The AO failed to correctly compute the undisclosed income after ...

Income Underassessment Due to Incorrect Computation and Failure to Verify Evidence.

Case Laws Income Tax

September 10, 2024

The AO failed to correctly compute the undisclosed income after considering the correct sale value of land as per Form 26AS. The assessee claimed that one of the lands in Form 26AS pertained to "Vaibhav Corporation Pvt. Ltd." and not to him, requiring further verification by the AO. However, the AO failed to make the correct addition u/s 68 and failed to consider the cash deposit, resulting in underassessment of income. The PCIT invoked revision proceedings u/s 263, despite the assessee providing evidence that the sale of property was done by "Vaibhav Corporation Pvt. Ltd." and not by the assessee, including the relevant Form 26AS and a letter from the Sub-Registrar confirming the same. The ITAT held that when such evidence was filed, the PCIT should have dropped the revision proceedings, as incorrect calculation of income is rectifiable u/s 154 and not by invoking Section 263. The ITAT quashed the PCIT's revision order and allowed the assessee's appeal.

View Source

← Previous Next →

The AO failed to correctly compute the undisclosed income after ...

Income Underassessment Due to Incorrect Computation and Failure to Verify Evidence.

Case Laws Income Tax

September 10, 2024

You may also like:

CESTAT, an Appellate Tribunal, reviewed the revocation of a customs broker's license and related penalties u/s various regulations. The charges included failure to...

The assessee failed to file income tax returns and produce books of accounts. The Commissioner of Income Tax (Appeals) passed a detailed order computing income after...

The Corrigendum to Notification No. 02 of 2024, issued by the Directorate of Systems under the Ministry of Finance, Government of India, addresses a clarification...

The assessee university's application for registration u/s 10(23C)(vi) was rejected due to non-submission of audited accounts and failure to provide necessary...

Assessee voluntarily declared income under "income from other sources" in return. AO disallowed deduction claimed for coordination and settlement expenses due to lack of...

Interest income on tax refund, though required to be reported under 'income from other sources', was erroneously shown as business income by assessee firm. Despite...

The court dismissed the petitioner's appeal due to non-compliance with statutory requirements, specifically the failure to submit valid proof of payment of the mandatory...

The assessee failed to file the original return of income, and the Assessing Officer initiated penalty proceedings for underreporting income. The assessee's authorized...

Assessee received compensation for transferring rights, rightly assessed as income from other sources, not capital gains. AO's determination of notional rent at Rs. 2.01...

The Motor Accident Claims Case (MCC) - Computation of income of the deceased for passing award - computation of future prospects - Taking into consideration the Salary...

The case involves the validity of assessments u/s 153A and 132 of the Income Tax Act. In the absence of incriminating material seized during the search, assessments...

The appeal filed by the assessee company was dismissed by the Income Tax Appellate Tribunal on the grounds that the Form 36 (memo of appeal) was not duly verified as per...

Unexplained deposits - the CIT (A) has neither verified the evidence by herself nor has called for any remand report from the AO, but has summarily accepted the evidence...

Seizure of tobacco and loss of the same due to file - Liability of central excise department - Whether the Trial Court has committed error of facts and law in passing...

The Customs Broker (CB) was alleged to have violated Regulation 10(n) of the Customs Broker Licensing Regulation, 2018, for failing to verify the antecedents and actual...

Quick Updates: