Judgement

The petitioner is challenging a ₹20.76 lakh tax demand for FY 2019–20, saying they never saw the show cause notice because it was only uploaded on the portal without any alert. After no response, the demand was finalized and their bank account was attached in 2026. They argue they would have replied if informed, as they did in a similar case for FY 2021–22.

When Silence Costs Lakhs: Contesting a Tax Demand Born from an Unseen Notice

An individual firecracker trader faced an assessment reopening and a Rs. 2,250,000 addition for unexplained purchases discovered in third-party search records.

Tax Assessment Refinement: Judicial Ruling on Profit Estimation vs. Full Addition

The ITAT granted full relief to Sunetra Ajit Pawar by quashing the Rs 32.14 crore addition, holding that vague diary entries and weak digital evidence were insufficient to establish unexplained income.

ITAT Mumbai Grants Full Relief to Sunetra Pawar in Rs 32.14 Crore Alleged Cash Transactions Case

The ITAT Ahmedabad rules that opening cash cannot be treated as unexplained merely due to non-disclosure in earlier ITRs if backed by financial capacity and reasonable explanation.

ITAT Holds Opening Cash Cannot Be Added Without Supporting Evidence

Court rules share buyback is capital reduction, not property receipt under undervaluation provisions.

HC Clarifies Buyback Transactions Outside Deemed Income Provisions

The ITAT Rajkot allowed Section 87A rebate on STCG where the total income does not exceed the limit of Rs 7 lakh and deleted the tax demand.

Explore Our Blogs

When Silence Costs Lakhs: Contesting a Tax Demand Born from an Unseen Notice

Tax Assessment Refinement: Judicial Ruling on Profit Estimation vs. Full Addition

ITAT Mumbai Grants Full Relief to Sunetra Pawar in Rs 32.14 Crore Alleged Cash Transactions Case

ITAT Holds Opening Cash Cannot Be Added Without Supporting Evidence

HC Clarifies Buyback Transactions Outside Deemed Income Provisions

Section 87A Rebate Cannot be Disallowed Against STCG If Income Is Below Rs 7 Lakh: ITAT