Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Evidence For Normal Business Activity: ITAT Upholds Surrendered ₹1.60 Cr as Business Income, Rejects...
Corporate ComplianceIncome Tax
The ITAT has upheld a "surrendered ₹1.60 crore as business income," rejecting a Section 115BBE application after finding evidence of "normal business activity." The tribunal ruled that since the surrendered income was a result of a genuine business activity and not an unexplained credit, it should be taxed under normal business income. This decision provides a significant relief to the taxpayer, as the tax rate for unexplained income is much higher.
