Bona Fide Delay In Filing Tax Appeal Caused By Pursuing Alternate Remedy Condonable: ITAT Chennai

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) held that a delay of 1036 days in filing an appeal could be condoned when it arose from pursuing an alternate remedy and was not deliberate. A Bench comprising Vice President George George K and Accountant Member S.R. Raghunatha, in an appeal filed by A-One Leathers for Assessment Year 2015-16, remanded the matter to the Assessing Officer to examine a claim of double taxation. It observed: “The delay… neither wanton nor willful but...

Ad-Hoc Estimation of Income Without Rejecting Books of Account Not Permissible: ITAT Kolkata

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) on 17 February 2026 held that income cannot be estimated on an ad-hoc basis without first rejecting the books of account, and set aside an addition made on that basis while quashing the reassessment proceedings. The Bench comprising Accountant Member Rajesh Kumar and Judicial Member Pradip Kumar Choubey allowed the appeal filed by Rakhi Mondal for Assessment Year 2017-18. It held: “the said reopening has been done without meeting...

Double Taxation Of Share Application Money Impermissible: ITAT Kolkata

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) on 6 March, held that taxing share application money already taxed in the hands of investor companies amounts to impermissible double addition. The Bench comprising Accountant Member Rajesh Kumar and Judicial Member Pradip Kumar Choubey dismissed the Revenue's appeal against Littlestar Securities Pvt. Ltd. for Assessment Year 2012-13 and upheld the deletion of Rs. 27.63 crore added as unexplained cash credit. The Tribunal...

ITAT Mumbai Asks Shilpa Shetty To Prove ₹12.54 Crore Gift From Husband, Remands Case To Assessing Officer

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has recently asked actor Shilpa Shetty Kundra to submit “complete details/clarifications and documents” to justify a Rs 12.54-crore gift received from her husband Raj Kundra, while remanding the matter to the Jurisdictional Assessing Officer for fresh examination under Section 68 of the Income Tax Act, 1961. Judicial Member Narender Kumar Choudhry and Accountant Member Prabhash Shankar said the material on record was not sufficient to...

Lower Cost Of Acquisition Without Justification Not Warranted: ITAT Ahmedabad

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 27 February held that adopting a lower deemed cost of acquisition than that accepted for co-owners, without justification, was not warranted. A Tribunal Bench comprising Vice-President Dr. B.R.R. Kumar and Judicial Member Suchitra Kamble allowed the appeal of Nirmalaben Kamleshbhai Contractor and allowed deduction under Section 54EC, finding the investment was made within the prescribed period. The Tribunal held that, “adopting...

ITAT Ahmedabad Deletes Tax Addition Based On Loose Sheets Found During Search, Cites Lack Of Evidence

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the deletion of tax additions made against a mouth freshener manufacturing company, finding that the additions were founded only on loose sheets that lacked basic particulars and were unsupported by any corroborative evidence to establish unaccounted transactions. The case arose from a search conducted on a third party, during which certain handwritten loose sheets were found in the possession of an employee of the...

ITAT Ahmedabad Sets Aside Ad-Hoc Expense Disallowance As AO Failed To Point Out Defects

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has recently set aside ad-hoc disallowances made against Raghani Tradelink, a commission agent engaged in facilitating sales of sarees, suits, and garments across India, holding that additions towards sub-brokerage and administrative expenses cannot be sustained when the Assessing Officer fails to point out specific discrepancies in the evidence produced by the assessee. The coram comprising Judicial Member Sanjay Garg and...

ITAT Upholds Allowance Of Foreign Travel Expenses, Says No Income From Visited Countries Alone Cannot Justify Disallowance

The Mumbai Income Tax Appellate Tribunal (ITAT) has upheld the deletion of disallowance of foreign travel expenses made against a company engaged in global management and financial consultancy services.The court held that in the facts of the case, the expenditure could not be disallowed merely because no income was directly earned from certain countries visited during the relevant year where the taxpayer had produced material showing business purpose and nexus with its activities. The case...

ITAT Ahmedabad Grants Partial Relief To Arrow Clothing In Demonetisation Cash Deposit Addition Case

The Income Tax Appellate Tribunal (ITAT) at Ahmedabad partly allowed an appeal of Arrow Clothing Pvt. Ltd, holding that addition for unexplained cash deposits during demonetisation was justified, but the taxpayer was entitled to credit for opening cash balance and prior bank withdrawals. A coram of Judicial Member Sanjay Garg and Accountant Member Annapurna Gupta held that anomalies were found only in the explanation relating to cash sales and not in the opening cash balance or bank withdrawals...

Escaped Income Must Include Real Taxable Income, Not Aggregate Value: ITAT Ahmedabad

The Ahmedabad Income Tax Appellate Tribunal (ITAT) on 16 March, held that the expression “income chargeable to tax which has escaped assessment” under Section 149 of the Income Tax Act refers to the actual taxable income sought to be brought to tax, and not the gross value of underlying transactions. A Bench comprising Judicial Member T.R. Senthil Kumar quashed the reassessment proceedings for Assessment Year 2017–18, holding that the assumption of jurisdiction under Section 148 was...

ITAT Ahmedabad Upholds 100% Deduction After Expansion Of Sintex's Himachal Unit

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the eligibility of Sintex Industries Ltd. to claim 100% deduction on profits under Section 80-IC of the Income Tax Act even after the initial five-year period where the eligible unit had undertaken substantial expansion. The tribunal coram of Judicial Member Sanjay Garg and Accountant Member Annapurna Gupta dismissed the Revenue's appeal challenging the deletion of an addition of Rs 59.53 crore made by the Assessing...

Charitable Registration Cannot Be Cancelled For Disputed Transactions Alone: ITAT New Delhi

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 11 March held that the registration of a charitable institution under Section 12AB of the Income Tax Act cannot be cancelled merely on the basis of alleged irregularities in certain financial transactions, as long as the core charitable activities continue to be genuine. A Bench comprising Judicial Member Challa Nagendra Prasad and Accountant Member M. Balaganesh restored the charitable registration of Richmond Educational...