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Wrong Reporting in Tax Audit Report Causing Double Taxation u/s 143(1) Requires Fresh Verification — ITAT Allahabad Remands CPC Adjustment Case in S.P.S. Automobiles vs. ITO Ward-1(5), Prayagraj (ITA No.106/Alld/2024, AY 2021-22)
Facts of the CaseThe assessee, a partnership firm engaged in automobile
dealership (purchase and sale of tractors), filed its return along with audited
financial statements and tax audit report declaring income of ₹3...
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...