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153 orders · Page 3 of 4
The Tribunal held that since the accommodation entries were already owned up and taxed in the hands of Shri Jignesh Shah, making an addition in the hands of the assessee would amount to double taxation. Therefore, the addition was deleted.
The Tribunal held that the CIT(Exemption) failed to consider CBDT Circular No. 6 of 2023, which allowed for fresh applications even if previously rejected for being belated. Therefore, the rejection order was set aside.
The Tribunal held that interest income earned by a cooperative society from deposits with cooperative banks is eligible for deduction under Section 80P(2)(d). However, the deduction is to be calculated on the net income after deducting expenses, and the AO needs to verify if the investee bank is a cooperative society.
The Tribunal held that the penalty was levied without proper legal basis and against the provisions of law. The AO had not considered the assessee's reply, and the penalty notice was ambiguous regarding the specific limb of Section 271(1)(c) invoked.
The Tribunal held that the AO made the addition based on surmises and conjectures without conducting independent inquiries or bringing contrary material on record. The assessee had provided primary documentary evidence for identity, creditworthiness, and genuineness of the transactions.
The Tribunal held that the AO made the addition based on surmises and conjectures without conducting independent inquiries or bringing contrary material on record. The assessee had provided primary documentary evidence for identity, creditworthiness, and genuineness of the transactions.
The Tribunal held that interest income earned on Fixed Deposits pertaining to the prior period before commencement of business is in the nature of a capital receipt. This capital receipt should be adjusted against pre-operative expenses.
The Tribunal held that interest income from nationalized banks is not eligible for deduction under Section 80P(2)(d). However, it allowed proportionate expenses incurred to earn this income and also granted the basic deduction of Rs. 50,000 under Section 80P(2)(c).
The tribunal noted the assessee's submission that the demand was extinguished and accepted the assessee's request to withdraw the appeal.
The Tribunal held that the liability had not ceased to exist, evidenced by the partial payment and the creditor retaining the right to recover the amount. Furthermore, the Tribunal noted that the advance was used for capital transactions (investing in shares), which cannot be taxed under Section 41(1).
The Tribunal held that the disallowance of weighted deduction under Section 35(2AB) was justified due to the lack of requisite approval. However, the disallowance of bogus purchases was deleted as the assessee provided sufficient evidence and the AO failed to controvert the assessee's contentions.
The Tribunal held that the assessment order was erroneous and prejudicial to the interest of revenue due to the AO's failure to conduct adequate inquiries regarding the cost of improvement and the conditions for Section 54F exemption. Therefore, the PCIT's order was upheld.
The Tribunal found that the CIT(A) erred in deleting additions without proper verification and by admitting additional evidence without a remand report. The Tribunal restored the issues of additions related to import undervaluation and peak cash deficit to the CIT(A) for fresh adjudication.
The Tribunal held that merely offering income under the wrong head due to an inadvertent mistake cannot be the basis for levying penalty for furnishing inaccurate particulars. The assessee's disclosure, even if late, was considered a bona fide mistake rather than intentional concealment.
The Tribunal held that since identical disallowances in preceding years were deleted by the ITAT and no distinguishing facts were presented by the Revenue, the disallowance for the current year should also be deleted.
The ITAT allowed the appeal on the disallowance of salary expenses under Section 40(a)(ia) as salary is not covered by the section. For other grounds, the matter was remanded to the Assessing Officer for further verification.
The Tribunal restored the matter to the CIT(E) for de-novo consideration, allowing the assessee an opportunity of being heard. The CIT(E) was directed to pass an order on merits after providing the opportunity.
The Tribunal held that merely offering income under the wrong head due to an inadvertent mistake cannot be the basis for levying penalty for furnishing inaccurate particulars. The assessee's disclosure, even if late, was considered a bona fide mistake rather than intentional concealment.
The Tribunal held that merely offering income under the wrong head due to an inadvertent mistake cannot be the basis for levying penalty for furnishing inaccurate particulars. The assessee's disclosure, even if late, was considered a bona fide mistake rather than intentional concealment.
