TODAY'S CASE (DIRECT TAX)

September 30, 2021

++ I-T - Draft assessment order merits being quashed where it is passed after permitting only one day's time to assessee to file reply to SCN : HC

++ I-T - Faceless Assessment - NFAC obligated to issue SCN before passing assessment order: HC

++ I-T - Appeals filed beyond six-month limitation period, are rightly dismissed: HC

++ I-T - Where no assessment order is passed u/s 144C(4), AO can reopen assessment u/s 147 if he has reason to believe that income chargeable to tax has escaped assessment : HC

++ I-T - Expenses incurred in respect of acquisition of software for bolstering assessee's business operations, merit allowance u/s 37(1): HC

++ I-T - Best judgment assessment merits being sustained where assessee does not particpate in assessment proceedings despite multiple notices being issued : HC

++ I-T - Payment of employees contribution if made before due date of filing ITR u/s 139(1) is allowable deduction against corresponding income u/s 2(24)(x): ITAT

++ I-T - Deduction u/s 36(1)(viia)(c) cannot be denied where an assessee has created provision in books of accounts for bad and doubtful debts : ITAT

September 29, 2021

++ I-T - If assessee has availed benefit of Vivad Se Vishwas Scheme and had already been issued with Form-3, no useful purpose would be served in keeping the appeal pending: HC

++ I-T - Assessment order passed even before time to file reply had expired and without considering records that reply has in fact been filed, merits to be quashed: HC

++ I-T - Depreciation @ 30% is allowed in respect of vehicles used for business purposes: HC

++ I-T - Assessment order passed in pursuance of revisionary order passed u/s 263, cannot sustain, where the revisionary order itself is set aside for want of valid jurisdiction : HC

++ I-T - When there is no change in factual position, disallowance made in subsequent AY must be in consonance with that made in preceding AYs : ITAT

++ I-T - Reassessment made merely on the basis of audit objection without forming independent opinion, is not tenable: ITAT

++ I-T - additions framed in respect of purchases made from the grey market, must be restricted to the profit element embedded in such purchases : ITAT

++ I-T - If AO believes assessee has received money from bogus companies, when assessee provides complete names and addresses of companies, AO should assess amount in hands of shareholding companies : ITAT

++ I-T - Expenditure incurred towards repairs and renovation of leased premises can't be treated as capital expenditure : ITAT

++ I-T - Additions framed on account excessive cash in hand is sustainable where the Revenue is unable to establish that amounts withdrawn by assessee from bank a/c were utilised for some undisclosed purpose: ITAT

September 28, 2021

++ I-T - U/s 260A(1), appeal lies to HC against ITAT's decision only on substantial questions of law, meaning the question of law must be debatable, not previously settled : HC

++ I-T - power of revision u/s 263 is to be exercised only when both conditions of the assessment order being erroneous as well as prejudicial to Revenue's interests, are satisfied: ITAT

++ I-T - Full value of consideration, recorded in books of accounts, adopted as per Section 45(3) cannot be substituted with market value of property as per section 50C : ITAT

++ I-T - Deduction merits being allowed u/s 24(b) in respect of interest on Home Loan, where property for which such loan was taken, has not yet been acquired: ITAT 

++ I-T - Assessee's appeals merit being dismissed for non-prosecution where the assessee files no written submissions or submits no evidence to justify its case: ITAT

++ I-T - Additions framed consequent to search operation, are sustainable where based solely on third party entries recovered from flash drive : ITAT

++ I-T - Additions framed u/s 68, solely on basis of conjectures or surmises, cannot be sustained: ITAT

September 27, 2021

++ Black Money Act - Jurisdictional issue must be decided by reference to materials relied upon by AO in disposing of jurisdictional challenge and not findings in final assessment order : ITAT

++ I-T - Where power is given to do a certain thing in a certain way, the thing must be done in that way or not at all and other methods of performance are forbidden: HC

++ I-T - Doctrine of Dominus litis or doctrine of situs of the appellate Tribunal cannot be applied together : HC

++ I-T - Based on Circular No. 01/2014 , dated 21.01.2015, it can be concluded that any investment in shares of private limited companies enjoys long-term capital gains on its transfer after 12 months :HC

++ I-T - Person who deducts tax at source but does not remit it to credit of Department is assessee in default u/s 201 from whom recovery can solely be made : HC

