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Untitled Document

TODAY'S CASE (DIRECT TAX)

Taxindiaonline.com



July 31 2021

++ Expenses incurred by co-operative Sugar Mills on harvesting & transport expenses for procuring the sugarcane from farmers is allowed as deduction : ITAT

++ Minimum Alternate Tax is payable by an assessee after excluding disallowance u/s 14A : ITAT

++ Additions framed on account of unexplained cash credit are sustainable where assessees engage in sham transactions to bring in unaccounted money in guise of long term profit on sale of shares : ITAT

July 30 2021

++ I-T - Sec 80IC - If substantial expansion is carried out within 10 years' period, previous year in which expansion is undertaken is to be considered initial AY, from which such entity is entitled to 100% deduction of profits and gains: ITAT

++ I-T - Quashing of suo motu disallowance made by assessee is sustainable, where no reasons are assigned as to why such suo motu disallowance is being rejected : ITAT

++ I-T - Onus to prove genuineness of any expenditure rests with the assessee & failure to prove nature of expenditure leads to disallowance of such expenditure : ITAT

++ I-T - In case of amalgamation, if assessee does not have 3/4th of shares of transferor company, carry forward of loss of transferor company not permitted: ITAT

++ I-T - Notice issued by AO u/s 274 r/w sec. 271(1)(c) that does not specify the limb of sec. 271(1)(c) for which penalty proceedings are initiated is invalid : ITAT

++ I-T - Credit of revaluation surplus to partners' capital accounts during firm's continuation does not partake character of capital gain u/s 45(4) r/w sec. 2(14) : ITAT

++ I-T - When seized material regarding assessee is not handed over to assessee's AO before invoking sec. 158BD, proceedings u/s 158BD/143(3) are vitiated : ITAT

++ I-T - As per settled position in law, disallowance cannot be made on the basis of surmises or conjectures: ITAT

July 29 2021

++ I-T - Term 'may' u/s 144B(7), cannot absolve Revenue from obligation cast upon it, to consider request made by taxpayer for grant of personal hearing: HC

++ I-T - Book profit as per accounts maintained in terms of Part II and III of Schedule VI of Companies Act, 1956 as certified by the Accountant is binding on the AO and he cannot recompute the book profit in terms of section 115JB: ITAT

++ I-T- Since condition precedent to invoke revisional jurisdiction are not satisfied by PCIT, order passed u/s 263 is inapplicable to assessee : ITAT

++ I-T - Cash transactions made by assessee that are not substantiated by corroborating evidence should be disallowed : ITAT

++ I-T - AO cannot impose penalty u/s 271(1)(c) on ad hoc basis without adducing any evidence on record for concealment of income : ITAT

++ I-T - No addition can be made in a concluded/unabated assessment in absence of incriminating material : ITAT

++ I-T - AO cannot change method of valuation that has been opted by assessee : ITAT

++ I-T - Assessee is not eligible to claim deduction u/s 80IA from the income from house property : ITAT

++ I-T - AO has rightly made disallowance u/s 14A with respect to expenses incurred for availing administrative facilities such as printing and stationary, computers, telephones, electricity as are utilized for investment activity : ITAT

July 28 2021

++ I-T - Revenue cannot withdraw benefit granted under DTVSV Scheme entailing adverse consequences, without affording assessee sufficient opportunity of hearing: HC

++ I-T - Normal depreciation can be considered as legitimate deduction in computing real income of taxpayer on general principles or u/s 11(1)(a): HC

++ I-T - Merely because amount received as loan in earlier year was converted into advance payment for purchase of property, there is no reason to disbelieve property transaction as colourable device: ITAT

++ I-T - Two separate legal entities dealing in different products with different utility cannot be compared to make substantive addition in hands of one and protective addition in hands of other : ITAT

++ I-T - Share premium collected for issue of share capital is outside scope of the provisions of section 56(2(viib) if assessee is recognized startup from DPIIT : ITAT

