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250 orders · Page 3 of 5
The Tribunal held that concealment of income must be assessed with reference to the return filed under Section 153A, not the original return under Section 139. Since the assessee offered additional income in the revised return filed under Section 153A, which was accepted by the AO, no concealment could be made out.
The Tribunal held that a loose sheet without corroboration is a 'dumb document' and cannot be the sole basis for additions. It also found that differences in net profit arose from stock revaluation and forex treatment, which were explained. The Tribunal upheld the lower authorities' decision on the applicability of the 4th proviso to Section 153A.
The Tribunal held that concealment of income must be assessed with reference to the return filed under Section 153A, not the original return under Section 139. Since the assessee offered additional income in the revised return filed under Section 153A, which was accepted by the AO, no concealment could be made out.
The Tribunal held that the penalty notice was defective as it failed to specify the exact limb of Section 271AAB under which the penalty was being levied. This denied the assessee a reasonable opportunity to present their case.
The Tribunal held that in the interest of justice and considering the principles of natural justice, the assessee deserves another opportunity to present its case before the CIT(E). The Tribunal set aside the order passed by the CIT(E) and remitted the matter to his file for a fresh decision on the application under Section 12A(1)(ac)(iii). The assessee was directed to cooperate and appear before the CIT(E). Similarly, for the application under Section 80G, the matter was restored to the file of the CIT(E) for fresh consideration in line with the directions given for the Section 12A appeal. The ratio is that procedural fairness and an opportunity to be heard are paramount, especially when factual submissions regarding charitable activities need substantiation. The appeals were allowed for statistical purposes.
The Tribunal held that the assessees' claim for set off of STCL was erroneously rejected. The amendment to Section 115UB brought in by the Finance Act, 2019, was intended to cure genuine hardships and should be treated as curative, making the technicality of non-reporting in prior ITRs irrelevant.
The Tribunal held that the land was agricultural land at the time of transfer and thus not a capital asset. The intention to convert the land for non-agricultural purposes, without actual conversion and approval prior to transfer, did not change its nature.
The Tribunal held that the AO had not rejected the assessee's books of account, VAT returns, or trade results, and the business operations appeared consistent. Therefore, the cash deposits made during the demonetization period were considered part of trading activities, and the addition made under Section 69A was not warranted.
The Tribunal held that the definition of 'member' under the Tamil Nadu Cooperative Societies Act includes Associate Members, to whom loans can be provided. Citing Supreme Court judgments, the Tribunal found that the assessee's operations, catering to different classes of members as per the Act, do not disqualify them from the deduction.
The Tribunal held that the disallowance under section 14A of the Act was to be set aside and deleted. The Tribunal relied on the Delhi High Court's decision in Pr. CIT v. Era Infrastructure (India) Ltd., which followed the Supreme Court's judgment in Sedco Forex International Drill Inc. v. CIT. The amendment to Section 14A, even if stated to be 'for removal of doubts,' cannot be presumed retrospective if it alters the law. Therefore, the Explanation to Section 14A was held to be prospective. Regarding the disallowance of the trade advance of Rs. 1,89,10,796/-, the Tribunal found that the AO and DRP misunderstood the transaction. The assessee claimed the written-off trade advance as a revenue loss and sought deduction under section 37, not as bad debts under section 36(1)(vii). The Tribunal noted that the advance was for purchasing raw materials (iron ore) and became irrecoverable due to the supplier's breach of contract. It distinguished the Supreme Court's ruling in Principal Commissioner of Income-tax v. Khyati Relators Private Limited, stating that in the assessee's case, the advance was in the ordinary course of business for purchasing iron ore, unlike the Khyati Relators case where the advance was for acquiring immovable property (capital in nature). Therefore, the advance written off was considered an allowable expenditure under section 37. The AO was directed to delete the disallowance. The Tribunal did not specifically address the transfer pricing grounds in the provided excerpt, but the operative part of the order indicates a partial allowance of the appeal.
The tribunal acknowledged that assessment orders were passed u/s 153C during the COVID-19 pandemic, limiting the AO's opportunity to examine facts. In the interest of justice and fair play, the tribunal restored the case to the AO for de novo assessment, directing that all issues, including the validity of jurisdiction u/s 153C, be considered afresh after providing proper opportunity to the assessee.
