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257 orders · Page 2 of 6
The Tribunal held that the amendment to Section 14A by the Finance Act, 2022, which introduced an explanation for retrospective applicability, could not be applied to the assessment years under consideration as it took effect from April 1, 2022. The Tribunal also relied on the jurisdictional High Court's decision that Section 14A has no application if no exempt income is claimed.
The Tribunal held that the interests of justice would be served by remanding the matter back to the Ld. CIT(E) for fresh consideration of the application, taking into account submissions and explanations from the assessee.
The Tribunal held that the addition of ₹1,16,32,855/- under Section 69A was not sustainable. The assessee had provided documentary evidence of sales, offered the income to tax, and was denied the opportunity for cross-examination, leading to double taxation.
The Tribunal noted the assessee's failure to furnish details before the CIT(A) despite opportunities. However, in the interest of justice and based on the counsel's request for a fresh opportunity, the matter was remanded to the CIT(A) for de-novo adjudication, allowing the assessee to submit all relevant documents.
The tribunal held that while the cancellation of the deal might have been an afterthought to avoid tax liability, the fact remains that the deal was cancelled and any amount received by cheque was refunded. The PCIT could not rebut the cancellation of the deed. Therefore, the tribunal concluded that no unaccounted income could be taxed at this stage, the AO's view was plausible, and the assessment order was not erroneous. The PCIT's revision order under Section 263 was deemed unsustainable and quashed.
The Tribunal condoned the delay in filing the appeal. It held that the assessee had provided sufficient evidence to prove the genuineness of the interest paid and claimed, and that the CIT(A) had ignored crucial facts.
The Tribunal held that the CIT(A) had correctly noted that the Assessing Officer made an addition of Rs. 1,82,35,966/- on a protective basis as unexplained cash credit under Section 69A read with Section 115BBE. The corresponding substantive addition was made in the hands of Shri Bhadiadra, and this amount was purportedly to be remitted to Shri Bhadiadra, thus not belonging to the assessee, as per the CIT(A)'s findings. The AO had rejected the assessee's explanation. However, this amount was already part of the total deposits in Kotak Mahindra Bank which had been brought to tax in the hands of the assessee under Section 68 read with Section 115BBE for Assessment Years 2015-16 to 2021-22, amounting to Rs. 111,73,83,638/-. Therefore, the CIT(A) was correct in holding that adding this amount again in the hands of Aadhar Foundation, without prejudice to the addition made in the hands of Shri Saumil Bhadiadra, constituted double taxation of the same receipt. The Tribunal found no reason to interfere with the CIT(A)'s finding and dismissed the appeal of the Revenue.
The Tribunal observed that no cogent evidence was presented before the lower authorities. However, upon the assessee's counsel's request for an opportunity to furnish all relevant details and documents, the Tribunal set aside the CIT(A)'s order and restored the matter to the Assessing Officer for a de novo assessment, directing the assessee to comply without seeking unnecessary adjournments.
The Tribunal held that the matter should be remanded to the Ld. CIT(E) for fresh consideration. The CIT(E) is to pass an order after considering the submissions and explanations provided by the assessee.
The Tribunal held that the assessee was denied a fair and reasonable opportunity of being heard before both the Assessing Officer and the CIT(A). The plea of the assessee regarding unawareness due to personal circumstances was considered. In the interest of justice, the matter was restored for fresh adjudication.
The CIT(A) deleted the addition, finding that the assessee provided sufficient documentary evidence (ledger accounts, bank statements, TDS certificates). The Tribunal upheld this, stating the Assessing Officer failed to discharge the onus to prove the transaction bogus, relying on generalized third-party statements without providing specific evidence or allowing cross-examination, which violated natural justice.
The Tribunal held that the assessee was eligible for exemption under Section 11 for AY 2021-22. The application for re-registration filed by the assessee was within the extended time allowed by CBDT circulars, making it valid and compliant with statutory requirements. Therefore, the adjustment made by CPC was liable to be deleted.
The Tribunal held that the amendment to Section 14A by the Finance Act, 2022, which introduced an explanation for retrospective applicability, could not be applied to the assessment years under consideration as it took effect from April 1, 2022. The Tribunal also relied on the jurisdictional High Court's decision that Section 14A has no application if no exempt income is claimed.
