Digital Evidence Alone Insufficient For Section 69A Addition, Tangible Assets Must Be Found: ITAT Delhi

The New Delhi Bench of the Income Tax Appellate Tribunal on 26 May held that authorities cannot sustain additions under Section 69A of the Income Tax Act in the absence of recovery of unexplained money, bullion, jewellery or other valuable articles from the taxpayer, and cannot invoke the provision merely on the basis of digital material indicating alleged transactions. Judicial Member Sudhir Kumar and Accountant Member Manish Agarwal partly allowed the appeal filed by Sham Sunder Dhingra for...

ITAT Delhi Deletes ₹15.96 Crore Addition Against Charitable Society Over Allegedly Non-Genuine Donations

The Income Tax Appellate Tribunal (ITAT) has deleted a ₹15.96 crore addition made against ARVR Education Societya charitable society after rejecting the tax department's claim that corpus donations received by the charitable society from four parties were unexplained cash credits rather than genuine voluntary contributions. A Delhi bench comprising Judicial Member Satbeer Singh Godara and Accountant Member Naveen Chandra framed the central issue as, “The first and foremost question which...

Supreme Court Refuses To Interfere With Delay Condonation In Income Tax Dept's Appeal Against IFUNA

The Supreme Court on Monday refused to interfere with a Delhi High Court order that condoned the Income Tax Department's delay in filing and re-filing its appeal against Indian Federation of United Nations Association (IFUNA). The delay was 154 days in filing the appeal and 112 days in re-filing it.The Delhi High Court had on March 24, 2026 condoned the delay observing that though the delay was substantial and not properly explained, a “lenient view in the interest of justice” was required A...

Supreme Court Dismisses IT Dept's Appeal Against Pernod Ricard In Advertising Expense Tax Dispute Over Delay

The Supreme Court on Tuesday dismissed the Income Tax Department's challenge to a Delhi High Court ruling in favour of Pernod Ricard India Pvt Ltd. It declined to interfere with the judgment that had held AMP and brand-building expenses could not be disallowed in the absence of evidence showing an arrangement with the foreign associated enterprise. The top court declined to entertain the Revenue's plea on account of a 384-day delay in filing the appeal. A Bench of Justices J.B. Pardiwala and...

Supreme Court Refuses To Interfere With Relief To Karnataka Bank In HTM Investment Income Tax Dispute

The Supreme Court on Monday declined to interfere with Karnataka Bank Ltd's tax relief in a dispute over deduction for diminution in the value of its held-to-maturity (HTM) investments, which are securities that banks buy with the intention of holding until maturity rather than trading. A Bench of Justices Manoj Misra and Manmohan dismissed the Revenue's special leave petition against the Karnataka High Court's August 2025 judgment that had upheld relief granted to the bank. “We do not find a...

ITAT Ahmedabad Deletes ₹28.92 Lakh Addition, Says AO Cannot Treat Only Year-End Credit Balances As Unexplained

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has deleted a ₹28.92 lakh addition made against a taxpayer after finding that the Assessing Officer could not selectively treat only the year-end outstanding creditor balances as unexplained while accepting the rest of the same transactions as genuine. The bench of Accountant Member Annapurna Gupta and Judicial Member Suchitra Kamble observed: “The AO has not made addition of the entire credits on account of transaction carried...

ITAT Ahmedabad Deletes ₹74.64 Lakh Addition After Waste Stock Discrepancy Was Adequately Explained

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) deleted a ₹74.64 lakh addition made against Shakti Polyweave Private Limited towards estimated gross profit. The tribunal held that the company had adequately explained the alleged discrepancy in wastage stock reported in its tax audit report and that rejection of its books of account was unjustified. The bench of Judicial Member Siddhartha Nautiyal and Accountant Member Annapurna Gupta partly allowed the assessee's appeals for...

'Left No Stone Unturned To Harass': Delhi HC On IT Dept's Delay In Releasing KVPs, IVPs

The Delhi High Court has pulled up the Income Tax Department for delaying the release of seized Kisan Vikas Patras (KVPs) and Indira Vikas Patras (IVPs) even after the assessee deposited the settlement amount, observing that the authorities had “left no stone unturned to harass” the petitioner.A division bench of Justices Dinesh Mehta and Om Prakash Shukla directed the tax authorities to compensate the petitioners for loss of interest caused due to wrongful retention of the instruments.The case...

Company's Car, Telephone Costs Not 'Personal' Despite Being Separate Legal Entity: Delhi High Court

The Delhi High Court has held that telephone and car expenses incurred by a company cannot be disallowed as “personal” expenses merely because a company is treated as a separate legal person.A division bench of Justices Dinesh Mehta and Vinod Kumar allowed the company's appeal and set aside an order of the Income Tax Appellate Tribunal (ITAT), which had upheld disallowance of one-sixth of the company's telephone and car expenses on the ground of possible personal use.The company argued that...

Tax Appellate Authority Cannot Rely On New Evidence Without Letting Tax Officer Examine It: ITAT Mumbai

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held that while taxpayers may file additional evidence at the appellate stage in appropriate cases, the appellate authority cannot rely on such fresh material without first giving the Assessing Officer an opportunity to examine it and respond. Referring to Rule 46A of the Income-tax Rules, 1962, which governs admission of additional evidence before the appellate authority, a bench of Judicial Member Anikesh Banerjee and Accountant...

ITAT Mumbai Remands Developer's Tax Dispute To Assessing Officer Over Revised Income, Project Cost Estimates

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has remanded to the Assessing Officer a tax dispute involving Lohitka Properties LLP's revised income computation for its “Montana” real estate project. The Tribunal held that the assessee's revised estimates and the Revenue's objections require detailed factual verification. A bench of Judicial Member Anikesh Banerjee and Accountant Member Om Prakash Kant observed: “Neither the approach adopted by the Assessing Officer in...

Huge Turnover Difference Between Taxpayer, Comparable Warrants Exclusion In Transfer Pricing Analysis: Delhi HC

The Delhi High Court has held that a company with a vastly different turnover and scale of operations may not be a proper comparable for transfer pricing analysis.A division bench of Justices V. Kameswar Rao and Vinod Kumar observed that huge differences between the tested entity and the comparable would necessarily require the exclusion of the comparable.The court made the observation while dealing with an appeal filed by the Income Tax Department against an order of the Income Tax Appellate...