Mumbai Tribunal : S. 145 : Method of accounting-Project completion method-The Assessing Officer is not justified in rejecting the project completion method and estimating the income on percentage completion method- No addition can be made merely on the basis of sales shown in the GST return and Income tax return when the assessee is able to reconcile the… Read More ...

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Mumbai Tribunal : S. 270A : Penalty for under-reporting and misreporting of income- Penalty notice was only regarding underreporting of income-Penalty levied u for misreporting of income and under reporting-Not specifying the specific charge-Salary received is shown in the return -Penalty of Rs. 44,90,048/- levied under section 270A(8) of the Act is deleted. [S. 139(9), 192, 270A(8), 270A(9)(e),… Read More ...

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ITAT MUMBAI: the Hon. ITAT Mumbai held that disallowance u/s. 14A cannot be made where the exempt income is earned in the current year on investments made in earlier years, with no fresh investments in the current year. Additionally, interest paid on an overdraft facility for business purposes cannot be disallowed under Rule 8D Read More ...

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Mumbai Tribunal : S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Following the ratio in UOI v. Rajeev Bansal [2024] 167 taxmann.com 70 (SC) the time limit for issue of notice was extended only up to 30-6-2021- Assessment year 2013-14 the notice was issued on 29-7-2022, for the Assessment year 2014 -15 the notice was issued… Read More ...

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Bombay High Court: The order of assessment merges into the rectification order passed u/s 154 of the Act. Penalty proceedings initiated on the basis of the assessment order as originally passed would be rendered inconsequential in view of the rectification order. No penalty proceedings or any other proceedings can be initiated under the assessment order which stand merged… Read More ...

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Gujarat High Court : S. 250 : Appeal-Commissioner (Appeals)-Stay of recovery-Pendency of appeal before CIT((A) for more than four years-As on 26-9-2024, 5, 80, 188 appeals are pending-Revenue is not able to resolve the appeals by classifying the Appeals as per the issues concerning , the recurring issues, covered issues, etc-The Court held that no recovery should be made… Read More ...

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Mumbai Tribunal : S. 4 : Charge of income-tax-Income-Capital or revenue-Member of Society-Hardship compensation amount received from builder is capital receipt-Not taxable as income from other sources. [S. 2(24), 56] The assessee is a tuition teacher by profession. The assessee received hardship compensation from the developer. The assessee has shown the said receipt as capital receipts. The Assessing… Read More ...

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Hon'ble Mumbai ITAT: Shares bought off the market and increase in the value of shares shall not be the reason to make the addition of alleged penny stock if purchase off the market is proved to be justified and (i) sold through stock exchange (ii) no enquiry was made against the assessee and (iii) all the relevant documents… Read More ...

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Bombay High Court: S. 69C : Unexplained expenditure -Bogus purchases -Tribunal confirmed 10% of alleged bogus purchases – On appeal High Court deleted the 10% of alleged bogus purchases confirmed by the Tribunal. [S. 260A] The Assessing Officer disallowed the 100% of alleged bogus purchases. On appeal the CIT(A) accepted the sales tax and VAT Audit report restricted… Read More ...

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ITAT Indore: Unexplained Cash Deposits – Application of Peak Credit Theory – Acceptance of Past Withdrawals as Source for Subsequent Deposits – Past Savings of a government employee cannot be disbelieved: Read More ...

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