The Tribunal held that the GP rate on alleged bogus purchases should be estimated scientifically, considering the assessee's past GP rates. The addition was restricted to 3% of the alleged bogus purchases to balance the interests of both parties.
The Tribunal held that the AO failed to comply with the remand directions by not verifying existing evidence, especially after the assessee's records were destroyed in a fire. The disallowance was deleted based on the prior finding of the CIT(A).
The Tribunal held that the assessee needs to justify the method of valuing closing stock (yearly vs. monthly weighted average cost) and that the consistency of the method over the years needs verification. The deletion of sales commission disallowance was not explicitly overturned but the stock valuation issue led to a remand.
The Tribunal held that the weighted deduction under Section 35(2AB) was not allowable due to the absence of the requisite approval. However, the disallowance of bogus purchases was deleted as the AO failed to substantiate the claim against the assessee's plausible explanations.
The Tribunal held that the PCIT erred in assuming jurisdiction under Section 263 because the issue of interest-free advances was not part of the limited scrutiny assessment scope. The AO was not obligated to examine issues outside the defined scope of limited scrutiny.
The Tribunal held that the assessee needs to justify the method of valuing closing stock (yearly vs. monthly weighted average cost) and that the consistency of the method over the years needs verification. The deletion of sales commission disallowance was not explicitly overturned but the stock valuation issue led to a remand.
The Tribunal upheld the CIT(A)'s decision to delete the addition on estimated profit, finding the assessee's profit rate consistent with previous years and the AO's rejection of books unjustified. The Tribunal also affirmed the deletion of additions for unexplained unsecured loans, noting the assessee provided necessary documentation and the AO failed to point out specific defects. The unpaid VAT liability addition was also deleted as the assessee demonstrated it was not their liability.
The Tribunal held that the assessment order was passed beyond the statutory time limit prescribed under section 153B of the Act. Since the assessment order was invalid due to limitation, it could not be revised under section 263.
The Tribunal upheld the CIT(A)'s deletion of additions. The addition for property investment was deleted as the Banakhat was not in the assessee's name and the AO relied on it piecemeal. The cash credit was explained by member contributions and individual assessments. The Section 40A(3) disallowance was deleted as payments were made through a supervisor for petty expenses below the threshold and not reflected in the regular books.
The Tribunal held that the addition made on a protective basis was not justified. The assessee was not given an opportunity to cross-examine the accountant, and the partner of the surveyed firm had clarified the entry's meaning and the assessee's non-involvement.
The Tribunal held that the assessee's application for rectification was maintainable under Section 154. It found that the jurisdictional High Court's decision on the retrospective applicability of the second proviso to Section 40(a)(ia) indicated a mistake apparent from the record.
The Tribunal allowed the appeal for statistical purposes, remanding the issue of the unadjudicated additional ground to the CIT(A). For the second appeal, the Tribunal held that profit on sale of machinery and subcontract income were not taxable as claimed, but the issue of indirect income deduction was partly allowed, remanding it for fresh adjudication.
The Tribunal held that the rejection based on a technical error in mentioning the wrong clause, when the trust's charitable activities and provisional registration were not in doubt, was not justified. The matter was set aside to the CIT(Exemption) to pass an order on merits after the assessee files a rectified application.
The Tribunal held that the rejection of the application solely on the ground of a procedural error in mentioning the wrong sub-clause was not justified, especially when the trust's charitable activities and provisional registration were not in doubt. The matter was set aside to the CIT(Exemption) to pass an order on merits after the assessee files a rectified application.
The Tribunal deleted the disallowance on job work charges paid to Chevron Pharma, stating the AO failed to provide comparable rates to prove unreasonableness. The ad-hoc disallowance on other job work charges was also deleted as it lacked proper evidence. The addition of duty drawback incentive was dismissed as the assessee was not aggrieved by this issue.
The Tribunal held that the CIT(A) violated the principles of natural justice by passing the appellate order before the stipulated date for submitting written submissions. Therefore, the matter was set aside to the CIT(A) for fresh adjudication.
The Tribunal held that the CIT(A) violated the principles of natural justice by passing the appellate order before the stipulated date for submitting written submissions. Therefore, the matter was set aside to the CIT(A) for fresh adjudication.
