AO can’t disallow cost of improvement merely relying on enquiries made with assessee’s neighbour: ITAT

INCOME TAX : Where assessee had purchased a flat and incurred expenditure of Rs. 23 lakhs for purpose of renovating house and Assessing Officer, merely, based on enquires made with neighbours, disallowed entire expenditure claimed by assessee and Commissioner (Appeals) opining that Assessing Officer should have enquired through a builder who constructed building instead of neighbour,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000318258/ao-can’t-disallow-cost-of-improvement-merely-relying-on-enquiries-made-with-assessee’s-neighbour-itat.aspx

Adjudication proceedings can't be deferred on ground that criminal proceedings are pending being both separate proceedings: HC

EX/ST/VAT : Adjudication and criminal prosecution being separate proceedings, adjudication cannot be deferred on ground that criminal proceedings are pending and witnesses to be cross-examined in adjudication may be witnesses in prosecution proceedings also

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HC quashed assessment order as only 30 hours were given to respond to SCN that too in lockdown period

INCOME TAX : Where from records it was evident that petitioner had raised grievance and also filed an adjournment request against SCN giving merely 30 hours to respond, that too in COVID-19 lockdown period, impugned assessment order holding that no reply or explanation had been furnished, was to be quashed

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MoU showing tax to be paid by another Co. isn’t binding on AO; tax can be recovered from director if not paid by Co.: HC

INCOME TAX : Where Assessing Officer passed an order under section 179 against assessee-director of a company to recover tax dues of said company from assessee, since despite all possible efforts made by department only a small part of tax dues could be recovered from company, and there was no other option left for department apart from recovering same from assessee director, impugned order under section 179 passed against assessee was justified

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317314/mou-showing-tax-to-be-paid-by-another-co-isn’t-binding-on-ao-tax-can-be-recovered-from-director-if-not-paid-by-co-hc.aspx

HC dismissed vexatious appeal filed against CA whose audit report passed judicial scrutiny

INCOME TAX : Delhi HC dismisses with Rs.50K costs vexatious appeal against CA whose report passed judicial scrutiny

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AO can’t compute profit based on estimation if audit report didn’t give any adverse finding regarding books of account

INCOME TAX : Where land initially purchased by assessee was a rural agricultural land and was thus not a capital asset land, per provision of section 2(14)(iii) till date of it being diverted into a non-agricultural land, capital gain accruing to assessee till date of diversion of land shall be exempt from tax

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317498/ao-can’t-compute-profit-based-on-estimation-if-audit-report-didn’t-give-any-adverse-finding-regarding-books-of-account.aspx

Police cannot register FIR against Tax Officers and demand diary seized during search: HC

INCOME TAX : Police should not be "acting at the behest of" MLA from whose premises a diary was seized in a search u/s 132

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