ITAT Indore Judgments — September 2021

The Tribunal held that the forfeited security deposit was a capital receipt and not taxable. It also held that the payments made on behalf of EION Telecom were reimbursements, and since EION Telecom had deducted TDS on these amounts, the assessee was not liable for TDS disallowance.

The Tribunal held that the addition of Rs. 1,60,00,000/- solely based on a partner's statement under section 132(4) was not justified without corroborating incriminating material. It also found that other additions related to unexplained stock were rightly deleted by the CIT(A) based on documentary evidence.

The Tribunal held that the penalty was not sustainable as the show-cause notice did not specify whether the penalty was for concealment of income or for furnishing inaccurate particulars of income. The Tribunal also noted that the additions on which the penalty was based were on an estimated basis.

The Tribunal confirmed the addition of Rs. 50,000 as the assessee failed to provide contrary material. However, the Tribunal dismissed the addition of Rs. 11,30,80,000, finding that the AO relied on third-party information without corroborative evidence and failed to discharge the onus of proof.

The Tribunal held that the assessee had provided sufficient evidence, including bank statements, audited balance sheets, and repayment of loans with TDS, to establish the identity, genuineness, and creditworthiness of the loan creditors. Therefore, the addition made by the AO was unjustified.

The Tribunal held that the assessee had provided sufficient evidence, including bank statements, audited balance sheets, and repayment of loans with TDS, to establish the identity, genuineness, and creditworthiness of the loan creditors. Therefore, the addition made by the AO was unjustified.

The Tribunal held that the reassessment proceedings were bad in law because the Assessing Officer failed to properly serve the notice under Section 143(2) on the assessee within the stipulated time. Consequently, the assessment order was quashed.