Tag Archives: IN THE ITAT MUMBAI BENCH

Addition under Section 56(2)(vii)(b) is unsustainable when Permanent Alternate Accommodation is granted against relinquishing sub-tenancy rights without receipt of possession.

By | September 9, 2026
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Addition under Section 56(2)(vii)(b) is unsustainable when Permanent Alternate Accommodation is granted against relinquishing sub-tenancy rights without receipt of possession. Issue Whether an addition under Section 56(2)(vii)(b) can be sustained when the assessee acquired entitlement to Permanent Alternate Accommodation (PAA) directly in consideration for relinquishing existing sub-tenancy/occupancy rights under a redevelopment agreement, and where physical… Read More »

Addition for unexplained loan deleted as identity proven, while undervaluation matter remanded for agreement verification.

By | September 9, 2026
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Addition for unexplained loan deleted as identity proven, while undervaluation matter remanded for agreement verification. Issue Unexplained Investments (Section 69): Whether an addition made by the AO under Section 69 on account of an unexplained loan investment is liable to be deleted when the assessee furnished the lender’s PAN, loan confirmation letter, and bank statements… Read More »

Penalties under Sections 271(1)(b), 271(1)(c), 271B, and 271F cannot survive if quantum additions are deleted.

By | September 8, 2026
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Penalties under Sections 271(1)(b), 271(1)(c), 271B, and 271F cannot survive if quantum additions are deleted. Penalties under Sections 271(1)(b), 271(1)(c), 271B, and 271F cannot survive if quantum additions are deleted. Issue Whether penalty under Section 271(1)(b) for non-compliance with notices can be sustained when the underlying quantum additions made in reassessment proceedings have been deleted… Read More »

Unaccounted cash paid for property by NRI medical professionals is plausible from accumulated cash salaries earned abroad.

By | September 8, 2026
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Unaccounted cash paid for property by NRI medical professionals is plausible from accumulated cash salaries earned abroad. Issue Whether an addition of ₹30 lakhs under Section 69A (and consequential higher taxation under Section 115BBE) as unexplained money is sustainable when the cash consideration paid for flat booking is adequately supported by the accumulated foreign cash… Read More »

Section 56(2)(vii)(b) Cannot Apply Retrospectively To Property Allotted and Partially Paid Prior To October 1, 2009

By | September 7, 2026
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Section 56(2)(vii)(b) Cannot Apply Retrospectively To Property Allotted and Partially Paid Prior To October 1, 2009 Issue Whether Section 56(2)(vii)(b) can be invoked retrospectively using the 2013 registration stamp duty value when immovable property was allotted and partially paid for in April 2007. Facts Property Acquisition & Stamp Value: For AY 2014-15, the assessee purchased… Read More »

Transfer of inherited tenancy rights attracts capital gains tax with cost of acquisition determined using 01.04.2001 valuation.

By | September 7, 2026
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Transfer of inherited tenancy rights attracts capital gains tax with cost of acquisition determined using 01.04.2001 valuation. Issue Whether the transfer of inherited tenancy rights is exempt from capital gains due to failure of computation provisions, and whether the fair market value (FMV) as of 01.04.2001 can be adopted as the cost of acquisition. Facts… Read More »

Addition for suppressed sales is restricted to profit element, and cash disallowances require verification.

By | September 7, 2026
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Addition for suppressed sales is restricted to profit element, and cash disallowances require verification. Issue Whether the entire alleged suppressed sales turnover can be taxed as income instead of restricting it to the profit element, and whether disallowance under Section 40A(3) requires payment-wise verification. Facts Assessee’s Business & Return: The assessee-firm, engaged in the production,… Read More »

Penalty Under Section 270A Is Valid for Non-Filing Under Section 139(1) Even if Returned Income Is Accepted Post-Notice Under Section 148

By | September 5, 2026
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Penalty Under Section 270A Is Valid for Non-Filing Under Section 139(1) Even if Returned Income Is Accepted Post-Notice Under Section 148 Issue Whether penalty under Section 270A(2)(b) for under-reporting of income is leviable where an assessee fails to file a return of income under Section 139(1) but subsequently files a return in response to a… Read More »

Reassessment Passed Under Section 147 Without First Disposing Objections by Separate Order Quashed

By | September 5, 2026
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Reassessment Passed Under Section 147 Without First Disposing Objections by Separate Order Quashed Issue Whether a reassessment order passed under Section 147 read with Section 143(3) is legally valid when the Assessing Officer fails to dispose of the assessee’s objections to the recorded reasons for reopening by a separate speaking order prior to completing the… Read More »

Reinsurance Cession Disallowance Deleted and 60% Depreciation Allowed on Independent Business Computer Software

By | September 5, 2026
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Reinsurance Cession Disallowance Deleted and 60% Depreciation Allowed on Independent Business Computer Software Issue Whether an Assessing Officer can disallow reinsurance premiums exceeding regulatory limits when IRDAI raises no objection, and whether standalone business software qualifies for depreciation under the higher rate for “Computers including Computer Software”. Facts Reinsurance Premium Disallowance: The assessee, a general… Read More »