Category: Judgments

Related party transaction u/s 40A(2) shall be treated as bona fide, unless AO finds that one of them is trying to evade the payment of tax – ITAT In a recent judgment, ITAT Rajkot has held that as per CBDT Circular, provisions u/s 40A(2) and particularly with regard …

The word ‘transfer of property’ does not include ‘acquiring’ of property or ‘purchasing’ of property and only can be confined to ‘sale’ of property only – ITAT In a recent judgment, ITAT Raipur has held that the word ‘transfer of property’ does not include ‘acquiring’ of property or …

AO is not justified in questioning the cash withdrawals from bank account on the ground that the assessee had sufficient cash-in-hand in the books – ITAT In a recent judgment, ITAT Chandigarh has held that AO was not justified in questioning the cash withdrawals from the bank account …

Return/Balance sheet to be considered as being within time if filed within timeline condoned by Hon’ble Supreme Court due to Covid-19 In a recent judgment, Hon’ble Allahabad High Court has set aside the order of CIT(Exemption) passed u/s 119(2(b) and order u/s 154 passed by the Assessing Officer …

Satisfaction Note u/s 153C – term “immediate” cannot be extended to defeats the purpose of cost effective, efficient and expeditious completion of search assessments. In a recent judgment the Hon’ble Supreme Court dismissed the SLP of the Revenue against the judgment of the High Court holding that the …

Addition for rental income on accrual basis deleted as assessee was pursuing a civil case against the tenant In a recent judgment, ITAT Agra has deleted addition of rental income holding that it was not justified when the assessee was pursuing a civil case against the tenant, the …

ITAT allows adjustment of credit balance for the purposes of addition of deemed dividend as per section 2(22)(e) In a recent judgment, ITAT Pune directed the Assessing Officer to re-compute the net debit balance for the purposes of addition of deemed dividend as per section 2(22)(e) of the …

Addition u/s 50C deleted based on FMV in CA report under Rule 11UA(1)(b) as AO applied wrong rule Rule 11UA(2) applicable for the valuation of the shares u/s 56(2)(viib) In a recent judgment, ITAT Delhi has upheld deletion of addition u/s 50C based on FMV as per CA …

Remuneration paid by CA firm to wives of CA partners for their services rendered allowed in the absence of any comparable analysis made In a recent judgment, ITAT Mumbai has deleted addition made by AO on account of remuneration paid by CA firm to wives of CA partners …

When assessee did not opt yes or no to receive notices by email, such notices amounted to no service In a recent judgment, ITAT has held that when in the form No. 35 filed the assessee did not either say ‘yes’ or ‘no’ to question whether assessee would …