Latest court orders, judgments, and legal developments from Indian courts — AI-curated and summarized.
The ITAT has deleted a tax addition due to a clerical error in the audit report, asserting that such minor errors do not warrant income tax assessments.
The ITAT has ruled that additions made under Section 56 without determining transfer details are unsustainable, highlighting issues of misclassification.
The ITAT has ruled that for deductions of foreign travel and hotel expenses against capital gains under Section 48, there must be direct evidence linking the expenses to the transfer of property.
The ITAT has ruled that clerical errors in tax audit reports do not constitute taxable income, reaffirming that such mistakes cannot justify tax additions or disallowances.
The ITAT has ruled that a delay in filing an appeal by an NRI will be condoned if the individual pursued remedy before the incorrect forum under a bona fide belief.
The ITAT ruled that Section 2(22)(e) of the Income Tax Act cannot apply where cash shortages pertain to proprietary concerns rather than corporate entities.
The ITAT mandated the application of the LIBOR rate for associated enterprises’ loans in USD, moving away from the State Bank of India’s PLR.
The ITAT enforces the principle that income cannot be taxed without actual accrual, thus removing unjustified notional interest additions on advances.
The ITAT has directed the adoption of the LIBOR rate for loans reducible in USD and deleted notional interest adjustments on business advances.
The ITAT restored cases to the Assessing Officer, directing a fresh consideration of all evidence due to the lack of verification for e-filing submissions.
The ITAT confirmed the deletion of an adjustment related to comparables, noting that maintenance payments were not considered substantial for the assessment year. This ruling clarifies the treatment of IT infrastructure expenditures.
The ITAT Patna ruled that purchases cannot be wholly disallowed if they correlate directly with verified sales, emphasizing the importance of stock and sales documentation in tax assessments.