“commercial substance”

GAARSection 97Section 97140 judgments

ITO 19.3.1, MUMBAI vs. VARUN JAISINGH ASHER, MUMBAI

In the result, the appeal of the revenue bearing ITA No

ITA 8251/MUM/2025[2020-21]Status: DisposedITAT Mumbai06 Mar 2026AY 2020-21

Bench: Shri. Girish Agrawalito -19(3)(1), Mumbai Varun Jaisingh Asher Room No.405, 4Th Floor, Piramal Arkade Rise, 17Th Floor, 31-A, Vs. Chambers, Lower Parel Mumbai Carmichael Road, Cumballa Hills, 400012 Mumbai 400026 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Aiapa1791N (Appellant) (Respondent)

For Appellant: Shri. Dharan GandhiFor Respondent: Shri. Sushil Shengde, SR DR

Section 143(3)Section 250Section 54FSection 56(2)(x)

solely to claim exemption under section 54F. He held that the assessee had no independent or legitimate tenancy rights and that the arrangement lacked commercial substance. Despite the assessee submitting rent receipts, electricity bills, and MHADA verification, the AO disregarded these documents, citing that they were self-serving

CISCO COMMERCE INDIA PRIVATE LIMITED,BANGALORE vs. PRINCIPAL COMMISSIONER OF INCOME TAX, PCIT, BENGALURU-2, BANGALORE

In the result, the appeal by the assessee is dismissed

ITA 1235/BANG/2025[2021-22]Status: DisposedITAT Bangalore05 Mar 2026AY 2021-22

Bench: Shri Prashant Maharishi & Shri Soundararajan K.Assessment Year: 2021-22

For Appellant: Shri Nageshwar Rao, AdvocateFor Respondent: Smt. N. Hemalatha, CIT(DR)(ITAT), Bengaluru

Section 143(3)Section 154Section 194JSection 263Section 40

parties (ii) the parties are committed to perform their obligations, (iii) the right of parties, including payment terms are identified (iv) the contract has commercial substance and (v) the consideration is probable of collection. The transaction price reflects the amount of consideration to which the company expects to be entitled

INCOME TAX OFFICER 17(1)(1), MUMBAI, MUMBAI vs. ASHOK AMRITLAL NAYAK, MUMBAI

In the result, the appeal of the Revenue is dismissed and the Cross Objection of the assessee is dismissed as infructuous

ITA 3485/MUM/2025[2019-20]Status: DisposedITAT Mumbai27 Feb 2026AY 2019-20

Bench: Shri Narender Kumar Choudhry & Shri Jagadishassessment Year: 2019-20

Section 143(1)Section 145(3)Section 147Section 68

engaged in providing accommodation entries without actual delivery of goods. It was argued that the surrounding circumstances clearly demonstrated that the transactions lacked commercial substance and therefore the addition made by the Assessing Officer was justified. It was further submitted that the learned CIT(A), having accepted that the transactions

SHEETAL RAJEEV GADRE,MUMBAI vs. ITO WARD 34(3)(2), MUMBAI

ITA 8534/MUM/2025[2018-19]Status: DisposedITAT Mumbai26 Feb 2026AY 2018-19

Bench: SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER SHRI BIJAYANANDA PRUSETH (Accountant Member)

For Appellant: Shri Ashish ThakurdesaiFor Respondent: Shri Bhagirath Ramawat

Section 115BSection 144Section 144BSection 147Section 148ASection 151ASection 68

Supreme Court in Sumati Dayal v. CIT (214) ITR 801) have held that when transactions are found to be pre-arranged and devoid of commercial substance, the apparent cannot be accepted as real. 6.2.5 The assessee has also not filed any credible explanation regarding the identity of counterparties

