ITAT Weekly Roundup

This weekly round-up encapsulates the key stories related to theIncome Tax Appellate Tribunal

(ITAT) reported at Taxscan, from March 1, 2026 to March 8, 2026.

Interest on Foreign Currency Loan to AE at Rate Higher Than Internal CUP is at Arm’s Length: ITAT Varun Beverages Limited vsAssistant Commissioner of Income Tax, Central Circle-7, New Delhi CITATION : 2026 TAXSCAN (ITAT) 270

The Income Tax Appellate Tribunal (ITAT), NewDelhi, held that interest on foreign currency loan to Associated Enterprises(AE) at a rate higher than internal CUP is at arm’s length.

The ITAT concurred with the submissions of the assessee and referred to Micro Ink Limited v. Additional Commissioner of Income Tax, Vapi Range (2015). The bench, comprising Manish Agarwal (Accountant Member) and Yogesh Kumar U.S. (Judicial Member), held that the reasoning in the assessment orders is arbitrary and allowed the appeal for the Assessment Years 2016-17, 2017-18 and 2018-19, thereby deleting the additions made by the AO and confirmed by the CIT(A).

No Disallowance u/s 14A Where No Exempt Income Earned: ITAT Upholds Deletion of ₹15.42 Cr Addition for Adani Logistics Deputy Commissioner of IncomeTax vs Adani Logistics Ltd CITATION : 2026 TAXSCAN (ITAT) 271

The Income Tax Appellate Tribunal, Ahmedabad Bench, held that no disallowance under Section 14A of the Income Tax Act, 1961 can be made where no exempt income is earned during the relevant assessment year. The Tribunal upheld the order of the Commissioner of Income Tax (Appeals) (CIT(A)) in deleting the addition of ₹15,42,24,483 made against Adani Logistics Ltd.

In light of facts and circumstances, the tribunal held that CIT(A) had rightly deleted the addition made under Section 14A of the Act, as the respondent did not earn any exempt income during the year. Accordingly, the ground taken by the Revenue was dismissed.

No Bar on Deduction u/s 80G for CSR Donation to Eligible Trust: ITAT Upholds ₹29 Lakh Relief to Adani Logistics Deputy Commissioner of IncomeTax vs Adani Logistics Ltd CITATION : 2026 TAXSCAN (ITAT) 271

The Income Tax Appellate Tribunal, Ahmedabad Bench, held that there is no bar on claiming deduction under Section 80G of the Income Tax Act, 1961 in respect of CSR (Corporate Social Responsibility) expenditure, where the donation is made to an eligible trust.

The ground taken by the Revenue Department was dismissed by the Tribunal.

No Fresh Reassessment after 4 years when Facts Were Fully Disclosed: ITAT DCIT vs Rajan Kumar CITATION : 2026 TAXSCAN (ITAT) 272

The Income Tax Appellate Tribunal (ITAT) Delhi Bench has dismissed the appeal and allowed the cross objection, ruling that reassessment proceedings initiated beyond four years were legally unsustainable and that additions under Section 69A cannot stand without proof of unexplained money.

The bench of Sudhir Kumar (Judicial Member) and Renu Jauhri (Accountant Member) thereby dismissed the revenue’s appeal and allowed the assessee’s cross objection.

₹60 Lakh Loan Addition u/s 68 Deleted as AO Relied on Assumptions, Not Evidence: ITAT Upholds CIT(A) Decision ACIT vs M/S SPARSH PROPERTY CITATION : 2026 TAXSCAN (ITAT) 273

The Income Tax AppellateTribunal (ITAT) upheld the Commissioner of Income Tax (Appeals) [ CIT(A) ] order, deleting an addition of ₹60 lakh made under Section68 of the Income Tax Act, 1961 and ruling that the Assessing Officer relied on presumptions and assumptions rather than concrete evidence.

Both the Revenue’s appeal and the assessee’s cross-objection stood infructuous and were thereby dismissed, as the Tribunal upheld the order of the CIT(A).

Parallel Proceedings for Same AY After CIT(A) Set Aside Reassessment: ITAT Sets Aside ₹169.75 Cr Addition u/s 69A Arising from Section 263, Restores Matter to AO Jatin Kumar Patel vs Income TaxOf f icer CITATION : 2026 TAXSCAN (ITAT) 274

The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, held that to avoid parallel proceedings for the same Assessment Year (AY) 2014-15, the addition of ₹169.75 crore made under Section69A pursuant to revision under Section 263 of the Income Tax Act, 1961, was set aside and restored the matter to the Assessing Officer for fresh adjudication.

The tribunal set aside the order of the CIT(A) as well as the consequential assessment order passed by the AO under sections 144 read with 263 and 144B of the Act and restored the entire matter to the file of the AO for de-novo consideration in accordance with law.

