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Section 153A, 153C, 132(4). If no incriminating material is found during search, no addition could be made in respect of the assessments that had become final. Statements recorded under Section 132(4) of the Act do not by themselves constitute incriminating material. PCIT Vs. ANAND KUMAR JAIN (HUF) & ORS. HIGH COURT OF DELHI on Feb 12, 2021. If any statement was to be construed as an incriminating material belonging to or pertaining to a person other than person searched (as referred to in Section 153A), then the only legal recourse available to the department was to proceed in terms of Section 153C of the Act by handing over the same to the AO who has jurisdiction over such person.

Section 153A, 153C, 132(4). If no incriminating material is found during search, no addition could be made in respect of the assessments that had become final. Statements recorded under Section 132(4) of the Act do not by themselves constitute incriminating…
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132, 132(4), 153A, 153C, AY 2010-11, Delhi High Court, In Favour of Assessee, incriminating material, Statement, Statement under section 132(4)

Addition for accommodation entries without making any independent enquiry from the suppliers nor allowed any cross-examination of the third party though specifically demanded by the assessee-company? ITAT Ahmedabad on 8th March 2021 hold that the addition is deleted as it based on hypothesis, conjectures and suspicion. In the case of ACIT Vs. Darshanam Life Space Pvt. Ltd. & Anr Section 143(3)

Q.Addition for accommodation entries without making any independent enquiry from the suppliers nor allowed any cross-examination of the third party though specifically demanded by the assessee-company? ITAT Ahmedabad on 8th March 2021 hold that the addition is deleted as it…
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143(3), Accommodation Entries, Ahmedabad Tribunal, AY 2012-13, In Favour of Assessee

Section 68 Cash deposits in the bank and AO made the addition u/s 68 instead of u/s 69, and hence the addition made by the AO is unsustainable.DIRISALA BALA MURALI vs. ITO. ITAT VISHAKAPATNAM on Jul 29, 2020. https://www.bpmundraca.com/it-cases-232-2021/

Section 68 Cash deposits in the bank and AO made the addition u/s 68 instead of u/s 69, and hence the addition made by the AO is unsustainable.DIRISALA BALA MURALI vs. ITO. ITAT VISHAKAPATNAM on Jul 29, 2020 As…
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148, 68, 69, AY 2011-12, In Favour of Assessee, VISAKHAPATNAM BENCH

Section 245MA: Dispute Resolution Committee (DRC). One more step towards Faceless Compliance. Budget 2021

Section 245MA: Dispute Resolution Committee (DRC). One more step towards Faceless Compliance. FCA BPMUNDRA [email protected] 9314501680 1.Object of the scheme The scheme shall impart greater efficiency, transparency and accountability by eliminating interface to the extent technologically feasible, by optimising utilisation…
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Budget 2021, Dispute Resolution Committee, One more step towards Faceless Compliance, Section 245MA

February 7, 2021

Section 194Q: TDS on Purchase of Goods

Section 194Q: TDS on Purchase of Goods FCA BPMUNDRA [email protected] 9314501680 Dear friends kindly note that effective from 1st July 2021 any person whose turnover is more than 10 crore rupees has to deduct TDS for purchase made from any…
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194Q, Articles, TDS on purchases

February 5, 2021

Demonetization . Deposit of cash into bank. Before making addition for cash deposit into bank during Demonetization period the Ld. AO has to consider on merits the opening balance for which evidence were produced for allowing credit of cash withdrawal, financials of previous years and audit report if any. Accordingly, the issues raised in this appeal are restored to the files of the Assessing Officer. ITAT- Bangalore in the case of Sri Mohan Ramachandra Basawa, … vs ITO on on 20 January, 2021. Section 68, 69A and 115BBE:

Demonetization . Deposit of cash into bank. Before making addition for cash deposit into bank during Demonetization period the Ld. AO has to consider on merits the opening balance for which evidence were produced for allowing credit of cash withdrawal,…
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115BBE, 68, 69A-Unexplained money, AY 2017-18, Bangalore Tribunal, Demonetization, In favour of Assessee (Partly)

January 23, 2021

Section 68, 69A and 115BBE: Demonetization . Deposit of cash into bank. Where the assessee proves that regular bank deposits of cash from 01.04.2016 to 2.11.2016, as well as after demonetization and also Opening balance are commensurate with the accepted turnover then the addition was not warranted and it is directed to be deleted. ITAT- Gauhati on on 20 January, 2021 in the case of Nurul Islam, Nagaon vs Income Tax Officer, Ward-Nagaon, … A.Y. 2017-18

Section 68, 69A and 115BBE: Demonetization . Deposit of cash into bank. Where the assessee proves that regular bank deposits of cash from 01.04.2016 to 2.11.2016, as well as after demonetization and also Opening balance are commensurate with the accepted turnover then the addition…
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115BBE, 68, 69A-Unexplained money, AY 2017-18, Demonetization, ITAT Gauhati

January 23, 2021

When CIT can pass order u/s 263 by holding that the order passed by the AO is erroneous and prejudicial to the interest of the Revenue? ITAT KOLKATA passed the order on 6th Jan 2021 in the case of RUNGTA MINES LTD. vs. PCIT?

When CIT can pass order u/s 263 by holding that the order passed by the AO is erroneous and prejudicial to the interest of the Revenue? ITAT KOLKATA passed the order on 6th Jan 2021 in the case of RUNGTA MINES…
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263, 263-Revision of orders prejudicial to revenue, AY 2013-14, In Favour of Assessee, Kolkata tribunal

January 20, 2021

Consequences of absence of the notice u/s. 143(2) of the Act before framing the assessment order? Answer order liable to to be quashed. RAM NIWAS JAIN vs.ITO. ITAT DELHI on 07-Jan-2021. Section 148: Consequences of granting approval by CIT in a mechanical manner by putting only “Yes”. Answer order liable to to be quashed. RAM NIWAS JAIN vs.ITO. ITAT DELHI on 07-Jan-2021.

RAM NIWAS JAIN vs. INCOME TAX OFFICER IN THE ITAT DELHI BENCH ‘SMC’ H. S. SIDHU, JM. ITA NOS. 6908 & 6909/DEL/2019 07-Jan-2021 Section 147, 148, 143(2) AY 2010-11 Decision in favour of:Assessee Consequences of absence of the notice u/s….
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142(1), 143(3), 147, 148, AY 2010-11, Delhi Tribunal, In Favour of Assessee

January 12, 2021

Section 23(1)(c). Can AO make addition on account of notional rent when the property on rent in past is lying vacant in the relevant year and the assessee mention only the reason though no evidence of efforts made was submitted except the evidence that the property was on rent in next financial year.ITAT BOMBAY passed the order on Oct 30, 2019AY 2014-15 EMPIRE CAPITAL PVT. LTD. vs. ACIT. Decision in favour of assessee

EMPIRE CAPITAL PVT. LTD. vs. ASSISTANT COMMISSIONER OF INCOME TAX IN THE ITAT BOMBAY BENCH ‘SMC’ VIKAS AWASTHY, JM. & RAJESH KUMAR, AM. ITA No. 6204/MUM/2018 Oct 30, 2019 (2020) 181 ITD 0173 (Mumbai-Trib) Section 22, 23, 23(1), 23(1)(c),…
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143(3), 22, 23(1), 23(1)(c), Annual Letting Value of the property, AY 2014-15, ITAT Mumbai, notional rent

January 5, 2021