ITAT Deletes Rs 24.70 Lakh Addition for Alleged On-Money Payment as AO Failed to Prove Cash Transaction The Income Tax Appellate Tribunal (ITAT) Mumbai held that an addition under Section 69 for alleged on-money payment cannot be sustained merely on the basis of third-party statements or seized documents unless the Revenue establishes actual payment through corroborative…
ITAT Deletes Addition on Credit Card Payments After Accepting Explanation of Source The ITAT Mumbai wiped out the addition made for credit card payments after deciding that Prateek Rahul Mehta had clearly explained where the money came from, with all the right paperwork to back him up. Fact of the Case Mehta did not file…
ITAT Mumbai Rejects Reopening and Deletes Rs 12.83 Cr Capital Gains Addition The ITAT Mumbai did not agree with the revenue’s appeal. They supported the CIT(A)’s decision. They said that the Revenue was wrong to reopen the case under Sections 147 and 148. This was because they were using things that were already decided in…
Only Profit, Not Full Purchases Taxable: ITAT Reduces Alleged Bogus Purchase Addition from 25% to 12.5% The ITAT Mumbai dismissed the tax authorities’ appeal concerning how much income should be added when purchases are considered doubtful or non-genuine. The tribunal held that in cases related to alleged bogus purchases, only the profit portion in such…
ITAT Deletes Demonetisation Addition; Accepts Explained Family Cash Source The assessee, an NRI individual, did not file a return of income for AY 2017-18. Based on information gathered under “Operation Clean Money,” the Assessing Officer noted cash deposits of Rs 14 lakh during the demonetisation period and treated the same as unexplained income under Section…
Investments Not Yielding Exempt Income Cannot be Considered for Calculating Disallowance u/s 14A: ITAT The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, gave full relief on a disallowance made under Section 14A of the Income Tax Act. The company, Ravi Dyeware Company, had earned dividend income of Rs 14,92,904. This income was claimed as exempt…
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…
ITAT: Validates Cash Deposits During Demonetisation Sourced From Assessee’s Deceased Mother; Deletes Sec. 69A Addition The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed an appeal filed by Jamshed Naval Karanjia against the Commissioner of Income Tax for Assessment Year 2017-18 and deleted an addition of Rs 6.70 lakh made in respect of…
ITAT Quashes Rectification Order, Restores Section 11 Exemption Over Late Form 10B Filing The ITAT Mumbai set aside a rectification order passed denying the Section 11 exemption because Form 10B was filed late, holding that the company was awarded a proper opportunity of hearing before issuing the order. The appeal was filed by a charitable…
Reassessment Beyond Three Years Invalid Without Proper Approval: ITAT Mumbai ITAT Mumbai quashed the reassessment proceedings initiated against the company for AY 2018-19 by relying on Bombay High Court rulings in Vodafone Idea Ltd and Siemens Financial Services; the tribunal held reopening invalid as approval was obtained from the wrong authority beyond three years, setting aside…
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