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150 orders · Page 3 of 3
The Tribunal restored the appeal to the file of the Assessing Officer for fresh decision. The assessee was granted another opportunity to substantiate its case with documentary evidence and respond to departmental notices.
The Tribunal held that the assessee's appeal was wrongly dismissed by the CIT(A). The assessee had correctly filed its return showing nil tax liability after deductions, and the 'No' in Form 35 was due to a clerical error. The case was remitted back to the CIT(A) for fresh adjudication.
The Tribunal held that the interconnect charges received by the assessee are not taxable as 'royalty' under the Act. This decision was based on a High Court judgment which reversed a previous Tribunal ruling on similar matters and also considered the jurisdictional aspect and the non-applicability of DTAA provisions.
The Tribunal held that the PCIT's order under Section 263 was not valid. Based on factual findings and judicial precedents, investments made due to statutory compulsions by cooperative societies, like those with SCDCC Bank Ltd., are considered part of their business activity. Therefore, the interest income derived from such investments is eligible for deduction under Section 80P(2)(a)(i) of the Act. The AO's assessment order granting this deduction was justified.
The Tribunal noted that the assessee had not made representations before the AO due to miscommunication and COVID-related factors. The CIT(A) had rejected the assessee's contentions, stating that submissions were not filed before the AO and there was no retraction of statements. However, in the interest of justice, the Tribunal decided to give the assessee an opportunity to be heard.
The Tribunal held that the assessee's explanation of cash deposits being out of earlier withdrawals and rental income was plausible. The AO had not brought any material to disprove that the withdrawn cash was spent elsewhere.
The Tribunal held that the AO's reasons for rejecting the gift from the mother were not valid. The Tribunal found that the assessee had explained the source of the deposit and deleted the addition.
The Tribunal held that companies with a turnover exceeding Rs. 200 crores should be excluded from the comparable list, following its own previous decision in the assessee's own case. The matter was restored to the TPO for recalculation of the ALP.
On the issue of adjustment for ALP on international transactions (Ground No. 5 to 7.8), the Tribunal noted that the assessee had raised several contentions regarding the selection and rejection of comparable companies and the application of filters. The judgment indicates that these grounds were allowed for statistical purposes, implying a remand or further examination. Specifically, regarding the adjustment on account of interest on outstanding receivables (Ground No. 8 to 8.6), the Tribunal observed that the details regarding the Master Service Agreement, credit period, invoicing, and realization data were not emanating from the DRP's directions or TPO's order. Citing the case of ON Semiconductor Technology India Private Limited, the Tribunal remitted this issue back to the AO/TPO for verification of factual aspects, including the computation of debtors' holding period of comparables vis-à-vis the assessee. If the debtors' holding period of comparables is higher, no TP adjustment would be required. The Tribunal also noted that the credit period should be for 30 days only. Therefore, Ground No. 8 and additional grounds 1 & 2 were partly allowed for statistical purposes.
The CIT(A) allowed the claim to the extent of Rs. 2,55,45,277. The issue regarding interest income from NPAs amounting to Rs. 5,38,33,424 offered on accrual basis was not observed by the CIT(A). The tribunal remitted this specific issue to the CIT(A) for decision.
The Tribunal observed that the assessment order was passed ex-parte and the assessee had not been given a proper opportunity. Therefore, the Tribunal decided to remit the issue back to the AO for re-examination after providing the assessee with an opportunity of being heard.
The Tribunal held that the explanation provided by the assessee for the delay appears genuine, as the pending section 154 application was a valid reason for not filing the appeal earlier. The delay is condoned.
The Tribunal noted that similar issues were decided by the jurisdictional High Court and previous Tribunal orders. The Tribunal directed the AO to examine if the investments were made under compulsion as per the Karnataka Co-operative Societies Act and Rules, and if so, to consider the interest income as business income eligible for deduction under Section 80P(2)(a)(i).
