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279 orders · Page 2 of 6
The Tribunal held that Section 68 of the Income Tax Act is not attracted to brought-forward trade payables from earlier years, even if the genuineness of the original transaction was not fully established in those earlier years. The addition made by the AO and confirmed by the CIT(A) was therefore unjustified.
The Tribunal condoned the delay, finding it was not intentional. The Tribunal restored the issue to the Assessing Officer for fresh adjudication with an undertaking from the assessee to comply with requirements.
The Tribunal, considering principles of natural justice, set aside the impugned order and restored the appeal to the Assessing Officer for a de novo assessment. The assessee was directed to provide all evidence and submissions.
The Tribunal restored the applications for registration under Section 12AB and approval under Section 80G back to the CIT(E) for de novo consideration. This was done to provide the assessee, an old trust, an opportunity to present the required documents and arguments.
The Tribunal held that the principle of telescoping, where undisclosed income from earlier years can be used to explain subsequent unexplained investments or expenses, is applicable. The AO was directed to re-evaluate the additions, considering the benefit of telescoping and the value of unaccounted stock.
The Tribunal noted that the assessee failed to present her case before the Assessing Officer, who passed an ex parte order. While the Revenue argued for dismissal, the Tribunal, considering principles of natural justice, restored the matter to the Assessing Officer for a fresh decision.
The Tribunal held that Section 68 of the Income Tax Act is not attracted to brought-forward trade payables from earlier years, even if the genuineness of the original transaction was not fully established in those earlier years. The addition made by the AO and confirmed by the CIT(A) was therefore unjustified.
The Tribunal restored the issue to the CIT(A) for fresh adjudication, as the appeal was dismissed on grounds of delay without deciding on merits. The assessee is to be given an opportunity to be heard and to provide evidence.
The Tribunal found merit in the assessee's submission that segmented financials excluding product-related costs of the HPCR product should be considered for determining the Arm's Length Price (ALP) of international transactions with the AE. It noted that the assessee was developing a new product under R&D for domestic transactions only, and argued that these costs should be excluded from ALP determination for international transactions. Since these additional evidences were not submitted before the AO/TPO, the Tribunal decided to remand the matter to the AO/TPO to determine the transfer pricing adjustment afresh, considering the additional evidences and excluding product-related costs. Regarding the disallowance of Rs. 6,19,220/-, the Tribunal found merit in the assessee's submission that a donation of Rs. 5,50,000/- was made to trusts approved under Section 80G(5) and directed the AO to allow deduction under Section 80G in respect of this donation after due verification, even though the assessee had not claimed it in the return. The issue of whether only the AE segment should be considered and the AE's operating margin were implicitly addressed by the remand for fresh determination of TP adjustment. The issue of whether product development expenses should be excluded was decided in favor of the assessee, leading to the remand.
The Tribunal condoned the delay of 216 days considering the facts and circumstances and the assessee's bonafide belief. The Tribunal restored the matter back to the file of the CIT(A) for fresh adjudication, with a direction to provide the assessee with a reasonable opportunity of being heard.
The Tribunal held that the excess stock found in the 'Party Balance Sheet' of the J-Pack Ledger should be apportioned across the years in the ratio of unaccounted income taxed in the hands of the assessee and Shri Mohanlal Khatri, and valued at market rates prevailing in those years. The Tribunal found merit in the assessee's contention that the excess stock would have been gradually acquired over the years and not solely from income in the year of search. The Tribunal directed the revision of the value of excess stock to Rs.105,71,49,363/-. Furthermore, the Tribunal held that the aggregate unaccounted income of Rs.182,57,74,492/- was sufficient to be telescoped/set-off against the aggregate value of unexplained assets (excess stock, unaccounted cash receivables, unexplained cash, and unexplained silver) amounting to Rs.157,90,76,296/-. Consequently, the separate additions made by the AO on account of excess stock, unaccounted cash receivables, unexplained cash, and silver were directed to be deleted. All other objections raised by the assessee on the merits and quantification of other assets were left undecided as they became academic. The assessee's grounds were allowed overall.
