Income Tax Appellate Tribunal judgments

ITAT Jodhpur rules that assessees challenging the jurisdiction of the Assessing Officer in higher courts demonstrate 'reasonable cause' under Section 249(2) of the Income Tax Act, justifying condonation of delay in filing appeals. The ruling reinforces natural justice by protecting appellate rights despite procedural delays caused by ongoing litigation.

ITAT Nagpur condoned a 1789-day delay in filing an appeal under Section 80IA, holding that bonafide reliance on incorrect legal advice constitutes 'sufficient cause' for condonation. The Tribunal restored the case to the Assessing Officer for merits-based adjudication, emphasizing that procedural lapses should not bar substantive justice when the assessee acted in good faith.

ITAT Surat rules that rebate under Section 87A is available on short-term capital gains taxed at 15% under Section 111A, even for assessees opting for the new tax regime (Section 115BAC), provided total income does not exceed ₹7 lakh. This clarifies a critical ambiguity for taxpayers navigating the interplay between rebate provisions and capital gains taxation.

ITAT Mumbai rules that disallowance under Section 14A read with Rule 8D must be limited to the actual exempt income earned, ensuring proportionality in tax computation. This decision reinforces the legal principle that tax disallowances cannot surpass the income claimed as exempt, impacting taxpayers and revenue authorities alike.

ITAT Agra rules that reassessment notices issued under Section 148 of the Income Tax Act on or after 01-04-2021 must strictly comply with the amended Section 148A procedure. Failure to do so renders the notice invalid, quashing the entire reassessment proceedings. This decision reinforces procedural safeguards for taxpayers against arbitrary reopening of assessments.

ITAT Agra quashed reassessment notices issued on 30.07.2022 for AYs 2013-14 and 2014-15, holding that the notices exceeded the limitation period under Section 148 of the IT Act post the Supreme Court's decision in Rajeev Bansal. The tribunal ruled that the legal fiction expiry bars reassessment notices issued beyond the prescribed timeline, reinforcing the binding precedent on tax authorities.

ITAT Delhi rules that a combined approval under Section 153D for multiple assessment years renders search-based assessments invalid. The decision reinforces procedural compliance as jurisdictional, impacting all search assessments requiring individual approvals.

ITAT Ahmedabad rules that unexplained cash deposits under Section 69 IT Act cannot be taxed in full without evidence linking the assessee to beneficial ownership. The tribunal directed reassessment based on peak balance and permissible commission income, narrowing the scope of tax additions for accommodation entries.

ITAT Amritsar rules that registration under Section 12A(1)(ac)(iii) of the Income Tax Act cannot be denied solely for missing clauses in the Memorandum of Association if the society's activities are genuine and it undertakes to incorporate the required clauses. This decision clarifies procedural compliance requirements for tax exemptions, impacting religious and charitable societies seeking registration.

ITAT Amritsar rules that the Commissioner of Income Tax (Appeals) cannot dismiss an appeal under Section 250 of the Income Tax Act merely for non-prosecution. The appellate authority must decide the case on merits, ensuring compliance with principles of natural justice and statutory duty. This ruling reinforces the obligation of CIT(A) to adjudicate appeals substantively, impacting taxpayers facing procedural dismissals.

ITAT Amritsar ruled that an unexplained cash addition under Section 147 of the Income Tax Act is invalid if the assessee was not served proper notice or given an opportunity to be heard. The tribunal remanded the case for fresh adjudication, reinforcing that procedural fairness is mandatory in tax assessments, impacting all taxpayers facing similar disputes.

ITAT Agra nullified a reassessment under Section 147 after finding the Section 151 approval was a rubber-stamp endorsement without application of mind, reinforcing that procedural compliance is jurisdictional, not formalistic. This ruling impacts all reassessment proceedings where approvals are boilerplate, requiring tax officers to demonstrate genuine scrutiny before reopening assessments.

ITAT Agra rules that mere technical non-disclosure in ITR Form Part B-T1 does not deny exemption under Section 11 if the charitable trust proves actual application of funds through audited records. The ruling reinforces that substantive compliance outweighs procedural lapses for tax-exempt entities.

ITAT Cochin sets aside an ex parte order after the assessee demonstrated a medical emergency and pending RTI request as valid grounds for non-appearance. The ruling reinforces that tribunals must recall ex parte orders when sufficient cause is shown, ensuring adherence to principles of natural justice in tax proceedings.

ITAT Mumbai rules that once a loan creditor's genuineness is accepted in a prior set-aside assessment, the same cannot be disputed in subsequent proceedings without new evidence. The tribunal restored the matter for verification of other advances, emphasizing the binding nature of earlier findings on creditor verification under Section 68.

ITAT Delhi rules that for capital gains tax on under-construction properties, indexation of the cost of acquisition must commence from the financial year of allotment and payment, not the registration date. The tribunal also permitted brokerage deduction upon submission of bank transaction evidence, clarifying tax computation for real estate investments.

ITAT Delhi sets aside a reassessment notice under Section 148 of the Income Tax Act for lack of valid sanction under Section 151, emphasizing strict procedural compliance. The ruling nullifies a Rs. 9.91 lakh addition, reinforcing that jurisdictional defects cannot be cured post-facto and safeguarding assessees from arbitrary reassessments.

ITAT Delhi rules that charitable trusts remain eligible for Section 11 exemption despite delayed Form 10B filing, provided the audit report is submitted during appellate proceedings. The decision prioritizes substantive compliance over procedural delays, offering relief to trusts facing similar technical defaults.

ITAT Delhi quashes reassessment under Section 147/144 of the Income Tax Act for failure to serve notice at the assessee's correct address, reinforcing that procedural compliance is mandatory for jurisdiction. The ruling underscores that ex-parte orders without proper notice violate principles of natural justice and are void ab initio.

ITAT Delhi quashed an assessment order where the JCIT's approval under Section 153D was mechanical, lacked application of mind, and omitted mandatory DIN compliance. The ruling reinforces that digital evidence protocols and natural justice principles must govern search assessments to prevent arbitrary tax proceedings.

ITAT Mumbai rules that for capital gains computation under Section 50C, the stamp duty value as on the date of the Memorandum of Understanding (MOU) applies, not the registration date, if procedural delays cause the transfer. This holding impacts taxpayers facing delays in property transfers, ensuring fair valuation for tax purposes.

ITAT Delhi sets aside ₹107 crore transfer pricing adjustment, ruling that Dispute Resolution Panel (DRP) directions under Section 144C are binding on Assessing Officers. The tribunal also held that Renewable Energy Certificates (RECs) qualify as capital receipts, impacting tax liability for energy sector enterprises.

ITAT Delhi rules that reassessment proceedings under Section 147 of the Income Tax Act are invalid if the assessing officer makes additions on grounds not specified in the original reopening notice. The tribunal emphasized that the scope of reassessment cannot expand beyond the reasons recorded for reopening, reinforcing procedural safeguards for taxpayers.

ITAT Mumbai rules that expenses incurred by an overseas NRI desk for Indian operations qualify as deductible head office expenditure under Section 44C of the Income Tax Act, provided they are executive or administrative in nature. The ruling clarifies the scope of allowable deductions for multinational banks and non-resident entities, impacting tax compliance and planning for cross-border operations.