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161 orders · Page 2 of 4
The Tribunal condoned the delay in filing the appeal, finding that the assessee, being a driver, may not have been well-versed with the Act's provisions. The case was remitted to the CIT(A) for fresh adjudication on merits.
The Tribunal held that penalty proceedings are separate from assessment proceedings and cannot be automatically levied merely because quantum additions were confirmed. The lower authorities failed to record specific findings of concealment or consider reasonable cause for non-compliance.
The Tribunal held that penalty proceedings are separate from assessment proceedings and cannot be automatically levied merely because quantum additions were confirmed. The lower authorities failed to record specific findings of concealment or consider reasonable cause for non-compliance.
The Tribunal held that penalty proceedings are separate from assessment proceedings and cannot be automatically levied merely because quantum additions were confirmed. The lower authorities failed to record specific findings of concealment or consider reasonable cause for non-compliance.
The Tribunal held that valid registration under Section 12AA/12AB of the Act is a mandatory precondition for claiming exemption under Section 11. Therefore, the assessee's claim for exemption on betterment and rejuvenation fees was not admissible.
The Tribunal held that penalty proceedings are separate from assessment proceedings and cannot be automatically levied merely because quantum additions were confirmed. The lower authorities failed to record specific findings of concealment or consider reasonable cause for non-compliance.
The Tribunal held that the genuineness of the activity, not the quantum of expenditure, is relevant for registration. It noted that the assessee had commenced activities and had genuine charitable objects, including proposed activities for future application of funds.
The Tribunal held that the appeals filed by the assessee were not maintainable. This was because the company was under liquidation, and the appeals were signed by directors who lacked the locus standi to file or pursue them. Furthermore, Form 36 had not been duly substituted and verified by the appointed Liquidator, despite the liquidation process ongoing for approximately five years. Consequently, the assessee's appeals were dismissed. Regarding the Revenue's appeals, the Tribunal found them to be infructuous. Given that the company was in liquidation and its assets were being sold, even if the Revenue succeeded, there was no realistic chance of recovering any tax. Therefore, the Revenue's appeals were also dismissed. The Tribunal granted liberty to the Liquidator to file fresh Form 36 with a petition for condonation of delay if they wished to continue the proceedings, allowing a coordinate bench to decide on recall of the order. Similarly, the Revenue was given an opportunity to pursue their appeals if they could demonstrate that the claim was made before the NCLT during liquidation.
The Tribunal held that the appeals filed by the assessee were not maintainable as they were not properly verified by the liquidator. The appeals filed by the Revenue were dismissed as infructuous due to the company's liquidation.
The Tribunal held that the appeals filed by the assessee were not maintainable as they were not properly verified by the liquidator. The appeals filed by the Revenue were dismissed as infructuous due to the company's liquidation.
The Tribunal held that the CIT(A) has no power to dismiss an appeal in limine without discussing merits. The Tribunal restored the matter to the CIT(A) for fresh decision, emphasizing the need to provide a meaningful opportunity to the assessee.
The Tribunal held that the appeals filed by the assessee were not maintainable as they were not properly verified by the liquidator. The appeals filed by the Revenue were dismissed as infructuous due to the company's liquidation.
The Tribunal held that the appeals filed by the assessee were not maintainable as they were not properly verified by the liquidator. The appeals filed by the Revenue were dismissed as infructuous due to the company's liquidation.
The Tribunal held that the appeals filed by the assessee were not maintainable as they were not properly verified by the liquidator. The appeals filed by the Revenue were dismissed as infructuous due to the company's liquidation.
The Tribunal held that the CIT (Exemptions) had not considered the submissions and documents filed by the assessee on 7.11.2024 before passing the cancellation order. The Tribunal found that the assessee was not given a reasonable opportunity of being heard.
The Tribunal held that the appeals filed by the assessee were not maintainable. This was because the company was under liquidation, and the appeals were signed by directors who lacked the locus standi to file or pursue them. Furthermore, Form 36 had not been duly substituted and verified by the appointed Liquidator, despite the liquidation process ongoing for approximately five years. Consequently, the assessee's appeals were dismissed. Regarding the Revenue's appeals, the Tribunal found them to be infructuous. Given that the company was in liquidation and its assets were being sold, even if the Revenue succeeded, there was no realistic chance of recovering any tax. Therefore, the Revenue's appeals were also dismissed. The Tribunal granted liberty to the Liquidator to file fresh Form 36 with a petition for condonation of delay if they wished to continue the proceedings, allowing a coordinate bench to decide on recall of the order. Similarly, the Revenue was given an opportunity to pursue their appeals if they could demonstrate that the claim was made before the NCLT during liquidation.
The Tribunal held that the appeals filed by the assessee were not maintainable as they were not properly verified by the liquidator. The appeals filed by the Revenue were dismissed as infructuous due to the company's liquidation.
