ITAT Nagpur Judgments — January 2018

The tribunal remanded the issue of negative cash balance to the AO for fresh consideration on a daily basis. The addition related to discount on commission was dismissed for the revenue and allowed for the assessee. The assessee's appeal regarding credit for surrendered income was dismissed.

The tribunal remanded the issue of negative cash balance to the AO for fresh consideration on a daily basis. The addition related to discount on commission was dismissed for the revenue and allowed for the assessee. The assessee's appeal regarding credit for surrendered income was dismissed.

The Tribunal held that the revision order was passed in violation of the principles of natural justice as the assessee was not given a reasonable opportunity of being heard. The Tribunal quashed the revision proceedings.

The Tribunal held that the Assessing Officer had applied his mind and allowed the claim after considering the assessee's submissions. Therefore, the AO's view was not erroneous, and the revisionary proceedings under Section 263 were not justified.

The Tribunal held that the Assessing Officer's assessment was neither erroneous nor prejudicial to the revenue. The CIT's observations regarding the cost of improvement and dalali expenses were found to be incorrect or based on insufficient grounds.

The Tribunal held that the assessee had provided sufficient evidence regarding the withdrawal of cash by partners in earlier years and its redeposit in the firm's capital account in the subsequent financial year. The creditworthiness and identity of the partners were not disputed.