The Tribunal held that the excess stock found in the 'Party Balance Sheet' of the J-Pack Ledger should be apportioned across the years in the ratio of unaccounted income taxed in the hands of the assessee and Shri Mohanlal Khatri, and valued at market rates prevailing in those years. The Tribunal found merit in the assessee's contention that the excess stock would have been gradually acquired over the years and not solely from income in the year of search. The Tribunal directed the revision of the value of excess stock to Rs.105,71,49,363/-. Furthermore, the Tribunal held that the aggregate unaccounted income of Rs.182,57,74,492/- was sufficient to be telescoped/set-off against the aggregate value of unexplained assets (excess stock, unaccounted cash receivables, unexplained cash, and unexplained silver) amounting to Rs.157,90,76,296/-. Consequently, the separate additions made by the AO on account of excess stock, unaccounted cash receivables, unexplained cash, and silver were directed to be deleted. All other objections raised by the assessee on the merits and quantification of other assets were left undecided as they became academic. The assessee's grounds were allowed overall.
The Tribunal held that the penalty levied under Section 270A was unjustified. The MAP resolution did not imply an admission of inaccurate reporting, and the adjustments were based on an ad-hoc estimate rather than definitive findings of concealment.
The Tribunal held that while it concurred to some extent with the DR's submissions, it was of the view that the assessee should be granted an opportunity to file submissions and evidence, keeping in mind natural justice.
The Tribunal held that the Assessing Officer completed the assessment in haste without discussing the 'business expenses' for which the case was selected for limited scrutiny and did not pass a speaking order. The CIT(A) also failed to address issues like the non-service of SCN. Therefore, the Tribunal set aside the orders and remanded the matter to the AO.
The Tribunal noted that the assessee failed to appear and pursue the appeal. However, considering principles of natural justice, the case was restored to the AO to provide the assessee an opportunity to present its case.
The Tribunal upheld the CIT(A)'s order, finding no reason to interfere with the disallowance of the assessee's explanations regarding the source of investments. The assessee's claims of drawings, retained earnings, and gifts from relatives were not accepted.
The Tribunal held that Section 68 of the Income Tax Act is not attracted to brought-forward trade payables from earlier years, even if the genuineness of the original transaction was not fully established in those earlier years. The addition made by the AO and confirmed by the CIT(A) was therefore unjustified.
The Tribunal held that the payment was in the nature of reimbursement of cost allocated and not taxable in India, especially in the absence of the 'make available' element required under the India-UK DTAA for services to be classified as Fee for Technical Services (FTS).
The Tribunal allowed the assessee's appeals. Regarding the claim for deduction under Section 10AA for LU2, the Tribunal found that the condition under Section 10AA(4)(iii) regarding the transfer of used machinery was satisfied. Based on the financial statements and additional evidence, the Tribunal calculated that the ratio of transferred machinery to the total machinery in LU2 as of April 1, 2014 (prior to commencement of production) was 18.64%, which is less than the prescribed 20% threshold. Therefore, LU2 was eligible for the 100% deduction claimed. The Tribunal directed the AO to recompute the income accordingly. The Tribunal also noted that identical issues were involved in the appeals for the subsequent assessment years and applied the same reasoning. The issue of MAT credit under Section 115JB was not explicitly discussed in the provided excerpt, but the overall result indicates it was also favorably decided for the assessee or rendered moot by the decision on Section 10AA. The ratio decidendi is that the calculation of the 20% threshold for transferred machinery under Section 10AA(4)(iii) should consider Capital Work-in-Progress as on the relevant date, and if this inclusion brings the percentage of transferred machinery below 20%, the deduction is allowable.
The tribunal dismissed the assessee's appeal, affirming the PCIT's authority to invoke Section 263 as the AO's failure to inquire into CSR expenses made the order erroneous and prejudicial. However, the tribunal directed the AO not to be influenced by the PCIT's specific observations on the merits of CSR expenses during the fresh assessment, ensuring an impartial decision.
The Tribunal held that the assessee's old trust status entitled it to regular registration and the inadvertent filing under the wrong clause should not disentitle them. The Tribunal directed the CIT(E)/CPC to grant recognition for 5 years by treating the application as filed under the correct clause.
