Presumptive Taxation u/s 44AD Overrides Unexplained Cash Credit Addition on Turnover 1. The Core Dispute The primary issue was whether the Assessing Officer (AO) can treat a portion of the business turnover as an “Unexplained Cash Credit” under Section 68 when the assessee has opted for the Presumptive Taxation Scheme under Section 44AD. 2. The… Read More »
Compensation for Agricultural Land vs. Interest: ITAT Remands Matter for Fresh Verification 1. The Core Dispute The case involved three primary tax issues arising from a reassessment under Section 147: Exempt Compensation: Whether the amount of ₹9,01,726 received was actual land compensation (exempt under Section 10(37)) or “Income from Other Sources.” Interest on Compensation: The… Read More »
Presumptive Income u/s 44AD Accepted: ITAT Deletes Demonetization Cash Addition 1. The Core Dispute The primary issue was the taxability of ₹12.34 Lacs in cash deposited by the assessee in old currency during the 2016 demonetization period. AO’s Action: The AO framed a “Best Judgment Assessment” u/s 144, rejecting the assessee’s claim of running a… Read More »
ITAT Sets Aside Addition for Stamp Duty Value Difference Due to Procedural Lapses 1. The Core Dispute: Section 56(2)(vii)(b) Addition The primary grievance of the assessee was an addition of ₹48,00,000 made by the Assessing Officer (AO). The Legal Point: Under Section 56(2)(vii)(b), if an individual or HUF purchases a property for a consideration that… Read More »
Revenue Authority Challenge to CIT(A) Remand Power Dismissed: ITAT Upholds New Section 251(1)(a) Authority The Issue The Revenue (Income Tax Department) appealed against an order by the CIT(Appeals), NFAC, which had set aside a “Best Judgment Assessment” and remanded the case back to the Assessing Officer (AO) for fresh adjudication. The Revenue argued that: The… Read More »
Reassessment Order Quashed and Remanded: ITAT Sets Aside Ex-Parte Decision on Unexplained Property Investment 1. The Core Issue The assessee challenged a reassessment order where an addition of ₹67,60,000 was made under Section 69 of the Income Tax Act. The addition was based on alleged unexplained investments made in the purchase of a property during… Read More »
ITAT Sets Aside Rejection of Section 12A/80G Registration for Section 8 Company The Issue The Commissioner of Income Tax (Exemptions), Chandigarh rejected the application of a newly incorporated Section 8 company for regular registration under Section 12A(1)(ac)(iii) and approval under Section 80G. The CIT(E)’s Reasoning: The applicant stated that its charitable activities “commenced in March… Read More »
ITAT Sets Aside Rejection of Section 12A/80G Registration for Section 8 Company 1. The Core Dispute The Commissioner of Income Tax (Exemptions), Chandigarh rejected the application of a Section 8 company (incorporated in January 2024) for regular registration under Section 12A(1)(ac)(iii) and approval under Section 80G. The CIT(E)’s Reasoning: The applicant stated that its charitable… Read More »
ITAT Chandigarh: Ex-Parte CIT(A) Order Set Aside for Fresh Adjudication on Merits 1. The Core Dispute The assessee challenged an appellate order passed by the Joint Commissioner of Income Tax (Appeals) [JCIT(A)], which confirmed several substantial additions made by the Assessing Officer (AO). The primary grievances included: Procedural Flaws: Additions made without providing copies of… Read More »
Interest Received on Compulsory Land Acquisition under Section 28 of the Land Acquisition Act is Exempt Compensation, Not Taxable Interest 1. The Core Dispute The primary issue was the taxability of ₹2,06,01,408 received by the assessee as interest on enhanced compensation under Section 28 of the Land Acquisition Act, 1894. AO’s Stand: The interest is… Read More »