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133 orders · Page 2 of 3
The Tribunal found merit in the assessee's argument that the CIT(A) did not adjudicate the issues on merits. Therefore, the appellate order was set aside.
The Tribunal noted a discrepancy in the assessee's address and directed the CIT(A) to provide one more opportunity for hearing and explanation to ensure natural justice. The CIT(A) is to decide the issue on merits after considering the assessee's submissions.
The Tribunal found that the CIT(A) did not conduct necessary inquiries or obtain a remand report before dismissing the appeal. To ensure natural justice, the matter was set aside and remitted back to the CIT(A) for fresh adjudication.
The Tribunal, considering the assessee's plea for a fresh opportunity due to circumstances beyond her control, set aside the appellate order. The matter was remitted back to the CIT(A) for a fresh decision after considering the assessee's explanations and evidence.
The Tribunal held that the Department should have waited for the CBDT's decision on the assessee's condonation petition before disallowing the deduction. The matter was remitted back to the CIT(A).
The Tribunal, in the interest of natural justice, granted the assessee another opportunity for a hearing. The appeal was restored to the CIT(A) for fresh adjudication with a direction for the assessee to substantiate its case.
The Tribunal noted that the companies are under CIRP and a moratorium is in place. Therefore, the matters were restored back to the file of the AO for fresh adjudication after the completion of the CIRP.
The Tribunal noted that the companies are under CIRP and a moratorium is in place. Therefore, the matters were restored back to the file of the AO for fresh adjudication after the completion of the CIRP.
The Tribunal condoned the delay in filing the appeals. The core issue revolved around the validity of reassessment proceedings and the treatment of cash deposits as unexplained cash credit under Section 68.
The Tribunal noted that the companies are under CIRP and a moratorium is in place. Therefore, the matters were restored back to the file of the AO for fresh adjudication after the completion of the CIRP.
The Tribunal condoned the delay in filing the appeals. The core issue revolved around the validity of reassessment proceedings and the treatment of cash deposits as unexplained cash credit under Section 68.
The Tribunal noted that the quantum addition appeal was restored to the CIT(A) for fresh adjudication. Therefore, the consequential penalty appeal was also restored to the same authority for a fresh decision.
The Tribunal held that the AO had examined the issue of property purchase and chose not to make an addition. The PCIT was not justified in directing a fresh assessment solely because the guideline value was higher than the sale consideration, especially when the AO had taken a possible view. The judgment of the Madras High Court in CIT vs. Smt. Padmavathi was relied upon.
The Tribunal held that capital losses on investments cannot be adjusted against book profits under Section 115JB. Following the principle that capital gains are excluded, losses should logically lead to an increase in book profits to the extent debited in the Profit & Loss account.
The Tribunal held that the payment of bareboat charter by ASPL to DD8PL is not liable to tax in India as per Article 7 read with Article 5 of the India-Singapore DTAA. The Tribunal reasoned that ASPL is not liable to deduct withholding tax under Section 195 as the income earned by DD8PL is not chargeable to tax in India. The Tribunal relied on the fact that the bareboat lease contract was entered into and payments were made outside India, and DD8PL, being a Singapore company with no PE in India, is not taxable in India. The Tribunal also noted that Section 44BB is a non-obstante clause that excludes the application of other provisions like Section 40(a)(i). Therefore, the disallowance under Section 40(a)(i) was not warranted. The orders of the authorities below were set aside, and the addition made by the AO was deleted.
The Tribunal held that the income received by the assessee for providing rig services is not taxable in India as royalty under Section 9(1)(vi) and Article 12 of the India-Singapore DTAA. It further held that the income is also not taxable as business profits in India under Section 44BB of the Act because the assessee did not have a Permanent Establishment (PE) in India. The Tribunal reasoned that as per Article 7 read with Article 5 of the India-Singapore Tax Treaty, business profits of an enterprise of a contracting state are taxable in the other contracting state only if the enterprise carries on business through a PE situated therein. For installations or structures used for exploration of natural resources, a PE exists only if such installation or structure is used for more than 120 days in any financial year. In this case, the assessee's work in India was for only 53 days, which is undisputed and less than the 120-day threshold. Therefore, no PE existed in India. The Tribunal also noted that the assessee obtained a lower TDS certificate based on Section 44BB, which taxes income at 10% of aggregate receipts. Respectfully following the decision of the Coordinate Bench in the assessee's own case for AY 2017-18, the Tribunal directed the AO to delete the addition made. The appeal filed by the assessee was allowed.
