ITAT Delhi Deletes ₹1.05 Crore Addition On Dissolved Firm, Says Income Taxed In Surviving Partner's Hands

The Income Tax Appellate Tribunal (ITAT), Delhi Bench, directed deletion of a Rs. 1.05 crore addition on a partnership firm, holding that no addition could be made in the hands of a dissolved firm when the same receipts had already been offered to tax in the hands of the successor proprietorship. Judicial Member Sudhir Kumar and Accountant Member Manish Agarwal observed, "no addition could be made in the hands of the assessee firm which has already been dissolved in preceding year for the...

ITAT Ahmedabad Orders Recomputation Of Tax Addition On Steel Firm, Notes Lack Of VAT Cancellation Verification

The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has directed the recomputation of additions made by tax authorities against a steel manufacturer after finding that the Assessing Officer treated certain sales as non-genuine primarily on the basis of cancellation of a buyer's VAT registration without verifying when that cancellation took place. “There is no verification by the Assessing Officer about the date of cancellation of the VAT registration by VAT department,” the tribunal...

ITAT Kolkata Remands ₹13.83 Crore Unsecured Loan Case, Flags Lack of Creditor Verification

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) on 7 April 2026 held that additions under Section 68 cannot be deleted by the CIT(A) without allowing the Assessing Officer to verify the creditors and examine their directors, where the foundational facts regarding identity and genuineness remain untested. A Bench of Judicial Member George Mathan and Accountant Member Rakesh Mishra partly allowed the Revenue's appeal and remanded the matter involving Anushikha Investments Private...

ITAT Ahmedabad Quashes Reassessment As AO Shifts From Bogus Loan To LTCG From Penny Stocks

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 7 April 2026 quashed reassessment proceedings against taxpayer Pinkal Rajeshbhai Patel in a case involving alleged bogus loans. A Bench of Vice-President Dr. B.R.R. Kumar and Judicial Member Suchitra R. Kamble held that the Assessing Officer (AO) made the addition on a completely different issue of alleged bogus long-term capital gains from penny stocks. It observed: “The reason recorded for reopening and the addition...

ITAT Ahmedabad Remands ₹7.71 Crore Addition Over Possible Duplication In Bank Credits

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 7 April 2026 held that additions based on bank credits, accommodation entries and interest income must be properly reconciled to avoid duplication while determining taxable income. A Bench comprising Judicial Member TR Senthil Kumar and Accountant Member Narendra Prasad Sinha partly allowed the appeal filed by Money Assurance Services for assessment year 2014–15, observing: “The AO should have excluded the interest income and...

Debatable Issues Cannot Be Rectified Under Section 154 Of Income Tax Act: ITAT Ahmedabad

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 7 April held that authorities cannot invoke Section 154 of the Income Tax Act, 1961 to rectify debatable issues, as the provision applies only to mistakes apparent from the record. A Bench comprising Judicial Member Suchitra Kamble and Accountant Member Narendra Prasad Sinha quashed the rectification order passed against The Madhavpura Mercantile Co-Operative Bank Ltd (under liquidation). It held: “Any issue which is debatable...

ITAT Quashes Reassessment Based On Third-Party Statements, Deletes ₹94.5 Lakh Additions

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 7 April 2026 held that reassessment proceedings cannot survive where the Assessing Officer relies solely on general third-party statements without establishing a clear nexus with the taxpayer, as such material fails to show independent application of mind or escapement of income. The Bench comprising Vice-President Dr. B.R.R. Kumar and Judicial Member Suchitra R. Kamble allowed the appeal filed by Crystal Quinone Pvt. Ltd. for...

CIT(A) Cannot Introduce New Income Source While Enhancing Assessment: ITAT Mumbai

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) held that the Commissioner of Income Tax (Appeals) cannot enhance income by introducing a new source of income that the Assessing Officer (AO) did not examine during assessment. It ruled that enhancement powers do not extend to issues beyond the scope of the original assessment.The Bench comprising Vice President Saktijit Dey and Accountant Member Arun Khodpia allowed Skyline Greathills' appeal on the Work-in-Progress (WIP) enhancement...

ITAT Delhi Upholds Deletion Of ₹10.5 Crore Addition Based On Retracted Statement In Oppo Search Case

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 17 April upheld the deletion of a Rs. 10.5 crore addition made solely on the basis of a retracted statement recorded during search proceedings, holding that such statements, in the absence of corroborative evidence, cannot by themselves sustain an addition under the Income-tax Act. A Bench comprising Judicial Member Anubhav Sharma and Accountant Member Manish Agarwal dismissed the Revenue's appeal and affirmed the order of the...

Reassessment Notices Invalid Where No Escaped Income In Form Of 'Asset' Above ₹50 Lakh: ITAT New Delhi

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 17 April, held that reassessment proceedings initiated beyond three years are invalid unless the Revenue demonstrates that the alleged escaped income is represented in the form of an “asset” exceeding Rs. 50 lakh, as required under Section 149(1)(b) of the Income-tax Act. A Bench comprising Judicial Member Anubhav Sharma and Accountant Member Manish Agarwal quashed reassessment notices issued under Section 148 in the case of...

ITAT Chennai Deletes ₹49.80 Lakh Additions On Flat Purchase And Cash Deposits, Allows Reinvestment Benefit

The Income Tax Appellate Tribunal (ITAT) in Chennai has recently deleted additions of Rs.49.80 lakh and Rs.10.80 lakh made against a taxpayer after finding that her investment in a new flat and cash deposits were wrongly treated as unexplained, despite being traceable to the sale of her earlier property and household items. A bench of Judicial Member Aby T. Varkey and Accountant Member S.R. Raghunatha held, “We thus find that the addition made by the AO u/s 69A was without any basis and on...

Delay In Final Approval Filing Not Adverse Where Caused By Confusion In Amended Law: ITAT Ahmedabad

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT), has held that delay in filing an application for final approval cannot be held against a taxpayer where such delay arises due to genuine confusion created by newly amended statutory provisions and procedural uncertainty during the transition period.The Bench comprising Judicial Member Sanjay Garg and Accountant Member Annapurna Gupta while dealing with the case of Navsarjan Education Trust, observed that both taxpayers and tax...