Appellate Authorities Can Entertain New Claims As Estoppel Does Not Apply In Tax Proceedings: ITAT Chennai

The Chennai bench of the Income Tax Appellate Tribunal (ITAT) has recently reiterated that the principle of estoppel has no application in tax proceedings and appellate authorities can entertain new claims from taxpayers even if they were not made in the original return. “the law is well settled to the extent that the decision of Hon'ble Supreme Court in the Goetze India Ltd. Vs. CIT (2006) 284 ITR 323 (SC) is confined to the power of Assessing Officer alone. There are no fetters on the...

ITAT Chennai Expunges Direction To Reopen Assessments For Years Not Under Appeal

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has expunged a direction issued by the Commissioner of Income Tax (Appeals) to reopen the earlier assessments of individual taxpayer Chandanmal Nagaraj, holding that such directions are beyond its powers. The coram comprising Judicial Member Manu Kumar Giri and Accountant Member Inturi Rama Rao passed the order on April 30, 2026. The case related to Assessment Year 2017–18. While granting relief for this year, the CIT(A) had also...

Mumbai ITAT Allows ₹13.59 Cr Write-Off On Overseas Subsidiary Investment As Business Loss

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 17 April held that losses from investments and loans to a wholly owned foreign subsidiary, made for business expansion and commercial expediency, are deductible as business losses even if irrecoverable. A Bench comprising Judicial Member Narender Kumar Choudhry and Accountant Member Prabhash Shankar further held that no proof of recovery efforts is required once the amount is written off in the books. It held: “The investment was...

ITAT Delhi Upholds Deletion Of ₹18.63 Crore, Says Direct Payment To Developer Not Unexplained Cash

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 24 April upheld the deletion of an addition of Rs. 18.63 crore made against Sachin Gaur, an individual taxpayer, and held that payments made directly by subsequent buyers to a developer cannot be treated as unexplained money of the seller under Section 69A of the Income Tax Act. A Bench comprising Judicial Member Yogesh Kumar U.S. and Accountant Member Manish Agarwal held: “It is observed that while making the said addition...

Cash Receipt In Agricultural Land Sale Not 'Unexplained' Where Duly Explained: ITAT New Delhi

The New Delhi Income Tax Appellate Tribunal (ITAT) on 17 April, held that cash receipts arising from a duly evidenced agricultural land sale could not be treated as unexplained cash credit under Section 68 where the identity of the payer, genuineness of the transaction, and supporting documentation were established. A Bench comprising Judicial Member Vimal Kumar and Accountant Member S Rifaur Rahman allowed the appeal filed by Angad Developers Pvt Ltd against the order of the Commissioner of...

Depreciation Cannot Be Combined With Revival Of Original Cost For Indexation Benefit: ITAT Ahmedabad

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 21 April held that a taxpayer cannot claim depreciation on an asset in earlier years and thereafter seek to revive its original cost of acquisition to claim higher indexation benefits while computing capital gains on its sale. A Bench comprising Judicial Member Siddhartha Nautiyal and Accountant Member Narendra Prasad Sinha dismissed an appeal filed by Shree Vaidehi Impex Pvt Ltd for assessment year 2016–17 against an order of...

ITAT Delhi Upholds Revision Order Against Amazon Retail Over Lack of Inquiry Into Expenses, Related Party Payments

The Income Tax Appellate Tribunal (ITAT) at Delhi has dismissed an appeal filed by Amazon Retail India Private Limited challenging a revision order under Section 263 of the Income Tax Act, holding that the assessing officer failed to conduct necessary enquiries in a case selected for complete scrutiny before accepting the return declaring a loss of Rs. 639.73 crore.A coram comprising Judicial Member Satbeer Singh Godara and Accountant Member Amitabh Shukla held that the assessment order suffered...

ITAT Delhi Deletes ₹1.05 Crore Addition On Dissolved Firm, Says Income Taxed In Surviving Partner's Hands

The Income Tax Appellate Tribunal (ITAT), Delhi Bench, directed deletion of a Rs. 1.05 crore addition on a partnership firm, holding that no addition could be made in the hands of a dissolved firm when the same receipts had already been offered to tax in the hands of the successor proprietorship. Judicial Member Sudhir Kumar and Accountant Member Manish Agarwal observed, "no addition could be made in the hands of the assessee firm which has already been dissolved in preceding year for the...

ITAT Ahmedabad Orders Recomputation Of Tax Addition On Steel Firm, Notes Lack Of VAT Cancellation Verification

The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has directed the recomputation of additions made by tax authorities against a steel manufacturer after finding that the Assessing Officer treated certain sales as non-genuine primarily on the basis of cancellation of a buyer's VAT registration without verifying when that cancellation took place. “There is no verification by the Assessing Officer about the date of cancellation of the VAT registration by VAT department,” the tribunal...

ITAT Kolkata Remands ₹13.83 Crore Unsecured Loan Case, Flags Lack of Creditor Verification

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) on 7 April 2026 held that additions under Section 68 cannot be deleted by the CIT(A) without allowing the Assessing Officer to verify the creditors and examine their directors, where the foundational facts regarding identity and genuineness remain untested. A Bench of Judicial Member George Mathan and Accountant Member Rakesh Mishra partly allowed the Revenue's appeal and remanded the matter involving Anushikha Investments Private...

ITAT Ahmedabad Quashes Reassessment As AO Shifts From Bogus Loan To LTCG From Penny Stocks

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 7 April 2026 quashed reassessment proceedings against taxpayer Pinkal Rajeshbhai Patel in a case involving alleged bogus loans. A Bench of Vice-President Dr. B.R.R. Kumar and Judicial Member Suchitra R. Kamble held that the Assessing Officer (AO) made the addition on a completely different issue of alleged bogus long-term capital gains from penny stocks. It observed: “The reason recorded for reopening and the addition...

ITAT Ahmedabad Remands ₹7.71 Crore Addition Over Possible Duplication In Bank Credits

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 7 April 2026 held that additions based on bank credits, accommodation entries and interest income must be properly reconciled to avoid duplication while determining taxable income. A Bench comprising Judicial Member TR Senthil Kumar and Accountant Member Narendra Prasad Sinha partly allowed the appeal filed by Money Assurance Services for assessment year 2014–15, observing: “The AO should have excluded the interest income and...