The Tribunal held that the learned CIT(A) committed a clear factual error by misreading evidence, specifically referring to invoices for the sale of jewellery as invoices for the purchase of jewellery. This misreading indicated that the evidence was not properly appreciated. Furthermore, the Tribunal noted that the remand report, though referenced by the CIT(A), was not supplied to the assessee for rebuttal, constituting a violation of the principles of natural justice. The Tribunal found that the CIT(A) dismissed the assessee's evidence as "bogus" without cogent reasons or independent verification. Consequently, the Tribunal set aside the impugned order and restored the issue to the CIT(A)'s file for fresh adjudication. The CIT(A) was directed to consider all evidence afresh, supply the remand report to the assessee for comments, and pass a speaking order after affording an adequate opportunity of hearing. Additionally, confirmation letters from parties like M/s Ambica Traders, submitted as additional evidence, were admitted and directed to be considered by the CIT(A). The Tribunal explicitly stated that it had not expressed any opinion on the merits of the addition.
The Tribunal upheld the CIT(A)'s decision, finding that the assessee, as a recognized contractor operating and maintaining the infrastructure facility under a sub-concession agreement, was eligible for the deduction under Section 80IA(4) based on the proviso to the section. The High Court judgments cited supported this view.
The Tribunal held that passing the assessment order in the name of the deceased assessee, who died during the proceedings, was an irregularity, not an illegality. The matter was restored to the AO to bring the legal representative on record and reframe the assessment.
The Tribunal upheld the CIT(A)'s decision, finding that the assessee, as a recognized contractor operating and maintaining the infrastructure facility under a sub-concession agreement, was eligible for the deduction under Section 80IA(4) based on the proviso to the section. The High Court judgments cited supported this view.
The Tribunal noted that the assessee claimed to have paid the TDS belatedly due to financial difficulties and relied on a Supreme Court ruling that mere belated remittance of TDS after deduction does not attract penalty under Section 271C. The matter was restored to the AO for verification of TDS deduction and remittance.
The Tribunal acknowledged the assessee's lack of diligence but also noted that the CIT(A) had issued a hearing notice for a later date and yet passed the order prematurely. To ensure justice, the ITAT remanded the case back to the CIT(A) for de-novo adjudication with adequate opportunity of hearing, imposing a cost of Rs. 10,000/- on the assessee.
The Tribunal held that the Assessing Officer failed to establish ownership and provide direct or corroborative evidence linking the seized documents to the assessee. The additions were found to be based on guesswork and unsupported assumptions, and in some cases, led to double taxation. The CIT(A)'s decision to delete the additions was upheld.
The Tribunal upheld the PCIT's order, ruling that the AO's failure to disallow interest on loans already treated as unexplained constituted a wrong decision/conclusion, rendering the assessment order erroneous and prejudicial. It concluded that the PCIT correctly invoked Section 263 to rectify this error, particularly as the AO's inquiry into the interest was superficial.
The Tribunal held that the amendment to Section 11(3) by the Finance Act, 2022, is prospective and does not apply to accumulations made prior to AY 2023-24. The utilization in FY 2022-23 was within the extended time permitted by the unamended provisions.
The Tribunal held that the PCIT erred in assuming jurisdiction under Section 263 as the AO had conducted inquiries and accepted the assessee's claim based on available evidence. The PCIT's order was based on general observations without specific material linking the assessee's donation to any bogus racket.
The Tribunal upheld the CIT(A)'s decision, finding that the assessee, as a recognized contractor operating and maintaining the infrastructure facility under a sub-concession agreement, was eligible for the deduction under Section 80IA(4) based on the proviso to the section. The High Court judgments cited supported this view.
The Tribunal found merit in the assessee's contention that the nature and classification of expenses required proper factual verification, which may not have been fully undertaken by the CIT(Exemptions). The Tribunal noted that the assessee had not responded to the show cause notice, thus preventing the CIT(Exemptions) from examining the detailed explanations and breakdown of expenditure provided during the appellate proceedings. In the interest of justice, the Tribunal set aside the impugned order passed by the CIT(Exemptions) and restored the matter to the file of the CIT(Exemptions). The CIT(Exemptions) is directed to recompute and re-examine the expenditure incurred on religious purposes, duly considering the submissions furnished by the assessee regarding the nature and purpose of various expenses and events. The assessee is directed to cooperate fully and furnish all required details. The CIT(Exemptions) shall pass a fresh order after affording the assessee an opportunity of being heard. The issue of whether the assessee's expenses were indeed religious or administrative/social was left undecided by the Tribunal, pending fresh examination by the CIT(Exemptions).