++ I-T - In case of violation of principles of natural justice, despite availability of alternate remedy under I-T Act, assessee is entitled to approach Writ Court : HC

++ I-T - Books can't be rejected on account of flaws when discrepancies have already been removed and assessee has maintained regular books: ITAT

++ I-T - While computing telescoping benefit, accumulated profit from unaccounted business must be taken into account : ITAT

++ I-T - Order u/s 154 is time-barred if it is not passed within 4 years from end of FY in which order sought to be amended was passed : ITAT

++ I-T - Penalty cannot be levied if quantum appeal has already been decided in favor of assessee : ITAT

September 25, 2021

++ I-T - Deduction u/s 54, prior to amendment, must not be restricted to only 1 residential unit against total investment made by assessee in 2 adjoining residential units : ITAT

++ I-T - Deduction u/s 54, prior to amendment, must not be restricted to only 1 residential unit against total investment made by assessee in 2 adjoining residential units : ITAT

September 24, 2021

++ I-T - Additions cannot be framed based on declarations alone; must be substantiated by unexplained expenditure or assets discernible in material seized in course of search operations: ITAT

++ I-T - Where assessee makes application u/s 270AA & if such application is accepted, then assessee cannot file an appeal u/s 246(A) or revision application u/s 264 : HC

++ I-T - Faceless Assessment Scheme mandates that show cause notice or draft order has to be issued prior to passing final assessment order : HC

++ I-T - Re-assessment - AO statutorily obligated to furnish grounds for re-assessment - AO to pass speaking order after considering assessee's objections: HC

++ I-T - Re-opening of assessment - High Court cannot inquire into validity of proceedings where order is yet to be passed: HC

++ I-T - U/s 263, PCIT cannot order for fresh enquiry when adequate enquiry is already done and AO has taken one of the plausible views as permissible under law : ITAT

++ I-T- Prior to amendment u/s 153C, period of six AYs for making assessment shall be reckoned from year of recording of satisfaction / handing over of seized material : ITAT

++ I-T - Additions framed u/s 68 of the Act can be sustained where they are framed on account of some errors made by the assessee's tax practitioner in reconciling the assessee's actual capital & investments made : ITAT

September 23, 2021

++ I-T - As all registrations are done u/s 12A, Principal Commissioner/Commissioner was vested with power even prior to 01.06.2010 to cancel registration u/s 12A - HC

++ I-T - Assessee is entitled to refund of adjustments made in excess of 20% of the duty demands raised : HC

++ I-T - Principles of natural justice are contravened where final assessment order & consequent penalty notice are issued before expiry of time given for furnishing reply to draft assessment order : HC

++ I-T - 3% disallowance out of bogus purchases meets the end of justice as making purchases through grey market gave assessee savings on account of non-payment of tax and others at expense of exchequer: ITAT

++ I-T - Addition of one sum u/s 69A as unexplained investment is not justified when credit of another sum in similar circumstances is accepted by AO : ITAT

++ I-T - Not allowing assessee to cross-examine person based on whose statement addition is made in hands of assessee makes assessment order a nullity : ITAT

++ I-T - Penalty can't be levied if assessee had made bona fide claim and had furnished all details with respect to claim in the return of income filed : ITAT

++ I-T - AO's order that does not disclose basis of his conclusion can be set aside u/s 263 as being erroneous and prejudicial to interest of revenue : ITAT

September 22, 2021

++ I-T - Charitable hospitals which are remunerating doctors at par with commercial hospitals are not eligible for exemption u/s 10(23C)(via): SC

++ I-T - Penalty u/s 271B is imposable where assessee is delayed by 29 days in filing ITRs and Tax Audit Report & where such delay has reasonable explanation behind it: ITAT

++ I-T - Amount representing waiver of loan liability is on capital accounts & not in the nature of income, more so when no deduction and allowance was made in respect of such loan in any AY : ITAT

++ I-T - Where an amount has been taxed u/s 68 of the Act, the same cannot be treated as being in violation of Sections 269SS & 269T, considering that such amount is mutually excluded: ITAT

++ I-T - While allowing MAT credit u/s 115JAA, surcharge and education cess must be considered and credit must be allowed for gross tax amount: ITAT

++ I-T - When assessee satisfies all three tests of identity, creditworthiness and genuineness, no addition can be made as unexplained cash credit u/s 68: ITAT

++ I-T - Expenditure incurred on Corporate Social Responsibility cannot be treated as unascertained liability: ITAT

