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263 orders · Page 5 of 6
The Tribunal held that the addition under Section 68 was not sustainable. The Tribunal noted that the AO had not doubted the corresponding purchases against these sales and that the income element embedded in the sales had already been offered to tax. Furthermore, the addition was based on the proprietor's statement without providing the assessee an opportunity for cross-examination.
The Tribunal held that the assessee failed to demonstrate that the land sold was used for agricultural purposes for two years prior to the sale. Additionally, a significant portion of the investment in the new land was for relinquishment of rights, not a direct purchase for agricultural use, and the AO had not made necessary inquiries.
The Tribunal held that the CIT(A) correctly deleted the addition as the assessee had discharged its onus under Section 68 by providing identity, genuineness, and creditworthiness of the investor. The AO failed to disprove the evidence and the amended proviso to Section 68 was not retrospective.
The Tribunal held that the assessee is eligible for the deduction of Rs. 50,000/- under Section 80P(2)(c) for income derived from activities other than milk supply. The denial by the Ld. CIT(Appeals) was considered erroneous based on the facts and relevant case law.
The Tribunal held that the notice under Section 148 was rightly issued and served on the assessee at the address available with the Department. However, since the issue of cash deposit was not examined on merits, the matter was set aside to the AO for fresh assessment, with a direction to grant another opportunity to the assessee. A cost of Rs. 10,000/- was imposed on the assessee for non-compliance.
The Tribunal held that the addition under section 68 of the Income Tax Act, 1961, cannot be made when net profit has been estimated on accounted turnover and on-money receipts. This was based on the reasoning that the estimated net profit already accounts for all income, including any potential undisclosed income. The Tribunal cited decisions from the Hon'ble High Courts of Andhra Pradesh, Punjab & Haryana, and Rajasthan in support of this view. Consequently, the addition under section 68 was directed to be deleted. Regarding the issue of undisclosed sales receipts, the Tribunal respectfully followed the decision of a co-ordinate bench in the case of M/s. Heaven Associates. This decision held that the basis adopted by the AO for computing undisclosed sales was based on presumptions and conjectures, and in the absence of any incriminating material, the addition was not justified. The Tribunal agreed with the Ld. CIT(A)'s finding that a document relied upon by the AO pertained to lift quotations and not sales. Therefore, the deletion of additions on account of undisclosed sale receipts was upheld. The assessee's appeals were partly allowed, and the revenue's appeals were dismissed.
The Tribunal held that the addition under section 68 of the Income Tax Act, 1961, cannot be made when net profit has been estimated on accounted turnover and on-money receipts. This was based on the reasoning that the estimated net profit already accounts for all income, including any potential undisclosed income. The Tribunal cited decisions from the Hon'ble High Courts of Andhra Pradesh, Punjab & Haryana, and Rajasthan in support of this view. Consequently, the addition under section 68 was directed to be deleted. Regarding the issue of undisclosed sales receipts, the Tribunal respectfully followed the decision of a co-ordinate bench in the case of M/s. Heaven Associates. This decision held that the basis adopted by the AO for computing undisclosed sales was based on presumptions and conjectures, and in the absence of any incriminating material, the addition was not justified. The Tribunal agreed with the Ld. CIT(A)'s finding that a document relied upon by the AO pertained to lift quotations and not sales. Therefore, the deletion of additions on account of undisclosed sale receipts was upheld. The assessee's appeals were partly allowed, and the revenue's appeals were dismissed.
The Tribunal upheld the additions made by the Assessing Officer, affirming the Ld. CIT(A)'s decision to dismiss the appeal. It found that the assessee's claim of genuine share transactions lacked evidence, noting the significant mismatch between the number of shares purchased and sold, and the failure to demonstrate that the omission of income was unintentional or the purchase genuine.
The Tribunal upheld the deletion of 'on-money' additions for AY 2018-19 and 2019-20 but directed taxation of 'on-money' for subsequent years based on the assessee's own admissions. The profit estimation rate was reduced from 14% to 13%. The Revenue's appeal regarding interest expenses and unexplained expenses was dismissed.
The Tribunal observed that the assessee was granted provisional registration under Section 12A(1)(ac)(vi) and should have applied for regular registration under the same sub-clause. It set aside the matter to the CIT(E) to examine whether an assessee provisionally registered under one sub-clause can apply for final registration under a different one, and to allow the assessee to rectify the application if permissible. The Section 80G(5) approval will be decided after the Section 12A registration is finalized.
