Penalty for estimation of income and disallowances for tax non-deduction clarified: estimation-based penalties not sustainable; additions without conc...
Managerial remuneration disallowance under s.40A(2)(b) challenged over alleged tax-avoidance; appellate decision restored deletion of addition for dir...
Classification of imported goods as electronic cigarette versus tobacco product reversed for lack of proof; order set aside for jurisdictional overrea...
ITAT dismissed Revenue's appeals and partly allowed assessee's appeal. It upheld CIT(A)'s deletion of additions treated as business receipts from a joint development agreement, holding that, in absence of valid seized material in search assessments under s.143(3) r.w.s. 153D, sworn statements alone could not sustain additions and that receipts were taxable in the year of execution of sale deeds, not on receipt of advances. ITAT further held that disallowance for non-capitalization of interest was unjustified where borrowings and interest were genuine, business-related, and undisputed, and where the AO's approach only caused a timing distortion without corresponding adjustment in later years. The interest disallowance of Rs.3.08 crores was deleted.
ITAT dismissed Revenue's appeals and partly allowed assessee's appeal. It upheld CIT(A)'s deletion of additions treated as business receipts from a joint development agreement, holding that, in absence of valid seized material in search assessments under s.143(3) r.w.s. 153D, sworn statements alone could not sustain additions and that receipts were taxable in the year of execution of sale deeds, not on receipt of advances. ITAT further held that disallowance for non-capitalization of interest was unjustified where borrowings and interest were genuine, business-related, and undisputed, and where the AO's approach only caused a timing distortion without corresponding adjustment in later years. The interest disallowance of Rs.3.08 crores was deleted.
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