++ I-T - Exchange fluctuation loss attributable to depreciable assets acquired in India is an allowable revenue expenditure : ITAT

++ I-T - penalty u/s 271(1)(b) cannot be imposed where assessee fails to comply with a particular notice, merely on technical grounds : ITAT

September 21, 2021

++ I-T - Re-opening of assessment cannot be sustained where it is based entirely on report furnished by Investigation Wing & involves no independent observations of AO : HC

++ I-T - Since non-disclosure on part of assessee has not been established and reopening is based on change of opinion, assessment order not allowing exemption u/s 54F can be set aside : HC

++ I-T - Condition of creating approved fund is satisfied if assessee applies for approval within prescribed time, irrespective of whether approval is accorded before assessment is completed : ITAT

++ I-T - Where AO has initiated penalty proceedings u/s 271(1)(c) for furnishing inaccurate particulars of income, order imposing penalty for concealment of income is not valid : ITAT

++ I-T - AO does not have jurisdiction to reassess issues other than issues in respect of which proceedings were initiated when reasons for initiation of those proceedings cease to survive: ITAT

++ I-T - While computing relief u/s 10AA, communication expenses should be excluded from total turnover if the same are reduced from export turnover : ITAT

++ I-T - Rectification sought through revised return furnished through Form 10 before time specified u/s 139(1), merits acceptance: ITAT

++ I-T - Once an issue has attained finality by passing of order by ITAT, no obvious mistake of law, if any, can be rectified u/s 154 : ITAT

September 20, 2021

++ I-T - Interest u/s 234B has to be charged on income settled by ITSC and same is chargeable upto date of order u/s 245D(1) and not upto date of order of ITSC u/s 245D(4): HC

++ I-T - For purposes of claiming deduction u/s 80IB, assessee is entitled to claim proportionate relief in respect of units that satisfy prescribed condition : ITAT

++ I-T - Penalty for concealment of particulars of income cannot be levied for non-disclosure of income under bona fide belief that it is not assessee's income at all : ITAT

++ I-T - Once assessee is held eligible for claiming exemption, assessee is not estopped to make correct claim by way of revised computation : ITAT

++ I-T - Payment of interest shall be mandatory and the period shall run from the date on which tax u/s 201(1) was payable to the date of furnishing of return of income by the payee : ITAT

++ I-T- Method of accounting adopted by assessee consistently and regularly cannot be discarded : ITAT

++ I-T - Disallowance can't be made under Rule 8D without being dissatisfied with correctness of claim of assessee : ITAT

++ I-T - PCIT cannot pass order u/s 263 on the ground that thorough enquiry should have been made by AO : ITAT

++ I-T - Revisionary proceedings u/s 263 initiated pursuant to assessment order that has been quashed are invalid : ITAT

++ I-T - Penalty imposed u/s 271(1)(c) cannot be sustained where the additions based on which penalty was imposed, are themselves set aside : ITAT

++ I-T - Sec 14A will not apply if no exempt income is received or receivable: ITAT

September 18, 2021

++ I-T - Ad - hoc disallowance of project expenditure by means of a cyptic order, is unsustainable where assessee furnishes head-wise project cost details as well as relevant ledger accounts: ITAT

++ I-T- Deduction u/s 10B is allowable in respect of profits realized on export of granite slabs, which has been processed by the assessee: ITAT

September 17, 2021

++ I-T - AO is required to record satisfaction that expenditure was incurred towards earning exempt income, before proceeding to make disallowance under Rule 8D: ITAT

++ I-T - Revenue has no justification to adopt POC method for one year on selective basis, if there is no compelling reasons to deviate from consistent practice - YES : ITAT

++ I-T - For power of revision to be exercised in a valid manner, it is apposite that original order sought to be revised should be both erroneous and prejudicial to Revenue's interests: ITAT

++ I-T - Before rejecting application for condonation of delay CIT (A) must examine facts brought by assessee in support of not furnishing appeal within statutory period and pass reasoned order : ITAT

++ I-T - Compensation received in respect of agricultural land belonging to taxpayer which had been acquired by state government, is capital receipt not chargeable u/s 56(2): ITAT

++ I-T - Expenditure incurred for promoting the assessee's business and earning profits, can be claimed a deduction u/s 37(1) of Act : ITAT

++ I-T - Burden of proving that income is not taxable because it falls within exemption provided by the Act lies on assessee: ITAT