ACIT CENTRAL CIRCLE 2(3), AHMEDABAD vs. INTAS PHARMACEUTICALS LIMITED, AHMEDABAD

In the result, the appeal of the Revenue is dismissed

ITA 1842/AHD/2024[2016-17]Status: DisposedITAT Ahmedabad24 Feb 2026AY 2016-17

Bench: Ms. Suchitra R. Kamble & Shri Narendra Prasad Sinhaasst. Commissioner Of M/S. Intas Pharmaceuticals Ltd., Vs. Income-Tax, Corporate House, S.G. Highway, Central Circle 2(3), Nr. Sola Bridge, Thaltej, Ahmedabad Ahmedabad-380 054 [Pan : Aaaci 5120 L] (Appellant) .. (Respondent) Appellant Represented By : Shri Sher Singh, Cit (Dr) Respondent Represented By: Shri S. N. Soparkar, Sr. Advocate & Ms. Urvashi Sodhan, Ar Date Of Hearing 07.01.2026 Date Of Pronouncement 24.02.2026 O R D E R Per Ms. Suchitra R. Kamble:-

Section 250

thoroughly verified, the legal position is supported by binding precedents, and the Revenue has failed to demonstrate that the transaction lacks commercial substance or that the claim falls afoul of any specific bar under the Act. All the revised grounds of appeal raised by the Revenue stand rejected.” 7.2 Before

M/S.RUNWAL COMMERCIAL ASSETS PVT LTD (NOW MERGED WITH WHEELABRATOR ALLOY CASTINGS LIMITED),MUMBAI vs. THE INCOME TAX OFFICER, WARD 15(3)(1), MUMBAI, MUMBAI

In the result, the appeal of the assessee is allowed

ITA 7623/MUM/2025[2023-24]Status: DisposedITAT Mumbai18 Feb 2026AY 2023-24

Bench: Shri Saktijit Dey & Shri Makarand Vasant Mahadeokarm/S. Runwal Commercial Ito Ward-15(3)(1), Assets Pvt. Ltd. (Now Aayakar Bhavan, Merged With Vs. Maharshi Karve Wheelabrator Alloy Road, New Marine Castings Limited) Lines, Churchgate, Runwal & Omkar Mumbai-400 020 Esquires, 4Th Floor, Off Eastern Exp. Highway Opp. Sion Chuan Bhatti Signal, Sion East, Mumbai-400 022 Pan/Gir No. Aajcr7366J (Applicant) (Respondent) Assessee By Shri Rakesh Joshi, Ld. Ar Revenue By Shri Umashankar Prasad, Ld. Dr Date Of Hearing 16.02.2026 Date Of Pronouncement 18.02.2026

Section 115BSection 143(3)Section 144BSection 250Section 68

Assessing Officer was not satisfied with the explanation furnished. He observed that the transactions amounted to routing of funds among related parties without commercial substance and the group entities had negligible or no operational income. The Assessing Officer also noted that mere movement of 4 M/s. Runwal Commercial Assets ... been circulated among related group entities, thereby evidencing round-tripping of funds. According to the learned CIT(A), where transactions lack commercial substance or the parties lack genuine financial capability, and the arrangement appears to be accommodation entries or routing of unaccounted money, the Assessing Officer is justified in invoking

ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(1), CHENNAI, CHENNAI vs. M/S RADAAN MEDIA WORKS INDIA LIMITED, TEYNAMPET

In the result, appeal of the revenue is dismissed

ITA 2136/CHNY/2025[2015-16]Status: DisposedITAT Chennai10 Feb 2026AY 2015-16

Bench: Shri Manu Kumar Giri & Shri Jagadishआयकर अपील सं./Ita No.2136/Chny/2025 "नधा"रण वष"/Assessment Year: 2015-16 V. Acit, M/S Radaan Media Works Central Circle 2(1), India Limited, Chennai-600034 14 Jayammal Road, Chennai -600018 [Pan: Aabcr3815L] (अपीलाथ"/Assessee) (""यथ"/Respondent)

Section 131Section 132Section 132(44)Section 133ASection 142(1)Section 153CSection 69C

production-related advances. They do not represent taxable receipts. The AO’s contrary inference is unsupported, lacking independent verification and any examination into the commercial substance of the transactions. ACIT Vs M/s Radaan Media Works India Limited :: 8 :: The assessee asserts that the AO has placed undue and disproportionate reliance

