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69 orders · Page 1 of 2
The Tribunal held that the issue of disallowance of reimbursement of IT expenditure for non-deduction of tax at source requires fresh verification by the AO, considering the 'make available' clause of the DTAA. The Tribunal also directed the AO to verify the correct carry forward loss for the previous year. The ground regarding disallowance of group IT services being considered twice was dismissed.
The Tribunal held that the decision in Meritor LVS India (P) Ltd. can be a good precedent for excluding certain comparables due to functional dissimilarity. The issue of Geometric Ltd. was remitted for fresh consideration, and Megasoft Ltd. was held to be a good comparable after proper segmentation.
The Tribunal held that the addition by estimating GP at 4% was not justified as the AO did not reject the assessee's books of accounts and no other discrepancies were found. The GP declared by the assessee was also found to be in line with previous and subsequent years.
The Tribunal held that the gains from the sale of shares should be treated as short-term capital gains, not business income. This was based on the assessee consistently treating such transactions as investments in its books and the AO's acceptance of similar claims in prior and subsequent assessment years.
The Tribunal directed the AO/TPO to apply a 15% threshold for related party transactions when selecting comparables. For companies with high profit margins, further investigation into the reasons for such margins was ordered. The Tribunal upheld the exclusion of foreign currency expenses from total turnover, aligning with the definition of export turnover.
The Tribunal held that the CIT(Appeals) violated principles of natural justice by relying on the remand report without confronting it to the assessee. The order of the CIT(Appeals) was set aside.
The Tribunal held that telecommunication expenses should be excluded from both export turnover and total turnover, following jurisdictional High Court and Tribunal precedents. It also held that negative working capital adjustment is not justified when the assessee does not bear working capital risk.
The Tribunal found that the CIT(Appeals) did not properly examine the impact of the land litigation on its market value. Therefore, the matter was restored to the AO to refer the issue to the Departmental Valuation Officer (DVO) for ascertaining the correct market value.
The Tribunal held that provisions of Section 115JB are not applicable to banking companies. It also ruled that realization from assets of an erstwhile merged bank cannot be taxed if the excess liabilities over assets were not allowed as a deduction. Depreciation on HTM investments was held to be allowable.
The Tribunal held that provisions of Section 115JB are not applicable to banking companies. It also ruled that realization from assets of an erstwhile merged bank cannot be taxed if the excess liabilities over assets were not allowed as a deduction. Depreciation on HTM investments was held to be allowable.
The Tribunal held that provisions of Section 115JB are not applicable to banking companies. It also ruled that realization from assets of an erstwhile merged bank cannot be taxed if the excess liabilities over assets were not allowed as a deduction. Depreciation on HTM investments was held to be allowable.
The Tribunal held that provisions of Section 115JB are not applicable to banking companies. It also ruled that realization from assets of an erstwhile merged bank cannot be taxed if the excess liabilities over assets were not allowed as a deduction. Depreciation on HTM investments was held to be allowable.
The Tribunal held that provisions of Section 115JB are not applicable to banking companies. It also ruled that realization from assets of an erstwhile merged bank cannot be taxed if the excess liabilities over assets were not allowed as a deduction. Depreciation on HTM investments was held to be allowable.
The Tribunal held that the Assessing Officer did not conduct a proper enquiry to verify the assessee's claim of expenditure. The production of third-party tenants was beyond the assessee's control, and the AO should have summoned them after receiving relevant details.
The Tribunal held that in the interest of justice, the matter requires a fresh look by the AO. The assessee was given one more chance to explain the loans from M/s. Tisavi and Mr. Girish Parvatikar.
The Tribunal held that while the DCIT had territorial jurisdiction, CBDT Instruction No. 1/2011 was binding and precluded the DCIT from assessing cases with income below Rs. 15 lakhs. Regarding TDS, the Tribunal followed the Kolkata High Court's view that Section 40(a)(ia) is not attracted for short-deduction, only non-deduction or non-payment.
The Tribunal held that provisions of Section 115JB are not applicable to banking companies. It also ruled that realization from assets of an erstwhile merged bank cannot be taxed if the excess liabilities over assets were not allowed as a deduction. Depreciation on HTM investments was held to be allowable.
The Tribunal held that the CIT(A) cannot adjudicate issues that have been finally decided by the CIT in a revision order under Section 263, especially when the assessee has not appealed against the revision order. However, other grounds were considered.
The Tribunal held that provisions of Section 115JB are not applicable to banking companies. It also ruled that realization from assets of an erstwhile merged bank cannot be taxed if the excess liabilities over assets were not allowed as a deduction. Depreciation on HTM investments was held to be allowable.
The Tribunal held that provisions of Section 115JB are not applicable to banking companies. It also ruled that realization from assets of an erstwhile merged bank cannot be taxed if the excess liabilities over assets were not allowed as a deduction. Depreciation on HTM investments was held to be allowable.
The Tribunal held that the CIT(A) erred in declining to admit additional evidence without proper examination by the Assessing Officer. The matter was remanded to the Assessing Officer to verify the additional evidence regarding the source of funds.
The Hon'ble High Court remitted the matter back to the ITAT after the assessee subsequently paid the admitted tax. The ITAT, in turn, set aside the appeal to the CIT(A) for adjudication on merits.
The Tribunal condoned the delay in filing the appeal. It upheld the disallowance of interest on advances, finding no evidence of business purpose. The issue of agricultural income was remanded to the AO for further verification.
The Tribunal noted that the tax effect was below the prescribed limit and the appeal did not involve any exceptional circumstances mentioned in the circular. Therefore, the appeal was dismissed as not pressed.
