ITAT directs reassessment based on HC decisions, excludes income below taxable limit, reevaluates additions.

The ITAT allowed the appeals in part, directing reassessment for various additions and exclusions based on High Court decisions and proper evaluation of evidence. The ACIT's assessment orders were set aside for reassessment, with directions to exclude income below the taxable limit and reevaluate additions made without proper verification. Unexplained bank deposits, loans, gifts, and rental income were subject to reassessment. The orders were pronounced on 30th May 2012.

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Issues:
- Appeals against separate orders of CIT(A)-2(1), Bhopal for the Block Period 1.4.1985 to 28.02.1996.
- Assessment order contrary to material on records and provisions of the Act.
- Directions by the Hon'ble Income Tax Appellate Tribunal not followed.
- Making additions of undisclosed income without proper assessment.
- Initiating penalty u/s 158BFA(2) of the Act.

Analysis:

I.T.(SS).A.Nos. 24/Ind/2012:
- The ACIT passed a block assessment order determining undisclosed income. The ITAT set aside the order directing a fresh assessment. The assessee's income from tailoring was rejected for lack of proof. The High Court decision on income below taxable limit was cited to exclude such income. Additions were made for deposits and interest without explanations, upheld by the ITAT.
- In various assessment years, additions were made for bank deposits. The ITAT upheld some additions where explanations were lacking and directed exclusions based on assessed income being below taxable limit in certain years. Unexplained investments and rental income were also added, supported by the ITAT's decision.

I.T(SS).A.No. 25/Ind/2012:
- The ACIT's assessment order was set aside for reassessment. The ITAT directed the exclusion of income below taxable limit based on High Court precedent. Additions for purchases and loans were made without proper evaluation, leading to directions for reassessment.
- The ITAT directed reassessment for various years where additions were made without proper verification of sources. Loans and gifts were disputed, and the ITAT ordered a fresh assessment considering the evidence presented. Unexplained bank deposits were also subject to reassessment based on relevant evidence.

In conclusion, the ITAT allowed the appeals in part, directing reassessment for various additions and exclusions based on the High Court's decisions and proper evaluation of evidence. The orders were pronounced on 30th May 2012.

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