#ITAT judgment

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 Panaji quashed the 29 July 2022 Section 148 notice as time-barred under Section 149(1)(a), setting aside assessments for AY 2016-17 and 2017-18. The tribunal held that reassessment cannot proceed when the three-year limitation expires and the monetary threshold is below Rs 50 lakh, applying the Ganesh Dass Khanna test. Taxpayers gain protection from stale reassessment notices.

ITAT Patna rules that penalty under Section 270A of the Income Tax Act cannot be imposed automatically for delayed return filing if the income is fully disclosed via TDS and the assessee demonstrates bona fide reasons. The ruling emphasizes that judicial discretion must be exercised, offering relief to taxpayers facing procedural lapses without intent to evade tax.

ITAT Delhi clarifies that under Article 15 of the India-Australia DTAA, salary for services rendered abroad is taxable exclusively in the country where the services are performed, not in India. The ruling shields foreign-earned income of Indian residents from double taxation, reinforcing DTAA supremacy over domestic tax laws.

ITAT Delhi sets aside reassessment proceedings under Section 147 of the Income Tax Act, 1961, ruling that mere mechanical approval by the prescribed authority without independent application of mind renders the reopening invalid. The judgment reinforces procedural compliance as a safeguard against arbitrary tax reassessments, impacting taxpayers and tax authorities alike.

The ITAT Delhi has ruled that the Income Tax Department cannot reopen an assessment solely on the basis of unreported cash deposits if no addition is made against those deposits in the original assessment. This sets a critical precedent: mere non-filing of return coupled with large cash inflows is insufficient grounds for reopening - the revenue must demonstrate a tangible income addition. Taxpayers and practitioners now have clear protection against speculative reassessments based on deposit volume alone.

ITAT Bangalore ruled that a revisionary order under Section 263 of the Income Tax Act is invalid if the Principal Commissioner fails to verify the existence of an expenditure claim before setting aside an assessment. The tribunal emphasized that such orders violate principles of natural justice and cannot be sustained without establishing a nexus between the assessee and alleged payees. This ruling reinforces the need for thorough inquiry before invoking revisionary jurisdiction.

ITAT Agra rules reassessment notices under Section 148 of the Income Tax Act issued after 30.06.2021 are time-barred under the Taxation and Other Laws Act (TOLA), invalidating additions exceeding Rs. 23 crore. The judgment reinforces strict adherence to limitation periods, impacting taxpayers facing delayed reassessment proceedings.

ITAT Ahmedabad rules that penalty under Section 271(1)(c) cannot be imposed merely for a disallowed claim unless there is evidence of factual falsity or deliberate concealment. The tribunal set aside a ₹12.96 lakh penalty, emphasizing that audited accounts and disclosed claims negate allegations of inaccurate particulars.

ITAT Nagpur rules that additions under Sections 68 and 69C for long-term capital gains from listed shares cannot be sustained without concrete evidence disproving the genuineness of transactions. The tribunal emphasizes that mere suspicion cannot override documentary proof, setting a precedent for tax assessments involving LTCG claims.

ITAT Delhi quashes assessments for AY 2014-15 and 2015-16, ruling that satisfaction notes under Section 153C must be recorded within six assessment years to validate proceedings. The tribunal reaffirms the Delhi High Court’s holding in Ojjus Medicare, emphasizing strict procedural compliance to prevent time-barred assessments.

ITAT Delhi rules that disallowance under Section 14A of the Income Tax Act cannot exceed the exempt income earned, quashing a Rs. 3.44 crore addition in Panacea Biotec Ltd. The judgment reinforces that Rule 8D calculations must align with actual exempt income, impacting tax assessments for companies with mixed investment portfolios.

ITAT Ahmedabad holds that co-operative societies remain eligible for Section 80P deduction even if they fail to file income tax returns, remanding the case for fresh assessment. The ruling underscores that procedural non-compliance cannot override substantive tax exemption entitlements for co-operative societies under the Income Tax Act.

ITAT Delhi rules that startups remain eligible for Section 80IAC tax deductions even if Form 10CCB is filed late, provided the original return is submitted on time and the claim is substantiated. The ruling emphasizes substantive compliance over procedural technicalities, offering relief to startups facing disallowance due to filing delays.