++ I-T - Action of PCIT u/s 263 is bad-in-law as action of AO is a plausible action and cannot at any rate by termed as 'unsustainable in law' : ITAT

++ I-T - Since bonus is credited to the account of employees before due date of filing of return of income it cannot be disallowed u/s 43B : ITAT

++ I-T - Travelling expenses incurred for purpose of business in assessee's wisdom should be allowed as deduction u/s 37(1) : ITAT

++ I-T - When waiver of loan amounts to cessation of liability other than trading liability, sec. 41(1) does not apply : ITAT

++ I-T - Disallowance framed u/r 8D cannot exceed the quantum of exempt income earned in relevant AY: ITAT

July 27, 2021

++ Assessee cannot claim to be borrowing from the State those amounts payable as Income Tax or to be utilizing such amount as capital in its business : ITAT

++ Stay on recovery of duty demand allowed where assessee remits about 39% of the duty demand raised, which is over an above the benchmark of 20% stipulated u/s 254(2) : ITAT

++ Once assessee capitalises payment but does not deduct tax at source on it, provisions of sec. 40(a)(i) cannot be invoked for disallowance of depreciation : ITAT

++ Allotment of shares in lieu of goodwill & without any monetary consideration would not invoke the provisions of section 68 : ITAT

++ Assessee cannot be held in default u/s 201(1) where assessee makes suo motu disallowance u/s 40(a)(ia): ITAT

++ Sec. 14A r/w Rule 8D is only applicable in relation to assessee's exempt income: ITAT

July 26, 2021

++ I-T - Assessment or re-assessment u/s 153A of the Act, is not de novo assessment - assessee cannot claim deduction or allowance of expenses which it did not claim in the original assessment: HC

++ I-T - Additions framed u/s 68 as unexplained cash credit, cannot be sustained, where the assessee filed all documents to establish identity, creditworthiness of shareholders & genuineness of transactions: ITAT

++ I-T - Action of making addition on ad-hoc basis does not result into imposition of penalty u/s 271(1)(c) of the Act and hence cannot be termed as either concealment or furnishing of inaccurate particulars of income : ITAT

++ I-T - Addition for unexplained cash credit u/s 68 can't be made merely based on third party statement when no opportunity of cross-examination has been provided to the assessee to confront these parties : ITAT

++ I-T - Unsold property held as stock-in-trade by assessee cannot be assessed under the head 'income from house property' by notionally computing ALV from it : ITAT

++ Income earned by a real estate developer from lease rentals, qualifies as business income and not income from house property: ITAT

++ I-T - Assessment order passed in pursuance of revisionary order passed u/s 263, cannot sustain, when the revisionary order itself is set aside : ITAT

July 24, 2021

++ MAT credit granted u/s. 115JAA should be inclusive of surcharge and cess : ITAT

++ In absence of substantive assessment, protective assessment cannot survive : ITAT

++ Reopening made in case of assessee in absence of tangible material after framing assessment u/s 143(3) is not justified as per law: ITAT

++ To invoke provisions of Section 56(2)(viib), assessee-company should be a company in which public is not substantially interested : ITAT

July 23, 2021

++ Additions framed on account of unexplained share premium are sustainable where assessee fails to establish genuineness of transaction or creditworthiness of investor company : ITAT

++ Revenue's appeal pertaining to recovery of tax arrears from an assessee is not maintainable, where pursuant to directions issued by the NCLT, the Revenue cannot recover any amount exceeding Rs. 1 lakh : ITAT

++ Where assesseewrites off a debt in its books of account & which takes into account computation of income in earlier AYs, then all characteristics of an allowable bad debt u/s 36(2) are satisfied: ITAT

++ Penalty u/s 271D is not imposable on cash transactions exceeding limit specified u/s 269SS & which is conducted between friends & if such transaction is necessitated by immediate need for money : ITAT

++ Expenses incurred by an assessee cannot be disallowed on ad hoc basis, solely because they appear to be excessive in relation to the corresponding business activities: ITAT

