Category: ITAT

Benefit of doubt needs to go in favour of assessee when tested on the touchstone of preponderance of probabilities, the explanation offered appears fairly reasonable.   In a recent judgment, ITAT Delhi deleted addition under section 69A and held that benefit of doubt needs to go in favour of …

Advance given for purchase and subsequently written off in Profit and Loss account as bad debts allowed as business expenditure u/s 37(1) In a recent judgment, ITAT Chandigarh allowed deduction under section 37(1) as business expenditure towards advance written off as irrecoverable bad debts, following the Supreme Court …

Patwari certificate should be on government letter head bearing government seal, signature and designation of designated local revenue authority – ITAT  In a recent judgment, ITAT Indore has held that Patwari certificate for municipal limit of land should be on government letter head instead of plain paper leaving …

Sales of two incomparable years cannot be compared. ITAT directed addition to be deleted after verification   In a recent judgment, ITAT Delhi held that sales of two incomparable years cannot be compared to treat the increase in sale as unexplained money the basis that sales recorded by …

If a contribution is not voluntary, it cannot be taxed as income u/s 11 r.w.s. 12(1) – ITAT In a recent judgment, ITAT Hyderabad has held that under section 12(1), any contribution which is voluntary, can only be treated as income in the hands of the assessee. if …

Finding of ITAT that retracted statement cannot be termed as incriminating material not appealable before High Court In a recent judgment, Hon’ble Guwahati High Court has held that finding of the ITAT and CIT(A) that retracted statement cannot be termed as incriminating material not liable to be interfered …

Gupt donation/donation received in small boxes can not be held anonymous donation- ITAT  In a recent judgment, ITAT Jodhpur held that gupt donation/donation in small boxes can not held anonymous donation. Even if such donations are not considered as corpus donations the trust was otherwise get deduction on …

ITAT restricted penalty under section 272A(1)(d) to the first default to notice issued u/s 143(2). In a recent judgment, ITAT Surat restricted penalty under section 272A(1)(d) to the first default only holding that penalty u/s 271(1)(b) cannot be imposed for each and every notice issued under section 143(2) …

There can be plethora of reasons for failure to execute a formal loan agreement reduced in writing. The need for written agreement should be best left to the judgment of the parties. In a recent judgment, ITAT Delhi observed that there can be plethora of reasons for failure …

When it is demonstrated that money has percolated to assessee from son though through companies in which he was a director, no addition can be made under section 56 – ITAT In a recent judgment, ITAT Chandigarh deleted addition under section 56 observing that once it is demonstrated …