The Tribunal held that the sale of shares received as corpus donation, when converted to cash and reinvested as per rules, is not a colorable device. It also found that the transaction did not benefit the trustee directly or indirectly, thus Section 13(1)(c) was not applicable.
The Tribunal held that the CIT(A)'s order refusing to condone the delay was not sustainable in law, considering the Supreme Court's directions on limitation during the pandemic. The appeal was restored to the CIT(A) for fresh adjudication.
The Tribunal found that the CIT(A) did not properly consider the documents submitted by the assessee and it was unclear if proper notices were served. Therefore, the matter was remanded back to the CIT(A) for proper verification of evidence and adjudication, ensuring the assessee is given an opportunity of hearing.
The Tribunal held that the dividend income from co-operative societies needs verification, and the matter is remanded to the AO for proper verification. Regarding interest income from Dena Bank, it was found to be allowable u/s 80P(2)(e) and remanded for verification. The contention regarding assessment u/s 143(1) was rejected.
The Tribunal found that while the assessee had multiple opportunities before the AO, the CIT(A) should have examined the nexus of cash deposits with the business receipts. The addition of the entire amount was not considered correct, and the matter was set aside for a fresh examination.
The Tribunal held that the PCIT erred in treating the defect liability as contingent, as it was fixed by the Vadodara Municipal Corporation's tender terms for a specific period. The Assessing Officer's view was considered plausible.
The Tribunal held that the assessee failed to discharge the burden of proving the genuineness of the share transactions, especially given the company's classification as a 'penny stock' and the abrupt price rise. The addition made by the AO was confirmed.
The Tribunal held that the rejection of the application without providing an opportunity to rectify the inadvertent error in selecting the wrong sub-clause was against the principles of natural justice. The Tribunal followed a coordinate bench decision in a similar case.
The Tribunal found that the assessee had indeed submitted the required documents and clarifications within the stipulated timelines. Therefore, the CIT(Exemption)'s finding of non-compliance was incorrect.
The CIT(A) correctly deleted the addition of seized cash as it was already part of the larger addition of total donations and making it again would amount to double taxation. The Tribunal upheld the CIT(A)'s order.
The Tribunal noted that the primary issue was whether the AO had derived primary satisfaction for the escapement of taxable income. The appeal was decided on this specific point, implying a focus on the AO's initial assessment process.
The Tribunal held that penalty under Section 270A was not leviable for the first addition (EPF & ESI) as it was not initiated by the AO. For the second addition (additional depreciation), it was considered a bona-fide mistake. For the third addition (penalty charges), it was found not to be for infraction of law.
The Tribunal held that interest income received from cooperative banks is eligible for deduction under Section 80P(2)(d) as it represents income derived from investments with other cooperative societies or banks. The Tribunal relied on the Gujarat High Court ruling in Surat Vankar Sahakari Sangh Ltd. vs. ACIT.
The Tribunal held that the disallowance under Section 14A read with Rule 8D cannot exceed the amount of exempt income. While upholding the principle of disallowance, it directed the Assessing Officer to restrict the impugned Section 14A disallowance to the extent of exempt income, which was Rs.1,89,42,065/-.
The Tribunal held that the Principal Commissioner of Income Tax (PCIT) erred in invoking Section 263 to revise the AO's order. The PCIT wrongly assumed the AO's order was erroneous and prejudicial to revenue, as the AO had duly examined the issue during reassessment and found no grounds for addition.
The Tribunal referred to previous judgments in similar cases, including those of Bhurabhai Punjabhai Parsana Foundation and Navsari Agricultural University, where it was held that if the timeline for registration under Section 12A was extended, the timeline for filing applications under Section 80G(5) should also be considered extended. The Tribunal noted that the assessee had already been granted final registration under Section 12A.
The Tribunal held that the assessee's conduct demonstrated a lack of interest in pursuing the appeal. Consequently, the appeal was dismissed due to non-compliance and failure to provide necessary documentation or attend hearings.
The Tribunal noted the need for a fresh examination of the matter. Therefore, it remanded the case back to the Assessing Officer to initiate assessment proceedings de-novo, allowing the assessee a proper opportunity to present the necessary details.
Following a series of judgments from the jurisdictional High Court and the Apex Court, the Tribunal held that co-operative banks should be treated as co-operative societies for the purpose of allowing deduction under Section 80P(2)(d). Consequently, the interest income earned by the assessee from such banks is eligible for the deduction, and the Principal Commissioner was not justified in invoking revisional powers under Section 263.