AO Cannot Adopt FMV for Capital Gains while using Book Value for Business Profits: ITAT Clarifies S. 45(2) scope DCIT vs Cyberwalk Tech Park Pvt.Ltd CITATION : 2026 TAXSCAN (ITAT) 275

In a recent ruling, the Income Tax Appellate Tribunal (ITAT) has clarified the scope of Section 45(2) of the Income Tax Act, ruling that the Assessing Officer cannot adopt the fair market value (FMV) of land for computing capital gains while simultaneously using its book value for calculating business profits.

It was said that once FMV is fixed at conversion, it must also serve as the cost of acquisition for business income. By reverting to book value, the Assessing Officer created an inconsistency, which was a clear mistake on record.

Gross Negligence by CIT(A) and AO in Ignoring Submissions and Evidence: ITAT Deletes ₹9 Cr Purchase Addition Pringalkumar Praveenbhai Sh ahvs In come Tax Officer CITATION : 2026 TAXSCAN (ITAT) 276

The Income Tax Appellate Tribunal (ITAT) held that the Commissioner of Income Tax (Appeals) (CIT(A)) and the Assessing Officer (AO) exhibited gross negligence in discharging their statutory duty by ignoring the submissions and evidence placed on record by the appellant, Pringalkumar Praveenbhai Shah. The tribunal set aside the order passed by CIT(A) and deleted the addition of ₹9 Crore made towards purchases.

The Tribunal set aside the order of the CIT(A) and directed the deletion of the addition of ₹9,00,63,954.

ITAT Quashes ₹3.97 Crore Income Addition Based on Supplier Non‑Responses and Tata Ace Scrap‑Load Capacity Doubts Income Tax Officer vs MaheshKumar Aggarwal CITATION : 2026 TAXSCAN (ITAT) 277

In a recent ruling, the Income Tax Appellate Tribunal (ITAT) quashed a ₹3.97 crore income addition which was based on supplier non‑responses to statutory notices and held that the AO’s doubts over the carrying capacity of a Tata Ace used for scrap deliveries were speculative and unsupported by proper enquiry.

The tribunal upheld the NFAC’s order and dismissed the Revenue’s appeal.

ITAT Quashes ₹3960+ Crore Tax Demand Against Booking.com, Rules No Permanent Establishment in India BOOKING.COM B.V. vs ACIT CITATION : 2026 TAXSCAN (ITAT) 278

In a recent ruling The Income Tax Appellate Tribunal (ITAT) Delhi has set aside a tax demand of over ₹3960 crore, holding that the Netherlands‑based company does not have a Permanent Establishment (PE) in India under Article 5 of the India-Netherlands Tax Treaty.

The bench of Vimal Kumar(Judicial member) and M Balaganesh (account member) ruled that the final assessment order dated 15 January 2025, passed in pursuance of the DRP’s directions dated 31 December 2024, was illegal and therefore set aside.

STCG from Immovable Property Sale: ITAT Directs AO to Reassess alleged Sale with Additional Evidence Ketankumar Thakorbhai Patel vsITO, Ward-1, Anand CITATION : 2026 TAXSCAN (ITAT) 279

The Ahmedabad Bench of the Income Tax Appellate Tribunal ( ITAT ) has remanded computation of short-term capital gains ( STCG ) from the sale of immovable property, directing the Assessing Officer (AO) to reassess the matter after considering additional evidence submitted by the assessee.

The appellate tribunal held that such non-consideration could lead to an incomplete assessment of facts. Therefore it directed the Assessing Officer to reassess after verification of the evidence and reconsideration of the issues in accordance with law.

Conversion of Company into LLP Deemed Dissolution of Company: ITAT rules Reassessment Cannot Survive Commissioner of Income Tax vsMango Infratech Solutions CITATION : 2026 TAXSCAN (ITAT) 280

The Delhi Bench of the Income Tax Appellate Tribunal ( ITAT ) has held that when a company converted to LLP is deemed to be dissolved and reassessment proceedings initiated against such enterprise is unsustainable.

The notice issued under Section 148 in March 2019 in the name of the erstwhile company was issued to a non-existent entity was unsustainable. The appeal was dismissed.

Income Tax Revision Order Unsustainable as PCIT Conducted No Independent Inquiry and AO Had Taken a Plausible View: ITAT Choksi Ranchhodlal Kishordas vsPrincipal Commissioner of Income Tax CITATION : 2026 TAXSCAN (ITAT) 281

The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, set aside the order passed by the Principal Commissioner of Income Tax (PCIT) under Section 263 of the Income Tax Act, 1961, holding that no independent inquiry was conducted by the PCIT and that the Assessing Officer (AO) had taken a plausible view.

In the light of the facts and circumstances, the Tribunal held that there was no basis with the PCIT to hold the assessment order to be erroneous so as to cause prejudice to the revenue. Accordingly, the order of the PCIT under Section 263 was set aside as not sustainable in law and the appeal filed by the appellant was allowed.

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