#Income Tax Act 1961

ITAT Agra held that a government polytechnic could claim Section 10(23C)(iiiad) exemption for AY 2020-21 without filing a Section 139(4C) return, as the filing condition was introduced only by the Finance Act 2022 amendment. The ruling confirms pre-amendment non-filing was not a condition precedent, aiding institutions that missed prior deadlines.

ITAT Pune held PCIT lacked jurisdiction to cancel registration under Sec 12AB(4) for Sec 13(1)(c) violations as the specified violation concept is prospective from 1 Apr 2022, shielding trusts from retrospective cancellation and clarifying limits.

The tribunal held that a section 148 notice dated 12-April-2023 was time-barred under section 149(1)(a) because the income escaping assessment was below Rs 50 lakh, and therefore quashed the assessment disallowing the claimed deduction under 80GGC for a bogus political donation. The ruling underscores that reopening notices beyond three years are invalid when the escaped income does not exceed the Rs 50 lakh threshold.

The Delhi ITAT held that interest payable on compensation under the Land Acquisition Act is exempt under Section 10(37) of the Income-Tax Act, overturning the earlier assessment that taxed it as 'other income'. This relief applies to all individuals and entities receiving acquisition compensation.

ITAT’s demand that a taxpayer deposit a ₹1 lakh cost before filing an appeal, with automatic confirmation on default, is struck down. The High Court held that a right to appeal cannot be conditioned on payment of costs, preserving access to justice for all assessee under the Income-Tax Act.

An assessment order issued under Section 148 after the assessee’s death is deemed void from the outset, rendering the notice ineffective. This ruling bars revenue authorities from reopening assessments of deceased taxpayers without proper procedural basis, protecting legal heirs from unwarranted tax demands.

The ITAT Delhi held that commission income from accommodation entries must be taxed at a reasonable rate of 0.15% of total credits, rejecting the arbitrary 3% estimate. It also ruled that a reassessment notice under Section 148 is invalid without prior approval from the specified authority under Section 151(ii), protecting assessees from procedural lapses.

The Jaipur ITAT ruled that the word ‘and’ in Section 147 operates conjunctively, so an Assessing Officer can only reopen assessment for income already identified as escaped, not for any other income. This narrows reassessment powers and shields taxpayers from unexpected additions. The ruling applies to all cases invoking Section 147 nationwide.

ITAT Amritsar upheld the rejection of books of accounts in the liquor trade but set aside arbitrary profit additions, modifying the net profit estimation to 0.55% on net sales. The ruling emphasizes the need for stronger grounds to reject audited accounts in regulated sectors like liquor distribution.

ITAT Delhi sets aside ex-parte dismissal by CIT(A) for non-prosecution, holding Section 250(6) mandates reasoned orders on merits. Remand directs fresh adjudication, reinforcing statutory compliance and natural justice in tax appeals.

ITAT Jaipur set aside an unexplained money addition of Rs.10,90,100 u/s 69A after finding assessee's cash withdrawals sufficient to cover credit card payments. The ruling clarifies that correlated withdrawals can rebut Section 69A additions, impacting taxpayers facing similar assessments.

ITAT Pune holds that the rebate under Section 87A of the Income Tax Act extends to short-term capital gains (STCG) taxable under Section 111A, even for assessees opting for the new tax regime. The ruling overturns CPC's denial of the full rebate, reinforcing that tax rebates must be applied to all eligible income heads without arbitrary restrictions.

The ITAT Ahmedabad has ruled that donations to political parties accompanied by cash-back arrangements constitute accommodation entries with no genuine economic substance, rendering them ineligible for tax deduction under Section 80GGC. This sets a critical precedent for the Income Tax Department to scrutinize politically linked donations and crack down on shell transactions disguised as electoral funding.

ITAT Pune ruled that income tax assessments are vitiated if the Assessing Officer fails to provide the assessee with third-party replies obtained under Section 133(6) of the Income Tax Act, 1961. The Tribunal emphasized that non-disclosure violates principles of natural justice, setting aside the assessment order and reinforcing procedural fairness in tax proceedings.

ITAT Pune holds that reassessment notices under Section 148 of the Income Tax Act, 1961, relying solely on unverified Insight Portal data without independent verification, are invalid. The ruling reinforces CBDT Circular compliance, mandating AO scrutiny beyond automated alerts to protect taxpayers from arbitrary proceedings.