The Tribunal observed that the addition was based solely on estimated brokerage income from seized loose papers without any independent corroborative evidence of transactions or parties. Relying on a previous decision of the Coordinate Bench in a similar case (Shri Pravin Bavadiya), where identical additions were deleted, the Tribunal held that the addition in the present case is also liable to be deleted.
The Tribunal observed that the addition was based solely on estimated brokerage income from seized loose papers without any independent corroborative evidence of transactions or parties. Relying on a previous decision of the Coordinate Bench in a similar case (Shri Pravin Bavadiya), where identical additions were deleted, the Tribunal held that the addition in the present case is also liable to be deleted.
The Tribunal observed that the addition was based solely on estimated brokerage income from seized loose papers without any independent corroborative evidence of transactions or parties. Relying on a previous decision of the Coordinate Bench in a similar case (Shri Pravin Bavadiya), where identical additions were deleted, the Tribunal held that the addition in the present case is also liable to be deleted.
The Tribunal noted that the issue concerns the eligibility of a co-operative society to claim deduction under Section 80P for interest income of Rs. 17,826/- and dividend income of Rs. 2,95,194/-. The AO and CIT(Appeals) had denied the deduction, holding the income did not arise from core business activities. Before the Tribunal, the assessee submitted that both incomes were from a co-operative bank and cited judicial precedents supporting deduction under Section 80P(2)(d) for income earned by a co-operative society from investments in another co-operative society, including co-operative banks. The Tribunal found that the documentary evidence (bank statement) placed on record had not been properly verified during assessment. Therefore, the Tribunal restored the matter to the AO for re-examination, verification of the nature and source of income, and fresh decision on the Section 80P deduction claim, affording the assessee an opportunity to present supporting documents. The ratio is that income from investments in co-operative banks by a co-operative society may be eligible for deduction under Section 80P(2)(d), and such claims warrant proper verification.
Due to the subsequent acceptance of their returned income, the assessee requested to withdraw the appeal. The Ld. Departmental Representative had no objection, and the Tribunal consequently granted permission and dismissed the appeal as withdrawn.
The Tribunal, considering the assessee's failure to submit documents and the plea for an opportunity, remanded the case to the Assessing Officer for de novo assessment. A cost of Rs. 5,000/- was imposed on the assessee.
The Tribunal held that the assessee demonstrated that the amount received was a genuine loan from M/s. Shiyon Enterprises, which was repaid. The bank entries corroborated this, and this crucial evidence was ignored by the AO and CIT(A).
The Tribunal found that the CIT(Exemption) had not properly examined the factual aspect of expenditure on religious activities and whether the 5% threshold under Section 80G(5B) was breached. The Tribunal also noted a violation of natural justice as the assessee was not given an adequate opportunity to present its case.
The Tribunal held that the reopening of assessment under Section 147 was valid, as there was sufficient material indicating escaped income. However, regarding the addition of capital gains, the Tribunal found the assessee's valuation report inadequate and the DVO's report questionable due to the use of non-comparable sale instances.
The Tribunal held that the scientific research trust's approval under Section 35(1)(ii) had expired prior to the donation, and the assessee, being a science graduate, should have been aware of this. Therefore, the disallowance of the deduction was justified.
The Tribunal acknowledged that the applicant trust had not responded to the notices. However, considering it is an old trust and to provide an opportunity, the matter was remitted back to the CIT(E) to verify the activities of the trust and then consider the application for registration.
The Tribunal condoned an 85-day delay in filing the appeal, citing the assessee's illiteracy and unfamiliarity with electronic communication. Given the new evidence presented regarding gold loans and income from milk sales, the case was remanded to the Assessing Officer for a fresh de-novo consideration. A cost of Rs. 5,000/- was imposed on the assessee for consistent non-compliance during previous proceedings.
The Tribunal observed that the addition was based solely on estimated brokerage income from seized loose papers without any independent corroborative evidence of transactions or parties. Relying on a previous decision of the Coordinate Bench in a similar case (Shri Pravin Bavadiya), where identical additions were deleted, the Tribunal held that the addition in the present case is also liable to be deleted.
The Tribunal condoned the 376-day delay in filing the appeal, finding sufficient cause due to the previous consultant's non-communication. Recognizing that the assessee was denied an effective opportunity before the CIT(A) and raised serious legal/factual contentions, the Tribunal set aside the CIT(A)'s order and remanded the matter for de novo adjudication with proper opportunity to the assessee.
The Tribunal held that the Ld. CIT(A) rightly deleted the disallowance after considering the ledgers, vouchers, and supporting evidence. The Tribunal found that the evidence sufficiently established the genuineness and business nexus of the expenditure.
