The amendment brought by Finance Act, 2014, which replaced the limitation period with a uniform 7 years, is prospective in nature, effective 1 October 2014. For financial years prior to the amendment, including FY 2013–14, the earlier limitation of 2 years (in cases where the TDS statement was filed) continues to apply.
Purpose of Section 56(2)(viib) is to prevent abuse in cases where companies receive unjustified premiums from outsiders. In cases of allotments made to existing shareholders in the same proportion, there is no real gain or benefit derived, and thus, the provision does not apply.
Delhi ITAT sets aside reopening under Section 147 due to lack of application of mind and borrowed satisfaction. Transaction found to be genuine sale of goods, not accommodation entry. Full judgment summary inside.
Delhi ITAT upholds CIT(A)'s order deleting ₹5.34 crore additions under Section 68 and ₹7.8 lakh disallowance. Assessee proved creditworthiness and genuineness of loans and expenses with sufficient documentation.
Delhi ITAT quashes reassessment under Section 147 as notice under Section 148 was sent to the wrong address. No valid service of notice renders the entire proceeding void ab initio.
Delhi ITAT holds that Section 56(2)(vii)(b) of the Income Tax Act does not apply to partners individually when property is purchased by a partnership firm. Section 263 revision order quashed.
Delhi ITAT holds that cash deposits during demonetization cannot be taxed under Section 68 when the books are audited, sales are genuine, and stock is properly reconciled. Read the detailed ruling.
Delhi ITAT rules that additions based on uncorroborated third-party statements cannot be sustained. Disallowance of interest on alleged cash loans deleted across multiple years.
Delhi ITAT dismisses Revenue's appeal in case of accommodation entries and commission payments, citing acceptance by Settlement Commission.
ITAT Delhi holds that an ex-director cannot challenge assessment orders passed on a struck-off company unless recovery proceedings are initiated under Section 179.