The Tribunal held that the consideration received by the assessee for providing rig services is not liable to tax in India as royalty under Section 9(1)(vi) and Article 12 of the India-Singapore DTAA. Furthermore, the income is also not taxable as business profits in India under Section 44BB. The Tribunal reasoned that as per Article 7 read with Article 5 of the India-Singapore DTAA, business profits of an enterprise of a contracting state are taxable in the other contracting state only if the enterprise carries on business through a PE situated therein. The definition of PE in Article 5 includes installations used for exploration of natural resources if used for more than 120 days. In this case, the assessee's presence in India was only 53 days, which is undisputed by the AO and less than the 120-day threshold for PE. Therefore, the assessee did not have a PE in India. Consequently, the business profits are taxable only in the country of residence (Singapore). The Tribunal directed the AO to delete the addition made towards income. The Tribunal also noted that the case law relied upon by the Revenue in M/s. UMW Sher (L) Ltd. was not applicable, and the Revenue could not controvert the decision of the Tribunal in the assessee's sister concern's case.
The Tribunal held that the assessee is the beneficial owner of the interest income received from the FCCDs and is therefore entitled to the benefits of Article 11 of the India-Cyprus Double Taxation Avoidance Agreement. The Tribunal relied on the decision of the ITAT, Mumbai Benches in M/s. Golden Bella Holdings Ltd vs DCIT. The reasoning was that the mere fact that the investment was funded using shareholder loans and share capital does not affect the assessee's status as the beneficial owner, as the entire interest income was the sole property of the assessee. The Tribunal noted that the assessee had exclusive possession and control over the interest income, did not require approval from any entity to invest or utilize the income, and was free to utilize it at its sole discretion, unconstrained by any contractual, legal, or economic arrangements with third parties. The transactions were not considered back-to-back transactions lacking economic substance. The Tribunal directed the AO to compute tax at 10% on the interest income as per the India-Cyprus Tax Treaty. The second ground of appeal was not explicitly decided upon as the primary issue of beneficial ownership was decided in favour of the assessee.
The Tribunal held that for unabated assessments, additions cannot be made in the absence of incriminating material found during search. Since the assessment for AY 2010-11 was unabated, the issue of unsecured loans was set aside to the AO for re-examination.
The Tribunal held that for unabated assessments, additions cannot be made in the absence of incriminating material found during search. Since the assessment for AY 2010-11 was unabated, the issue of unsecured loans was set aside to the AO for re-examination.
The Tribunal condoned the delay in filing the appeals before the CIT(A) citing bonafide reasons and the nature of the deductor. It directed the CIT(A) to adjudicate the substantial issue of the applicability of Section 194LA on its merits.
The Tribunal held that the amendment to Section 14A by the Finance Act, 2022, is prospective, and since the assessee earned no exempt income, the disallowance under Section 14A was deleted. The issue of ROC fees was remitted to the AO for fresh consideration. The disallowance for TDS difference was upheld.
The Tribunal condoned the delay in filing the appeals before the CIT(A) due to bonafide reasons. It directed the CIT(A) to decide the substantial issue of the applicability of Section 194LA on merits.
The Tribunal condoned the delay in filing the appeals before the CIT(A) due to bonafide reasons. It directed the CIT(A) to decide the substantial issue of the applicability of Section 194LA on merits.
The Tribunal condoned the delay in filing the appeals before the CIT(A) due to bonafide reasons. It directed the CIT(A) to decide the substantial issue of the applicability of Section 194LA on merits.
The Tribunal held that only the automotive segment of Dynamatic Technologies should be considered as a comparable, referencing its own prior decision. It also directed the TPO to reconsider the working capital adjustment and to restrict the entity-level adjustment to transactions with Associated Enterprises.
The Tribunal held that the incidence of tax for the joint development agreement and the subsequent sale of flats are different. The Assessing Officer made a mistake in computing capital gains for AY 2013-14 based on the sale of flats, ignoring the dates of the earlier agreements.
The Tribunal held that while the AO's reasoning for addition based solely on SBNs being illegal tender was incorrect, the assessee failed to provide sufficient evidence to prove the entire amount was from business receipts. Therefore, a portion of the deposit was confirmed as unexplained.
The Tribunal held that reopening the assessment under Section 147 was bad in law as the issue was already under appeal, violating the third proviso to Section 147. Consequently, the reassessment order was quashed.
The Tribunal held that the Assessing Officer had not examined whether the interest income from a scheduled bank (Axis Bank) was eligible for deduction under Section 80P, especially in light of Section 80P(4). Therefore, the PCIT was justified in setting aside the assessment.
The Tribunal held that the impugned order follows a binding judicial precedent from the jurisdictional High Court, and the revenue could not controvert this position. Therefore, no fault was found in the order.