DCIT - 19(1), MUMBAI, LALBAUGH vs. BHARAT RAMJI BHAI MANEK, GRANT ROAD MUMBAI

In the result, the appeal of the revenue bearing ITA No

ITA 4339/MUM/2025[2014-15]Status: DisposedITAT Mumbai10 Feb 2026AY 2014-15

Bench: SHRI ANIKESH BANERJEE (Judicial Member), SHRI MAKARAND VASANT MAHADEOKAR (Accountant Member)

For Appellant: Shri Ronak DoshiFor Respondent: Shri Leyaqat Ali Aafaqui, (SR DR)

Section 10(38)Section 143(3)Section 250

trades, the assessee must prove the legitimacy of the price hike and absence of manipulation. 2. Orchestrated Nature of the Transaction: Preconceived Steps Lacking Commercial Substance Argument: The assessee's acquisition of preferential shares during the lock-in period, followed by sales post-lock-in through specific brokers (M/s. Samurai

COASTAL ENERGY PRIVATE LIMITED,CHENNAI vs. ACIT, CHENNAI

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 2305/CHNY/2012[2008-09]Status: DisposedITAT Chennai06 Feb 2026AY 2008-09

Bench: Shri S.S. Viswanethra Ravi & Shri Jagadishआयकर अपील सं./I.T.A. No.2305/Chny/2012 िनधा"रण वष"/Assessment Year: 2008-09 Coastal Energy Private Limited, Vs. The Assistant Commissioner Of 5, Buhari Buildings, Moores Road, Income Tax, Thousand Lights, Chennai 600 006. Company Circle I(3), Chennai. [Pan: Aaacc4160A] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri B. Ramakrishnan, Fca ""थ" की ओर से/Respondent By : Shri A. Sasi Kumar, Cit सुनवाई की तारीख/ Date Of Hearing : 10.11.2025 घोषणा की तारीख /Date Of Pronouncement : 06.02.2026 आदेश /O R D E R

For Appellant: Shri B. Ramakrishnan, FCAFor Respondent: Shri A. Sasi Kumar, CIT

Section 143(3)

submits that the mere fact that the credit note was dated before the invoice cannot be a valid ground to disregard its authenticity or commercial substance, particularly when the contract itself pre-dates both documents and governs the transaction. 31. The ld. AR drew our attention to sworn affidavit furnished

HAREON SOLAR SINGAPORE PRIVATE LIMITED,SINGAPORE vs. DCIT INT. TAXATION CIRCLE-2(1)(1), NEW DELHI

In the result, the appeal of the assessee in ITA no

ITA 2226/DEL/2024[2020-21]Status: DisposedITAT Delhi30 Jan 2026AY 2020-21

Section 112Section 143(3)Section 144C(5)

that the arrangement was primarily for tax avoidance.", "held": "The Tribunal held that the assessee's arrangement was primarily for tax advantage, lacking commercial substance or economic justification. The LOB clause of Article 24A of the India-Singapore DTAA was attracted, disentitling the assessee from treaty benefits. Consequently, the capital

ASSISTANT COMMISSIONER OF INCOME TAX, GANDHIDHAM vs. KAMLESH DEORAJ JAIN, GANDHIDHAM

In the result, the appeal of the Revenue is dismissed

ITA 594/RJT/2025[2017-18]Status: DisposedITAT Rajkot21 Jan 2026AY 2017-18

Bench: Dr. Arjun Lal Saini, Am. & Dr. Dinesh Mohan Sinha, Jm आयकरअपीलसं./Ita No. 594/Rjt/2025 "नधा"रणवष" / Assessment Year: (2017-18) (Hybrid Hearing) Assistant Commissioner Of Income Vs. Kamlesh Deoraj Jain, Tax, Bbz-N-108, Khanna Market, Plot No. 20/A, Sector No. 8, Gandhidham, Gandhidham Gandhidham Gujarat 370201 Gujarat 370201 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Adopj1769Q (Appellant) (Respondent) Appellant By : Shri Sunil Maloo, Ld. Ar Respondent By : Shri Abhimanyu Singh Yadav Ld. Sr. Dr Date Of Hearing : 01 / 12 /2025 Date Of Pronouncement : 21/ 01 /2026

