Tax deduction compliance and payee income recognition govern consultancy disallowance, while no exempt income prevents related expenditure disallowanc...
Derivative abetment liability fails when correctly declared imported components establish no underlying improper importation by the principal importer...
The ITAT Surat held that disallowance of business loss on sale of securities as LTCG in penny stocks was unjustified. The AO failed to provide evidence of collusive transactions or falsity in the assessee's documents. Relying on SHAILESH S. SHAH, suspicion alone cannot warrant additions. Default by the broker does not prove wrongdoing; other evidence like purchase details, source explanation, STT payment, and banking transactions must be considered. Without concrete evidence, no disallowance can be made. The addition by AO was deleted, and the assessee's appeal was allowed.
The ITAT Surat held that disallowance of business loss on sale of securities as LTCG in penny stocks was unjustified. The AO failed to provide evidence of collusive transactions or falsity in the assessee's documents. Relying on SHAILESH S. SHAH, suspicion alone cannot warrant additions. Default by the broker does not prove wrongdoing; other evidence like purchase details, source explanation, STT payment, and banking transactions must be considered. Without concrete evidence, no disallowance can be made. The addition by AO was deleted, and the assessee's appeal was allowed.
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