The Tribunal held that the entire flow of funds was known to the department, with the assessee acting merely as an intermediary for M/s.VMS Industries. Therefore, the addition made in the hands of the assessee was not sustainable.
The Tribunal held that the refund should be adjusted first against the interest component of the outstanding demand, and then against the principal tax component. This approach maximizes the interest earned by the assessee on the remaining principal.
The Tribunal held that the CIT(A) erred by admitting additional evidence without allowing the AO an opportunity to examine it, violating Rule 46A. The assessee failed to discharge the onus of proving the identity, creditworthiness, and genuineness of the unsecured loans.
The Tribunal held that the assessee is entitled to the benefit of Section 11(2) as Form 10 was filed before the completion of assessment, following the Gujarat High Court's decision. Regarding the second issue, the Tribunal found that the accumulated funds from the earlier year were not re-accumulated but were part of the current year's accumulation.
The tribunal held that the deduction under section 80IA must be considered before calculating the deduction under section 80HHC, as per Supreme Court and High Court decisions. The tribunal also held that insurance claims, being indemnification for losses, are eligible for deduction under section 80HHC.
The Tribunal allowed the appeal regarding the disallowance of interest and addition to stock value, following previous decisions. However, the disallowance under Section 14A was upheld, and the ground related to depreciation was dismissed as not pressed.
The Tribunal upheld the rejection of the books of accounts but ruled that cash sales cannot be treated as unexplained cash credit under Section 68. The addition made by the AO and confirmed by the CIT(A) was set aside, directing the AO to delete the addition.
The Tribunal dismissed the disallowances for prior period expenses and non-deduction of TDS on international transactions due to small amounts. It allowed the deletion of interest capitalization on capital work-in-progress, finding sufficient interest-free funds. The Tribunal dismissed the Revenue's grounds regarding Section 50C and depreciation on software licenses, following judicial precedents.
The Tribunal held that the refund should be adjusted first against the interest component of the outstanding demand, and then against the principal tax component. This approach maximizes the interest earned by the assessee on the remaining principal.
The Tribunal restored the appeal to the CIT(A) for fresh adjudication on merits after condoning the delay. This was done in the interest of justice and fair play, considering the assessee's explanation and the revenue's non-opposition.
The Tribunal held that even though the original company ceased to exist due to amalgamation, the issuance of an order in its name was not without jurisdiction, especially when the amalgamation was mentioned in the cause title. The business and liabilities continue with the transferee entity.
The Tribunal dismissed the disallowances for prior period expenses and non-deduction of TDS on international transactions due to small amounts. It allowed the deletion of interest capitalization on capital work-in-progress, finding sufficient interest-free funds. The Tribunal dismissed the Revenue's grounds regarding Section 50C and depreciation on software licenses, following judicial precedents.
The Tribunal addressed two main issues. Firstly, regarding the deduction under Section 80P(2)(a)(i) on interest from nationalized banks, the Tribunal noted the AO's disallowance based on the Gujarat High Court's decision in State Bank of India v. CIT and the applicability of Section 56. The assessee argued that the funds were for statutory liquidity and the SBI case was distinguishable. The Tribunal's decision on this specific point is not fully detailed in the provided excerpt, but the overall result indicates a partial allowance. Secondly, concerning the deduction under Section 80P(2)(d) on interest from co-operative banks, the Tribunal, following its own decision for the immediately preceding assessment year (AY 2016-17) and the jurisdictional Gujarat High Court's rulings in State Bank of India v. CIT and Surat Vankar Sahakari Sangh Limited v. ACIT, allowed the deduction. The Tribunal emphasized maintaining consistency. However, to ensure the entities were indeed co-operative banks registered under the relevant Act, the Tribunal directed the AO to verify this fact before granting relief. The Tribunal also noted that while res judicata does not apply, consistency is to be maintained, referencing the Supreme Court decision in Radhasoami Satsang v. CIT.
The Tribunal held that since the deduction under Section 80-IA was already allowed by the ITAT, any disallowance related to depreciation would not benefit the revenue as the assessee would be entitled to a higher deduction. The additional ground regarding interest subsidy was restored to the AO for verification.