The Tribunal condoned the delay in filing the appeal before the CIT(A), finding sufficient cause and no gross negligence on the part of the assessee. The matter was remitted back to the CIT(A) for adjudication on merits.
The Tribunal held that the PCIT's order was erroneous because the assessee had not claimed any deduction under Section 80P for the interest income from banks. Since no deduction was claimed, the AO's assessment order was not prejudicial to the revenue's interest, making the revision order invalid.
The Tribunal held that Section 80GG does not explicitly restrict the deduction to individuals, and therefore, an HUF cannot be denied the deduction on this ground. However, the assessee must file the appropriate Form 10BA to claim the deduction.
The Tribunal noted that the assessee's aggregate annual receipts for all institutions were Rs. 2,50,44,219/-. However, referring to the Karnataka High Court judgment in CIT Vs. Children's Education Society, it was held that exemption under Section 10(23C)(iiiad) is available if the annual receipts of *each* institution are less than the prescribed limit. The AO was directed to give effect to the rectification as per the High Court's judgment.
The Tribunal condoned the delay, citing the principle of substantial justice over technical considerations. It held that demands under Section 200A for fees under Section 234E for periods prior to June 1, 2015, were without authority of law.
The Tribunal held that interest/dividend income earned from investments in co-operative banks/scheduled banks is not eligible for deduction under section 80P(2)(a)(i) or 80P(2)(d). The matter concerning deduction under section 80P(2)(a)(i) related to investments made in compliance with Karnataka Co-operative Societies Rules was restored to the AO for examination. The issue concerning commission income from MASS Ltd. was also restored to the AO for fresh examination. The issue concerning income from storing pledged agricultural produce was restored to the AO.
The Tribunal noted that similar issues were decided by the jurisdictional High Court and previous Tribunal orders. The Tribunal directed the AO to examine if the investments were made under compulsion as per the Karnataka Co-operative Societies Act and Rules, and if so, to consider the interest income as business income eligible for deduction under Section 80P(2)(a)(i).
The Tribunal held that since the assessee had no exempt income in the relevant assessment year, no disallowance under Section 14A of the Act could be made, relying on the jurisdictional High Court's decision in Goldmansachs Ltd.
The Tribunal noted that similar issues were decided by the jurisdictional High Court and previous Tribunal orders. The Tribunal directed the AO to examine if the investments were made under compulsion as per the Karnataka Co-operative Societies Act and Rules, and if so, to consider the interest income as business income eligible for deduction under Section 80P(2)(a)(i).
The Tribunal condoned the delay in filing the appeal. Regarding the penalty, the Tribunal found that the assessee had provided a bonafide explanation for Rs. 75 lakhs of the disputed amount, but the remaining Rs. 5,91,500 was unexplained.
The Tribunal, following a coordinate bench decision and Supreme Court pronouncements, held that the deduction under Section 10AA should be calculated with reference to 'gross profits and gains' and not 'income' after allocation of common expenses. The matter was remitted to the AO for fresh assessment.
The Tribunal noted that the assessee accepted old currency notes from customers but failed to provide details of their identity, creditworthiness, and capacity to deposit. The AO's addition under Section 69A was made because the assessee could not establish the source and nature of these credit entries. Consequently, the issue was remitted back to the AO for fresh consideration.
The Tribunal, in these appeals, followed a coordinate bench decision in the case of Reliance Industries Ltd. (ITA No.7299/Mum/2017). The Tribunal noted that the issue of allocation of common corporate expenditure between SEZ and non-SEZ units for the purpose of Section 10AA deduction was considered in that case. The Tribunal observed that the Supreme Court in the case of Vijay Industries interpreted 'profits and gains' in Section 80HH as gross profits before computing income under Sections 30 to 43D. Applying this principle, the Tribunal held that the term 'profit and gains' in respect of export profit under Section 10AA should be interpreted as gross profit and gains of SEZ units, i.e., before computing income as specified in Sections 30 to 43D of the Act. The Tribunal admitted this as a purely legal ground. The operative direction is not explicitly stated as a deletion or remand in the provided text, but the reasoning implies that the deduction should be allowed on gross profits, which would lead to a favorable outcome for the assessee. The specific method of allocation was not decided by the Tribunal in this excerpt, but the interpretation of 'profits and gains' was.