++ Interest disallowance is not called for when own funds available with assessee exceed interest-free advance given : ITAT

++ Profit declared by assessee cannot be enhanced on estimation basis & without rejecting books of accounts : ITAT

++ I-T - To claim deduction u/s 57, nexus between interest income earned & expenditure claimed by assessee against earning such income must be established : ITAT

July 22, 2021

++ I-T - If any provisions/circulars/notifications regarding TDS deduction issued by oil-sellers, which is under challenge, itself stands modified, then such case calls for re-hearing: HC

++ I-T-If assessee can demonstrate availability of surplus interest-free funds for making investment generating tax free income, disallowance u/s 14A is not justified: HC

++ I-T - In case of other person u/s 153C, starting point for computation of block period would be the date on which based on seized documents, notice is issued to other person: ITAT

++ I-T Act - If sufficient interest-free funds are available, assessee's investment will be presumed to be made out of the funds and hence, no disallowance u/s 14A r/w Rule 8D can be made : ITAT

++ I-T - In case of unabated assessment year, addition can only be made u/s 68 on basis of incriminating material found during course of search and not otherwise: ITAT

++ I-T - When requirement of law prescribed u/s 147 has not been met in reasons recorded, AO has no jurisdiction to reopen assessment : ITAT

++ I-T - If warehouses are taken on rent for providing integrated handling storage & transportation services, it would not disentitle deduction u/s 80IB (11A): ITAT

++ I-T - Interest earned on account of funds borrowed for specific purpose cannot be taxed : ITAT

July 21, 2021

++ I-T - What is required to reopen an assessment is reason to believe & sufficiency of materials cannot be considered at this juncture : HC

++ I-T - Assessee is entitled to claim set off of the carried forward speculative losses from the business in shares and also derivatives against the speculative profit accounted for in current AY year : ITAT

++ I-T - once accepted that identity and creditworthiness of subscribers is not in doubtful, there is no reason to doubt the genuineness of transactions merely for the reason that share certificates issued to shareholders was not furnished : ITAT

++ I-T - Profit from agricultural land sale is not assessable under income from business head if subsequent usage by purchaser is non-agricultural : ITAT

++ I-T - Cash payments which are actually in nature of reimbursements, does not fall within bracket of 'expenditure' u/s 40A(3): ITAT

++ I-T- 10% of total expenditure incurred by the assessee can't be disallowed on ad-hoc basis - ITAT

++ I-T - Penalty imposed cannot survive as addition upon which penalty is imposed no longer sustains : ITAT

July 20, 2021

++ I-T - Sufficiency of reasons for re-opening cannot be gone into in writ proceedings: HC

++ I-T - Loan advanced to shareholder for purpose of availing credit facility from banks, cannot be treated as 'deemed dividend' u/s 2(22)(e): HC

++ I-T - When sundry creditors are outstanding for more than 3 years, amount due is liable to be taxed u/s 41(1) as cessation of liability : ITAT

++ I-T - Penalty u/s 271(1)(c) cannot mechanically be imposed as a consequence of disallowance of any expenditure or deduction claimed by the assessee : ITAT

++ I-T - When there is no exempt income, there can be no disallowance u/s 14A r.w. Rule 8D of the Rule: ITAT

++ I-T - A case can be remanded to AO for de novo adjudication after outcome of dispute with regard to the receipt of sale consideration pending before Civil Court as disposal of dispute by Civil Court on this aspect have a bearing on the issues raised in present case : ITAT

++ I-T - Invocation of Sec. 68 sans valid and proper books of assessee is invalid: ITAT

July 19, 2021

++ Forex received for providing software development services outside India is to be excluded from export turnover when computing deduction u/s 10B: HC

++ Before embarking upon any enquiry by CIT (E), it is sine qua non to inform Trust about various laws under which it should have approval before seeking registration: ITAT

++ Additions framed u/s 68 are unsustainable where AO fails to give any reasoning to establish that assessee has any income whose nature or source is not explained : ITAT

