ITAT Mumbai Says Section 43CA Does Not Cover Pre-Enactment Bookings, Grants Relief To Lodha Developers

On 13 May, the Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) held that Section 43CA of the Income Tax Act does not apply to flats booked and allotted before the provision came into force, even if the sale deed is registered later. The provision deems stamp duty value as sale consideration for taxing real estate business transfers when it exceeds the declared price.Accountant Member Om Prakash Kant and Judicial Member Anikesh Banerjee deleted an addition of Rs. 2.05 crore made by the...

Cash Deposits From Recorded Sales Cannot Be Taxed Again As Unexplained: ITAT Mumbai

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 7 May observed that once sales are recorded in the books of account and offered as business turnover, the same amount cannot again be taxed as unexplained cash credit under Section 68 of the Income Tax Act. Judicial Member Amit Shukla and Accountant Member Makarand Vasant Mahadeokar were hearing an appeal filed by Raju Samsurat Yadav, an electronics trader operating through proprietary concerns SKS Enterprises and Omega Marketing....

Genuine Sales Bar Full Disallowance Of Purchases From Entry Provider: ITAT Mumbai

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 7 May held that where sales are accepted as genuine and supported by invoices and delivery challans, the entire purchase amount cannot be treated as bogus merely because the supplier was found to be an accommodation entry provider. Judicial Member Sandeep Singh Karhail and Accountant Member Vikram Singh Yadav held that only the profit element embedded in such purchases can be brought to tax and partly allowed an appeal filed by...

ITAT Mumbai Upholds Denial Of Tax Deduction On ₹25 Lakh Donation To Kisan Party Of India

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the denial of a tax deduction claimed by a Mumbai chemical trader for a ₹25 lakh donation to the Kisan Party of India. The tribunal found several circumstances that cast doubt on whether the contribution was genuine. A bench of Judicial Member Sandeep Singh Karhail and Accountant Member Bijayananda Pruseth noted that the taxpayer was a chemical trader with no apparent connection to a Bihar-registered political party...

R&D Deduction Cannot Be Denied for Non-Filing of Form 3CL When Already Available With AO: ITAT Mumbai

Today, the Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) held that a taxpayer cannot be denied deduction for research and development (R&D) expenditure under Section 35(2AB) of the Income Tax Act merely for not separately filing Form 3CL during assessment proceedings, where the approval had already been transmitted to and was available with the Assessing Officer. Judicial Member Justice Sandeep Singh Karhai and Accountant Member Bijayananda Pruseth allowed the appeal filed by...

ITAT Mumbai Upholds Deletion Of ₹11.11 Crore Disallowance On Related-Party Business Expenses

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 7 May upheld deletion of a disallowance of Rs. 11.11 crore towards business development and business promotion expenses paid by a pharmaceutical company to related parties. A Bench of Judicial Member Pawan Singh and Accountant Member Makarand Vasant Mahadeokar dismissed the Revenue's appeal against Riverside Industries Private Limited for Assessment Year 2017-18, holding that it could not adopt an inconsistent stand when it had...

SBI Cannot Be Treated As TDS Defaulter Over LTC Payments To Employees Who Travelled Overseas: ITAT Ahmedabad

The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has held that the State Bank of India could not be treated as an “assessee in default” for failing to deduct tax at source (TDS) on Leave Travel Concession payments made to employees whose LTC journeys included overseas travel. The tribunal held that SBI was acting under binding interim directions of the Madras High Court, which had clarified that such payments would not constitute income for TDS purposes. A bench of Judicial...

ITAT Mumbai Restores Fees Regulating Authority Matter Pending Section 10(46) Notification Outcome

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 30 April held that the taxability of the Fees Regulating Authority cannot be conclusively decided while its application for notification under Section 10(46) of the Income-tax Act, 1961 remains pending before the Central Board of Direct Taxes (CBDT). A Bench comprising Accountant Member Bijayananda Pruseth and Judicial Member Sandeep Singh Karhail allowed the appeal for statistical purposes and set aside the impugned order. It...

ITAT Mumbai Holds Section 68 Applies Only to Fresh Credits, Deletes ₹1.20 Crore Addition

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 4 May held that additions under Section 68 of the Income-tax Act, 1961 cannot be made in the absence of any fresh credit arising during the relevant previous year, and remanded the matter for fresh verification. A Bench comprising Accountant Member Bijayananda Pruseth and Judicial Member Sandeep Singh Karhail set aside the orders of the Assessing Officer and the Commissioner of Income Tax (Appeals), who had sustained an addition of...

ITAT Mumbai Allows Deduction For Donation To PM Relief Fund Despite Being Part Of CSR

The Income Tax Appellate Tribunal (ITAT), Mumbai, has allowed Landmark Worldwide Breakthrough Technologies Pvt. Ltd. to claim a deduction on its donation to the Prime Minister's National Relief Fund, even though the payment formed part of its CSR expenditure. The bench comprising Judicial Member Pawan Singh and Accountant Member Girish Agrawal held that such a claim cannot be denied merely because the donation was made to meet CSR obligations. The taxpayer had filed its return declaring a...

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...