++ I-T - For purposes of weighted deduction claim u/s 35(2AB), I-T 10th Amendment Rules w.e.f. 01.07.2016 are applicable prospectively :ITAT

September 16, 2021

++ I-T - U/s 43CA(3), stamp duty valuation on date of booking must be considered that shall have to be compared with actual sale consideration : ITAT

++ I-T - Concluded assessment can be disturbed only if incriminating material pertaining to that assessment year is found during course of search u/s 132 : ITAT

++ I-T- In absence of contrary proved by the assessee and following the order of the coordinate bench of the Tribunal, surplus arising on sale of mortgaged Land be taxed : ITAT

++ I-T - No additions can be made on account of cancelled cheques : ITAT

++ I-T - When a business is established and is ready to be commenced, then it can be said that business is 'set-up' : ITAT

++ I-T - Benefit of Sec. 10 cannot be denied by invoking provisions of secs. 11 to 13 : ITAT

++ I-T - Penalty proceedings initiated pursuant to notice that does not strike off/delete inappropriate/irrelevant/non-applicable portion are invalid : ITAT

September 15, 2021

++ I-T - Where there is a mixture of both borrowed funds & interest free funds, presumption must be drawn that investments are made out of interest-free funds : ITAT

++ I-T - Re-opening of assessment is sustainable where AO has tangible material available leading to formation of belief of taxable income escaping assessment : ITAT

++ I-T- Premium payable on redemption of debentures in Profit & Loss Account on proportionate basis, is allowable expense: ITAT

++ I-T - Relevant date for providing benefit of indexation is when assessee first acquires right in property, since execution of registered document is subsequent event to reinforce & protect legal sanctity of ownership: ITAT

++ I-T - Power of revision exercised in casual or mechanical manner is unsustainable: ITAT

September 14, 2021

++ I-T - For period prior to 01.04.16, no penalty is leviable w.r.t. additions & disallowances made under normal provisions, where Income Tax payable on normal income is less than book profits u/s 115JB : ITAT

++ I-T-Section 254(2) has narrow application permitting rectification of mistakes apparent on record & does not enable review of order : ITAT

++ I-T - Depreciation can be allowed in respect of a property which has been used by assessee for purpose of business : ITAT

++ I-T- Addition for bogus purchases can't be made when Revenue has not doubted the book results :ITAT

++ I-T - Penalty imposed u/s 271(1)(c) cannot be construed to be addition : ITAT

++ I-T - Reopening of assessment merely upon change of opinion is invalid : ITAT

++ I-T - When there is violation of principles of natural justice, availability of appellate remedy does not operate as bar to maintainability of writ petition : HC

September 13, 2021

++ I-T - As per settled position in law for Faceless Assessment, assessee has to be given an opportunity of personal hearing before passing order: HC

++ I-T - There must be failure on part of assessee to disclose fully & truly all material facts necessary for his assessment, for invoking reopening: HC

++ I-T - Proceeds realized from sale of certified emission reduction credit, is capital receipt and not taxable: HC

++ I-T - Proceeds realized on sale of certified emission reduction credit, is capital receipt and hence not taxable: HC

++ I-T - Assessee in entitled for the TDS credit irrespective of the facts that it was claimed in the return of income filed u/s 148 of the Act : ITAT

++ I-T - Merely because assessee refrained to contest addition made by AO before first appellate authority, AO cannot impose penalty u/s 271(1)(c) : ITAT

++ I-T - Since total turnover of assessee is much more than total cash deposit in the bank account, no addition is called for on account of unexplained cash deposit in the bank account : ITAT

++ I-T - Depreciation is allowable on amount of goodwill that comes into being as a result of amalgamation of two companies : ITAT

++ I-T - In case of bogus purchases, it is only the profit element embedded therein that warrants being taxed : ITAT

++ I-T - There cannot be any tax liability on amount remitted by NRI in India for investment in India : ITAT

++ I-T - In absence of contrary proved by Revenue and following order passed Coordinate Bench of Tribunal in assessee's own case for previous AYs, order can be passed that sec 115JB is not applicable in assessee's case : ITAT

September 11, 2021

++ I-T - Current depreciation is deductible in first place from income of business to which it relates: HC

++ I-T - Penalty u/s 271C cannot be imposed when there is no loss of revenue & when there is a bona fide reason for non deduction of TDS : ITAT