The Tribunal upheld the CIT(A)'s order. On the first issue, it found that the end-users were granted only a non-exclusive, non-transferable, and non-sub-licensable license to use a copyrighted article, not rights in the nature of copyright. Following the Supreme Court's decision in Engineering Analysis Centre of Excellence Private Ltd., the Tribunal held that payments for software licenses in such cases cannot be termed as 'royalty' under the DTAA. Regarding the second issue, the Tribunal agreed with the CIT(A) that the maintenance services were inextricably linked to the software supply. Since the software supply itself was not taxable as royalty, the receipts from maintenance services could not be taxed as 'fees for included services' under Article 12(4)(a) of the India-US DTAA. The Tribunal also noted that the 'make available' clause of Article 12(4)(b) was not satisfied. Consequently, the entire addition made by the AO was deleted. The appeal filed by the Revenue was dismissed.
The tribunal found that the ex-parte order was passed in violation of the principle of natural justice due to incorrect service of notices. The matter was set aside to the AO for fresh adjudication.
The Tribunal followed a coordinate bench ruling which interpreted 'profits and gains' for Section 10AA deduction as gross profits before certain expenses, aligning with the Supreme Court's view in Vijay Industries. This implies that common expenses should be allocated to arrive at the correct profits and gains for deduction.
The Tribunal noted that the assessee had filed an application for condonation of delay for Form 10B with the competent authority, which was pending. Considering the interest of justice, the matter was remitted back to the Assessing Officer for fresh consideration after the order on condonation of delay is received from the CIT(E).
The Tribunal noted the assessee's claim of non-receipt of notices and the prior restoration of the quantum assessment with costs. In the interest of justice, the assessee should be given another opportunity to present their case.
The Tribunal noted the assessee's claim of non-receipt of notices and the prior restoration of the quantum assessment with costs. In the interest of justice, the assessee should be given another opportunity to present their case.
The Tribunal held that the issue concerning the taxability of receipts from the sale of software and reimbursements for software maintenance, subscription, and telecommunication charges had been considered in the assessee's own case for earlier assessment years. The Tribunal noted that this issue had come up for consideration before the Tribunal in the assessee's appeal, and accordingly, the issue raised by the revenue was dismissed. The Tribunal allowed the assessee's appeal and dismissed the revenue's appeal. The specific reasoning for each ground of appeal, particularly regarding the distinction between sale of software and royalty, the nature of reimbursements, and the applicability of the Engineering Analysis case, is not detailed in the provided extract beyond the final outcome. The Tribunal's decision implies that the reimbursements and software sale receipts were not taxable as royalty or FIS for AY 2019-20, aligning with the assessee's arguments and previous rulings in its own case.
The Tribunal noted the substantial delay in filing the appeal and the assessee's explanation regarding non-receipt of notices. The Tribunal also discussed the legal position regarding deduction under Section 80P for interest income earned by cooperative societies from banks, referencing various High Court and Supreme Court decisions.
The Tribunal held that the assessee's microfinance activities, even if involving some commercial aspects, were primarily aimed at relief of the poor and advancement of objects of general public utility. The proviso to Section 2(15) was not attracted as the primary activity was charitable.
The Tribunal noted that the issue was identical to previous years for which the Tribunal's order was confirmed by the High Court. The Tribunal found that the services rendered by the non-resident were not Fees for Technical Services (FTS) and the assessee was not obligated to deduct TDS. Therefore, the disallowance made by the AO was not sustainable.
