ITAT Amritsar Judgments — December 2025

The Tribunal observed that the assessee had significant prior withdrawals totaling Rs. 26 Lacs and, in the absence of any explanation for their utilization for other purposes, presumed that the subsequent cash deposits were sourced from these earlier withdrawals. Consequently, the Tribunal restricted the addition to Rs. 3 Lacs, modifying the AO's original addition.

The Tribunal observed that while the case lacked factual evidence of charitable activities as pointed out by the CIT(E), the society's stated objectives were noble. Therefore, in the interest of justice, the Tribunal remanded both matters back to the CIT(E), granting the assessee a further opportunity to produce additional documentary evidence, including photographs, for subsequent periods to prove its charitable activities and satisfy the Commissioner for registration under Section 12AB and approval under Section 80G.

The Tribunal acknowledged the dissolution of the partnership firm and the continuation of business as a proprietorship. However, it remitted the matter back to the AO for proper verification of the dissolution deed, audited accounts, and balance sheet of the proprietorship. If these documents are found to be correct and in order, the addition made by the AO shall be deleted, and the CIT(A)'s order deleting the addition will be sustained.

The Tribunal considered the re-registration certificate submitted by the assessee and decided to remand the case back to the CIT(E) for fresh consideration. The CIT(E) is directed to examine the certificate and proceed as per law, with the Tribunal specifically stating it has not expressed any opinion on the merits of the case.

The Tribunal condoned the 369-day delay in filing appeals, accepting the assessee's medical grounds. Recognizing the assessee's inability to present evidence during lower appellate proceedings, the Tribunal remanded both appeals to the CIT(A) for fresh adjudication on merits. The assessee was directed to submit all supporting documents for the source of cash deposits and credit entries.

The Tribunal acknowledged the lack of factual evidence for charitable activities but, considering the society's noble charitable objects and the assessee's plea for further opportunity, remanded both matters back to the CIT(E). The CIT(E) is directed to provide the assessee with a fair chance to produce all necessary documents and evidence, including for subsequent periods and photographs, to verify the charitable activities. The Tribunal explicitly stated that it expressed no opinion on the merits, leaving the ultimate satisfaction for registration with the CIT(E).

The Tribunal condoned the delay in filing appeals due to the assessee's critical health condition. Recognizing that the CIT(A) enhanced income and the assessee was unable to furnish supporting documents due to medical indisposition, the Tribunal remanded both appeals to the Ld. First Appellate Authority for fresh adjudication on merits, providing the assessee a fair opportunity to be heard and submit all supporting documents.

The Tribunal condoned the delay in filing the appeals, citing the previous counsel's failure to communicate, but imposed a token cost of Rs. 5,000/- on the assessee for negligence. Both appeals were remanded back to the CIT(A) for fresh adjudication on merits, with directions for the assessee to fully cooperate and submit all documentary evidence.

The tribunal condoned the substantial delay in filing the appeals, acknowledging the assessee's negligence but allowing the appeals in the interest of justice, albeit with a token cost of Rs. 5,000. Both appeals were remanded back to the CIT(A) for fresh adjudication on merits, with directions for the assessee to submit explanations and evidence and cooperate fully. The tribunal refrained from expressing any opinion on the merits of the penalty itself.

The Tribunal, relying on principles from the Supreme Court case of Collector, Land Acquisition vs. Mst. Katiji & Ors. and natural justice, condoned the delay in filing the appeal. The CIT(A)'s order was set aside, and the case was remanded to the CIT(A) for a de novo adjudication on merits, with a specific direction not to raise the issue of delay again. The appeal was allowed for statistical purposes.

The Tribunal condoned the delay in filing appeals before the CIT(A), noting that the appeals were dismissed without adjudication on merits. It remanded both appeals back to the CIT(A) for fresh adjudication on merits. The Tribunal also imposed a token cost of Rs. 2,000 on the assessee for being a "habitual defaulter" in filing appeals, directing the amount to be paid to the Prime Minister's National Relief Fund.

The Tribunal held that rejecting registration solely due to a minor technical error in selecting a section code, when the genuineness of activities and financials are not disputed, is a curable defect. Relying on past decisions, the Tribunal remanded the matter back to the CIT (Exemptions) to either treat the application as correctly filed or provide the assessee an opportunity to rectify the defect and reconsider the application afresh on merits.

The Tribunal acknowledged the assessee's claim of presumptive income under section 44AD, referencing the principle that individual cash deposits need not be explained if they have nexus to gross receipts when books are not maintained. However, considering the bank account's opening date and the purchase of Fixed Deposit Receipts (FDRs), the Tribunal found that not all receipts could be deemed business receipts. Therefore, the Tribunal confirmed a lump sum addition of Rs.3 Lacs, deleting the remaining addition, and directed the AO to recompute the assessee's income.

The Tribunal condoned the delay in filing the appeal, acknowledging the assessee's circumstances. It set aside the impugned order and restored the matter back to the Ld. CIT(A) for de novo adjudication on merits, directing the assessee to present and prove their case afresh.

