Topic
The ITAT Lucknow bench adjudicates income tax disputes between taxpayers and the Income Tax Department under the Income-tax Act, 1961, focusing on issues like assessment validity, disallowances, and penalty appeals.
When an income tax assessment's quantum addition is set aside on appeal, the penalty under Section 270A cannot stand - it is inherently dependent on the validity of the added income. This ruling reinforces that penalties are consequential, not independent, and protects taxpayers from punitive measures rooted in legally unsound assessments.
ITAT Lucknow rules that disallowance of cash payments under Section 40A(3) of the Income Tax Act is unsustainable without examining Rule 6DD exemptions. The tribunal mandates a fresh assessment, ensuring taxpayers can prove the legitimacy of cash transactions, reinforcing natural justice in tax proceedings.
The ITAT Lucknow deleted a Rs. 6.02 lakh addition under Section 68, ruling that tax authorities cannot treat cash credits as unexplained income merely because the creditor’s income tax returns or financial statements were not submitted. The burden shifts to the department to conduct a proactive inquiry - not just demand impossible documentation from the assessee - reinforcing that conjecture has no place in reassessment proceedings.
ITAT Lucknow quashes an assessment order for failure to issue the mandatory Section 143(2) notice, reinforcing that jurisdictional compliance is non-negotiable regardless of return filing timelines. The ruling underscores that procedural lapses render assessments void ab initio, impacting taxpayers facing re-assessment proceedings.
ITAT Lucknow rules that the Assessing Officer must refer valuation disputes to the Departmental Valuation Officer under Section 50C before making Long Term Capital Gains additions, even if the assessment deadline is imminent. The tribunal set aside the addition, reinforcing statutory compliance over procedural expediency in tax assessments.