++ If business loss incurred in previous years as per books of A/c were completely set off from book profits of all assessment years, then no further set off can be claimed u/s 115JB: ITAT

++ Assessee can be taxed only to extent of income accrued in relevant AY and not whole expected profit to be earned out of a project after its completion : ITAT

++ Outstanding service tax liability is not liable to be added u/s 43B, since the same has not been claimed as deduction - ITAT

July 17, 2021

++ I-T - Donation from one charitable trust to another is not prohibited, and hence cannot form ground for cancellation of their registration granted u/s 12A: ITAT

++ I-T - Bona fide loss incurred to beneficial owner in allotment of shares, cannot be disallowed simply on the ground of delay in allotment: ITAT

++ I-T - Registration granted to trust u/s 12AA should not be cancelled without affording opportunity of hearing: ITAT

July 16, 2021

++ I-T - Report prepared by valuer by simply relying upon submissions of seller and without verifying existence of property in question, cannot be accepted: ITAT

++ I-T - Since property in question belongs to the HUF of the assessee and not to the assessee individual, therefore, the assessment order passed for assessee is liable to be quashed : ITAT

++ I-T - If factory building is situated within jurisdiction of state PWD, then State PWD rates should be applied for estimation of cost of construction of factory building: ITAT

++ I-T- No disallowance u/s 14A r.w.r. 8D(2)(iii) can be made on investments as there is no exempt income received by the assessee in relevant year: ITAT

++ I-T - Re-opening notice can be issued by AO on his own satisfaction and not on borrowed satisfaction of another Investigating Agency: ITAT

++ I-T - When returned income filed by assessee has been accepted by Revenue, penalty cannot be imposed : ITAT

++ I-T- No addition for undisclosed income can be made as source of cash deposit has been duly explained: ITAT

++ I-T - AS-11 is mandatory and must be followed in computing income u/s 145(1) r/w sec. 145(2) : ITAT

July 15, 2021

++ I-T - Writ remedy cannot be availed where the appellate remedy already available has not been exhausted or where the appellate remedy is sought to be bypassed in entirety : HC

++ I-T - Writ remedy cannot be availed by an assessee without first exhausting the available appellate remedy, or with a view to by-pass appellate remedy altogether : HC

++ I-T - In absence of contrary proved by Revenue and following order passed in identical HUF of the assessee's husband's case, addition made u/s 68 for unaccounted money can be deleted : ITAT

++ I-T - Additions framed u/s 68 of the Act will not sustain where the assessee duly discharges its onus by submitting all relevant details to show genuineness of transactions : ITAT

++ I-T - Funds received from assessee's own account outside India through banking channels with necessary statutory approvals, cannot be treated as 'income accrued or arisen' in India: ITAT

++ I-T - Pending conclusion of first reassessment proceedings, fresh reassessment proceedings cannot be initiated by issue of fresh notice u/s 148 : ITAT

++ I-T- Notings made in loose sheets/diary not in the form of 'books of accounts' have value in the eyes of law : ITAT

++ I-T- Addition u/s 68 cannot be made when assessee has discharged the primary onus by providing necessary documentary evidences : ITAT

++ I-T - Only profit element embedded on any undisclosed transaction could be brought to tax on estimated basis: ITAT

++ I-T - Assessee trust cannot be denied exemption u/s 10(23C)(vi) merely because it generates surplus : ITAT

July 14, 2021

++ I-T - Order of condonation of delay relates to the appeal and once delay has been condoned in the filing of appeal that means in this particular case appeal has been filed in time : HC

++ I-T - If assessee has prima facie discharged onus of establishing identity & creditworthiness of lender and established genuineness of transaction, no addition is warranted u/s 68: ITAT

++ I-T - Company created for purpose of providing re-employment to ex-servicemen, cannot be denied registration u/s 12AA solely because it generated considerable revenue : ITAT

++ I-T - Penalty imposed u/s 271(1)(c) is unsustainable where the penalty notice does not specify the exact charge against the assessee between concealment of income or furnishing inaccurate particulars thereto : ITAT

