Alternate statutory remedy governs GST assessment challenge, with statutory appeal preserved and limitation objection barred for the permitted filing ...
The ITAT upheld deletion of the addition under section 68 relating to forfeiture of share application money, holding that forfeiture constitutes a capital receipt and cannot be taxed as the assessee's income; the AO may, however, reopen and assess suspicious shareholders individually. The ITAT and HC affirmed that interest received by the assessee arose from its business operations and is assessable as business income rather than under "Income from Other Sources," endorsing CIT(A)'s view. The appellate authority also sustained deletion of ad hoc disallowance of expenditure, finding the restriction of claimed expenses to an arbitrary Rs. 50,000 untenable. Overall, the AO's additions were directed to be deleted.
The ITAT upheld deletion of the addition under section 68 relating to forfeiture of share application money, holding that forfeiture constitutes a capital receipt and cannot be taxed as the assessee's income; the AO may, however, reopen and assess suspicious shareholders individually. The ITAT and HC affirmed that interest received by the assessee arose from its business operations and is assessable as business income rather than under "Income from Other Sources," endorsing CIT(A)'s view. The appellate authority also sustained deletion of ad hoc disallowance of expenditure, finding the restriction of claimed expenses to an arbitrary Rs. 50,000 untenable. Overall, the AO's additions were directed to be deleted.
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