Co-operative society's mandatory reserve and share capital fixed deposits with banks-interest treated as business income under 80P(2)(a)(iii) deductio...
Income tax reassessment reopening after four years on investigation tip, without s.147 proviso disclosure failure, struck down as borrowed satisfactio...
Challenge to assessment as violative of s.144B/CBDT instructions and for denial of opportunity failed because statutory notices were issued, the proposed disallowance was communicated, and no specific prejudice from refusal of evidence or arbitrary denial of adjournment was shown; hence the assessment was not void. Disallowance in principle of excess cane price over FRP could not be rejected merely on broad claims, as no cost-based justification or contemporaneous material was produced to show the entire differential was commercially driven; however, the impugned quantification did not follow the Tasgaon methodology and was not sustainable. For the year in question, deduction of the final cane price was allowable in full under s.36(1)(xvii) due to unrebutted State Government approval, rendering further profit-embedded segregation unnecessary; sustained disallowance was deleted and set-off of brought-forward depreciation was directed. - ITAT
Challenge to assessment as violative of s.144B/CBDT instructions and for denial of opportunity failed because statutory notices were issued, the proposed disallowance was communicated, and no specific prejudice from refusal of evidence or arbitrary denial of adjournment was shown; hence the assessment was not void. Disallowance in principle of excess cane price over FRP could not be rejected merely on broad claims, as no cost-based justification or contemporaneous material was produced to show the entire differential was commercially driven; however, the impugned quantification did not follow the Tasgaon methodology and was not sustainable. For the year in question, deduction of the final cane price was allowable in full under s.36(1)(xvii) due to unrebutted State Government approval, rendering further profit-embedded segregation unnecessary; sustained disallowance was deleted and set-off of brought-forward depreciation was directed. - ITAT
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