The Tribunal upheld the disallowance of weighted deduction for in-house research. For capitalized interest, the disallowance was confirmed, but depreciation was allowed after verification. The disallowance under Section 14A was remanded for fresh adjudication.
The Tribunal held that interest income earned on fixed deposits after the business has been set up, even if not commenced, is taxable as income from other sources. The bifurcation of interest by the assessee was considered an artificial distinction.
The Tribunal upheld the disallowance of weighted deduction for in-house research. For capitalized interest, the disallowance was confirmed, but depreciation was allowed after verification. The disallowance under Section 14A was remanded for fresh adjudication.
The Tribunal upheld the disallowance of weighted deduction for in-house research. For capitalized interest, the disallowance was confirmed, but depreciation was allowed after verification. The disallowance under Section 14A was remanded for fresh adjudication.
The Tribunal upheld the disallowance of weighted deduction for in-house research. For capitalized interest, the disallowance was confirmed, but depreciation was allowed after verification. The disallowance under Section 14A was remanded for fresh adjudication.
The Tribunal held that interest income earned on fixed deposits after the business has been set up, even if not commenced, is taxable as income from other sources. The bifurcation of interest by the assessee was considered an artificial distinction.
The Tribunal held that the AO had taken a possible view by estimating profit on the differential cash deposit, and there was no error or prejudice to the revenue. Therefore, the PCIT's revision order was set aside.
The Tribunal held that since the original assessment was completed under Section 143(3) and the reopening was initiated beyond four years, the Revenue failed to establish any failure on the part of the assessee to disclose material facts. Therefore, the reopening was considered bad in law.
The Tribunal held that interest income earned on fixed deposits after the business has been set up, even if not commenced, is taxable as income from other sources. The bifurcation of interest by the assessee was considered an artificial distinction.
The Tribunal admitted the additional grounds as they raised a purely legal issue going to the root of the matter, citing the recent judgment of the jurisdictional High Court in Pfizer Healthcare India (P) Ltd. The Tribunal noted that the Hon'ble High Court in Pfizer Healthcare India (P) Ltd. had held that the period of 60 days stipulated for passing a transfer pricing order under section 92CA(3A) is mandatory and not directory. The Court determined that the period of limitation for assessment under section 153 expires on December 31, 2019, and the 60-day period prior to this, as per section 92CA(3A), would expire on October 31, 2019. Therefore, the TPO's order dated November 1, 2019, was held to be barred by limitation. Consequently, the subsequent machinery of section 144C would not be triggered, meaning the AO was not required to pass a draft assessment order, and the DRP had no jurisdiction. The final assessment order passed on April 23, 2021, was also held to be barred by limitation as it was passed beyond the period prescribed under section 153(1) read with section 153(4). The Tribunal quashed the final assessment order. The merits of the case were rendered academic and not adjudicated upon.
The Tribunal, while noting the failure to substantiate the cash deposits, decided to grant the assessee another opportunity to present evidence. This opportunity is conditional upon the assessee paying a cost of Rs. 10,000 per appeal.
The Tribunal confirmed the additions made by the Assessing Officer as the assessee failed to substantiate the expenditure claim and provided no new material. The appeal was dismissed.
The Tribunal, while noting the failure to substantiate the cash deposits, decided to grant the assessee another opportunity to present evidence. This opportunity is conditional upon the assessee paying a cost of Rs. 10,000 per appeal.
The Tribunal dismissed the appeal regarding disallowance of business expenditure and depreciation, finding the lower authorities' decision reasonable. However, it partly allowed the appeal on the deemed dividend issue by directing the AO to exclude amounts already taxed under Section 2(22)(e) in the shareholder's hands.
The Tribunal held that the disallowance of interest expenses should be restricted to the amount where TDS was not deducted and the NBFCs had not already paid tax on the income. For expenses related to exempt income, the disallowance was restricted to the amount of exempt income.
The Tribunal held that the Assessing Officer had not made adequate inquiries regarding the sundry creditors, and the assessee had failed to provide sufficient details to prove their genuineness. Therefore, the revision order passed by the Principal Commissioner was upheld.
The Tribunal held that the reasons provided by the assessee for the inordinate delay were not bonafide or reasonable. The assessee's attempt to shift blame to consultants and categorize the delay based on COVID-19 was found to be illogical and an afterthought.
The Tribunal held that the denial of deduction was due to a mistake in filling the return and not a new claim. The assessee's valid claim should not be jeopardized by such errors. The Tribunal set aside the impugned orders and directed the AO to verify the claim and re-compute the income.
The Tribunal held that since the tax audit report was made available to the Assessing Officer before the completion of assessment, the penalty under Section 271B of the Act cannot be levied. The delay was considered a venial technical breach without mala fide intention.