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297 orders · Page 2 of 6
The Income Tax Appellate Tribunal noted that the CIT(A) failed to consider the additional evidence presented by the assessee under Rule 46A, which was a violation of the principle of natural justice. Therefore, the tribunal set aside the matter and remanded it back to the Jurisdictional Assessing Officer to properly examine the additional documents, provide an opportunity of hearing to the assessee, and decide the case on its merits according to law.
The Additional CIT(A) allowed the assessee's appeal, concluding that Form 10B was uploaded on time and that technical glitches should not lead to penalization. The Tribunal affirmed this decision, finding no justification to deny exemption under Section 11, as the facts were similar to a precedent where belated filing due to technical issues was excused. The Revenue's appeal was therefore dismissed.
The Tribunal noted the ex-parte dismissal by the CIT(A) and found the assessee's reasons for delayed appeal filing to be genuine, thus condoning the delay. It remanded the matter back to the file of the CIT(A) for proper re-adjudication after considering the assessee's details and submissions, directing the assessee to cooperate and avoid unnecessary adjournments.
The Tribunal upheld the CIT(E)'s initial rejection as justified due to non-compliance within the statutory period. However, granting a final opportunity, the Tribunal directed the CIT(E) to reconsider the application after the assessee pays a cost of Rs. 10,000 to the Prime Minister National Relief Fund and resubmits all necessary documents.
The Tribunal decided on the issue of unexplained interest payment. The AO had made an addition of Rs. 61,35,000/- on account of interest paid in cash, based on a seized document from the mobile phone of an employee. This document contained a computation of interest aggregating to Rs. 1,33,38,945/-, with Rs. 72,03,945/- admitted as interest paid through banking channels to the Sukhadia family. The assessee claimed the remaining figures related to a proposed loan not accepted. The CIT(A) held that once certain entries in a seized document are corroborated by bank entries, the remaining entries for which the assessee fails to explain the source must be treated as correct. The Tribunal upheld the CIT(A)'s finding, stating that the seized document recorded both cash and cheque entries in a consistent format and constituted primary evidence. Since the cheque entries were accounted for, the cash entries could not be disregarded. The principle that entries in a seized document cannot be partly accepted and partly rejected was applied. As Rs. 72,03,945/- was accounted for, the balance Rs. 61,35,000/- was confirmed as interest paid in cash. The assessee's appeal on this ground was dismissed. The judgment does not explicitly detail the findings on all grounds raised by the Revenue and the Assessee regarding land sale additions, forfeiture of advance, validity of 153A/153D proceedings, or specific amounts related to grounds 2 and 3 of the Revenue's appeal.
The Tribunal held that depreciation on goodwill arising from amalgamation is an allowable deduction, following its own prior decisions and High Court pronouncements. The Tribunal also found that the Assessing Officer erred in invoking Rule 8D for disallowance under Section 14A without recording the necessary dissatisfaction.
The Tribunal held that the assessment order passed u/s 147 r.w.s. 144 was void ab initio because the mandatory notice u/s 143(2) was not issued after the assessee filed a return in response to the notice u/s 148. The Tribunal rejected the revenue's contention that framing the assessment u/s 144 dispensed with the need for a 143(2) notice. Consequently, the penalties levied u/s 271(1)(c) and 271F were also deleted.
The Ld. CIT(A) deleted the addition, holding that the assessee was entitled to 100% deduction for profits from substantial expansion even after the initial five-year period, relying on the Hon'ble Apex Court's decision in PCIT Vs. Aarham Softronics. The Income Tax Appellate Tribunal upheld the CIT(A)'s order, finding no reason to interfere as the issue stood settled by the Apex Court's ruling.
The Tribunal held that the CIT(A) erred in enhancing the assessment under Section 40A(3) as the AO had already found no violation. It was observed that the CIT(A) incorrectly applied a cash payment limit of Rs. 10,000/- for transporters, while the correct limit under the Act was Rs. 35,000/-, and the assessee's payments were within this limit. Therefore, the impugned addition made by the Ld. CIT(A) was ordered to be deleted.
The Tribunal held that depreciation on goodwill arising from amalgamation is an allowable deduction, following previous decisions of the Tribunal and High Courts. The Tribunal also found that the Assessing Officer erred in invoking Rule 8D for disallowance under Section 14A without recording proper satisfaction.
