ITAT Ranchi Judgments — March 2018

The Tribunal upheld the CIT(A)'s deletion of the addition, finding that no fresh investment was made and the amount represented maturity proceeds of earlier investments. Regarding interest under Section 234B, the Tribunal held it should be charged on declared returned income, not assessed income, following jurisdictional High Court decisions.

The Tribunal held that the penalty under Section 271(1)(c) was not sustainable due to a defective show cause notice, following the Supreme Court's dismissal of an SLP on a similar issue. For the penalty under Section 271AAA, the Tribunal found that the assessee satisfied the exceptions provided in the Act, leading to its cancellation.

The Tribunal deleted the ad-hoc disallowances made on account of advertisement and entertainment expenses, finding them unsustainable. The issue of dividend distribution tax was remanded to the AO for fresh adjudication. The charging of interest under section 234B was directed to be modified in line with High Court decisions.