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High-Pitched Ex-Parte Assessment u/s 144 for Demonetization Cash Deposits Set Aside — ITAT Allahabad Grants Fresh Opportunity in Ramesh Stone Crusher Co. vs. ACIT-3, Mirzapur (ITA No.38/ALLD/2024, AY 2017-18)
Facts of the CaseThe assessee-firm filed its return declaring income of
₹28,59,260. The case was selected for scrutiny, and multiple notices under
sections 143(2) and 142(1) were issued. Due to non-compliance, the As...
Agricultural Income from Sale of Eucalyptus Trees Cannot Be Rejected Solely for Lack of Formal Books — ITAT Allahabad Orders Fresh Verification in Ramesh Chandra Dwivedi vs. ITO Ward-2(1), Allahabad (ITA No.2/ALLD/2024, AY 2018-19)
Facts of the CaseThe assessee filed his return declaring total income of
₹6,37,740 and agricultural income of ₹68,42,904 claimed as exempt. The case was
selected for limited scrutiny to examine the claim of agricul...
Ex-Parte NFAC Order Without Hearing Unsustainable — ITAT Allahabad Remands Demonetization Jewellery Sale Case in Preeti Gupta vs. ITO-3(2), Mirzapur (ITA No.129/Alld/2023, AY 2017-18)
Facts of the CaseThe assessee’s case was selected for scrutiny due to large
cash deposits during the demonetization period. She deposited ₹15,03,000 in her
bank account, claiming that ₹13,83,000 was received from...
Ex-Parte Reassessment for Cash Deposits Set Aside — ITAT Allahabad Remands Case Where Assessee Could Not Comply Due to Remote Location in Pankaj Kumar Choubey vs. ITO Ward-3(2), Mirzapur (ITA No.86/ALLD/2024, AY 2011-12)
Facts of the CaseInformation was received that the assessee had deposited cash
of ₹32,22,490 in a savings bank account during the financial year 2010-11.
Based on this information, proceedings under section 147 were ...
NFAC Order Ignoring Uploaded Evidence Violates Natural Justice — ITAT Allahabad Remands NRI Investment & Bank Deposit Case in Mohammad Sahadat Ali vs. ITO (NFAC), Delhi (ITA Nos.147 & 148/ALLD/2024, AYs 2013-14 & 2014-15)
Facts of the CaseThe Department received information that the assessee had
constructed a market (“Apna Bazar”) and made investments of ₹12,11,300 (AY
2013-14) and ₹2,34,620 (AY 2014-15), along with unexplained ...
ITAT Delhi: Addition u/s 68 Cannot Survive When Seized Ledger & Receipts Prove Loan Repayment – New Link Overseas Finance Ltd vs DCIT (AY 2011-12),
ITAT Delhi: Addition u/s 68
Cannot Survive When Seized Ledger & Receipts Prove Loan Repayment – New
Link Overseas Finance Ltd vs DCIT (AY 2011-12) Sections InvolvedIncome-tax Act, 1961
Section 68 – Unexp...
Bank Account Mapped to Firm’s PAN but Belonging to Proprietor Requires Fresh Verification — ITAT Allahabad Remands Additions u/s 69A in M/s Auto King vs. ITO Ward-1(1), Allahabad (ITA Nos.145 & 146/ALLD/2024, AYs 2015-16 & 2018-19)
Facts of the CaseThe assessee, a partnership firm, had not filed returns for
AYs 2015-16 and 2018-19. Based on information regarding substantial bank
transactions, reassessment proceedings were initiated under sections...
Suppressed Sales & Unaccounted Purchases Additions Largely Unsustainable Without Correlated Seized Evidence — ITAT Allahabad Partly Upholds Relief in M/s Kesarwani & Co. vs. JCIT (Central Circle), Allahabad (ITA Nos. 393 & 429/ALLD/2014, AY 2010-11)
Facts of the CaseThe assessee firm was assessed under section 143(3) following
search proceedings. The Assessing Officer made several additions, including:₹87,94,292
for alleged suppressed sales₹2,66,73,629
for al...
Fraudulently Opened Bank Account Cannot Be Taxed in Victim’s Hands — ITAT Allahabad Deletes ₹18.32 Crore Addition; Subsequent Year Remanded in Chandra Bhawan vs. ITO Ward-2(5), Kaushambi (ITA Nos. 41/ALLD/2024 & 141/ALLD/2023, AYs 2016-17 & 2017-18)
Facts of the CaseThe assessee, an LIC agent with modest income, was linked to a
savings bank account at Axis Bank in which extremely high cash deposits were
recorded. He denied ownership of the account and alleged that...
Derivative Trading Loss Must Be Allowed to Set Off Against Derivative Trading Income — Classification in Return Not Determinative: ITAT Allahabad in Arup Banerji vs. DCIT Circle-1, Allahabad (ITA No.80/ALLD/2024, AY 2014-15)
Facts of the CaseThe assessee reported income of ₹60,19,056 from derivative
trading but had inadvertently disclosed it under the head “Short-Term Capital
Gains” in the return. He sought to set off this income aga...