The Income Tax Appellate Tribunal observed that the assessee consistently failed to appear for hearings and did not furnish any relevant materials, evidences, or a paper book to substantiate the grounds of appeal. Therefore, the Tribunal dismissed the appeal for non-prosecution.
The Tribunal held that the addition made under Section 69C as unexplained expenditure was unjustifiable and illegal, especially when the same assessment unit accepted a similar offer for the prior assessment year. The inconsistent stand by the revenue was deemed improper.
The ITAT set aside the matter to the CIT(A), directing that a final opportunity be given to the assessee to represent its case on merits. This was conditional on the assessee depositing a cost of Rs. 10,000/- to the Prime Minister National Relief Fund within 15 days, failing which the CIT(A) could decide based on available records.
The Tribunal condoned the delay in filing the appeal due to the unavoidable circumstances of the trustee's demise. The Tribunal set aside the matter to the CIT(E) to provide the assessee with another opportunity to furnish the required details and documents.
The Tribunal, relying on previous coordinate bench decisions and a Jurisdictional High Court judgment, noted that the addition was based on unverified information and lacked concrete evidence directly linking the assessee to the alleged 'on-money' transaction. It emphasized that additions cannot be made based solely on presumptions or third-party confessions without corroborative proof, and observed procedural lapses. Consequently, the protective addition made in the hands of the deceased assessee was deleted.
The Tribunal held that depreciation on goodwill arising from amalgamation is an allowable deduction, following its own prior decisions and High Court pronouncements. The Tribunal also found that the Assessing Officer erred in invoking Rule 8D for disallowance under Section 14A without recording the necessary dissatisfaction.
The Tribunal held that depreciation on goodwill arising from amalgamation is an allowable deduction, following its own prior decisions and High Court pronouncements. The Tribunal also found that the Assessing Officer erred in invoking Rule 8D for disallowance under Section 14A without recording the necessary dissatisfaction.
The Tribunal observed the assessee's lack of compliance before the CIT(A) despite multiple opportunities. It imposed a cost of Rs. 10,000/- on the assessee, to be deposited in the Prime Minister National Relief Fund. Subject to this payment, the matter was remanded back to the CIT(A) to provide one final opportunity for the assessee to present their case, with the CIT(A) having liberty to decide on merits if no compliance is made.
The Tribunal imposed a cost of Rs. 10,000/- on the assessee to be deposited to the Prime Minister National Relief Fund due to the delay and lack of reasonable explanation for non-furnishing documents. Subject to the payment of this cost, the CIT(E) was directed to grant the assessee one more opportunity to submit the required details and documents, and then reconsider the application for renewal of registration as per law.
The Tribunal held that depreciation on goodwill arising from amalgamation is an allowable deduction, following its own prior decisions and High Court pronouncements. The Tribunal also found that the Assessing Officer erred in invoking Rule 8D for disallowance under Section 14A without recording the necessary dissatisfaction.
The Tribunal held that the assessment order passed u/s 147 r.w.s. 144 was void ab initio because the mandatory notice u/s 143(2) was not issued after the assessee filed a return in response to the notice u/s 148. The Tribunal rejected the revenue's contention that framing the assessment u/s 144 dispensed with the need for a 143(2) notice. Consequently, the penalties levied u/s 271(1)(c) and 271F were also deleted.
The Tribunal decided on the issue of unexplained interest payment. The AO had made an addition of Rs. 61,35,000/- on account of interest paid in cash, based on a seized document from the mobile phone of an employee. This document contained a computation of interest aggregating to Rs. 1,33,38,945/-, with Rs. 72,03,945/- admitted as interest paid through banking channels to the Sukhadia family. The assessee claimed the remaining figures related to a proposed loan not accepted. The CIT(A) held that once certain entries in a seized document are corroborated by bank entries, the remaining entries for which the assessee fails to explain the source must be treated as correct. The Tribunal upheld the CIT(A)'s finding, stating that the seized document recorded both cash and cheque entries in a consistent format and constituted primary evidence. Since the cheque entries were accounted for, the cash entries could not be disregarded. The principle that entries in a seized document cannot be partly accepted and partly rejected was applied. As Rs. 72,03,945/- was accounted for, the balance Rs. 61,35,000/- was confirmed as interest paid in cash. The assessee's appeal on this ground was dismissed. The judgment does not explicitly detail the findings on all grounds raised by the Revenue and the Assessee regarding land sale additions, forfeiture of advance, validity of 153A/153D proceedings, or specific amounts related to grounds 2 and 3 of the Revenue's appeal.