++ I-T - Directions of PCIT which are beyond selection criteria of scope of scrutiny issued by CBDT, are not permitted u/s 263: ITAT

++ I-T -Search assessment u/s 153A cannot be conducted when no evidence incriminating the assessee is uncovered in course of search operations : ITAT

++ I-T - Penalty u/s 271(1)(c) cannot be imposed on the basis of conjecture or surmises: ITAT

++ I-T - Claim that is not subject-matter of limited scrutiny made by AO u/s 143(2)(i) cannot be gone into by PCIT by exercising jurisdiction u/s 263 : ITAT

++ I-T - Unless there is service of notice in accordance with provision under Section 282 of the Act separately specifying mode of service of notice, it cannot be treated as valid service of notice : ITAT

July 13, 2021

++ I-T - Developer can claim depreciation on 'roads' constructed by it: HC

++ I-T - Search assessment u/s 153C cannot be resorted to where no evidence incriminating the assessee is found in course of survey or search operations : HC

++ I-T - Assessee is entitled to depreciation in respect of public roads, having treated the same as building : HC

++ I-T - Notice proposing re-opening of assessment is unsustainable, where the reasons for re-opening of assessment are not furnished to the assessee & where the assessee's objections thereto have not been disposed of: HC

++ I-T - Criminal prosecution launched due to non-payment of income tax in proper time, merits being dropped, where tax dues are cleared subsequently, on account of which continuing of prosecution would be abuse of legal process : HC

++ I-T - Order passed by AO after death of taxpayer, who dies after conclusion of arguments and before order is passed by AO, is ab initio void: HC

++ I-T - Expenditures incurred by an assessee cannot be disallowed where the AO has already framed protective additions in respect of the same expenses, leading to double addition of the same income : ITAT

++ I-T - Expenditure incurred for purpose of business of the assessee can be allowed as deduction whether such business is continued or discontinued, albeit where the assessee proves the same : ITAT

July 12, 2021

++ I-T - HC is not obliged to look into issues which are mixed questions of facts and law: HC

++ I-T - Dismissal of Revenue's appeal on the grounds of low tax value involved, warrants no interference with, where such appeal was not covered by relevant CBDT Circular which enables filing of appeal irrespective of tax value involved : HC

++ I-T - If AO has cause or jurisdiction to suppose that income has escaped assessment, he can be said to have reason to believe that income has escaped assessment: HC

++ I-T - Assessee cannot seek stay on recovery of duty demand where assessee was given extra time to pay the duty in instalments, but did not comply with the same : HC

++ I-T- Expired-goods written-off can't be disallowed when assessee has furnished complete item-wise details of stock written-off along with quantity, rate and value and write-off was duly supported by report of CA who has physically verified the expired goods - ITAT

++ I-T - Disallowance in respect of bogus purchases merits being restricted to the profit embedded therein, rather than the entire quantum of the purchases: ITAT

July 10, 2021

++ Rule of consistency requires Revenue cannot approbate & reprobate in respect of the very same issue from year to year : ITAT

++ Rule of consistency requires Revenue cannot approbate & reprobate in respect of the very same issue from year to year : ITAT

July 09, 2021

++ I-T - Income arising from sale of jaggery cannot be deemed to be agricultural income & cannot be exempt from levy of income tax : HC

++ I-T - Tribunal is required to adjudicate additional claims made before it by taxpayer, if they were already on record: HC

++ I-T - Public charitable trust donating to activities other than education cannot be denied exemption u/s 11: HC

++ I-T - A writ petition filed without exhausting the statutory remedies, with a view to evade pre-deposit of tax or to evade the time taken in filing appeals, is unsustainable: HC

++ I-T - Only that income that has actually accrued to an assessee is taxable : HC

++ I-T - Since addition made by the AO is tax neutral, AO can delete the disallowance of advertisement and publicity expenses : ITAT