The Tribunal held that the appeals filed by the assessee were not maintainable as they were not properly verified by the liquidator. The appeals filed by the Revenue were dismissed as infructuous due to the company's liquidation.
The Tribunal held that the income earned by the assessee, amounting to Rs.35,83,19,076, comprising sale of software products as software licenses (Rs.9,40,31,793), sale of software embedded in hardware (Rs.3,30,58,672), and hardware replacement and support services (Rs.2,53,36,904), is not 'royalty' within the meaning of Article 12 of the India-Ireland DTAA. The Tribunal's reasoning was primarily based on the decisions of the Hon'ble Supreme Court in *Engineering Analysis Centre of Excellence Private Limited v. CIT* and subsequent confirmations in *Microsoft Regional Sales Pte Limited* and *MOL Corporation*. These judgments established that the sale of copyrighted articles, including software, does not constitute royalty, especially when the customer does not acquire rights in the copyright itself but rather a license to use a copyrighted article. The Tribunal found that the assessee's transactions, including software embedded in hardware and hardware replacement services (which were considered as sale of embedded software), fall within the scope of these Supreme Court rulings. The revenue's argument that the assessee's case was not covered by the Supreme Court decision was rejected. The Tribunal allowed grounds 3 to 11 of the appeal. No issue was expressly left undecided.
The Tribunal noted that as per Section 91(2) of the DTVSV Scheme, 2024, pending appeals are deemed withdrawn upon issuance of a certificate under Section 92(1). The Tribunal accordingly dismissed the appeal as withdrawn at the assessee's request.
The Tribunal held that the TPO had made incorrect observations while selecting comparable companies. Specifically, the TPO wrongly observed that M/s. Zoho Corporation Pvt. Ltd. fails the Related Party Transaction (RPT) filter, when its RPT was 74.63%. The Tribunal also found Zoho Corporation to be functionally dissimilar, as its main functions were sale, development, and licensing of computer software and maintenance services, unlike the assessee's business model. Similarly, M/s. Quick Heal Technology Ltd. was excluded as it provides security software products, which is not akin to the assessee's business. M/s. Tally Solutions Pvt. Ltd. was also excluded as it is an accounting software. M/s. Innovana Think Labs Ltd. and M/s. K-7 Computing Pvt. Ltd. were also found to be functionally dissimilar and required exclusion. Consequently, the Tribunal directed the TPO to compute the ALP by restricting the TP study to only two comparables: Crayon Software Ltd. and Lucose Enterprises Solutions. The Tribunal noted that after excluding the five identified comparables, the ALP of the international transaction would be at arm's length, rendering further arguments on inclusion of other comparables unnecessary. Regarding interest on receivables, the Tribunal remitted the issue to the TPO, directing the TPO to consider the net balance of outstanding receivables and, if a balance remains, to apply an interest rate of LIBOR+200 on the delayed receivables.
The Tribunal noted that the assessee, through its Director, had submitted a letter requesting the withdrawal of the appeal. The authorized representative for the assessee brought this letter to the attention of the Tribunal. Given this request for withdrawal by the assessee, the Tribunal decided to allow the withdrawal. The appeal was accordingly dismissed as withdrawn. No other issues were decided as the appeal was withdrawn at the initial stage.
The Tribunal found that the CIT(A) failed to provide independent findings and did not follow the mandate of Section 250(6) of the Act. Therefore, the matter was restored to the CIT(A) for a fresh order.
The Tribunal held that the assessee was not granted a proper opportunity of hearing before the AO due to non-receipt of email notices. The CIT(A) should have admitted the additional evidence and obtained a remand report, rather than dismissing the appeal on technicalities.
The Tribunal held that disallowance under Section 14A read with Rule 8D must be calculated strictly considering only investments that have actually yielded exempt income. The Tribunal set aside the CIT(A)'s order.
The Tribunal held that the CIT(A) erred by dismissing the appeal solely on the grounds of non-prosecution without considering the merits of the case. The CIT(A) has a duty to decide appeals on their merits even if the assessee is absent.
The Tribunal held that the CIT(A) is duty-bound to dispose of appeals on merits. Since the CIT(A) did not address the merits and the notice of hearing was questionable, the matter required fresh consideration.
The assessee's counsel requested to withdraw the appeal as a consequential order had been passed by the AO, and the matter was being pursued before the CIT(A). The Revenue did not object to this request.
The Tribunal held that the AO accepted the assessee's claim of agricultural income without conducting necessary enquiries and without considering the provisions of Rule 7B of the Income Tax Rules. The PCIT was justified in exercising jurisdiction under Section 263.
The Tribunal found that the CIT(A) had not passed a speaking order while rejecting the petition for condonation of delay. Therefore, the Tribunal directed the CIT(A) to pass a speaking order on the condonation of delay petition and then decide the matter.
The ITAT found that the non-receipt of the order at the assessee's updated email ID after its merger constituted "sufficient cause" for the delay. Consequently, the 46-day delay was condoned, and the matter was remanded to the ld. CIT(A) for a fresh decision after providing the assessee a meaningful opportunity.