The tribunal acknowledged that assessment orders were passed u/s 153C during the COVID-19 pandemic, limiting the AO's opportunity to examine facts. In the interest of justice and fair play, the tribunal restored the case to the AO for de novo assessment, directing that all issues, including the validity of jurisdiction u/s 153C, be considered afresh after providing proper opportunity to the assessee.
The tribunal acknowledged that assessment orders were passed u/s 153C during the COVID-19 pandemic, limiting the AO's opportunity to examine facts. In the interest of justice and fair play, the tribunal restored the case to the AO for de novo assessment, directing that all issues, including the validity of jurisdiction u/s 153C, be considered afresh after providing proper opportunity to the assessee.
The tribunal acknowledged that assessment orders were passed u/s 153C during the COVID-19 pandemic, limiting the AO's opportunity to examine facts. In the interest of justice and fair play, the tribunal restored the case to the AO for de novo assessment, directing that all issues, including the validity of jurisdiction u/s 153C, be considered afresh after providing proper opportunity to the assessee.
The tribunal acknowledged that assessment orders were passed u/s 153C during the COVID-19 pandemic, limiting the AO's opportunity to examine facts. In the interest of justice and fair play, the tribunal restored the case to the AO for de novo assessment, directing that all issues, including the validity of jurisdiction u/s 153C, be considered afresh after providing proper opportunity to the assessee.
The tribunal acknowledged that assessment orders were passed u/s 153C during the COVID-19 pandemic, limiting the AO's opportunity to examine facts. In the interest of justice and fair play, the tribunal restored the case to the AO for de novo assessment, directing that all issues, including the validity of jurisdiction u/s 153C, be considered afresh after providing proper opportunity to the assessee.
On the first issue concerning the disallowance of payments to overseas AEs, the Tribunal, after admitting additional evidence, allowed the grounds of appeal for statistical purposes. The specific reasoning and operative directions for this issue are not fully detailed in the provided excerpt, but it indicates a favorable outcome for the assessee. On the second issue regarding the addition of transfer pricing adjustments to book profit under Section 115JB, the Tribunal followed the decision of the coordinate bench in Cash Edge India Pvt Ltd, which in turn relied on Apollo Tyres and Malayalam Manorama. The Tribunal held that transfer pricing adjustments are not contemplated under Explanation 1 to Section 115JB(2) and therefore cannot be added back to book profits. The AO erred in invoking Section 115JB for such adjustments. Accordingly, the Tribunal set aside the order of the lower authorities and directed the AO to recompute the income without invoking Section 115JB. Grounds of appeal 23 to 25 were dismissed as not pressed.
The Tribunal held that the reassessment was initiated beyond four years without a finding of failure by the assessee to disclose material facts. Therefore, the jurisdictional fact for invoking the extended period was missing, making the reassessment void.
The Tribunal held that the CIT(A)'s finding was sketchy and cryptic. To meet the ends of justice, the assessee was granted another opportunity to present their case before the AO. The matter was remitted back to the AO for fresh adjudication.
The Tribunal acknowledged the assessee's non-compliance but, in the interest of natural justice, set aside the orders of the lower authorities and remanded the matter back to the AO for fresh adjudication de novo, with an opportunity for the assessee to be heard and produce evidences. This remission is conditional on the assessee paying a cost of Rs. 5000/- to the Tamil Nadu State Legal Services Authority.
The Tribunal held that the assessee was given inadequate opportunity by the lower authorities and the CIT(A)'s finding was sketchy. The case was remitted back to the AO for fresh adjudication.
The tribunal dismissed the first ground of appeal concerning non-consideration of submissions. For the second ground regarding revised returns, the tribunal set aside the AO's order and directed him to verify figures from original records. For the third ground related to Section 68, the tribunal also set aside the lower authorities' order and directed the AO to reconsider the issue after giving the assessee an opportunity to be heard and by passing a speaking order.
The Tribunal held that the assessee acted as a developer, not just a contractor, by undertaking entrepreneurial and investment risks. It also clarified that satisfying all conditions cumulatively was not necessary for Section 80IA deduction, following judicial precedents.
The Tribunal held that additions cannot be made in unabated assessments without any reference to seized material for the impugned year. Since no incriminating material was found for the assessment year in question, the additions made by the AO were deleted.
The Tribunal decided that Section 10A deductions are to be computed at the gross total income stage, not total income. It also ruled in favor of the assessee regarding the set-off of losses from 10A/10AA units and allowed depreciation on computer software at 60%, following previous decisions.
