Topic
ITAT Surat bench rules BSNL VRS 2019 compensation as exempt under Section 10(10B) of the Income-tax Act, 1961, treating it as retrenchment compensation. The ruling allows appeals and directs refund of TDS deducted on such payments.
ITAT Surat quashed a reassessment notice u/s 148 issued after 01.04.2021 for AY 2015-16, relying on Rajeev Bansal (SC) and Deepak Steel (SC). The ruling clarifies procedural validity of reassessment notices under amended Section 147-149 post-TOLA amendments.
The ITAT Surat has ruled that the Principal CIT cannot use Section 263 to reopen an assessment already concluded under Section 147 if the AO conducted a thorough scrutiny, accepted the assessee’s return, and no evidence of revenue loss was established. This reinforces that revisionary powers are not a substitute for proper reassessment and protects taxpayers from arbitrary re-litigation after full adjudication.
ITAT Surat holds that penalties under Section 271(1)(c) of the Income Tax Act cannot be levied on ad-hoc or estimated additions, even in cases of alleged bogus purchases. The ruling reinforces that penalty provisions require concrete evidence of concealment, not mere presumptive additions, impacting tax assessments involving disputed transactions.
ITAT Surat ruled that cash deposits during demonetization cannot be treated as explained income under Section 68 without documentary proof of source, identity, and creditworthiness. The tribunal also penalized violations of Sections 269SS and 269ST, reinforcing strict compliance for high-value cash transactions.
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.