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The Income Tax Appellate Tribunal (ITAT) is a specialized quasi-judicial body in India that hears appeals against orders passed by the Commissioner of Income Tax (Appeals) under the Income Tax Act, 1961.
The ITAT Mumbai held that conditioning registration under Sections 12AB/80G on a pending SLP is ultra vires. It directed the Commissioner to issue an unconditional order 1 April 2026 for Trust, stating tax exemptions cannot depend on Supreme Court appeals.
The ITAT Patna upheld a Rs.20.5 lakh penalty under Section 271D read with Section 269SS, holding that cash loans between spouses attract liability and familial ties do not constitute reasonable cause. The ruling impacts anyone relying on family relations to avoid cash-loan penalties under the Income Tax Act.
ITAT Ahmedabad ruled that bank credits alone do not prove unexplained investment under Section 69 without asset identification. It deleted the ₹1.28 crore addition and penalty, stressing that credits must be tied to specific assets.
An unsigned or undated sanction under section 151 of the Income-Tax Act is invalid, making any subsequent section 148 notice jurisdictionless. The Delhi ITAT therefore quashed the assessment notice, safeguarding taxpayers from assessments based on defective approvals.
The ITAT deleted a ₹34.85 million addition, holding that customer cash deposited in a business correspondent’s account is not the correspondent’s assessable income under section 69A. Only the correspondent’s commission is taxable, benefiting all BCs and their clients.
ITAT Ahmedabad ruled that the Section 87A rebate cannot be denied on short-term capital gains taxed at the special rate under Section 111A for AY 2025-26, overturning the Addl. CIT’s reliance on CBDT circular 13/2025. Taxpayers with STCG can now claim the full ₹25,000 rebate, extending relief beyond other income sources.
The ITAT ruled that an assessment order issued under section 143(3) in the name of a deceased taxpayer is merely irregular and can be corrected, not a nullity. Consequently, the tax liability remains enforceable and the legal heir may seek rectification without the order being void.
The ITAT ruled that the ex-gratia payment received by a former BSNL employee is a capital receipt exempt under Sec 10(10B) of the Income-Tax Act. It also treated a 1578-day filing delay as ‘sufficient cause’ under Sec 249(3), allowing the appeal to proceed. This benefits taxpayers receiving VRS and facing procedural delays.
ITAT ruled that the rebate under Section 87A can be claimed on tax payable on short-term capital gains taxed under Section 111A even when the assessee opts for the new tax regime (Section 115BAC). The decision confirms eligibility for AY 2024-25, benefiting taxpayers with STCG.
The ITAT ruled that an unsecured loan taken and fully repaid within the same financial year cannot be treated as unexplained income under Section 68, provided the assessee furnishes satisfactory documentary evidence. This prevents automatic tax additions on short-term loans and safeguards businesses from unwarranted tax liability.
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.
The Delhi ITAT set aside assessment orders for AY 2016-17 and 2017-18, ruling that a single omnibus satisfaction note under Sec 153C is invalid without year-wise linkage of seized material to income. It also declared that notices served after the statutory 15-month limitation are void. Taxpayers must ensure separate satisfaction notes for each year and timely notices.
Taxpayers whose total income does not exceed Rs 7 lakh can claim the Section 87A rebate even on short-term capital gains that attract the special 15 % rate under Section 111A. The Jaipur ITAT reversed the CIT(A)’s refusal, confirming that the rebate applies to the computed tax liability irrespective of the special-rate provision. This benefits individual investors with modest incomes who realise short-term gains.
The ITAT Surat Bench set aside assessment orders for AY 2011-14 because the Commissioner of Income-Tax (Appeals) failed to obtain the mandatory prior approval of the Joint Commissioner under Section 153D. The ruling makes it clear that any assessment under special provisions is invalid without such approval, impacting both taxpayers and revenue officials.
The Delhi ITAT ruled that export incentives and cash discounts form part of a taxpayer’s operating revenue for the purpose of the Transactional Net Margin Method, requiring comparables to be selected on a fully adjusted basis. This clarifies the treatment of such items in transfer-pricing documentation and impacts exporters relying on TNMM benchmarks. Assessors must now ensure FAR-based comparables reflect these revenue components.