Infrastructure-development deduction remains available to EPC contractors when substantive statutory conditions outweigh contractor labels in agreemen...
Explained Investment Sources: documented gifts and traceable salary savings supported deletion of additions for property and mutual-fund SIP investmen...
Internal comparable pricing supports arm's-length interest on compulsorily convertible debentures, preventing their recharacterisation as equity for t...
Nominee director protection shields independent financial-institution appointees from criminal liability where they lack involvement in deposit defaul...
The assessee's appeal was allowed and the addition was deleted. The authorities failed to analyze the assessee's specific stand and incorrectly assumed availability of unexplained cash credit. The AO's findings regarding abnormal cash deposit trend during demonetization and earlier months were incorrect, as demonstrated by the assessee's tabulated details showing gradual increase in turnover. The AO did not visualize the circumstances during demonetization, where all amounts had to be routed through bank accounts. The CIT(A) reduced the quantum addition but adopted a different analogy, calculating cash availability based on turnover increase without analyzing purchases and resulting profit. The ITAT held that the addition was unsustainable, as the authorities did not examine whether the profit ratio could be swindled to that magnitude, and books of account should not have been rejected.
The assessee's appeal was allowed and the addition was deleted. The authorities failed to analyze the assessee's specific stand and incorrectly assumed availability of unexplained cash credit. The AO's findings regarding abnormal cash deposit trend during demonetization and earlier months were incorrect, as demonstrated by the assessee's tabulated details showing gradual increase in turnover. The AO did not visualize the circumstances during demonetization, where all amounts had to be routed through bank accounts. The CIT(A) reduced the quantum addition but adopted a different analogy, calculating cash availability based on turnover increase without analyzing purchases and resulting profit. The ITAT held that the addition was unsustainable, as the authorities did not examine whether the profit ratio could be swindled to that magnitude, and books of account should not have been rejected.
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