ITAT Upholds Disallowance on Excessive Remuneration paid to partner as no extraordinary work was done by him The ITAT Ahmedabad dismissed an appeal filed by a partnership firm for the assessment year 2022-23 and sustained the CIT(A)’s ruling, which had partly upheld additions made by the Assessing Officer. The assessee, a partnership firm, had initially…
Form 121 Explained: A Simpler Way to Avoid TDS Under New Income Tax Act 2025 As we are all aware of that, the new Income Tax Act 2025 has already come into effect from April 01, 2026. With this change, the government has tried to simplify tax rules for taxpayers without affecting the earlier tax rates….
ITAT Sets Aside Appeal Dismissal for Non-Prosecution, Orders Fresh Hearing The assessee, a partnership firm engaged in civil construction, filed its return for AY 2023-24 declaring income of Rs 26,776,510. The case was selected for scrutiny, and assessment was completed at Rs 59,803,455 after making three additions and disallowances for non-deduction of TDS under Sections…
A search under Section 132 was conducted on the Passi family group, during which substantial jewellery, cash, and foreign currency were found from residential premises and lockers. The Assessing Officer treated part of the jewellery as unexplained on the ground that item-wise reconciliation with wealth tax returns and purchase invoices was not satisfactory. Accordingly, additions…
ITAT Fixes ALV on Unsold Inventory; Disallows Unsupported Expenses M/s. Haware Engineers and Builders Pvt. Ltd., a real estate developer, filed its income tax returns for AYs 2016-17 and 2017-18. During the assessment, the Assessing Officer noted that the company had several completed flats and shops that remained unsold and were reflected as stock-in-trade. The…
HC Quashes Rectification Order Passed Beyond Limitation; No Notice Issued The petitioner challenged an order dated 25.03.2022 passed by the Income Tax Officer under Section 154 read with Section 143(3) of the Income Tax Act, 1961. It was contended that the rectification order was passed without issuing prior notice as required under law and was…
HC Sets Aside ITAT Remand; Assessment on Deceased Assessee Quashed The assessee, Late Shri Gopalaiyengar Madabushi Muralidhar, filed his return for AY 2016-17. During the pendency of assessment proceedings, he passed away on 09.11.2017. Despite this, the Assessing Officer completed the assessment on 27.12.2018 in the name of the deceased. Notably, a notice under Section…
ITAT Deletes Penalty on Survey Income Declared and Accepted in Return The assessee, M/s Radhika Jewellers, a partnership firm engaged in the manufacturing and trading of jewellery, was subjected to survey proceedings under Section 133A. During the survey, the assessee admitted unaccounted income of Rs. 2.01 crore on account of excess stock and cash. This…
High Court Quashes Time-Barred Assessment Signed After Limitation Period The assessee filed its return for AY 2023–24, which was taken up for scrutiny. During the process, a show cause notice was issued, replied to, and even a personal hearing was granted. However, no assessment order or demand notice was served at that stage. Despite this,…
Supreme Court reaffirms that in bogus purchase cases estimation of profit element is valid The assessee, an individual engaged in diamond trading through his proprietorship concern, filed his return for AY 2013–14 declaring modest income. Based on information from a search conducted on the Gautam Jain Group, the Assessing Officer alleged that the assessee had…
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