TODAY'S CASE (DIRECT TAX)

November 06, 2024

++ I-T- Re-assessment cannot be commenced in respect of certain income which is subsequently found to be beyond the jurisdiction of Indian tax authorities: HC

++ I-T- Re-assessment is invalidated where commenced based on incorrect factual assertions made by AO & where AO omits to consider the evidence presented: HC

++ I-T- An assessee who fails to avail opportunity granted to make submissions & produce documents in support of thereof cannot complain about violation of natural justice: HC

++ I-T- Sine qua non for invoking power of revision is that the original assessment order must be erroneous as well as such that it causes loss of revenue: HC

++ I-T- Additions framed u/s 68 merit being sustained in part, where assessee fails to substantiate source of funds in question : ITAT

November 05, 2024

++ I-T- Power of revision not to be invoked as assessment order does not reveal lack of enquiry by AO in relevant issues; order is neither erroneous nor prejudicial to revenue's interests: ITAT

++ I-T- Bogus purchases - Additions rightly estimated @ 12.5% of total purchases made, where assessee fails to provide breakup of profit from genuine & non-genuine purchases: ITAT

++ I-T- Disallowance of advertisement & marketing expenses incurred by medical professional, is invalid, where such expenses were allowed in past AYs & where assessee complied with all regulations governing advertising practices: ITAT

++ I-T- Sections 43A & 37 of I-T Act operate different from each other; additions framed on account of foreign exchange fluctuation unwarranted, where similar claims were accepted in past AYs: ITAT

++ I-T - Amendment of increasing of tolerance band from 5% to 10% u/s 56(2)(x) shall be applicable retrospectively: ITAT

++ I-T- Partnership firm is entitled to claim TCS credit where it reflects in account of original license holder, who has not declared the income or claimed the credit: ITAT

November 04, 2024

++ I-T- When the substantive addition itself will not survive in the eyes of law, fate of protective addition will be same: ITAT

++ I-T- Revision is not possible merely because guideline value was higher than sale consideration shown in the deed of conveyance and same cannot be sole reason for holding that assessment is erroneou s: ITAT

++ I-T - Where interest payment is towards loans borrowed for purchase of land, then same may be allowed to be capitalized: ITAT

++ I-T - Funds received from customers in form of advances having been utilized for purpose of business of assessee, is 'commercial expidiency: ITAT

++ I-T - Reopening shall be quashed, if AO has simply reopened assessment based on information obtained from Investigation Wing and there is no application of mind: ITAT

November 02, 2024

++ I-T- Re-assessment cannot be resorted to, where no failure to make full & true disclosure of material facts necessary for assessment is attributed to assessee: ITAT

++ I-T-While calculating income, net income should be considered as taxable income after reducing the expenditure incurred towards earning of such income: ITAT

November 01, 2024

++ I-T- Organisation established by GoI & which is engaged in research in microwave electronics, warrants being granted exemption u/s 11: ITAT

++ I-T- Suppressed sales - additions not tenable where based solely on statements given by third parties: ITAT

++ I-T- Reasons to believe based on which re-assessment is conducted, do not require AO to have definitive legal evidence: ITAT

++ I-T- Additions based on statements taken from third parties, are invalidated where assessee is not permitted to cross examine their deponents: ITAT

++ I-T- Interest and penalties accompanying additions are quashed, where the additions themselves are set aside: ITA