

++ I-T- Registration u/s 12AB cannot be granted to an organisation whose objectives did not focus on general public welfare as required by the I-T Act: ITAT

++ I-T - Once, identity, genuineness of transactions and creditworthiness of creditor is proved, then sum received from creditor cannot be treated as income of assessee u/s 68: ITAT

++ I-T- No addition can be made on account of discrepancy in stock, if AO has neither disputed corresponding purchases/ manufacturing stocks made by assessee before sale, nor disputed quantum of closing stock: ITAT

April 02, 2025

++ I-T - If AO had issued notice u/s 148A(b) which is much earlier to time-limit stipulated, i.e. within three years, then same can't be challenged on ground of limitation period: HC

++ I-T- Re-assessment invalid where reasons therefor did not clearly identify any material facts that were not disclosed during original assessment: HC

++ I-T - Mere production of books before AO from which material evidence could with due diligence were discovered by AO, will not necessarily amount to disclosure within meaning of 1st Proviso to Sec 147: HC

++ I-T- Stay on recovery proceedings rightly disallowed where assessee failed to make mandatory pre-deposit without sufficient evidence to justify its claim of financial stringency: HC

++ I-T-Protective Additions in Conduit Cases Unsustainable When Substantive Additions made through Identified Beneficiaries: ITAT

++ I-T - If loan has been used for business purpose, then in view of future prospective view of business, interest expenses should be allowed: ITAT

++ I-T - Statutory approval given by quasi judicial authority without due application of mind as contemplated u/s 153D, would be fatal to entire search assessment proceedings: ITAT

++ I-T - Rejection of books of account of assessee ought to have been natural corollary to survey findings particularly when they alluded towards variations in stock and consequential profit of assessee: ITAT

++ I-T- Taxable Income determinable from Unexplained Deposits using Net Profit Ratios: ITAT

++ I-T- CIT(A) not required to call for remand report where evidence is already part of assessment record & AO had failed to substantiate his additions: ITAT

April 01, 2025

++ I-T - As per section 127, requirement of transferring assessment in appropriate cases would have element of public interest and assessee has no choice to select his AO: HC

++ I-T - CPC ought to allow applications to condone delay in filing of revised return which is formality only, if correct presentation in Form-ITR-6 not made by assessee has prevented CPC from processing return: HC

++ I-T- Re-assessment must be backed by concrete evidence instead of assumption or surmise; absence of such valid reasoning vitiates proceedings: HC

++ I-T - Provision of video conferencing/personal hearing if not made available, is contrary to basic requirement of providing opportunity of hearing and would be in violation of principles of natural justice: HC

++ I-T - Assessee does not get independent right u/s 260A to maintain apparent challenge in respect of finding rendered by ITAT which is disconnected with substantial question of law on which such appeal may be entertained: HC

++ I-T - Concept of burden of proof beyond reasonable doubt is not to be applied in cases of reopening: HC

++ I-T- Additions framed u/s 69A invalid where AO acts solely on information received from Investigation Wing & where AO does not conduct any independent investigation: ITAT

++ I-T- Disallowance of exempt income invalid where AO failed to record satisfaction before applying Rule 8D, as mandated by Section 14A(2): ITAT

++ I-T- Additions framed u/s 68 invalid where assessee satisfactorily discharged its onus of proving genuineness of cash receipts: ITAT

++ I-T - Receipts earned solely from jewellery business is to be treated as business sales receipts: ITAT