For Appellant: Shri Sunil Maloo, Ld. ARFor Respondent: Shri Abhimanyu Singh Yadav Ld. SR. DR

Section 145(3)Section 147Section 148Section 250Section 68

circular trading, lacking any genuine business purpose. Lack of actual movement of goods, and suspicious financial flows. These factors point to the absence of commercial substance, suggesting that the transactions were intended solely to artificially inflate turnover. Furthermore, since the appellant has claimed the related expenditure. The appellant has failed

PROPERTY PLUS REALTORES,DELHI vs. PR CIT CENTRAL DELHI-2, DELHI

In the result, appeal filed by the assessee is allowed

ITA 3407/DEL/2025[2021-22]Status: DisposedITAT Delhi21 Jan 2026AY 2021-22

Section 132Section 143(2)Section 143(3)Section 145(3)Section 263

{"clean_text": "ITA Nos.3406 & 3407/Del/2025\n\nIN THE INCOME TAX APPELLATE TRIBUNAL\nDELHI “E” BENCH: NEW DELHI\n\nBEFORE SHRI

PROPERTY PLUS REALTORS,DELHI vs. PR, CIT CENTRAL DELHI 2, DELHI

In the result, appeal of the assessee is allowed

ITA 3406/DEL/2025[2020-21]Status: DisposedITAT Delhi21 Jan 2026AY 2020-21

Bench: Shri Yogesh Kumar U.S & Shri Manish Agarwal

Section 132Section 143(2)Section 143(3)Section 145(3)Section 263

that the issue in this present appeal may be summarised as to whether GAAR (General Anti-Avoidance Rules) like conclusions (impermissible avoidance arrangement/lack of commercial substance) could be imported into proceedings u/s 263 of the Act. It is submitted that GAAR is not simply applicable in the case ... partnership firm that is 30% and the rate applicable in the case of Indian Company, SIPL). The Ld. PCIT further refers to lack of commercial substance, a nomenclature used in the GAAR. However, it is humbly submitted that the GAAR threshold "Tax benefits Rs.3 Crore per year

HARDAYAL MILK PRODUCTS PRIVATE LIMITED,SHIKOHABAD vs. DCIT, CIRCLE-2(2)(1), FIROZABAD, FIROZABAD

In the result, the appeal preferred by the assessee is partly

ITA 342/AGR/2025[2013-14]Status: DisposedITAT Agra29 Dec 2025AY 2013-14

Bench: : Shri S. Rifaur Rahman & Shri Sunil Kumar Singhassessment Year: 2013-14

Section 143(2)Section 145(3)

Prashant Dairy were not genuine, despite there being no cogent evidence on record to demonstrate that such transactions were sham OR lacking in commercial substance. The learned AO, in fact, accepted the genuineness of the transactions, and no mismatch in quantitative OR financial records was established. 5. That

DY. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-I NOIDA, NOIDA vs. M/S RUDRA BUILDWELL HOMES PVT. LTD., DELHI

Accordingly, all the grounds of appeal taken by Revenue are dismissed

ITA 4119/DEL/2025[2022-23]Status: DisposedITAT Delhi24 Dec 2025AY 2022-23

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwaldy. Cit, M/S Rudra Buildwell Homes Central Circle-I, Private Limited, Noida-201301, Vs. D-53, Okhla, Phase-1, Uttar Pradesh. Delhi-110020. Pan-Aafcr6959P (Appellant) (Respondent) Dy. Cit, M/S Rudra Buildwell Projects Central Circle-I, Private Limited, Noida-201301, Vs. D-53, Okhla, Phase-1, Uttar Pradesh. Delhi-110020. Pan-Aaecr9589E (Appellant) (Respondent)