The Tribunal found it unclear whether the AO of the searched person had recorded the requisite satisfaction. Therefore, the matter was restored to the CIT(A) for a fresh decision after examining this aspect.
The Tribunal held that the assessee failed to establish the genuineness of the claim and had attempted to manipulate accounts. The insurance company rejected the claim as the accident location was not covered under the policy.
The Tribunal upheld the CIT(A)'s decision on turnover filters for comparable companies and the exclusion of certain companies. It also directed the AO to re-examine the software license expenditure and allow TDS credit after verification.
The Tribunal held that the ad hoc disallowance of staff welfare expenses and commission payments were not justified. It also ruled that forex gains should be part of export turnover for Section 10A computation. The exclusion of certain expenses from export turnover by the AO was set aside.
The Tribunal held that the DRP's order directing the TPO/AO to provide freight subsidy and working capital adjustment was based on reasonable grounds and supported by facts and judicial pronouncements. The Revenue failed to demonstrate any material to establish that the DRP's order was illogical or opposed to law.
The Tribunal upheld the CIT(A)'s decision on turnover filters for comparable companies and the exclusion of certain companies. It also directed the AO to re-examine the software license expenditure and allow TDS credit after verification.
The Tribunal held that for deemed transfer on the date of JDA, the capital gains should be computed based on the guidance value of the land, not the cost of construction. Future gains upon receiving possession would be taxed separately.
The Tribunal directed the TPO to re-examine the arm's length interest rate by considering the interest rates of the loanee country and using the 'Loan Connector' database, similar to the previous year's order. Other corporate tax issues were also addressed, with some directions to the AO for further examination.
The Tribunal held that insurance and freight charges must be deducted from both export and total turnover for Section 10B calculation. It also ruled that interest paid to an AE should not be adjusted if the assessee's internal borrowing rates are lower. Regarding the manufacturing vs. processing issue, the Tribunal allowed the Section 10B deduction, considering the assessee's activities as manufacturing.
The Tribunal directed the exclusion of certain comparable companies from the TPO's list, finding them not functionally comparable or having abnormal financial results. It also allowed the exclusion of certain expenses from export turnover for Section 10A deduction.
The Tribunal directed the AO to re-examine the Section 10A claim after the assessee provides the necessary invoices. It also directed the AO to adjust the total turnover by reducing leased line charges and foreign travelling expenses, and to exclude certain comparables from the transfer pricing analysis.
The Tribunal held that the pre-amended proviso to Section 92C(2) of the Income Tax Act, which allowed for a marginal variance of 5% as a standard deduction, was applicable. The order of the CIT(A) was confirmed in this regard, and the Revenue's ground was rejected.
The Tribunal held that the pre-amended proviso to Section 92C(2) of the Income Tax Act, which allowed for a marginal variance of 5% as a standard deduction, was applicable. The order of the CIT(A) was confirmed in this regard, and the Revenue's ground was rejected.
The Tribunal held that the mobilization advances were not income in the year of receipt as they were adjusted upon project completion. The orders of the lower authorities were set aside, and the additions were deleted.
The Tribunal held that the AO lacked jurisdiction under Section 153C as there was no sufficient satisfaction recorded to prove that the seized documents belonged to the assessee. Therefore, the assessments made under Section 153C were cancelled for assessment years 2003-04 to 2008-09.
The Tribunal held that while the assessee was justified in adopting the new method of stock valuation, the correctness of the values arrived at by the assessee had not been verified. Therefore, the matter was remanded to the AO for fresh consideration.
The Tribunal upheld the CIT(A)'s decision to exclude certain comparables based on turnover, brand value, and abnormal profits. It also agreed with the treatment of foreign exchange gains/losses as operating income and the adjustments to export turnover for Section 10A.
The Tribunal allowed deductions for contributions to PACS/DCCB development/common good fund, farmers welfare fund, and rural farmers socio-economic development fund. The claims for club subscription and government guarantee commission were remitted to the Assessing Officer for fresh examination.
The Tribunal held that expenses excluded from export turnover for Section 10A deduction must also be excluded from total turnover. It also ruled that comparables with significantly different turnover sizes and those with different financial year ends should be excluded from the transfer pricing analysis.
The Tribunal held that the assessment orders were invalid because the notice under Section 143(2) was not served on the assessee within the prescribed time. The judgment of the Hon'ble Apex Court in ACIT Vs. Hotel Blue Moon was held to be applicable even in cases where assessment is completed under Section 153A.
The Tribunal held that foreign exchange derivative transactions entered into by the assessee through approved intermediaries are not speculative transactions as per the Explanation to Section 43(5). However, the quantum of loss needs verification.
The Tribunal restored the issue of comparability of one company to the TPO for fresh consideration. It also directed the TPO to consider foreign exchange fluctuations as part of operating margins and to consider risk adjustments, following previous decisions.
The Tribunal held that companies with related party transactions exceeding 15% should not be considered comparable. It also upheld the exclusion of Wipro BPO Solutions Ltd. as a comparable due to its substantial intangibles, brand value, and significantly higher turnover.
The Tribunal held that a company cannot be excluded solely based on abnormal profits or turnover if reasonable adjustments can be made. It also ruled that a comparable company should not be rejected due to allegations of fraud against its group management from a much earlier period. For one comparable, the case was remanded for fresh analysis.
The Tribunal found that procedural shortcomings, such as the absence of a notice copy and lack of proper recording of the authorized representative's attendance, rendered the CIT's proceedings unsustainable. The Tribunal concluded that principles of natural justice were not adhered to.