++ I-T - AO cannot make addition on the basis of unsigned agreement or loose papers, specifically when transaction is not corroborated by any other evidence on record : ITAT

July 08, 2021

++ I-T - Taxpayer is entitled to benefit of depreciation on leased assets u/s 32: HC

++ I-T - Proceeds from trading of shares held for a period longer than 12 months, qualify as long term capital gain: HC

++ I-T- Interest paid on loan borrowed for purchase of land which is held as inventory can't be considered as capital asset acquisition cost for the purpose of proviso to section 36(1)(iii): ITAT

++ I-T - AO cannot curtail expenditure and consequent, weighted deduction claim u/s 35(2AB) on surmise that prescribed authority has only approved part of expenditure : ITAT

++ I-T - Re-assessment cannot be held valid if AO has not made any addition on the basis of reasons recorded for reopening: ITAT

++ I-T - Attribution by Income Tax Investigation Wing & SEBI is not per se sufficient to frame additions u/s 69C of the Act: ITAT

++ I-T- When huge disallowances are made by AO, then CIT (A) upon calling for the information from the assessee and having accepted the same should have called for comments from the A.O. before granting any relief : ITAT

++ I-T - Franchisee fee paid by assessee should be allowed as deduction when no new asset comes into existence on account of its payment and where rights under agreement are only for tenure of agreement : ITAT

July 07, 2021

++ I-T - Assessment order raising duty demand merits being set aside where the order has been passed without having requisite jurisdiction : HC

++ I-T - Assessee cannot evade re-assessment proceedings which seek to probe escapement of tax from certain transactions entered into by assessee for an AY for which assessee did not file ITRs: HC

++ I-T - Where an entity develops & operates an Industrial Park or SEZ, the income derived from letting out of these premises is taxable under the head 'Profits & Gains of Business' : HC

++ I-T - Unexplained cash deposited in bank account requires addition on estimate basis: ITAT

++ I-T - Sale consideration to extent obligations are not performed, cannot form part of apparent consideration: ITAT

++ I-T - Profit element embedded in on-money receipts should only be taxed as 'undisclosed income' u/s 68: ITAT

++ I-T - Provisions of Sec 43CA would not have retrospective application and accordingly, do not apply to agreement executed prior to its introduction: ITAT

July 06, 2021

++ I-T - Writ petition cannot be filed in respect of an issue which is already pending for consideration before the Departmental authorities: HC

++ I-T- Process of delivery of CNG to automobiles at the CNG filling centers amount to manufacture or production or an article or thing and assessee is entitled for claiming additional depreciation : ITAT

++ I-T Act - Assessee should submit individual reconciliation statement of each transaction to corroborate difference in amount shown in TDS certificate and that shown in P & L a/c: : ITAT

++ I-T - Additions framed on account of unexplained income or unexplained investments merit being quashed where based solely on presumptions & where not based on any irrefutable information : ITAT

++ I-T - It is fit case for remand where assessee's appeal to CIT(A) is dismissed on limitation & where delay was caused due to assessee not knowing about assessment proceedings on-goin g: ITAT

++ I-T - No addition for unsecured loans u/s 68 can be made when transactions are routed through proper banking channels and other ingredients including identity and credit worthiness of parties has been satisfactorily explained : ITAT

++ I-T - Parties cannot be allowed to treat the document/agreement entered into between them casually or disown them at their convenience as such actions may invite criminal consequences : ITAT

++ I-T - T ransaction of sale of the immovable property and capital gain remains unexplained from assessee side and PCIT has rightly exercised power u/s 263: ITAT

July 05, 2021

++ I-T - If taxpayer had already availed alternative statutory remedy by filing appeals and failed to comply with mandatory requirements of DTVSV Act, no writ remedy is available to him: HC

++ I-T - Mere approval granted for setting up of 100% EOU cannot be validated for purpose of claiming exemption u/s 10B, and calls for further ratification from Board of Approval: HC

++ I-T- Addition on account of unaccounted cash towards sale of land can be made based on assessee's acceptance of such transaction during the course of search proceedings :ITAT