The Tribunal held that a profit rate of 6% should be applied on the entire receipts of Rs.171.36 Lacs, noting that the business dealt with highly competitive commodities and that cash deposits should not be bifurcated as the sole source was business receipts. Consequently, it directed the Assessing Officer to re-compute the income, clarifying that the separate addition of unexplained cash deposits was not justified.

The Tribunal noted that the CIT(A) failed to consider various documents submitted by the assessee, such as loan files and bank statements, which were material to substantiating the cash deposits. Consequently, the Tribunal restored the matter back to the CIT(A) for a de novo adjudication on merits, with directions for the assessee to present and prove its case.

The Tribunal condoned the assessee's cumulative delay in filing appeals both before itself and the CIT(A), noting that the appeals before CIT(A) were dismissed ex-parte and not adjudicated on merits. It imposed a token cost of Rs. 2,000/- on the assessee for being a 'habitual defaulter' and remanded both appeals back to the CIT(A) for fresh adjudication on merits, with a direction for the assessee to cooperate.

The Tribunal upheld the assessee's method for determining ALP of electricity at Rs. 6.07 per unit, finding it reasonable as it was below the general tariff rate of Rs. 8.75 per unit for biomass-based renewable energy projects, and thus allowed the related ground of appeal. It also found an error in the calculation of steam value due to double deduction of losses, rendering the Rs. 1.67 crore addition unsustainable. However, the Tribunal dismissed the appeal regarding the disallowance of CSR expenses under Section 80G, stating they are not allowable deductions as claiming them would defeat the basic requirement of CSR expenditure.

The Tribunal, upholding the principles of natural justice, set aside the impugned orders for all assessment years. The appeals were restored to the CIT(A) for de novo adjudication on merits, with a specific direction to the assessee to present and prove its case forthwith.

Considering the principles of natural justice, the Tribunal set aside the impugned orders for all assessment years. It restored the appeals back to the Ld. CIT(A) for fresh adjudication on merits, directing the assessee to plead and prove its case forthwith.

The Tribunal, applying principles of natural justice, admitted the appeal and restored the case to the CIT(A) for de novo adjudication on merits. The assessee was directed to plead and prove their case forthwith. The appeal was accordingly allowed for statistical purposes.

The Tribunal, invoking principles of natural justice, condoned the 97-day delay and set aside the CIT(A)'s order. The case was restored to the CIT(A) for a de novo adjudication on merits, with a direction not to raise the delay issue again and for the assessee to present its case forthwith.

The Tribunal, considering principles of natural justice, set aside the orders of the lower authorities. The appeals were restored to the CIT(A) for a de novo adjudication, granting the assessee a fresh opportunity to present and substantiate their case.

The tribunal deleted the addition related to the unexplained increase in the capital account, agreeing with the assessee that the previous year's carried-forward capital, supported by records, could not be disputed. For the disallowance of bank interest, the tribunal remanded the issue back to the AO for fresh consideration, directing the assessee to furnish evidence to prove that the loan against which interest was claimed was fully utilized for business purposes under Section 36(1)(iii).

The Tribunal observed that the assessee's business predominantly involved cash sales and the cash deposits were duly recorded in the business cash book. Consequently, the addition of Rs.3,87,718/- as unexplained income was not sustained and was deleted. The reduction in Gross Profit directed by the CIT(A) was also reversed.

The Tribunal found that the assessee had substantial agricultural land holdings and agricultural activities were proven through documentary evidence. It accepted that the cash deposit was satisfactorily explained partly by earlier cash withdrawals of Rs. 30 lakhs and partly by agricultural income earned during April to November 2016. Consequently, the Tribunal deleted the addition of Rs. 26.73 lakhs made under Section 69A.

The Tribunal held that the nature and source of the cash deposit, stemming from genuine business sales, were established and recorded in the assessee's books of account. The violation of RBI/Government notification by accepting SBNs beyond the stipulated date does not automatically render the deposit unexplained for tax purposes under Section 69A, especially when the sales themselves were accepted by the AO. Sustaining the addition would lead to double taxation as the sales were already included in the gross turnover. Consequently, the addition of Rs. 3,66,000/- made under Section 69A was not legally justified and was deleted.

The Tribunal ruled that the CIT(A) was unjustified in dismissing the appeal as 'not admitted' after having considered the case on merits and obtaining a remand report. It accepted the assessee's computation of LTCG at Rs. 37.02 lakhs, based on the base year valuation (Rs. 3,700/marla) previously accepted for a brother's similar case, and allowed deductions under sections 54B and 54F for reinvestments. All bank credits, including those from land sales, cheque returns, and transfers from family members, were found to be sufficiently explained and accepted based on the remand report.

The Tribunal observed that the assessee had not provided sufficient documentary evidence to substantiate claims of sub-contracting or to verify the sundry creditor balance before the lower authorities. While noting the assessee's repeated requests for adjournment and lack of preparedness, the Tribunal, in the interest of justice, remanded the case back to the CIT(A) to grant the assessee one final opportunity to present all necessary documentary evidence and proper explanations for the discrepancies.

The ITAT held that the CIT(A) should have provided the assessee an opportunity to explain the significant delay of 1275 days before dismissing the appeal. The matter was remanded back to the CIT(A) to reconsider the condonation of delay and, if satisfactorily explained, to proceed to dispose of the appeal on its merits.