The Tribunal held that the assessee was eligible for deduction under Section 80IA as a developer, not merely a contractor. The CIT(A)'s decision to allow the deduction was upheld, reversing the Assessing Officer's disallowance.
The Tribunal held that the assessee satisfied the conditions for deduction under Section 80IA(4) as it was a company engaged in developing infrastructure facilities, entered into agreements with the government, and commenced activities after the stipulated date. The distinction between a 'developer' and a 'contractor' was analyzed, concluding that a developer undertaking infrastructure projects for the government is also considered a contractor in that context.
The Tribunal held as follows: 1. Regarding disallowance under Section 14A (Issue 1): For AY 2010-11, the CIT(A) rightly deleted the addition, holding that unrealized gains on mutual fund units remaining unsold cannot be added back as income of the current year, and capital gains on sale were offered to tax in the year of sale. For other assessment years, the Tribunal noted that the CIT(A) had deleted the disallowance, and the revenue had not brought anything on record to controvert this. Thus, the revenue's appeals on this issue were dismissed. 2. Regarding disallowance under Section 40(a)(i) (Issue 2): The judgment text provided does not contain the Tribunal's decision on this specific issue. It appears to have been omitted from the excerpt. 3. Regarding disallowance under Section 14A in computing book profits under Section 115JB (Issue 3): The Tribunal held that the CIT(A) rightly deleted the disallowance. It relied on its own previous decisions and the Special Bench decision in ACIT vs. Vireet Investments (P.) Ltd., which held that disallowance under Section 14A read with Rule 8D cannot be added back while computing book profit under Section 115JB. The revenue's appeals on this issue were dismissed. 4. Regarding consequential penalty proceedings (Issue 4): The Tribunal upheld the CIT(A)'s finding that no order under Section 271(1)(c) had been passed by the AO, deeming the assessee's grievance premature. The grounds raised by the assessee were dismissed, but the issue was kept open on merits to be challenged at the time of an order under Section 271(1)(c).
The Tribunal dismissed the Revenue's appeals regarding the addition of unrealized gains on mutual fund units, upholding the CIT(A)'s decision that these cannot be taxed in the current year if unsold. The Tribunal also ruled in favor of the assessee regarding the addition of disallowance under Section 14A in computing book profits under Section 115JB, relying on its own prior decisions.
The Tribunal held as follows: 1. Regarding disallowance under Section 14A (Issue 1): For AY 2010-11, the CIT(A) rightly deleted the addition, holding that unrealized gains on mutual fund units remaining unsold cannot be added back as income of the current year, and capital gains on sale were offered to tax in the year of sale. For other assessment years, the Tribunal noted that the CIT(A) had deleted the disallowance, and the revenue had not brought anything on record to controvert this. Thus, the revenue's appeals on this issue were dismissed. 2. Regarding disallowance under Section 40(a)(i) (Issue 2): The judgment text provided does not contain the Tribunal's decision on this specific issue. It appears to have been omitted from the excerpt. 3. Regarding disallowance under Section 14A in computing book profits under Section 115JB (Issue 3): The Tribunal held that the CIT(A) rightly deleted the disallowance. It relied on its own previous decisions and the Special Bench decision in ACIT vs. Vireet Investments (P.) Ltd., which held that disallowance under Section 14A read with Rule 8D cannot be added back while computing book profit under Section 115JB. The revenue's appeals on this issue were dismissed. 4. Regarding consequential penalty proceedings (Issue 4): The Tribunal upheld the CIT(A)'s finding that no order under Section 271(1)(c) had been passed by the AO, deeming the assessee's grievance premature. The grounds raised by the assessee were dismissed, but the issue was kept open on merits to be challenged at the time of an order under Section 271(1)(c).
The Tribunal decided the issues as follows: On the first issue concerning the disallowance of expenditure under Section 40(a)(i), the Tribunal found that the CIT(A) had erred in upholding the addition. The Tribunal analyzed the nature of the services and concluded that they did not constitute royalty or fees for technical services as defined under the Act, and therefore, no withholding tax obligation arose under Section 195. Consequently, the disallowance under Section 40(a)(i) was deleted. On the second issue regarding unexplained cash credits under Section 68, the Tribunal found that the assessee had provided sufficient evidence to explain the credits. The Tribunal agreed with the CIT(A)'s finding that the cash credits were genuine and properly explained, and therefore, the deletion of the addition was upheld. The operative direction was to delete the additions sustained by the CIT(A) and uphold the deletions made by the CIT(A).
