ITAT Delhi Upholds Deletion Of ₹1.34 Crore Tax Addition Against NDTV

The Income Tax Appellate Tribunal (ITAT) at Delhi on Friday upheld relief granted to New Delhi Television Ltd. (NDTV) in a dispute over a Rs 1.34 crore disallowance under Section 14A of the Income Tax Act for the assessment year 2010–11. The tribunal held that expenditure cannot be disallowed under the provision where the taxpayer has not earned any tax-exempt income during the relevant year. A bench comprising Judicial Member Madhumita Roy and Accountant Member Manish Agarwal dismissed the...

ITAT Delhi Quashes Reassessment Against Lalit Modi Over Credit Card, Private Jet Expenses

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed reassessment proceedings initiated against former IPL commissioner Lalit Kumar Modi over alleged unexplained credit card expenditure and private jet costs. The tribunal held that reassessment cannot be initiated while regular scrutiny assessment proceedings are still pending.A bench of Judicial Member Vikas Awasthy and Accountant Member Brajesh Kumar Singh held that the reassessment was without jurisdiction. It observed that...

Penalty Invalid Where AO Issues Stereotypical Notice Without Specifying Charge: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 25 February quashed an income tax penalty imposed on an taxpayer, after finding that the Assessing Officer issued a stereotypical penalty notice without specifying the exact charge under the Income Tax Act. A Tribunal Bench comprising Judicial Member Yogesh Kumar U.S. and Accountant Member Renu Jauhri held that a notice issued must clearly state whether the penalty proceedings are initiated for “concealment of income” or “furnishing...

Notice Issued By Officer Without Jurisdiction Cannot Sustain Assessment: ITAT Quashes Assessment

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 26 February quashed an assessment against taxpayer Jagruti Kirti Shah, holding that the notice under Section 143(2) of the Income Tax Act was issued by an officer lacking jurisdiction as per the Central Board of Direct Taxes (CBDT) Instruction No. 1 of 2011. Instruction 1 prescribes the officer-level jurisdiction for issuing scrutiny notices based on the assessee's income and category.The Bench, comprising Judicial Member Rahul...

Air India SATS Entitled To Tax Benefits On Ground & Cargo Handling Income: ITAT Delhi

On 26 February, the New Delhi Income Tax Appellate Tribunal (ITAT) held that Air India SATS Airport Services Pvt. Ltd.'s income from airport ground handling and cargo handling operations qualifies for tax incentives available to eligible infrastructure-related service providers. A Bench of Judicial Member Satbeer Singh Godara and Accountant Member Naveen Chandra heard the Revenue's appeal, which challenged the deduction claimed by Air India SATS under Section 80-IA of the Income Tax Act on...

No Disallowance Of Interest In Absence of Nexus Between Borrowed Funds And Advances: ITAT New Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 27 February, held that interest disallowance under Section 36(1)(iii) of the Income-tax Act, 1961 cannot be sustained in the absence of a nexus between borrowed funds and interest-free advances, particularly where such advances were granted in years preceding the borrowings and were supported by commercial expediency. A Bench comprising Judicial Member Satbeer Singh Godara and Accountant Member Amitabh Shukla deleted the addition of...

ITAT Delhi Deletes ₹3.42 Crore Transfer Pricing Addition On Loans and Receivables In Relief To Varun Beverages

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that no transfer pricing adjustment is warranted where the interest charged on loans advanced to associated enterprises exceeds the internal Comparable Uncontrolled Price (CUP). The bench comprising Judicial Member Yogesh Kumar U.S. and Accountant Member Manish Agarwal deleted the entire transfer pricing adjustment of Rs 3,42,31,778 for Assessment Year 2017-18 in the case of Varun Beverages Limited, including Rs 2,84,45,221...

'No Whisper Of Tangible Material': ITAT Delhi Quashes Reassessment Against Vedanta For AY 2010-11

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed reassessment proceedings against Vedanta Limited for Assessment Year 2010-11. It held that the reopening beyond four years was without jurisdiction as it was not based on any fresh tangible material. A coram of Judicial Member Pawan Singh and Accountant Member Brajesh Kumar Singh observed that “there is no whisper of any tangible material which came to the possession of the assessing officer subsequent to the passing of the...

Delhi ITAT Deletes Rs 11.32 Lakh Addition On Payments Towards Credit Card Dues After Source Explained

The New Delhi Income Tax Appellate Tribunal (ITAT) has recently held that payments towards credit card dues cannot be added as unexplained expenditure under Section 69C of the Income Tax Act when the assessee is able to satisfactorily explain the source of such payments with supporting evidence.Section 69C of the Income Tax Act, 1961, deals with unexplained expenditure. If an assessee incurs expenses for which they cannot provide a satisfactory explanation regarding the source of funds to the...

Demonetisation Cash Sales Supported by Books and VAT Returns Cannot Be Treated as Unexplained Income: ITAT Delhi

The New Delhi Income Tax Appellate Tribunal (ITAT) has held that cash sales recorded during the demonetisation period cannot be treated as unexplained income merely on the basis of suspicion or human probabilities, when such sales are duly reflected in audited books of account and supported by stock records, invoices, and VAT returns.The bench consisting of Judicial Member Anubhav Sharma and Accountant Member Manish Agarwal, was dealing with an appeal filed by M/s KP Diamonds (P) Ltd.,...

Delhi ITAT Restricts Verizon Transfer Pricing Adjustment, Says Revenue Cannot Reject Consistent Model

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) held that the Transfer Pricing Officer (TPO) could not reject a taxpayer's limited risk model without citing any comparable uncontrolled transactions and partly set aside a transfer pricing adjustment of Rs. 83.49 crore against Verizon Communications India Pvt. Ltd., restricting the adjustment to Rs. 23.81 crore. A Bench comprising Accountant Member S. Rifaur Rahman and Judicial Member Anubhav Sharma upheld the company's claim for...

Delhi High Court Calls ITAT's Indefinite Adjournment After Reserving Judgment 'Sheer Wastage Of Time'

The Delhi High Court has reprimanded the Income Tax Appellate Tribunal (ITAT) for adjourning an appeal sine die after the matter had already been heard and reserved for judgment. For context, although Petitioner's appeal before the ITAT had been heard at length and reserved for orders on September 3, 2025, the Tribunal subsequently listed the matter again and, on January 19, 2026, adjourned it sine die. This was done on the ground that a similar issue decided by the Tribunal in another case was...