++ I-T - Disallowance for bogus purchases can be reduced to the extent of profit element embedded in these purchase and as per facts to case addition at the rate of 10% is sufficient : ITAT

++ I-T - Since assessee has discharged her duty by disclosing source of fund in the investment of securities, no addition can be made in hands of the assessee : ITAT

September 10, 2021

++ I-T - No proportionate disallowance of interest is warranted u/s 14A for investments made in tax free bonds which yield tax free dividend and interest, if interest free own funds had exceeded investments: SC

++ I-T - Provisions contained u/s 194H cannot be invoked in absence of existence of element of agency between pharma company and doctors: HC

++ I-T- Interest payment on late deposit of tax at source is not eligible business expenditure for deduction and it is not compensatory in nature: ITAT

++ I-T - VRS benefits paid by employer to employees/labourers in cash, out of compulsions and business expediency, does not attract rigours of Section 40A(3): ITAT

++ I-T - Registration u/s 12A should not be denied by CIT(E) to any institute without considering its object and nature of work: ITAT

++ I-T - Where assessment u/s 143(3) has been completed, 4 years' time- limit should be reckoned from end of relevant AY in which original assessment is completed : ITAT

September 09, 2021

++ I-T - Entire amount frozen in London and transferred to India as alleged proceeds of crime and may be liable for confiscation in case of conviction, cannot be utilized for fulfilling tax demands due against taxpayer: HC

++ I-T - If Act itself provides for mechanism for defaulting assessee to approach ITSC with view to settle dispute, application u/s 245C cannot be rejected on account of failure full disclosure: HC

++ I-T - Principles of natural justice as well as the procedure mandated in the Faceless Assessment Scheme are contravened when an order is passed without granting the assessee an opportunity of personal hearing : HC

++ I-T - Where there are divergent judgments passed by different High Courts in respect of same issue, then that decision which is most favorable to assessee has to be followed: ITAT

++ I-T -Income tax appeals pending against an assessee can be adjourned where the assessee is also undergoing insolvency proceedings under the IBC & under which moratorium has been imposed: ITAT

++ I-T - In absence of contrary proved by Revenue and following order passed for earlier year in assessee's own case, claim of interest u/s 36(1)(iii) can be allowed : ITAT

++ I-T - Assessment must be framed u/s 143(3) r.w.s. 153C, when search on assessee is not u/s 132(1) but u/s 133A : ITAT

++ I-T - In case of non-abated assessment, fresh claim cannot be allowed: ITAT

September 08, 2021

++ I-T - Provisions of Section 132B get triggered, once period of 120 days from date of last of authorisation for search u/s 132 stands expired: HC

++ I-T - Failure of AO to follow mandatory prior requirement of intimation u/s 245 would render adjustment of refund against outstanding demand, wholly illegal: HC

++ I-T - Conferring power on Executive to bring provisions of legislation into force amounts to excessive delegation of legislative power: HC

++ I-T - Conflicting assessment is not permissible by Income tax Department, once previous Assessing officer had become functus officio: HC

++ I-T - For write off of bad debts as irrecoverable, assessee is not under obligation to show that debt has in fact become irrecoverable: ITAT

++ I-T - re-opening of assessment is unsustainable where it is not based on any fresh evidence but is instead triggered by change of opinion on part of the AO : ITAT

++ I-T- Issue can be considered afresh when submission of assessee contains factual information that goes to root of matter and it becomes important to consider same : ITAT

++ I-T - Best of judgment assessment can be resorted to where books of accounts have not been produced: ITAT

September 07, 2021

++ I-T - When there is neither tangible material for reopening nor failure on assessee's part to disclose fully and truly all material facts, reopening proceedings are void : HC

++ I-T - When there is tangible material for reopening and failure on assessee's part to disclose fully and truly all material facts, reopening proceedings are valid : HC

++ I-T - Scrap sales cannot form part of total turnover: HC

++ I-T - Interest earned on bank deposits by Co-operative Societies s eligible for deduction u/s 80P: ITAT

++ I-T - Merely for non-appearance of directors of share subscribing company before AO, genuineness of transaction pertaining to share capital raised can't be questioned : ITAT

++ I-T - Exemption is required to be specifically granted by the statute and it cannot be inferred or drawn: ITAT

September 06, 2021

++ I-T - Income derived from letting out of commercial property with all amenities & facilities would be income from business - YES: HC

++ I-T - If assessee has fully & truly disclosed all materials during assessment and AO has no tangible evidence to believe escapement, then reopening is not justified: HC

