Category: ITAT

Application of percentage completion method of accounting of real estate business was incorrect as the project was not in the nature of construction contract In a recent judgment, ITAT Ahmedabad held that following the ICAI guidance note, application of the percentage completion method of accounting for revenue recognition …

Provisions of Section 41(1) not applicable to liabilities written back which were incurred in respect of capital assets and were capitalized In a recent judgment, ITAT Guwahati has held that when expenses liabilities written off were incurred in respect of capital assets and were capitalized, the provisions of …

When amalgamation is done in larger interest of business, depreciation on goodwill generated in the course of amalgamation allowable – ITAT In a recent judgment, ITAT Rajkot has held that when the amalgamation was done in the larger interest of business, depreciation should be allowable on the goodwill …

ITAT upheld deletion of disallowance u/s 40A(3) where the nature of business remained the same and the patterns of cash withdrawals were also similar all through the years. In a recent judgment, ITAT Guwahati affirms deletion of disallowance u/s 40A(3) in respect of cash purchase where the nature …

Assessee eligible for deductions u/s 80G for donations out of CRS funds, if condition of sections 80G are satisfied – ITAT In a recent judgment, ITAT Mumbai has held that assessee would be eligible for claim of deductions u/s 80G for eligible donations out of the CRS funds, …

CPC was not authorised to disallow deduction u/s 80P u/s 143(1)(a) for violation of Section 80AC of the Act – ITAT In A recent judgment, ITAT Jodhpur held that CPC while processing the return u/s 143(1)(a) of the Act was not authorised to disallow the deduction u/s 80P …

Conversion of grapes into raisins using traditional ways held as agricultural activity In a recent judgment, ITAT Bangalore has held that conversion of grapes into raisins by traditional ways is an agricultural activity. ABCAUS Case Law Citation:4711 (2025) (08) abcaus.in ITAT In the instant case, the assessee had …

Allowance of an incorrect claim in a later year cannot be used to justify the non-disallowance in an earlier year – ITAT In a recent judgment ITAT Ahmedabad has held that the allowance of an incorrect claim in a later year cannot be used to justify the non-disallowance …

Use of words, “either and or” in recording reasons to believe shows Ao was unsure of the facts and initiated proceedings in mechanical manner – ITAT In a recent judgment, ITAT Ahmedabad held that use of words, “either and or” in reasons to believe reveals that the Assessing …

Section 11(2) related to accumulation of income not require that it can be utilized only after expenditure of relevant assessment are applied. In a recent judgment, ITAT Lucknow has held that Section 11(2) related to accumulation of income by charitable institutions does not provide that expenditure of relevant …