The Tribunal upheld the order of the CIT(A), agreeing that there was a lack of sufficient cause for the assessee's delayed appeal. The Tribunal found no reason to intervene and dismissed all grounds of appeal.
The tribunal held that the notice u/s 148 was issued by the jurisdictional assessing officer, which is invalid post the CBDT notification dated 29.03.2022. Consequently, the assessment order based on this invalid notice is also void ab initio.
The Tribunal held that as per Section 151A of the Act and the CBDT notification dated 29.03.2022, reassessment notices u/s. 148 must be issued by a faceless assessing officer. Since the notice was issued by the jurisdictional assessing officer, it was invalid, making the consequential assessment order void ab initio.
The Tribunal condoned the delay. Following the decisions of the Bombay and Madras High Courts, the Tribunal held that reassessment notices under Section 148, issued after March 29, 2022, must be issued by a Faceless Assessing Officer. Therefore, the notice issued by the JAO was invalid, rendering the reassessment order void ab initio.
The Tribunal held that the assessee's old trust status entitled it to regular registration and the inadvertent filing under the wrong clause should not disentitle them. The Tribunal directed the CIT(E)/CPC to grant recognition for 5 years by treating the application as filed under the correct clause.
The Tribunal held that LU2 was a separate unit and the condition regarding the transfer of used machinery (less than 20%) was satisfied. It also ruled that Section 10AA deduction should be allowed before setting off brought forward losses and unabsorbed depreciation.
The Tribunal held that LU2 was not formed by splitting up LU1 as the transfer of machinery was less than 20% of the total, satisfying the statutory condition. The Tribunal also found that LU2 operated as an independent unit.
The Tribunal held that the assessee satisfied the condition under Section 10AA(4)(iii) of the Act regarding the transfer of used machinery. It found that the ratio of transferred machinery to LU2 was 18.64% as of the production commencement date (April 2, 2014), which is less than the 20% threshold. This was supported by the inclusion of Capital Work-in-Progress (CWIP) of Rs. 6.52 crores, of which Rs. 5.19 crores represented 'plant and machinery', as of March 31, 2014. The Tribunal directed the AO to recompute the income allowing 100% deduction under Section 10AA. The Tribunal also noted that the identical issues in AYs 2017-18, 2018-19, and 2019-20 would be adjudicated mutatis mutandis. The issue regarding the computation of deduction before set-off of losses and unabsorbed depreciation and the allowance of MAT credit were not explicitly discussed in the provided extract but were implicitly allowed by the overall allowance of appeals. The Tribunal did not comment on the proposition claimed by the assessee regarding CWIP capitalized on April 1, 2014, as production had already commenced.
During the proceedings, the Ld. Counsel for the assessee informed the Tribunal of the assessee's wish to withdraw the appeal. Consequently, the Tribunal dismissed the appeal as withdrawn.
The Tribunal held that turnover is a valid quantitative filter for determining comparability, especially in software development services. Entities with turnover significantly higher than the assessee's (Rs. 18.10 crore), such as Infosys, Wipro, and TCS, should be excluded. The Tribunal directed the exclusion of several large entities including Infosys Ltd., Wipro Ltd., L&T Infotech Ltd., Tata Consultancy Services Ltd., Tata Elxsi Ltd., Cybage Software Pvt. Ltd., and Mindtree Ltd., along with others like Net4Nuts Ltd., Consilient Technologies Pvt. Ltd., and Aptus Software Labs Pvt. Ltd., due to functional dissimilarity, diversified service verticals, or product offerings. Conversely, Yudiz Solutions Pvt. Ltd., Infomile Technologies Ltd., and R Systems International Ltd. were found to be functionally comparable and should be included. The AO/TPO was directed to recompute the arm's length margin based on the revised comparables. Regarding interest on receivables, the adjustment was deemed potentially duplicative, and the AO was directed to verify if working capital adjustments already covered the delay; if so, no separate adjustment should be made. The initiation of penalty proceedings under Sections 270A and 271AA(1) was considered premature, and the AO was directed to re-examine after recomputing the TP adjustment.