The Tribunal noted that the revenue authorities did not examine the conditions for allowing deduction u/s 80P. Therefore, the issue of eligibility for deduction u/s 80P, including the quantum and other conditions, was remanded back to the Assessing Officer.
The Tribunal held that the addition of entire cash deposits cannot be sustained as correct, especially since the deposits were immediately transferred to GCMMF Ltd. It also noted that even without full compliance, the AO could have enquired from GCMMF Ltd. The matter was not examined on merits by the lower authorities.
The Tribunal held that the issue of employees' contribution towards PF and ESI has been settled by the Supreme Court and is dismissed. Regarding disallowance under Section 40(a)(ia) for AY 2020-21, it was directed to be restricted to 30%.
The Tribunal allowed the assessee's appeal regarding the capital gains, noting that a co-owner's appeal on identical facts was decided in favor of the assessee. The Tribunal also allowed the assessee's appeal regarding the unexplained investment, finding that the sale proceeds of another property adequately explained the balance investment.
The Tribunal allowed the assessee's appeal on the issue of Section 115BBE, following a High Court decision that the 60% tax rate was applicable only for transactions from April 1, 2017, onwards, not prior transactions.
The Tribunal held that the issue of employees' contribution towards PF and ESI has been settled by the Supreme Court and is dismissed. Regarding disallowance under Section 40(a)(ia) for AY 2020-21, it was directed to be restricted to 30%.
The Tribunal allowed the assessee's appeal regarding the capital gains, noting that a co-owner's appeal on identical facts was decided in favor of the assessee. The Tribunal also allowed the assessee's appeal regarding the unexplained investment, finding that the sale proceeds of another property adequately explained the balance investment.
The Tribunal allowed the assessee's appeal regarding the capital gains, noting that a co-owner's appeal on identical facts was decided in favor of the assessee. The Tribunal also allowed the assessee's appeal regarding the unexplained investment, finding that the sale proceeds of another property adequately explained the balance investment.
The Tribunal set aside the addition related to the opening cash balance to the file of the AO for verification. The addition related to the investment in immovable property was confirmed. The disallowance of interest expenses was set aside to the AO for verification of the nexus between interest expenditure and income.
The Tribunal held that the assessee had a reasonable cause for the 17-day delay and that this delay should not prejudice her rights. The Tribunal also noted that the AO had passed an order under Section 144 and made double additions for the investment made by the assessee.
The Tribunal noted that the primary adjudication was not done by the revenue authorities. Both parties agreed to remand the matter. The Tribunal directed the Ld. CIT(A) to condone the delay and pass an order on merits after hearing the assessee.
The Tribunal held that the disallowance made in the intimation under Section 143(1) was erroneous as the same amount was added/disallowed twice. The Tribunal found that it was a technical and venial breach by the appellant company, leading to double disallowance and double taxation.
The Tribunal observed that the first appellate authority had not adjudicated the issues on merits. Therefore, in the interest of justice, the matter was remanded to the Ld. CIT(A) to decide the issues on merits, with a direction to the assessee to produce necessary evidence.
The Tribunal noted that the Ld. CIT(A) had not adjudicated the issues on merits due to the assessee's non-compliance with notices. The Tribunal directed the assessee to submit all necessary evidence to the Ld. CIT(A) for de novo adjudication.
The Tribunal noted that the delay in filing the appeal before the CIT(A) was attributed to the COVID-19 pandemic and the assessee residing outside India, as well as issues with the service of the assessment order. Considering the interest of justice, the Tribunal remanded the matter back to the CIT(A) for adjudication on merits.
The Tribunal found that the actual transaction value of the property was Rs. 70,27,200/-, including payment for conversion of land tenure and stamp duty, and that the difference of Rs. 31,70,800/- was due to a revised circle rate, not an actual payment. The CIT(A) had also failed to provide a proper opportunity for hearing.
The Tribunal set aside the ex-parte assessment order and remanded the issue back to the Assessing Officer. This was conditional upon the assessee paying a cost of Rs. 5,000/-. The Assessing Officer was directed to pass a fresh order on merits after giving the assessee an opportunity of hearing.
The Tribunal noted that the issue pertained to the allowability of interest claimed and disallowed under Section 43B. Both parties agreed that rectification could be done by the Jurisdictional Assessing Officer. The assessee agreed to provide details of interest incurred, claimed, and paid.
The Tribunal noted that the primary adjudication was not done by the revenue authorities. Both parties agreed to remand the matter. The Tribunal directed the Ld. CIT(A) to condone the delay and pass an order on merits after hearing the assessee.