++ I-T - Expression 'manufacture' would include every process, which would ultimately result in production of new article having different character in view: HC

++ I-T - Initiation of re-assessment proceedings on account of 'change of opinion' is not permissible in law: HC

++ I-T - Penalty is unsustainable where notice does not specify type of particulars which have been furnished incorrectly : ITAT

++ I-T - An order passed by the NCLT under the Insolvency & Bankruptcy Code, 2016 is binding on the I-T Department, considering the settled law pertaining to the overriding nature of the IBC, 2016 : ITAT

September 04, 2021

++ I-T - Additions framed on account of bogus purchases cannot be framed to the extent of entire quantum of purchases & only profit element embedded therein is to be disallowed : ITAT

++ I-T - Two re-assessment notices cannot be issued for the same transaction : ITAT

September 03, 2021

++ I-T - When there is no exempt income claimed by assessee or no actual receipt of income that does not form part of total income, no disallowance u/s 14A can be made : ITAT

++ I-T - As per general legal precedent, disallowance in case of alleged non-genuine purchases may be restricted to 12.5% of such purchases : ITAT

++ I-T - When sale consideration received is within range of 110% of value adopted by Value Adopting Authority, no addition is called for u/s 50C : ITAT

++ I-T - Interest on payment of lump sum lease premium, covered u/s 194A, is covered by exemption u/s 194A(3)(f) and hence, not subjected to TDS : ITAT

++ I-T - U/s 254(2), non-consideration of evidence furnished by assessee and non-adjudication of any ground amounts to mistakes apparent on face of record : ITAT

++ I-T - Penalty is not imposable where assessee files return within period prescribed & where income declared therein is accepted by AO: ITAT

++ I-T - Power of rectification u/s 254(2) can be exercised only for obvious and patent mistake apparent from record : ITAT

September 02, 2021

++ I-T - Registration u/s 12AA cannot be denied to a trust solely because it levies service charge for providing financial assistance to SHGs, but where such levy is not recurring in nature: HC

++ I-T - Final assessment order merits being set aside where it is not preceded by a draft assessment order: HC

++ I-T - Merely because there is no rental payment for current financial year, genuine rental agreement and consequent rent advance paid cannot be considered as diversion of funds: ITAT

++ I-T - If borrowed funds had direct nexus with investment made in shares which had yielded short-term capital gains, then interest on such borrowing is eligible for deduction u/s 48: ITAT

++ I-T - Consultancy charges paid for enhancement of existing features on website cannot be treated as a new arena of business operation and should be treated as revenue expenditure : ITAT

++ I-T - Penalty order framed u/s 271(1)(c) is not on equal footing as penalty initiated u/s 158BFA: ITAT

++ I-T - Once initial burden stands discharged by taxpayer to prove identity of creditors, then burden shifts to Revenue to prove otherwise: ITAT

++ I-T - Mistakes committed by share broker while modifying client codes, is no basis to draw adverse inference against bona fide share trader: ITAT

++ I-T - When conditions mentioned in Section 194C(6) have been satisfied then no deduction of tax u/s 194C is required to be made by the payee : ITAT

September 01 , 2021

++ I-T Estimation of profit by AO at a rate higher than the profit declared by the assessee, can per se form the basis for imposing penalty u/s 271(1)(c): ITAT

++ I-T - LTC exemption claimed u/s 10(5) for both domestic and foreign travel must be allowed up to the extent of amount paid on domestic travel : ITAT

++ I-T - When assessee fails to establish that expenditure is incurred wholly and exclusively for purpose of business, it cannot be allowed as business expenditure : ITAT

++ I-T - depreciation on motor cars is rightly disallowed where Section 38(2) of the Act provides for making disallowance of depreciation on account of non business use : ITAT

++ I-T - No addition can be made in respect of duly verified purchases: ITAT

++ I-T - Addition u/s 40(A)(3) can't be made when monies received in cash is recorded in agreements entered between parties and there is no denial of having received monies in cash by vendors : ITAT

++ I-T - Addition framed on account of unexplained cash deposits merits being restricted to 20% where the same arises from commission & brokerage income, about which no explanation is given by the assessee : ITAT

++ I-T - Power of revision is rightly exercised where the AO passes a self-contradictory order allowing interest paid by assessee to loan depositors, while also disallowing such loans for allegedly being bogus: ITAT