The Tribunal condoned the delay in filing the appeals and, finding merit in the assessee's arguments for remand, decided to remand the matters back to the Assessing Officer for fresh consideration. The appeals related to quantum additions and penalty were allowed for statistical purposes.
The Tribunal condoned the delay in filing the appeals and, finding merit in the assessee's arguments for remand, decided to remand the matters back to the Assessing Officer for fresh consideration. The appeals related to quantum additions and penalty were allowed for statistical purposes.
The Tribunal held that a new clause (iv) was introduced in Section 80G(5) by the Finance Act, 2024, effective from 01.10.2024, allowing applications at any time after commencement of activities. Therefore, the CIT(E) was directed to consider the application under this new clause.
The Tribunal, considering the age and pendency of the proceedings and the assessee's undertaking to cooperate, remanded the matter to the CIT(A) for fresh adjudication with directions for time-bound disposal.
The Tribunal noted that the assessee had filed an application for condonation of delay for the belated filing of Form 10AB, which was pending before the competent authority. Considering this, the Tribunal deemed it appropriate to restore the matter to the CIT(E) for fresh consideration.
The Tribunal condoned the delay in filing the appeals and, finding merit in the assessee's arguments for remand, decided to remand the matters back to the Assessing Officer for fresh consideration. The appeals related to quantum additions and penalty were allowed for statistical purposes.
The Tribunal condoned the delay and admitted the appeal. It held that the CIT(A) was not justified in dismissing the appeal pending the decision on the condonation petition for delay in filing the return of income, especially when a specific ground was raised about it.
The Tribunal condoned the delay in filing the appeal, acknowledging the bonafide reasons due to the complexities of transitioning between old and new tax regimes. The Tribunal decided to remand the matter back to the CIT(E) to consider the application as if it was filed under the correct clause, allowing for a 5-year registration.
The Tribunal condoned the delay in filing the appeal, acknowledging the bonafide reasons due to the complexities of transitioning between old and new tax regimes. The Tribunal decided to remand the matter back to the CIT(E) to consider the application as if it was filed under the correct clause, allowing for a 5-year registration.
The Tribunal condoned the delay and admitted the appeal. The matter was remanded to the Assessing Officer for fresh consideration as the assessee was ready to produce evidence that was not available earlier. The grounds raised by the assessee were allowed for statistical purposes.
The Tribunal upheld the penalty imposed under Section 271B of the Income Tax Act, finding no infirmity in the order of the CIT(A). The assessee's failure to comply with the statutory requirement of auditing and furnishing the report within the due date was the basis for dismissal.
The Tribunal found that the assessee failed to comply with the statutory provisions regarding audit report submission. The order of the CIT(A) upholding the penalty imposed by the Assessing Officer was found to be justified.
The Tribunal held that the amount received for the reduction in profit-sharing ratio in an LLP does not constitute goodwill or a transfer of assets. The amendments made by the Finance Act, 2021, are prospective and not applicable to the assessment year in question.
The Tribunal held that the restriction of interest for 5 months was not justified as the business commenced in October 2016 and interest was paid on the last day of the financial year. Similarly, the disallowance of remuneration was not justified as there is no restriction on payment of remuneration to partners under section 40(b) of the Act.
The Tribunal restored the issue of depreciation to the AO to verify if the cost of assets, for which depreciation was claimed, had already been allowed as application of income as per Section 11(6). The Tribunal noted that the claim for application of capital expenditure, not made in the original return, could not be entertained at the current stage.
The Tribunal noted the assessee's non-responsiveness but, in the interest of natural justice, set aside the assessment order.
The Tribunal held that the notice for reopening was invalid as it was issued by the jurisdictional AO instead of the Faceless Assessment Mechanism, as mandated by the e-assessment scheme. Consequently, the assessment order was also deemed invalid.
The Tribunal held that the issue is covered by previous decisions. While the assessee provided a Tax Residency Certificate (TRC) from the US as additional evidence, the Assessing Officer needs to verify its genuineness.