The Tribunal held that the assessee acted as a developer, not just a contractor, by undertaking entrepreneurial and investment risks. It also clarified that satisfying all conditions cumulatively was not necessary for Section 80IA deduction, following judicial precedents.
The Tribunal held as follows: 1. Regarding disallowance under Section 14A (Issue 1): For AY 2010-11, the CIT(A) rightly deleted the addition, holding that unrealized gains on mutual fund units remaining unsold cannot be added back as income of the current year, and capital gains on sale were offered to tax in the year of sale. For other assessment years, the Tribunal noted that the CIT(A) had deleted the disallowance, and the revenue had not brought anything on record to controvert this. Thus, the revenue's appeals on this issue were dismissed. 2. Regarding disallowance under Section 40(a)(i) (Issue 2): The judgment text provided does not contain the Tribunal's decision on this specific issue. It appears to have been omitted from the excerpt. 3. Regarding disallowance under Section 14A in computing book profits under Section 115JB (Issue 3): The Tribunal held that the CIT(A) rightly deleted the disallowance. It relied on its own previous decisions and the Special Bench decision in ACIT vs. Vireet Investments (P.) Ltd., which held that disallowance under Section 14A read with Rule 8D cannot be added back while computing book profit under Section 115JB. The revenue's appeals on this issue were dismissed. 4. Regarding consequential penalty proceedings (Issue 4): The Tribunal upheld the CIT(A)'s finding that no order under Section 271(1)(c) had been passed by the AO, deeming the assessee's grievance premature. The grounds raised by the assessee were dismissed, but the issue was kept open on merits to be challenged at the time of an order under Section 271(1)(c).
The Tribunal held as follows: 1. Regarding disallowance under Section 14A (Issue 1): For AY 2010-11, the CIT(A) rightly deleted the addition, holding that unrealized gains on mutual fund units remaining unsold cannot be added back as income of the current year, and capital gains on sale were offered to tax in the year of sale. For other assessment years, the Tribunal noted that the CIT(A) had deleted the disallowance, and the revenue had not brought anything on record to controvert this. Thus, the revenue's appeals on this issue were dismissed. 2. Regarding disallowance under Section 40(a)(i) (Issue 2): The judgment text provided does not contain the Tribunal's decision on this specific issue. It appears to have been omitted from the excerpt. 3. Regarding disallowance under Section 14A in computing book profits under Section 115JB (Issue 3): The Tribunal held that the CIT(A) rightly deleted the disallowance. It relied on its own previous decisions and the Special Bench decision in ACIT vs. Vireet Investments (P.) Ltd., which held that disallowance under Section 14A read with Rule 8D cannot be added back while computing book profit under Section 115JB. The revenue's appeals on this issue were dismissed. 4. Regarding consequential penalty proceedings (Issue 4): The Tribunal upheld the CIT(A)'s finding that no order under Section 271(1)(c) had been passed by the AO, deeming the assessee's grievance premature. The grounds raised by the assessee were dismissed, but the issue was kept open on merits to be challenged at the time of an order under Section 271(1)(c).
The Tribunal held as follows: 1. Regarding disallowance under Section 14A (Issue 1): For AY 2010-11, the CIT(A) rightly deleted the addition, holding that unrealized gains on mutual fund units remaining unsold cannot be added back as income of the current year, and capital gains on sale were offered to tax in the year of sale. For other assessment years, the Tribunal noted that the CIT(A) had deleted the disallowance, and the revenue had not brought anything on record to controvert this. Thus, the revenue's appeals on this issue were dismissed. 2. Regarding disallowance under Section 40(a)(i) (Issue 2): The judgment text provided does not contain the Tribunal's decision on this specific issue. It appears to have been omitted from the excerpt. 3. Regarding disallowance under Section 14A in computing book profits under Section 115JB (Issue 3): The Tribunal held that the CIT(A) rightly deleted the disallowance. It relied on its own previous decisions and the Special Bench decision in ACIT vs. Vireet Investments (P.) Ltd., which held that disallowance under Section 14A read with Rule 8D cannot be added back while computing book profit under Section 115JB. The revenue's appeals on this issue were dismissed. 4. Regarding consequential penalty proceedings (Issue 4): The Tribunal upheld the CIT(A)'s finding that no order under Section 271(1)(c) had been passed by the AO, deeming the assessee's grievance premature. The grounds raised by the assessee were dismissed, but the issue was kept open on merits to be challenged at the time of an order under Section 271(1)(c).
