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...
Adjustment u/s 143(1) denying the alternate claim of exemption u/s 11 solely for non-filing of audit report in Form 10B was held impermissible, since the defect was curable and the claim involved a debatable issue that could not be adjusted at the processing stage, particularly without providing an opportunity u/s 139(9). The processing also could not disallow the entire expenses, as only income embedded in gross receipts is taxable and eligible revenue expenditure (including depreciation), incurred exclusively to earn such income, must be allowed in computing income under ss. 56-57. The impugned order was set aside and the matter remanded for fresh decision after due opportunity. - ITAT
Adjustment u/s 143(1) denying the alternate claim of exemption u/s 11 solely for non-filing of audit report in Form 10B was held impermissible, since the defect was curable and the claim involved a debatable issue that could not be adjusted at the processing stage, particularly without providing an opportunity u/s 139(9). The processing also could not disallow the entire expenses, as only income embedded in gross receipts is taxable and eligible revenue expenditure (including depreciation), incurred exclusively to earn such income, must be allowed in computing income under ss. 56-57. The impugned order was set aside and the matter remanded for fresh decision after due opportunity. - ITAT
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