Condonation of Delay: Tribunal directed condonation where rectification proceedings were pursued, ordering merits adjudication after opportunity to be...
Restriction of Input Tax Credit under Rule 86A applies only to fraudulently or ineligible availed credit; mere wrongful recipient availment is insuffi...
The ITAT held that where contemporaneous accounts, receipts and audited records showed the premises was actively used for the assessee's business during the year, the property fell outside section 22 and the deeming fiction for annual letting value under section 23 did not apply. Receipts linked to school operations and later tax treatment of advance educational collections supported the business-use explanation, which the Revenue did not rebut. It also found the Assessing Officer's notional valuation at a percentage of cost to be arbitrary, so the addition for deemed rental income was deleted and the Revenue's appeal dismissed; the reopening challenge in cross-objection was left open as academic.
The ITAT held that where contemporaneous accounts, receipts and audited records showed the premises was actively used for the assessee's business during the year, the property fell outside section 22 and the deeming fiction for annual letting value under section 23 did not apply. Receipts linked to school operations and later tax treatment of advance educational collections supported the business-use explanation, which the Revenue did not rebut. It also found the Assessing Officer's notional valuation at a percentage of cost to be arbitrary, so the addition for deemed rental income was deleted and the Revenue's appeal dismissed; the reopening challenge in cross-objection was left open as academic.
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