The ITAT condoned the 478-day delay, finding sufficient cause due to the advocate's failure to file the appeal despite receiving fees. The tribunal held that the CIT(A) cannot dismiss an appeal merely for non-prosecution and is duty-bound to decide it on merits, thus remanding the case back to the CIT(A).
The Tribunal held that an order passed against a dead person is invalid. The LRs were not given an opportunity to present their case. The Tribunal admitted additional evidence and restored the appeal to the CIT(A) for fresh adjudication.
The Tribunal held that the rectification order under Section 154 was not sustainable as the facts regarding rental income and PAN acquisition were available to the AO during the original assessment proceedings and did not constitute a mistake apparent from the record. The CIT(A)'s order dismissing the appeal for non-prosecution was also quashed.
The Tribunal condoned the delay of 89 days, holding that the assessee's status as a farmer and his lack of awareness of tax laws constituted sufficient cause. On merits, the Tribunal found that the cash deposit likely originated from agricultural income, supported by withdrawal details from other bank accounts and proof of sugarcane sales.
The Tribunal held that the reasons provided by the revenue for the delay were not sufficient cause. Citing Supreme Court judgments, the Tribunal emphasized that delays must have reasonable and acceptable explanations and bonafide efforts, and bureaucratic procedural delays are not acceptable grounds for condonation.
The Tribunal noted the assessee's application under the VSVS scheme and, with the agreement of the Revenue, dismissed the appeal as withdrawn. The assessee was granted liberty to seek restoration if the VSVS settlement was not finalized.
The Tribunal held that the scope of inquiry for granting Section 80G approval is limited to the genuineness of activities and fulfillment of conditions, not the computation of surplus or the nature of fee receipts. The CIT(E) failed to provide evidence that the trust's activities were not genuine or that conditions were not met.
The Tribunal held that even if interest is earned from a non-co-operative society, it is deductible u/s. 80P(2)(a)(i) if it is attributable to the business of banking. The matter was restored to the AO to ascertain this attribution.
The Tribunal held that the scope of enquiry by the CIT(E) for granting 80G approval is limited to the genuineness of activities and fulfillment of conditions, not the computation of surplus. It also clarified that fee receipts from regular activities do not disqualify an institution from 80G approval if it is established for charitable purposes and has met other criteria.
The Tribunal held that the CIT's scope of inquiry for 80G approval is limited to the genuineness of activities and fulfillment of conditions, not the computation of surplus. The Tribunal also noted that the CIT did not provide specific evidence to disprove the genuineness of the trust's activities.
The Tribunal held that the CIT(Exemptions) erred in rejecting the application. The scope of inquiry for 80G approval is limited to the genuineness of the activities and fulfillment of conditions, not the computation of surplus. Fee receipts from regular activities do not disqualify for 80G if the trust is established for charitable purposes and has 12A registration.
The Tribunal held that the TPO's use of a hypothetical CUP method was inappropriate, and similar issues for prior years were decided in favor of the assessee using the TNMM method.
The Tribunal held that the principle of res judicata does not apply to income tax proceedings and that each assessment year must be examined separately. For issues related to management fees, the matter was restored to the DRP for fresh adjudication in light of a previous order and a specific letter. For expenses incurred for purchases, the issue was remanded to the AO for re-examination with additional evidence, with a note that vendors not filing returns cannot be a ground for disallowing legitimate expenses.
The Tribunal held that the CIT erred in rejecting the registration solely based on the quantum of expenditure and not verifying the genuineness of proposed activities. The Tribunal found that the CIT did not properly verify the genuineness of the activities and remitted the issue back to the CIT for further verification.
The Tribunal noted that the assessee had filed Form 1 DTVSV 2024 and received Form 2 (certificate) under section 92(1) of the Finance (2) Act, 2024. In light of the assessee's election to settle the dispute under the DTVSV Scheme, the appeal was dismissed as withdrawn.
The Tribunal held that the cardinal principle for charging income tax is on net income, considering allowable deductions and set-offs. The CPC erred in treating gross receipts as income without examining the genuineness of the claimed expenditures. Therefore, the issue was remitted back to the JAO for verification of expenditures.
The Tribunal noted that the AO had not adjudicated properly and the CIT(A) had not given a conclusive finding on the expenditure. Therefore, the Tribunal remitted the issue back to the AO for fresh consideration after providing a reasonable opportunity to the assessee.
The Tribunal held that the assessee had sufficiently proved the source of the funds, tracing it back to the assessee's husband, who had adequate funds. The daughter's creditworthiness was established to the extent of the gift amount received from her father and subsequently gifted to the assessee.
The Tribunal noted that the assessee's argument that the GST and VAT refunds should not be considered income was not examined by the Revenue authorities. Therefore, the issue was remitted back to the AO for fresh examination.