ITAT Agra Judgments — November 2019

The Tribunal held that the interest of justice requires the matters to be sent back to the CIT(A) for fresh adjudication. The CIT(A) was directed to decide the appeals expeditiously after granting sufficient opportunity of hearing and time to produce evidence.

The Tribunal accepted the assessee's submission based on CBDT Circular No. 17/2019, which states that appeals with a tax effect of Rs. 50 lakhs or less should not be filed or pressed. The Department was granted liberty to seek recall if any appeal was inadvertently included where the tax effect exceeded the limit.

The Tribunal accepted the assessee's submission based on CBDT Circular No. 17/2019, which states that appeals with a tax effect of Rs. 50 lakhs or less should not be filed or pressed. The Department was granted liberty to seek recall if any appeal was inadvertently included where the tax effect exceeded the limit.

The Tribunal restored all appeals to the CIT(A) for fresh adjudication. This was to address the issue of potential double taxation on sundry creditors and to consider evidence regarding the genuineness of creditors.

The Tribunal held that the approval granted by the Additional Commissioner was mechanical and without application of mind, rendering it no approval in the eyes of law. Consequently, the assessment orders passed based on this invalid approval were quashed.

The Tribunal held that the approval granted under Section 153D was invalid as it was done mechanically without application of mind, rendering the assessment order void. The revenue was denied a second inning to rectify its mistake.

The Tribunal held that the interest paid on borrowed funds, which were advanced to sister concerns for earning interest income, is deductible under Section 57(iii). The primary motive of earning income, not actual profit, is sufficient for the deduction.