AI-curated court updates, legal developments, and practice-area insights for Indian legal professionals.
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.
The ITAT ruled that there was insufficient evidence to classify a cash shortage as a deemed dividend since it was linked to a proprietary concern. This highlights the necessity for clear financial documentation.
The Calcutta High Court dismissed the Income Tax Department’s appeal due to compliance with the low tax effect threshold, reinforcing the requirement for exceptional circumstances to justify such appeals.
The ITAT upheld an addition of ₹2.78 Crores for undisclosed aluminium stock, finding the taxpayer's claims of storing 28,000 kgs in a small premises implausible.
The ITAT has remanded the transfer pricing adjustment under Section 92CA, citing errors in the earlier calculations and directing fresh adjudication by the Assessing Officer and TPO.