NFAC Must Decide Appeal on Merits, Cannot Dismiss for Non-Prosecution: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 30 April held that the National Faceless Appeal Centre (NFAC) cannot dismiss an appeal for non-prosecution and must decide it on merits under Section 250 of the Income Tax Act. A Bench comprising Judicial Member Sudhir Kumar and Accountant Member Manish Agarwal heard an appeal against the NFAC order dated 11 September 2025 for Assessment Year 2012-13 and condoned a delay of 53 days after accepting the taxpayer's explanation of...

ITAT New Delhi Sets Aside Rejection Of Trust Registration Over Missing Irrevocability Clause

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 30 April held that absence of an irrevocability clause in a Trust Deed is not, by itself, fatal to registration where the defect is subsequently cured and set aside the rejection of registration of a charitable Trust. A Bench of Judicial Member Raj Kumar Chauhan and Accountant Member Brajesh Kumar Singh allowed the appeal filed by Social Welfare Public Trust and set aside the orders dated 3 December 2025 passed by the...

Receipts From Capital Asset Transfer Cannot Be Taxed Under Residuary Head: ITAT Mumbai

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 30 April 2026 held that once a receipt is characterised as arising from the transfer of a capital asset, the tax authority cannot reclassify it under the residuary head of income merely because computation under the capital gains provisions is disputed or fails. The Bench comprising Judicial Member Pawan Singh and Accountant Member Makarand Vasant Mahadeokar dismissed the Revenue's appeal against the order of the Commissioner of...

Cash Deposits In Education Trust Account Not Taxable In Individual's Hands: ITAT New Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT), on 30 April, held that cash deposits in a bank account of a separate legal entity cannot be taxed in an individual's hands merely because he is an authorised signatory, unless there is evidence establishing beneficial ownership or undisclosed income. A Bench comprising Judicial Member Raj Kumar Chauhan and Accountant Member Brajesh Kumar Singh dismissed the Revenue's appeal and upheld the CIT(A)'s order deleting an addition of Rs....

Capgemini Not Liable To Pay Advance Tax Interest For Period Before Commencement Of Business: ITAT Mumbai

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held that Capgemini IT Solutions India Private Limited cannot be charged interest for delay in paying advance tax for the period before it started its business in October 2019. “The levy of interest under section 234C in respect of the instalments falling due prior to 17.10.2019 is not sustainable in law.”, it observed.The bench of Judicial Member Kavitha Rajagopal and Accountant Member Makarand Vasant Mahadeokar passed the order...

Appellate Authorities Can Entertain New Claims As Estoppel Does Not Apply In Tax Proceedings: ITAT Chennai

The Chennai bench of the Income Tax Appellate Tribunal (ITAT) has recently reiterated that the principle of estoppel has no application in tax proceedings and appellate authorities can entertain new claims from taxpayers even if they were not made in the original return. “the law is well settled to the extent that the decision of Hon'ble Supreme Court in the Goetze India Ltd. Vs. CIT (2006) 284 ITR 323 (SC) is confined to the power of Assessing Officer alone. There are no fetters on the...

ITAT Chennai Expunges Direction To Reopen Assessments For Years Not Under Appeal

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has expunged a direction issued by the Commissioner of Income Tax (Appeals) to reopen the earlier assessments of individual taxpayer Chandanmal Nagaraj, holding that such directions are beyond its powers. The coram comprising Judicial Member Manu Kumar Giri and Accountant Member Inturi Rama Rao passed the order on April 30, 2026. The case related to Assessment Year 2017–18. While granting relief for this year, the CIT(A) had also...

Mumbai ITAT Allows ₹13.59 Cr Write-Off On Overseas Subsidiary Investment As Business Loss

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 17 April held that losses from investments and loans to a wholly owned foreign subsidiary, made for business expansion and commercial expediency, are deductible as business losses even if irrecoverable. A Bench comprising Judicial Member Narender Kumar Choudhry and Accountant Member Prabhash Shankar further held that no proof of recovery efforts is required once the amount is written off in the books. It held: “The investment was...

ITAT Delhi Upholds Deletion Of ₹18.63 Crore, Says Direct Payment To Developer Not Unexplained Cash

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 24 April upheld the deletion of an addition of Rs. 18.63 crore made against Sachin Gaur, an individual taxpayer, and held that payments made directly by subsequent buyers to a developer cannot be treated as unexplained money of the seller under Section 69A of the Income Tax Act. A Bench comprising Judicial Member Yogesh Kumar U.S. and Accountant Member Manish Agarwal held: “It is observed that while making the said addition...

Cash Receipt In Agricultural Land Sale Not 'Unexplained' Where Duly Explained: ITAT New Delhi

The New Delhi Income Tax Appellate Tribunal (ITAT) on 17 April, held that cash receipts arising from a duly evidenced agricultural land sale could not be treated as unexplained cash credit under Section 68 where the identity of the payer, genuineness of the transaction, and supporting documentation were established. A Bench comprising Judicial Member Vimal Kumar and Accountant Member S Rifaur Rahman allowed the appeal filed by Angad Developers Pvt Ltd against the order of the Commissioner of...

Depreciation Cannot Be Combined With Revival Of Original Cost For Indexation Benefit: ITAT Ahmedabad

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 21 April held that a taxpayer cannot claim depreciation on an asset in earlier years and thereafter seek to revive its original cost of acquisition to claim higher indexation benefits while computing capital gains on its sale. A Bench comprising Judicial Member Siddhartha Nautiyal and Accountant Member Narendra Prasad Sinha dismissed an appeal filed by Shree Vaidehi Impex Pvt Ltd for assessment year 2016–17 against an order of...

ITAT Delhi Upholds Revision Order Against Amazon Retail Over Lack of Inquiry Into Expenses, Related Party Payments

The Income Tax Appellate Tribunal (ITAT) at Delhi has dismissed an appeal filed by Amazon Retail India Private Limited challenging a revision order under Section 263 of the Income Tax Act, holding that the assessing officer failed to conduct necessary enquiries in a case selected for complete scrutiny before accepting the return declaring a loss of Rs. 639.73 crore.A coram comprising Judicial Member Satbeer Singh Godara and Accountant Member Amitabh Shukla held that the assessment order suffered...