Section 142(1)Section 143(2)Section 143(3)Section 41(1)

basis of assumption that the reduction in loan value by the ARC did not result in benefit to the assessee, without appreciating that the commercial substance of the transaction indicated income in the hands of the assessee. 5. Whether on facts and circumstances of the case

AADARSH SURANA, CHENNAI,CHENNAI vs. DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 1(1), CHENNAI, CHENNAI

ITA 1840/CHNY/2025[2017-18]Status: DisposedITAT Chennai15 Dec 2025AY 2017-18

For Appellant: Shri. R.Venkata Raman, C.AFor Respondent: Shri. Shiva Srinivas, CIT

Section 142(1)Section 143(2)Section 143(3)Section 250Section 47Section 68

inflated. On the basis of these findings, the authorities below held\nthat the Business Succession-cum-Transfer Agreement was a sham\ntransaction, devoid of commercial substance, and accordingly treated the\nresultant amount as unexplained cash credit u/s.68 of the Act. A similar\nview has been taken

DURGA PRASAD SHARMA,JAIPUR vs. I.T.O. WARD 1(1), JAIPUR, JAIPUR

In the result, the appeal of the assessee is allowed

ITA 1038/JPR/2025[A.Y. 2018-19]Status: HeardITAT Jaipur20 Nov 2025

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Sh. G. M. Mehta, CAFor Respondent: Sh. Ghanshyam Meena, JCIT

Section 115BSection 148Section 2Section 69C

regardless of mode. Even where payments are made by cheques, the section applies if the corresponding expenditure is found to be fictitious or lacking commercial substance. In Tejua 8 Durga Prasad Sharma vs. ITO Rohit Kumar Kapadia v. DCIT (2018) 256 Taxman 213 (SC), the Supreme Court held that

SWISS RE ASIA PTE LTD,SINGAPORE vs. DEPUTY COMMISSIONER OF INCOME TAX, (INTERNATIONAL TAXATION) CIRCLE - 4(2)(2), MUMBAI, MUMBAI

In the result, we hold that the assessee does not have any permanent establishment in India, whether as fixed place

ITA 4092/MUM/2023[2021-22]Status: DisposedITAT Mumbai20 Nov 2025AY 2021-22

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

Section 144CSection 9(1)(i)

arises or is deemed to accrue or arise in India, and in the present factual context, the assessee satisfies these statutory conditions because the commercial substance of its business is intimately linked with Indian risks. 10.1. The Assessing Officer then turns to the activities performed in India by Swiss Reinsurance

SWISS RE ASIA PTE LTD,SINGAPORE vs. DEPUTY COMMISSIONER OF INCOME TAX, (INTERNATIONAL TAXATION) CIRCLE - 4(2)(2), MUMBAI, MUMBAI

In the result, both appeals of the assessee are\nallowed in the above terms

ITA 3178/MUM/2023[2020-21]Status: DisposedITAT Mumbai20 Nov 2025AY 2020-21

Section 144CSection 9(1)(i)

arises or is deemed to accrue or arise in India, and\nin the present factual context, the assessee satisfies these\nstatutory conditions because the commercial substance of its\nbusiness is intimately linked with Indian risks.\n10. 1. The Assessing Officer then turns to the activities\nperformed in India by Swiss

INCOME TAX OFFICER 1(1)(3), AHMEDABAD, AHMEDABAD vs. SURESHKUMAR BHIKALAL THAKKER, AHMEDABAD

In the result, the appeal of the Department is allowed

ITA 1593/AHD/2025[2015-16]Status: DisposedITAT Ahmedabad06 Nov 2025AY 2015-16

For Appellant: Shri Dipen Shukhadia, ARFor Respondent: Shri Ravindra, Sr. DR

Section 10(38)Section 147Section 69A

standing. In this background, the\nsudden acquisition of 31,000 shares of Safal Herbs Ltd., an obscure\ncompany with no known financial credibility or commercial substance,\ndefies logic and normal human conduct. The assessee has failed to justify\nthe rationale for such an investment or to explain why he chose

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