Income Tax Appellate Tribunal overturns major tax disallowances

The Income Tax Appellate Tribunal (ITAT) has issued two separate rulings regarding tax disallowances in India.

In Jaipur, the ITAT upheld the deletion of an ₹83.25 lakh addition under Section 69A against Sardar Shahr Kray Vikray Sahakari Samiti Limited. The Assessing Officer had previously treated cash deposits in Axis Bank and Churu Central Co-operative Bank as unexplained money. However, the tribunal found that the deposits were consistent with recorded business receipts, cash sales reflected in GST returns, and the redeposit of previously withdrawn cash.

In Mumbai, the ITAT deleted a ₹6.98 crore disallowance concerning American Express Bank Ltd. The dispute involved losses incurred from the revaluation of unmatured foreign exchange forward contracts at the end of an accounting period. The tribunal ruled that the loss could not be considered merely notional, noting that contractual obligations existed at year-end and the bank followed consistent revaluation methods.