ITAT Patna Judgments — September 2021

The Tribunal condoned the delay in filing the appeal before the ITAT. It also set aside the ex parte order of the CIT(A) and restored the appeal to the CIT(A)'s file for fresh adjudication.

The Tribunal set aside the impugned order and restored the matter to the Assessing Officer. The AO is directed to verify if the deposits relate to potato sales and, if so, restrict the addition to the profit element of those sales.

The Tribunal held that the incentive was a subsidy for the purchase of a van and thus covered by Explanation 10 to Section 43(1), not Section 28(iv). Therefore, it was not taxable as business income. The Tribunal also partly allowed the appeal regarding freight inward expenses, reducing the disallowance.

The Tribunal noted that the CIT(A) enhanced the addition without giving the assessee a reasonable opportunity to show cause. Therefore, the matter was set aside to the CIT(A) for fresh disposal.

The Tribunal confirmed the addition of Rs. 5,00,000 received from one shareholder as the assessee failed to provide evidence of his creditworthiness or tax assessment. However, for the other Rs. 5,00,000, the Tribunal admitted additional evidence and remanded the issue to the Assessing Officer for fresh verification.

The Tribunal set aside the ex-parte order of the CIT(Appeals) and remanded the matter back for fresh adjudication on merits. The CIT(Appeals) was directed to provide a proper opportunity of hearing and pass a reasoned order.

The tribunal held that the AO failed to refer the matter to the Departmental Valuation Officer (DVO) for determining the fair market value, which is a mandatory requirement. The matter was restored to the AO for fresh decision after referring to the DVO.