Tribunals and Commissions judgments

ITAT Mumbai reiterated that under Section 68 of the Income Tax Act, the assessee must establish the lender's identity, genuineness of the transaction, and creditworthiness. Failure to prove any of these three cumulative conditions justifies addition to income, setting aside the CIT(A)'s order that overlooked proper verification of the lender's financial capacity.

ITAT Pune rules that a consolidated satisfaction note covering multiple assessment years under Section 153C of the Income Tax Act is invalid. The Tribunal emphasizes that the Assessing Officer must record separate, year-specific satisfaction for each assessment year to uphold the legality of search and seizure proceedings, impacting tax assessments nationwide.

CCI ruled that mere parallel bidding or market dominance does not establish a prima facie cartel under Section 3(3)(d) without concrete evidence of collusion between bidders. The decision clarifies that public procurement allegations require proof of concerted action, not just suspicion of unfair pricing.

ITAT Mumbai rules that charitable trusts can claim exemption under Section 11(2) of the Income Tax Act even if Form-10 is filed during assessment proceedings, provided the accumulated funds are utilized as intended. The ruling clarifies that procedural delays do not invalidate the exemption if substantive compliance is met.

ITAT Delhi rules that the absence of a draft assessment order under Section 144C(1) of the Income Tax Act vitiates the final assessment, even in remand proceedings. The decision reinforces strict procedural compliance for transfer pricing cases, impacting tax authorities and assessees alike.

ITAT Delhi rules that cash deposits by regular taxpayers in cash-based businesses during demonetization may be treated as business income without strict reconciliation, reducing the burden of proof. The tribunal limited additions to 10% of deposits, excluding Section 115BBE applicability for transactions pre-April 2017, offering relief to small businesses.

ITAT Delhi rules that contract expenses incurred through a legitimate subcontracting chain are allowable under Section 37(1) of the Income Tax Act if supported by documentary proof. The ruling clarifies that disallowance cannot be based on mere suspicion of circular transactions, reinforcing the burden of proof on tax authorities to disprove genuineness.

ITAT Mumbai rules that a charitable trust's incidental income from agro, gaushala, and rental activities does not defeat its charitable purpose under Section 2(15) of the Income Tax Act if it remains below the 20% threshold. The decision reinforces that registration under Section 12AB cannot be denied solely on grounds of minor commercial income aligned with the trust's objects.

ITAT Bangalore rules that condonation of delay in filing income tax appeals before CIT(A) does not require a statutory affidavit or medical certificate. The Tribunal remanded the case for merits-based adjudication, emphasizing procedural fairness over rigid documentary requirements.

ITAT Delhi rules that government grants earmarked for targeted welfare projects-such as the rehabilitation of female sex workers-do not constitute taxable income under Section 2(24) of the Income Tax Act. The ruling reinforces that conditional grants for non-profit objectives are exempt, provided the purpose and conditions are clearly documented and unchallenged by revenue authorities.

ITAT Mumbai quashed an assessment order, ruling that an Income Tax Officer lacks jurisdiction to issue a notice under Section 143(2) of the Income Tax Act if the assessee's declared income exceeds ₹20 lakhs, as per CBDT Instruction No.1/2011. The tribunal held that such notices must be issued by a Deputy/Assistant Commissioner, making the assessment proceedings void ab initio.

ITAT Delhi ruled that ex-parte assessment orders under Section 144 of the Income Tax Act violate natural justice principles, requiring a fresh hearing. The tribunal directed the Assessing Officer to provide the assessee a fair opportunity to present their case, setting a precedent for procedural fairness in tax appeals.

ITAT Mumbai has ruled that a genuine, inadvertent misstatement of a foreign bank account number in Schedule FA does not attract penalty under Section 43 of the Black Money Act, provided all transaction details are fully disclosed and the account is otherwise reported. This sets a critical precedent for taxpayers who make clerical errors while acting in good faith, reinforcing that intent and completeness of disclosure outweigh technical inaccuracies.

CAT Kolkata rules that pensioners receiving Fixed Medical Allowance remain entitled to reimbursement for specialized or life-threatening treatments under the CS(MA) Rules. The judgment clarifies that the allowance is supplementary, not substitutive, ensuring pensioners' right to health is protected without opting for CGHS or PMJAY.

ITAT Delhi rules that failure to serve notice under Section 143(2) of the Income Tax Act renders the assessment void ab initio, emphasizing strict procedural compliance. The tribunal rejected revenue's claim of electronic service, underscoring that jurisdictional defects cannot be cured by ITBA portal records alone, impacting all income tax assessments reliant on notice-based proceedings.

ITAT Bangalore rules that a senior citizen's delayed access to the e-filing portal, coupled with their tax consultant's overseas absence, qualifies as 'sufficient cause' under Section 268 of the Income Tax Act for condonation of a 122-day delay in filing an appeal. The decision underscores the tribunal's flexibility in accommodating practical difficulties faced by elderly taxpayers in digital compliance.

ITAT Delhi rules that payment of tax on undisclosed cash receipts to preempt litigation does not constitute an admission of violation under Section 271DA. The tribunal deleted the penalty, reinforcing that tax compliance alone cannot be construed as acknowledgment of wrongdoing, impacting taxpayers facing similar disputes.

The ITAT Pune has ruled that penalty under Section 271(1)(c) cannot be imposed when an assessee voluntarily discloses undisclosed income in response to a notice under Section 153A, provided no incriminating material was found during the search. This affirms that disclosure in compliance with statutory procedure negates the presumption of concealment, offering critical relief to taxpayers who cooperate post-search.

ITAT Bangalore rules that ESOP cross-charges from a foreign parent to its Indian subsidiary qualify as revenue expenditure under Section 37, overturning the disallowance of ₹721 crore. The decision clarifies that employee compensation costs, even when recharged, are deductible if incurred wholly for business purposes, impacting multinational tax structures.

CAT Guwahati directed authorities to reconsider the transfer of a government employee who underwent a kidney transplant, suspending the impugned order until a reasoned decision is made within six weeks. The ruling underscores that medical emergencies warrant sympathetic consideration under administrative discretion, even when transfer policies are in place.

ITAT Surat rules that unsecured loans cannot be treated as unexplained cash credits under Section 68 merely due to the donor's fund source, unless directly linked to the assessee. The tribunal deleted a Rs. 30 lakh addition, emphasizing that creditworthiness is established through identity, genuineness, and bank transactions, not the origin of the donor's funds.

CAT reaffirms that government pensioners are entitled to full reimbursement for emergency medical treatment in non-empanelled hospitals, extending the principle from Shiva Kant Jha v. UoI. The ruling mandates CGHS authorities to honor claims without arbitrary deductions, ensuring welfare state obligations are met for retirees.

ITAT Delhi sets aside seven assessments under Section 153C, ruling that the satisfaction note must clearly establish how seized material relates to the assessee’s total income. The Tribunal affirmed that procedural compliance requires explicit linkage, failing which assessments are invalid.

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.