Income Tax Judgements

Debts pending since long – In most cases recovery barred by limitation – Debts written off in books of account – Allowable as deduction – A. Y. 1998-99

Held by the Hon`ble Court that it had come on the records that due to bad financial position no interest has been charged in order to safe guard the principal and assessee acted as an prudent person. Therefore no notional interest, on interest free l

Held that the disallowances under section 40(b) cannot be made for the specific services rendered by the partner which are not in the capacity of partner

Held by the Hon`ble Court that, order passed by commissioner u/s 263 without granting opportunity of personal hearing to assessee is violation of natural justice. Therefore revision order passed by the commissioner is not justified in law.

Held by the Hon`ble Court that, loose papers themselves not indicating receipt of undisclosed income and in the absence of opportunity of cross examination, additions on the basis of entries on loose papers found during search not justified in law.

Held by the Hon`ble Court that, unless the A.O. had rejected the entire books of accounts to be totally unreliable and finding extreme perversity in declaration of debts to be bad debts the stand of assessee cannot be ignored by the revenue. Therefor

Held by the Hon`ble Court that, what the court is required to check is whether material exists on record for the A.O. to form the "reason to believe" and mere change in opinion on an interpretation of a provision by itself without anything more can n

Held by the Hon`ble Bench that whenever the law provides any concession for its rigors, the observance and satisfaction of the qualifying criteria are presumed and section 44AD would not operate to curtail the scope of section 2(24) read with section

Held by the hon`ble bench that as the carry forward of loss is permitted only when the return is filed within due date of filing of return, the mistake is apparent from the records, thus the A.O. can rectify the same by passing a order under section