Indian tax tribunals issue multiple rulings on assessments and audit procedures

Various Indian judicial and tax tribunals have issued several rulings regarding tax assessments, audit procedures, and penalties.

The Delhi High Court ruled that a show-cause notice must undergo formal adjudication before it can be subject to judicial review, noting that an audit report alone does not finalize tax liability. Similarly, CESTAT Kolkata set aside demands against Mideast Integrated Steels Limited, citing a lack of corroborative evidence for clandestine removal and ruling that procedural irregularities in Input Service Distributor registration should not deny substantive credit.

In other matters, the ITAT Surat deleted a ₹2.45 crore capital gains addition after determining the actual consideration received was significantly lower than what was reflected in Form 26AS. The ITAT Rajkot restricted an addition related to alleged on-money property payments to 10% of the disputed amount. Additionally, the ITAT Surat quashed a ₹50 lakh assessment, ruling that a reassessment notice was issued beyond the permissible statutory timeframe. Finally, the ITAT Delhi deleted penalties under section 272A(1)(d), accepting that subsequent compliance and reasonable cause justified relief for initial non-responsiveness to notices.