ITAT Chandigarh Judgments — October 2021

The Tribunal held that the PCIT's revisionary order was beyond the scope of Section 263 as the PCIT himself did not conduct independent inquiries to establish the AO's order as erroneous. The PCIT merely restored the matter to the AO for fresh examination.

The Tribunal held that the amendments made by the Finance Act, 2021, to Sections 36(1)(va) and 43B of the Act are prospective and applicable from Assessment Year 2021-22 onwards. Therefore, the disallowance for the impugned year (2019-20) based on these amendments cannot be sustained.

The Tribunal upheld the CIT(A)'s decision to delete certain additions, particularly concerning alleged unaccounted receipts from Mukut Hospital. The Tribunal found that the assessee had accounted for the amounts in their books and the Revenue failed to present contrary evidence.

The Tribunal upheld the CIT(A)'s decision, finding that the advances were for land purchase at arm's length price and that salary payments were not excessive or unreasonable given the services rendered. The Tribunal found no infirmity in the CIT(A)'s order.