Limited scope of processing under section 143(1): enhancement without show cause is unsustainable; remand for residency, taxation and TDS verification...
Extended period of limitation unsustainable; allowable deductions for prompt payment discounts, pro rata recovery, freight and VAT led to demand being...
The ITAT held that unsecured loan amounts received in A.Y. 2020-21 could not be added again under section 68 because the same sums were later forfeited and offered to tax as other income in A.Y. 2023-24. On the factual record, the assessee's computation of income, profit and loss account, and breakup of other income showed that the forfeited loan amounts from the two creditors had already been subjected to tax. Taxing them once more in the year of receipt would create double taxation, so the addition was unsustainable and was deleted.
The ITAT held that unsecured loan amounts received in A.Y. 2020-21 could not be added again under section 68 because the same sums were later forfeited and offered to tax as other income in A.Y. 2023-24. On the factual record, the assessee's computation of income, profit and loss account, and breakup of other income showed that the forfeited loan amounts from the two creditors had already been subjected to tax. Taxing them once more in the year of receipt would create double taxation, so the addition was unsustainable and was deleted.
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