The Tribunal found that the appeal was disposed of without adjudicating on the merits. Therefore, to provide justice, the matter was remanded to the CIT(A) for fresh adjudication after giving a due opportunity of being heard to the assessee.
The Ld. CIT(A) deleted the addition, finding the transaction to be a genuine loan supported by proper documentation and banking channels, with interest offered to tax and TDS deducted. The Tribunal upheld the CIT(A)'s decision, concluding that the Assessing Officer failed to provide any contrary material or establish a nexus between the alleged accommodation entries and the transaction.
The Tribunal found that the appeal was disposed of without adjudicating on the merits. Therefore, to provide justice, the matter was remanded to the CIT(A) for fresh adjudication de novo, ensuring the assessee is given a reasonable opportunity to be heard and to submit documents.
The Tribunal held that due to the incorrect email ID used for communication, the assessee was unaware of the appellate proceedings. Therefore, the ex-parte order was set aside to provide the assessee with another opportunity.
The Tribunal noted that both parties conceded the appeal was covered by the Supreme Court's decision in Union of India v. Rajeev Bansal, rendering the reassessment time-barred. Finding no contradictory facts, the Tribunal allowed the assessee's appeal on jurisdictional grounds.
The Tribunal first addressed the issue of delay in filing the appeal before the CIT(A). While the judgment does not explicitly detail the arguments on delay, it implies that the Tribunal has the power to condone delays if sufficient cause is shown. The core issue before the Tribunal was the allowability of the deduction under Section 80D without the PAN of the parents. The Tribunal held that the provisions of Section 80D of the Income Tax Act, 1961, mandate the furnishing of the PAN of the person for whom the premium is paid to claim the deduction. The Tribunal reasoned that the requirement of PAN is a statutory condition precedent for availing the deduction under Section 80D. The absence of the PAN of the parents, therefore, renders the claim invalid. The Tribunal found that both the Assessing Officer and the Commissioner of Income Tax (Appeals) had correctly disallowed the deduction of Rs. 2,00,000. The Tribunal dismissed the appeal, upholding the disallowance. The ratio decidendi is that compliance with statutory requirements, such as providing the PAN, is essential for claiming deductions under the Income Tax Act, and procedural lapses that violate mandatory provisions will not be condoned.
The Tribunal held that the CIT(A) was correct in deleting the additions made under Section 69B. The Tribunal found that the AO's reliance on the DVO's report was not sufficient to presume unexplained investment, especially when the assessee had provided explanations for minor valuation variations and market value instances. The Tribunal noted that the AO had blown hot and cold by relying on the DVO's report and then presuming a much higher on-money payment without corroborative evidence. Furthermore, the Tribunal found that the initiation of assessment proceedings under Section 153C was bad in law because no incriminating material pertaining to the assessee was found during the search of the third party. The seized material did not relate to the assessee or the sellers, and the alleged WhatsApp messages lacked evidentiary value. The Tribunal also agreed with the assessee's contention that even if token money was received, it pertained to an earlier financial year. Consequently, the additions made by the AO were not sustainable. The Tribunal dismissed the appeals filed by the Revenue and allowed the Cross Objection filed by the assessee.
The Tribunal held that the initiation of proceedings under Section 153C was bad in law as no incriminating material pertaining to the assessee was found during the search. Furthermore, the Tribunal found that the AO's additions were based on assumptions and presumptions without reliable evidence of cash exchanged over and above the sale consideration.
The Tribunal held that the CIT(A) was correct in deleting the additions made under Section 69B. The Tribunal found that the AO's reliance on the DVO's report was not sufficient to presume unexplained investment, especially when the assessee had provided explanations for minor valuation variations and market value instances. The Tribunal noted that the AO had blown hot and cold by relying on the DVO's report and then presuming a much higher on-money payment without corroborative evidence. Furthermore, the Tribunal found that the initiation of assessment proceedings under Section 153C was bad in law because no incriminating material pertaining to the assessee was found during the search of the third party. The seized material did not relate to the assessee or the sellers, and the alleged WhatsApp messages lacked evidentiary value. The Tribunal also agreed with the assessee's contention that even if token money was received, it pertained to an earlier financial year. Consequently, the additions made by the AO were not sustainable. The Tribunal dismissed the appeals filed by the Revenue and allowed the Cross Objection filed by the assessee.
The Tribunal condoned the delay in filing the appeals before both the Tribunal and the CIT(A). All matters were restored to the file of the CIT(A) for a decision on merits after giving an opportunity of hearing to the assessee.