The Tribunal held that the royalty payments were at arm's length, following previous ITAT decisions in the assessee's own case. It also upheld the deletion of the addition on account of royalty payment and the allowance of deduction under Section 80IA(4), finding no contrary material from the Revenue.
The Tribunal condoned the delay and restored all three appeals (including a penalty appeal u/s 271AAC) to the CIT(A) for fresh consideration on merits, subject to the assessee depositing Rs. 5,000/- per appeal to the Prime Minister's National Relief Fund as a condition for providing an opportunity of hearing.
The Tribunal found that the assessee had sufficiently demonstrated the correlation between his business receipts, cash withdrawals, and the cash deposits in his bank accounts, which was overlooked by the lower authorities. The assessee's business model and explanation of cash flow were found to be credible. Consequently, the addition made by the Assessing Officer for Rs. 13,06,262/- as unexplained money was deemed unsustainable.
The tribunal held that the assessee had provided sufficient evidence regarding the identity, creditworthiness, and genuineness of the loan transactions to both the AO and CIT(A), including confirmations, ledger accounts, and bank statements. Thus, the addition under section 68 of the Act as unexplained cash credits was not sustainable.
The Tribunal held that the cash deposits, if supported by verifiable primary evidence and recorded in the books of account, cannot be taxed again as unexplained cash under Section 69A, as it would amount to double taxation. The Assessing Officer had not disproved the sale proceeds which were already assessed as business income.
The tribunal condoned the delay in filing the appeal, considering the interests of justice. It set aside the CIT(A)'s ex-parte order and restored the matter to the CIT(A) for a fresh decision after providing the assessee a proper opportunity, with a condition that the assessee deposit Rs.5,000/- in the Prime Minister's National Relief Fund. The CIT(A) was directed to use the email ID mentioned in appeal Form 35 for all future communications.
The Tribunal held that the assessee had discharged its onus by providing primary documents like confirmations and bank statements. Relying on jurisdictional High Court precedents, it was found that the revenue failed to provide contradictory evidence to disprove the transactions. Additional evidence filed by the assessee in one appeal was not entertained due to lack of justification.
The Tribunal, following the precedent set by the Delhi High Court in PCIT vs. Krishna Devi, held that the AO's disallowance was not supported by cogent material. The Tribunal noted that the transactions were conducted through banking channels and demat accounts, and the AO had not conducted sufficient inquiry to prove the alleged manipulation.
The Tribunal condoned the delay and restored all three appeals (including a penalty appeal u/s 271AAC) to the CIT(A) for fresh consideration on merits, subject to the assessee depositing Rs. 5,000/- per appeal to the Prime Minister's National Relief Fund as a condition for providing an opportunity of hearing.
The Tribunal held that the royalty payments were at arm's length, following previous ITAT decisions in the assessee's own case. It also upheld the deletion of the addition on account of royalty payment and the allowance of deduction under Section 80IA(4), finding no contrary material from the Revenue.
The Tribunal held that the assessee failed to provide credible evidence to support its claim of accumulated cash-in-hand. The explanation was not supported by human probabilities, and the existence of fictitious loans and liabilities indicated the cash was unaccounted income.
The Tribunal held that the assessee had discharged its onus by providing primary documents like confirmations and bank statements. Relying on jurisdictional High Court precedents, it was found that the revenue failed to provide contradictory evidence to disprove the transactions. Additional evidence filed by the assessee in one appeal was not entertained due to lack of justification.
The Tribunal upheld the CIT(A)'s order, following a coordinate bench's decision in the assessee's own case for an earlier year. It was held that commission paid to non-resident agents for services rendered entirely outside India is not taxable in India, negating the need for TDS deduction.
The Tribunal condoned the delay and restored all three appeals (including a penalty appeal u/s 271AAC) to the CIT(A) for fresh consideration on merits, subject to the assessee depositing Rs. 5,000/- per appeal to the Prime Minister's National Relief Fund as a condition for providing an opportunity of hearing.
