Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
ITAT dismissed Revenue's appeal and upheld the CIT(A)'s deletions. The Tribunal followed a co-ordinate bench's decision in the assessee's own case for a prior year and declined to disturb the deletion of additions attributable to a purported bogus unsecured loan and any commission allegedly paid to procure it. Consequently, Revenue's Grounds 1 and 2 were dismissed. With respect to additions under section 41(1), the Tribunal accepted the assessee's retraction of the survey statement, found that the field enquiry did not comply with mandated procedural safeguards and lacked independent corroboration, and directed the AO to delete the entire section 41(1) addition. The appeals were thereby decided in favour of the assessee.
ITAT dismissed Revenue's appeal and upheld the CIT(A)'s deletions. The Tribunal followed a co-ordinate bench's decision in the assessee's own case for a prior year and declined to disturb the deletion of additions attributable to a purported bogus unsecured loan and any commission allegedly paid to procure it. Consequently, Revenue's Grounds 1 and 2 were dismissed. With respect to additions under section 41(1), the Tribunal accepted the assessee's retraction of the survey statement, found that the field enquiry did not comply with mandated procedural safeguards and lacked independent corroboration, and directed the AO to delete the entire section 41(1) addition. The appeals were thereby decided in favour of the assessee.
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TaxTMI 
TaxTMI 
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