ITAT Mumbai Judgments — September 2016

The Tribunal upheld the CIT(A)'s direction to treat Rs. 50,00,000/- as contractual receipt, remanding the matter to the AO to verify the genuineness of expenses and net transaction value. The Tribunal found no infirmity in the CIT(A)'s order.

The Tribunal noted that the tax effect was below the monetary limit of Rs. 10 lakh as per CBDT instructions. Therefore, the appeal filed by the Revenue was not maintainable.

The Tribunal held that the issue was debatable and that a debatable issue does not automatically lead to concealment of income or furnishing of inaccurate particulars. Reliance was placed on various judicial pronouncements, including the Supreme Court decision in CIT vs. Reliance Petro Products Pvt. Ltd.

The Tribunal held that since the assessee admitted to not carrying out any business activity until 19/12/2014 and had surrendered its membership cards, the disallowance of business loss was justified.