The Tribunal held that the PCIT wrongly assumed jurisdiction under section 263 because an appeal on the same subject matter was already pending before the CIT(A). Relying on Explanation 1(c) to Section 263(1) and judicial precedents, the Tribunal found the assumption of jurisdiction to be invalid.
The Tribunal held that the assessee had discharged its onus by providing primary documents like confirmations and bank statements. Relying on jurisdictional High Court precedents, it was found that the revenue failed to provide contradictory evidence to disprove the transactions. Additional evidence filed by the assessee in one appeal was not entertained due to lack of justification.
The tribunal allowed the assessee's application for additional evidence, subject to a cost of Rs. 5,000 payable to the Prime Minister's National Relief Fund. The CIT(A)'s ex-parte order was set aside, and the matter was restored to the Assessing Officer for a de novo assessment with proper opportunity to the assessee.
The Tribunal noted that the CIT(E) rejected the application solely on the ground of religious objects without examining whether the trust's religious expenditure exceeded the 5% limit allowed under Section 80G(5B). Therefore, the matter was remanded back to the CIT(E) for the limited purpose of examining this specific point and to reconsider the application in accordance with law.
The Tribunal noted that the factual aspects of the case, particularly regarding client code modification and profit from commodity transactions, were identical to the assessee's own case for AY 2014-15, where no discrepancy was found. It held that for commodity trading, only the net profit (difference between purchase and sale values) should be considered for tax, not the gross transaction values. As the assessee provided all supporting documents, the addition u/s 68 was not justified.
The Tribunal upheld the disallowance made by the lower authorities, affirming that deduction under Section 54F must be computed strictly according to the statutory formula, which accounts for actual utilization or irrevocably committed investment. It clarified that merely depositing funds in the Capital Gains Account Scheme preserves eligibility for exemption but does not automatically entitle the assessee to the entire claimed deduction without demonstrating actual utilization or commitment. The assessee failed to provide evidence that the excess claimed amount represented actual or committed cost of construction as on the relevant date.
The Tribunal held that the assessee had discharged its onus of proving the source of cash deposits by submitting various documents like cash book, bank book, sales ledger, and audited financial statements. The Tribunal found the reasons given by the AO and CIT(A) for rejecting the assessee's explanation to be baseless and illogical, particularly concerning the comparison of average cash expenditure with total cash withdrawals and the alleged sales to a party prior to its incorporation.
The Income Tax Appellate Tribunal set aside the order of the Ld. CIT(A) and restored the matter back to the file of the Assessing Officer for a de novo assessment. The assessee is directed to comply with all future notices and furnish necessary details, clarifications, and explanations without seeking unnecessary adjournments.
The Tribunal held that the CIT(A)'s finding regarding the assessee's failure to establish the movement of goods was factually incorrect. The assessee had provided substantial documentary evidence, including purchase invoices, weigh receipts, stock register, and bank statements, to prove the genuineness of the purchases.
The Tribunal found that the assessee failed to provide any documentary evidence, either to the AO or CIT(A), for filing Form 68 for immunity under section 270AA(3) or to substantiate her claim of a technical glitch. Correspondence indicated no online or manual application was produced, and the documents submitted did not include Form 68 with an acknowledgment. Consequently, the Tribunal found that the assessee had under-reported her income and was liable for the penalty, thus upholding the levy under section 270A.
The Tribunal affirmed the CIT(A)'s decision, holding that Section 92BA(i) was omitted with effect from 01-04-2017 without a saving clause, meaning the provision was non-existent for the relevant assessment year (2015-16). Consequently, the reference to the TPO for determining ALP of specified domestic transactions was without jurisdiction and invalid, rendering the consequential adjustment also invalid. The appeal of the Revenue was thus dismissed.
The Tribunal held that the reopening of the assessment was barred by limitation. This was based on Supreme Court judgments and concessions by the Revenue regarding notices issued under TOLA for AY 2015-16.
The Tribunal held that reliance on an admission by the developer group or an Excel sheet from a third party, without independent evidence directly linking the assessee to the cash payment, is insufficient for making additions. The principles of natural justice were also violated as statements were not fully provided and cross-examination was denied.
The Tribunal found that the addition was made and confirmed by the lower authorities without proper application of mind and examination of the evidence. The bank account in which cash was deposited was not the assessee's, as evidenced by bank certificates. The matter was restored to the AO for proper inquiry.