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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...
Alleged Suppressed Sales & Unaccounted Purchases Based on Seized Material Not Sustainable Without Correlation — ITAT Allahabad Upholds Major Relief in ACIT vs. M/s Kesarwani & Co., Allahabad (ITA Nos. 393 & 429/ALLD/2014, AY 2010-11)
Facts of the CaseThe assessee firm was subjected to search proceedings,
following which assessment under section 143(3) was completed for AY 2010-11.
The Assessing Officer made multiple additions, including:
₹87,94...
After Rejection of Books, No Separate Additions Permissible — ITAT Allahabad Estimates Contract Profit @ 6% and Deletes Additions u/s 69A & 40(a)(ia) in M/s Nagendra Rai vs. ACIT, Mirzapur (AYs 2009-10 & 2010-11)
Facts of the CaseThe assessee, an individual contractor executing road
construction works for MPRRDA, filed returns supported by audited accounts.
During scrutiny, he failed to produce books of account, claiming they h...
Opening Trade Creditors Not Taxable & DVO Report Under Section 142A Not Binding Without Independent Application of Mind — ITAT Allahabad in M/s Kesarwani Zarda Bhandar vs. JCIT (Central Circle), Allahabad (ITA Nos. 80, 89–93/ALLD/2023, AYs 2004-05 to 2009-10)
Facts of the CaseA search under section 132 was conducted on 27.08.2009,
followed by assessments under section 153A for AYs 2004-05 to 2009-10.
Additions were made primarily on two counts:
Alleged
bogus sundry ...
Reassessment Notice Issued to Deceased Person Is Void Ab Initio — ITAT Allahabad Quashes Addition of ₹28.21 Lakh in Hands of Legal Heir in Late Anand Jeewan Verma (L/H Amit Verma) vs. ITO Ward-1(1), Allahabad (ITA No.24/ALLD/2024, AY 2009-10)
Facts of the CaseBased on AIR information regarding substantial cash deposits
in a bank account during FY 2008-09, the Assessing Officer issued a notice
under section 148 in the name of Shri Anand Jeewan Verma. However...
Opening Balances of Sundry Creditors Cannot Be Taxed u/s 68 in Subsequent Year — ITAT Allahabad Orders Verification in M/s Baba Builders vs. ACIT Circle-II, Allahabad (ITA No.350/Alld/2015, AY 2011-12)
Facts of the CaseThe assessee, a partnership firm engaged in civil construction
works, filed its return declaring income of ₹28,69,950. The Assessing Officer
completed assessment under section 143(3), determining inc...
Ex-Parte Addition of ₹1.15 Crore u/s 69A for Cash Deposits Set Aside — ITAT Allahabad Grants Fresh Opportunity Considering Illiteracy & COVID Constraints in Jitendra Kumar vs. ITO Ward-2(2), Banda (ITA Nos.32 & 33/ALLD/2024, AY 2017-18)
Facts of the CaseThe assessee did not file a return of income for AY 2017-18.
Based on AIMS information, the Department found substantial cash deposits
aggregating ₹1,15,87,100 across multiple bank accounts. Reassess...
Demonetization Cash Deposits by Cold Storage Firm Remanded for Verification — Valid 143(2) Notice Based on PAN Jurisdiction Upheld in Maa Sharda Cold Storage vs. ITO Ward-2(5), Allahabad (ITA No.04/ALLD/2024, AY 2017-18)
Facts of the CaseThe assessee, a partnership firm engaged in operating a cold
storage and ice factory, filed its return for AY 2017-18 along with audited
accounts. The case was selected for limited scrutiny to examine ...
Addition @ 8% of Bank Deposits u/s 44AD Without Opportunity Set Aside — ITAT Allahabad Restores Case Despite NFAC Dismissal on Technical Grounds in Guddu Kumar Gupta vs. ACIT/ITO (NFAC), Delhi (ITA Nos.59 & 70/ALLD/2024, AY 2013-14)
Facts of the CaseThe assessee had not filed a return of income for the relevant
year. The Department received information that cash deposits amounting to
₹1,46,63,200 had been made in his savings bank account. Despit...
Estimation of Profit After Rejection of Books Must Follow Past History — Arbitrary 8% NP Rate on Contract Receipts Rejected by ITAT Allahabad in DCIT vs. Shri Shakeel Haider, Amethi (AYs 2011-12 & 2012-13)
Facts of the CaseThe assessee, a civil contractor engaged in road construction
work for NHAI and other authorities, filed returns for AYs 2011-12 and 2012-13
declaring income from contract receipts. During assessment p...