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Court quashes draft tax assessment order, rules company not an ‘eligible assess…

The court examined whether the Assessing Officer was competent to pass a draft assessment order under Section 144C(1) of the Income Tax Act against the petitioner company. The petitioner argued that it did not fall under the definition of an “eligib…

ITAT holds assessment order time-barred under section 143(3) for AY 2014-15

The case involves the assessee’s appeal challenging the correctness of the Dispute Resolution Panel’s (DRP) order dated 26.07.2018 in the matter of assessment under section 144(C)(1) r.w.s. 143(3) of the Income Tax Act 1961 for the assessment year 2…

AO’s can issue draft assessment order in income or loss variation cases only

This case involves a dispute between the Commissioner of Income Tax - International Taxation and a company over the validity of Final Assessment Orders for the years 2014-15 and 2015-16. The Income Tax Appellate Tribunal (ITAT) had ruled that these …

Bombay ITAT allows trader’s appeal, directs AO to restrict additions to GP rate…

The case involves appeals filed by an assessee, a trader of ferrous and non-ferrous metals, against the CIT(A)’s order confirming the AO’s ad-hoc disallowance of 12.5% of trading purchases from alleged hawala parties. The ITAT set aside the CIT(A)’s…

BGR Energy Systems embroiled in bogus purchases case, court upholds tax departm…

This case revolves around BGR Energy Systems Ltd. (BGRESL), a company engaged in manufacturing capital goods and executing EPC contracts. During a search operation, the Income Tax Department found evidence suggesting that BGRESL had obtained bogus p…

Only the profit from bogus purchases, not the entire amount, should be taxed if…

The case involves an appeal by the Revenue against the order of the Income Tax Appellate Tribunal (ITAT) regarding the treatment of bogus purchases made by the assessee. The Revenue contended that the entire amount covered by such purchases should h…

No books of accounts are to be maintained, ITAT orders deletion of income add b…

The Income Tax Appellate Tribunal (ITAT) has allowed an appeal challenging additions made by the Assessing Officer (AO) to the appellant's income. The appellant, a kirana merchant, was not required to maintain any books of account as per Section 44A…

Govt. of Kerala’s skill development program not exempt from GST, rules Authorit…

The Additional Skill Acquisition Programme Kerala (ASAPK), a company owned by the Government of Kerala, sought an advance ruling on whether the educational courses conducted by them are exempt from Goods and Services Tax (GST) under Notification No.…

AO can't solely rely on forced confessions during survey for add backs.

In a recent case involving Smt. Usha Rani Talla, the ITAT upheld the deletion of additions made by the AO to her income based on a statement recorded during a survey under Section 133A of the Income Tax Act. The additions pertained to Rs. 20 lakhs t…

How much can AO add back to your income if you've unverified creditors?

In a recent case, the ITAT restricted the addition made by the Assessing Officer (AO) under Section 68 of the Income Tax Act, 1961, on account of unverified/non-existent/bogus sundry creditors in the books of the assessee. The assessee, an individua…

Mere circular book entries can't be added as bogus purchases

In a recent case, the Tribunal partially upheld the addition of Rs. 13,02,88,386/- made by the Assessing Officer (AO) under Section 69C of the Income Tax Act, 1961, on account of alleged bogus purchases. The assessee, a corporate entity trading in g…

No-show of parties alone can't label purchases as bogus

The Income Tax Appellate Tribunal (ITAT) recently ruled in favor of GTM Builders & Promoters Pvt. Ltd., dismissing the Assessing Officer's (AO) allegations of bogus transactions. The AO had disallowed purchases worth Rs. 3,35,87,118 made from four p…