The Tribunal held as follows: 1. Regarding disallowance under Section 14A (Issue 1): For AY 2010-11, the CIT(A) rightly deleted the addition, holding that unrealized gains on mutual fund units remaining unsold cannot be added back as income of the current year, and capital gains on sale were offered to tax in the year of sale. For other assessment years, the Tribunal noted that the CIT(A) had deleted the disallowance, and the revenue had not brought anything on record to controvert this. Thus, the revenue's appeals on this issue were dismissed. 2. Regarding disallowance under Section 40(a)(i) (Issue 2): The judgment text provided does not contain the Tribunal's decision on this specific issue. It appears to have been omitted from the excerpt. 3. Regarding disallowance under Section 14A in computing book profits under Section 115JB (Issue 3): The Tribunal held that the CIT(A) rightly deleted the disallowance. It relied on its own previous decisions and the Special Bench decision in ACIT vs. Vireet Investments (P.) Ltd., which held that disallowance under Section 14A read with Rule 8D cannot be added back while computing book profit under Section 115JB. The revenue's appeals on this issue were dismissed. 4. Regarding consequential penalty proceedings (Issue 4): The Tribunal upheld the CIT(A)'s finding that no order under Section 271(1)(c) had been passed by the AO, deeming the assessee's grievance premature. The grounds raised by the assessee were dismissed, but the issue was kept open on merits to be challenged at the time of an order under Section 271(1)(c).
The Tribunal decided that Section 10A deductions are to be computed at the gross total income stage, not total income. It also ruled in favor of the assessee regarding the set-off of losses from 10A/10AA units and allowed depreciation on computer software at 60%, following previous decisions.
The Tribunal found that the AO passed an ex-parte order without verifying the reinvestment of sale proceeds. The CIT(A) also failed to verify this. Therefore, the Tribunal set aside the order and remitted the issue back to the AO for a de novo assessment, providing the assessee a reasonable opportunity.
The Tribunal held that the AO failed to prove the deposits were made by the assessees from their own funds, violating principles of natural justice by not allowing cross-examination and relying on assumptions. The assessment order of the company also did not make similar additions.
The Tribunal held that the assessee had fulfilled the conditions for immunity from penalty under Section 270AA of the Act, despite a minor delay in filing Form 68. The penalty levied under Section 270A for under-reporting of income was therefore deleted.
The Tribunal held that the AO failed to prove the deposits were made by the assessees from their own funds, violating principles of natural justice by not allowing cross-examination and relying on assumptions. The assessment order of the company also did not make similar additions.
The Tribunal held that Section 92BA(i) was omitted retrospectively from April 1, 2017. Therefore, any action taken under this provision for the assessment year 2014-15 was invalid and bad in law. Consequently, the adjustment made by the TPO was deleted.
The Tribunal held that the AO failed to prove the deposits were made by the assessees from their own funds, violating principles of natural justice by not allowing cross-examination and relying on assumptions. The assessment order of the company also did not make similar additions.
The Tribunal held that the AO failed to prove the deposits were made by the assessees from their own funds, violating principles of natural justice by not allowing cross-examination and relying on assumptions. The assessment order of the company also did not make similar additions.
The Tribunal held that the AO failed to prove the deposits were made by the assessees from their own funds, violating principles of natural justice by not allowing cross-examination and relying on assumptions. The assessment order of the company also did not make similar additions.
The Tribunal condoned the delay in filing the appeal and, considering the reasons provided for non-response from three sub-dealers (death, change of address) and the assessee's request, decided to remand the issue to the CIT(A) for limited verification.
The Tribunal held that the AO failed to prove the deposits were made by the assessees from their own funds, violating principles of natural justice by not allowing cross-examination and relying on assumptions. The assessment order of the company also did not make similar additions.
The Tribunal held that the CIT(A) erred in dismissing the appeal under Section 249(4)(b) without considering that the payment of advance tax is not applicable in reopened cases. The Tribunal condoned the delay in filing the appeals due to reasonable cause and remitted the issue back to the CIT(A) for adjudication on merits.
The Tribunal held that the AO failed to prove the deposits were made by the assessees from their own funds, violating principles of natural justice by not allowing cross-examination and relying on assumptions. The assessment order of the company also did not make similar additions.
The Tribunal held that the AO failed to prove the deposits were made by the assessees from their own funds, violating principles of natural justice by not allowing cross-examination and relying on assumptions. The assessment order of the company also did not make similar additions.