++ I-T - If there is no discrepancy revealed in sales or purchase during course of search as per books of A/c & stock, no addition is permitted in name of 'undisclosed sales': ITAT

++ I-T - Search assessment u/s 153A cannot be resorted to where no evidence incriminating the assessee is found in course of Search operations: ITAT

++ I-T - Power of revision cannot be exercised where the AO takes one of two views possible in respect of the relevant issue : ITAT

++ I-T - Revisionary power u/s 263 need not be exercised where specific view is taken by AO regarding relevant issue: ITAT

++ I-T - Assessment can be reopened u/s 147 on basis of 'reason to believe' and not 'reason to suspect': ITAT

++ I-T - Onus lies upon taxpayer to justify source of investments based on documentary evidence: ITAT

++ I-T - Contribution made toward employee gratuity fund merits deduction u/s 36(1)(v): ITAT

++ I-T - Income surrendered by assessee cannot be held as concealed income u/s 271(1)(c) : ITAT

July 03, 2021

++ I-T - Mere fact that property let out is commercial complex, is not sufficient to treat 'rental income' therefrom as 'business income': ITAT

July 02, 2021

++ I-T - Attachment of suit property way later by tax recovery officer of seller cannot override commitment under sale agreement entered in favour of buyer years ago: HC

++ I-T - Re-opening of assessment cannot be upheld where assessee is not found to have failed to make full and true disclosure of facts necessary for assessment : HC

++ I-T - Assessment order is unsustainable where it is passed before expiry of the time period provided for filing response to the SCN-cum-draft assessment order: HC

++ I-T - Expenditure incurred before getting VAT registration, has to be allowed as 'revenue expenditure' if import license was obtained and business has commenced: ITAT

++ I-T - While computing the amount of disallowance under sub-clause (iii) of sub-rule (2) of Rule 8D, the value of investment which yielded exempt income alone has to be considered for the purpose of arriving at average value of investment : ITAT

++ I-T - When assessee has fulfilled condition for deduction u/s 54F within extended time-limit of filing ITR u/s 139(4), assessee's claim cannot be negated merely because he did not deposit amount in the scheme before expiry of time period provided u/s 139(1) : ITAT

++ I-T - AO can make addition u/s 69A being dissatisfied that assessee's explanation is not corroborated by documentary evidence : ITAT

++ I-T - When project is not completed within 5 years from end of year in which approval was granted, claim u/s 80IB(10) must be disallowed: ITAT

++ I-T - Sec. 41(1) is applicable only when there is a genuine liability that has ceased to exist or has been written off in books of account : ITAT

++ I-T - Order passed by AO is erroneous as per Explanation 2(a) to sec. 263, only in absence of enquiry that should have been made : ITAT

July 01 , 2021

++ I-T Act - Assessment proceedings against an entity that ceases to exist post its amalgamation are null and void in eyes of law : HC

++ I-T - Language employed in the provision is to be interpreted constructively and pragmatically so as to understand the purpose and object : HC

++ I-T - Additions u/s 56(2)(vii)(b) of the Act cannot be framed in respect of property which is not newly purchased and has been received as inheritance: ITAT

++ I-T - Reopening of assessment based on change of opinion that too beyond the time-limit as prescribed in the proviso to section 147 of the Act which is bad in law : ITAT

++ I-T - Enhancement of income sustained in part, where assessee deposits advance tax on certain undisclosed receipts & is unable to explain source of such receipts : ITAT

++ I-T - Refund of amount advanced in preceding years received by assessee in relevant AY is not credit for purposes of sec. 68 : ITAT

++ I-T - When assessee's purchase and expenditure shown are not verifiable from books of account, AO can reject the books u/s 145(3): ITAT

++ I-T - When copy of reasons recorded u/s 147 and Performa and sanction u/s 151 received by AO are not provided though assessee has made a written demand, entire reassessment proceedings are liable to be quashed: ITAT