The Tribunal held that the issue concerning the taxability of receipts from the sale of software and reimbursements for software maintenance, subscription, and telecommunication charges had been considered in the assessee's own case for earlier assessment years. The Tribunal noted that this issue had come up for consideration before the Tribunal in the assessee's appeal, and accordingly, the issue raised by the revenue was dismissed. The Tribunal allowed the assessee's appeal and dismissed the revenue's appeal. The specific reasoning for each ground of appeal, particularly regarding the distinction between sale of software and royalty, the nature of reimbursements, and the applicability of the Engineering Analysis case, is not detailed in the provided extract beyond the final outcome. The Tribunal's decision implies that the reimbursements and software sale receipts were not taxable as royalty or FIS for AY 2019-20, aligning with the assessee's arguments and previous rulings in its own case.
The Tribunal held that the payments made by the assessee for marketing services were not FTS, following its own previous order which was confirmed by the High Court for earlier assessment years. Therefore, the disallowance made by the AO was not justified.
The Tribunal held that the assessee's microfinancing activity, by charging exorbitant interest rates, was commercial in nature and not charitable. Therefore, the proviso to Section 2(15) was applicable, denying the exemption claimed under Section 11.
The Tribunal condoned the delay in filing the appeal, citing sufficient cause and the principle of substantial justice. The appeal will now be heard on its merits.
The Tribunal held that the expenditure of Rs. 11,05,950/- (AY 2016-17) and Rs. 14,67,492/- (AY 2017-18) on mementos given to Presidents and Secretaries of other Milk Producers Associations was not used for charitable purposes and benefited specific individuals, thus falling under Section 13(1) of the Act. Consequently, the provisions of Section 11 or 12 could not be applied, and this amount was to be taxed in the hands of the assessee. The NFAC's decision to tax this amount was confirmed, and this ground of the assessee's appeal was dismissed. Regarding the corpus donation, the Tribunal found that the NFAC granted exemption without verifying records or calling for a remand report from the AO. Therefore, the issue was remitted to the AO for fresh examination in light of the jurisdictional High Court's judgment in Director of Income-tax Vs. Sri Ramakrishana Seva Ashsram (2013) 357 ITR 731. The Revenue's appeal concerning the grant of exemption under Section 11 was partly allowed for statistical purposes, and the assessee's appeals on the disallowance of memento expenditure were partly allowed.
The Tribunal noted the assessee's non-response was due to incorrect email communication and inadvertence. In the interest of justice, the case was remitted to the Assessing Officer for fresh consideration after the assessee pays costs and complies with notices.
The Tribunal held that the delay of 75 days in filing the appeal before the CIT(A) was not inordinate and was primarily due to the AR's counsel not receiving hearing notices. In the interest of justice, the delay was condoned, and the matter was restored to the CIT(A) for a decision on merits.
The Tribunal restored the matter to the AO, directing him to decide the issue after the assessee's application for condonation of delay in filing the return of income is disposed of by the relevant authority.
The Tribunal held that the subscription fees received by the assessee for granting access to online video content do not constitute 'Royalty' under the Act or the DTAA. This is because the assessee is not imparting any information concerning its own knowledge or experience, nor is it providing the right to use any equipment.
The Tribunal held that for claiming deduction under Section 80P of the Income Tax Act, it is a statutory pre-condition that the assessee must file a return of income. Since the assessee failed to file the return of income, the claim for deduction under Section 80P was not admissible.
The Tribunal held that the assessee's opening cash balance from previous years, as disclosed in the return, should be considered as a valid source for the cash deposits. Relying on High Court and Tribunal precedents, the Tribunal found the explanation satisfactory.
The CIT(A) allowed the appeal, holding that nominal members are regular members, but did not adjudicate the issue of whether interest income from investments is eligible for deduction under section 80P. The Tribunal restored the matter to the CIT(A) to adjudicate this specific issue.
The Tribunal held that the assessee had provided sufficient explanation for the cash deposits, particularly those arising from earlier withdrawals from the same bank account. Relying on judicial precedents, the Tribunal found that the revenue had not brought forth evidence to disprove the assessee's claims.
The Tribunal found that the assessee had not substantiated their agricultural income claim. However, considering the need for further examination, the issue was remitted back to the AO for reconsideration.