ITAT
Mere Doubts On Cash Utilisation Insufficient For Section 69A Additions: ITAT Mumbai
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 23 January, held that that additions under Section 69A cannot be made merely on doubts about utilisation, if the source of cash withdrawals is from disclosed bank accounts. A Bench of Judicial Member Sandeep Gosain and Accountant Member Om Prakash Kant dismissed three appeals filed by the Revenue against FA Construction (the taxpayer) and upheld the orders of the Commissioner of Income-tax (Appeals) deleting...
ITAT Mumbai Upholds Revision Order Against Bajaj Auto For Prejudicial Assessment Order Against Revenue
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 23 January dismissed an appeal filed by Bajaj Auto Limited and upheld a revisionary order issued by the Principal Commissioner of Income-tax (PCIT) under Section 263 of the Income Tax Act. A Bench comprising Judicial Member Narender Kumar Choudhry and Accountant Member Om Prakash Kant agreed with the PCTI that the original assessment, completed on 27 May 2022, was erroneous and prejudicial to the interests of the Revenue, as the...
Tax Additions For Unsecured Loans Unsustainable Where Lender Creditworthiness Is Proven: ITAT Mumbai
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 23 January held that additions under Section 68 of the Income Tax Act relating to unsecured loans are unsustainable where the lenders had been accepted as genuine in earlier assessment years and the transactions were supported by proper banking records. Section 68 of the Income Tax Act allows the tax authorities to treat sums credited in a taxpayer's books as unexplained income if the identity and creditworthiness of the lender and...
Following Earlier Rulings, ITAT Delhi Holds Air France Income Not Taxable Under India–France DTAA
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has recently held that Air France's income from technical handling services, interest on operational funds, and commission from domestic airlines was not taxable in India for the assessment years 2017–18 and 2018–19. The tribunal followed its earlier rulings and noted that there was no change in facts. The receipts were held to be covered under Article 8 of the India–France tax treaty. A coram of Judicial Member Vimal Kumar and...
ITAT Delhi Deletes ₹30.7 Lakh Tax, Accepts Marriage 'Sagan' As Source Of Demonetisation-Era Deposits
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 22 January held that cash deposits during the demonetisation period representing marriage 'sagan' (gifts from friends and relatives) cannot be treated as unexplained income while deleting an addition of Rs. 30.7 lakh made against an individual assessee. The order was passed by Vice President Mahavir Singh, in an appeal against an order of the National Faceless Appeal Centre dated 3 July 3 2025. The assessee had filed his...
ITAT Delhi Allows Hasbro SA To Submit Evidence For TDS Credit, Holds Technical Lapse Cannot Deny Claim
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) held that an assessee should not be penalised for a technical lapse in filing evidence and allowed Swiss-based Hasbro SA to submit additional evidence in support of its claim for TDS credit. It remanded the matter to the assessing officer for fresh consideration. A Bench comprising Accountant Member Ramit Kochar and Judicial Member Raj Kumar Chauhan passed the order in an appeal filed by Hasbro SA against the Commissioner of...
ITAT Pune Upholds ₹6 Lakh Professional Fees Disallowance For Lack of Evidence
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the disallowance of Rs. 6 lakh claimed as professional fees for the assessment year 2017-18, noting that the payment was not supported by sufficient evidence such as the recipient's income tax return, Form 26AS (annual tax statement), or bank statements.The Bench, comprising Accountant Member Dr Dipak P. Ripote and Judicial Member Vinay Bhamore, reaffirmed that expenses claimed as professional fees must be substantiated...
Suppliers' Failure To File Income Tax Returns Alone Can't Render Purchases Bogus: ITAT Chandigarh
The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) has recently observed that purchases cannot be treated as bogus only because some suppliers failed to file income tax returns or did not respond to departmental notices when the transactions are otherwise supported by records. Explaining this, a bench of Vice President Rajpal Yadav and Accountant Member Manoj Kumar Aggarwal observed that in the fctas of the case, the tax department had accepted the taxpayer's sales and had not...
ITAT Sets Aside Penalty Against Taxpayer For Receiving Property Sale Price In Cash At Registration
The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) recently quashed a penalty of Rs. 7.41 lakh imposed on a Ludhiana resident for receiving the sale consideration of a plot in cash at the time the sale deed was registered. The order was passed by Accountant Member Manoj Kumar Aggarwal, who held that the penalty had been wrongly imposed, as the cash was received in a single transaction at the time of execution of a registered sale deed and not as an advance. On those facts, the...