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368 orders · Page 4 of 8
The Tribunal found that the TPO's computation of profit margins and working capital adjustments for comparable companies contained errors. It directed the TPO to re-verify these computations and grant the assessee an opportunity for further submissions.
The Tribunal held that the reassessment proceedings were bad in law because the Commissioner mechanically approved the notice without applying his mind, as required by Section 151 of the Income Tax Act. Consequently, the assessment order was declared void ab initio.
The Tribunal held that the CBDT Circular No. 21/2015, which sets a monetary limit for filing appeals, was applicable. Therefore, the appeal was dismissed on the grounds of low tax effect.
The Tribunal held that the initiation of reopening proceedings under Section 147 of the Income-tax Act, 1961, was invalid. The Assessing Officer (AO) failed to demonstrate an independent application of mind to the material available before forming the 'reasons to believe' that income had escaped assessment. The AO acted solely on the information received from the Investigation Wing without verifying its veracity or confronting the assessee with the alleged material. The Tribunal emphasized that reopening proceedings should not be invoked casually and require tangible material and application of mind by the AO. The judgment cited the jurisdictional High Court's decision in Pr. CIT vs. G & G Pharma India Ltd., which stated that the AO must form a prima facie opinion based on available material. Since the AO did not satisfy this basic jurisdictional requirement, the assessment made in furtherance of such initiation was declared void ab initio. Consequently, the issue regarding the addition of Rs. 6,50,000 under Section 68 became infructuous. Ground No. 2 was allowed in favour of the assessee.
The Tribunal held that the revenue's appeal was not maintainable as the tax effect was below the monetary limit specified in CBDT Circular No. 21/2015. Consequently, the cross-objections filed by the assessee were also dismissed as infructuous.
The Tribunal held that the assessee failed to discharge the initial onus under Section 68 of the Income Tax Act, 1961, to prove the identity, creditworthiness of the share applicants, and the genuineness of the transactions. The Tribunal noted that the AO conducted proper inquiries, including spot verification and examination of bank statements, which revealed a modus operandi for providing accommodation entries. The Tribunal found that the assessee did not rebut the inspector's report or provide evidence to counter the AO's findings. The Tribunal distinguished the case from M/s. Gangleshwari Metals Pvt. Ltd. (Supra) by stating that the AO had actively conducted inquiries. The Tribunal relied on the surrounding circumstances and the inquiries made by the AO, concluding that the impugned transactions of share capital and unsecured loans were a camouflage. Therefore, the Tribunal set aside the order of the CIT(A) and restored the assessment order. The appeals for both AY 2005-06 and AY 2006-07 were allowed. No issue was expressly left undecided.
The Tribunal directed the TPO to grant a proper opportunity for hearing regarding adjustments to the PLI of comparables concerning working capital. It also allowed grounds related to treating forex gain/loss and provision for doubtful debts as operating items, following a coordinate bench decision. The appeal was partly allowed.
The Tribunal held that reopening the assessment after four years based solely on a retrospective amendment and audit objection is not permissible. The Tribunal further found that the reopening was based on a 'change of opinion' and that the CIT's approval was mechanical, lacking proper application of mind.
The Tribunal held that the assessee had provided all necessary information, including certified copies of the memorandum of association, and that its charitable activities were not in dispute. Therefore, the denial of registration was incorrect.
The Tribunal dismissed the Department's appeal without going into the merits of the case, citing CBDT Circular No. 21 of 2015 which mandates withdrawal of appeals with a tax effect below Rs. 10,00,000/-. The assessee's cross-objection was dismissed as infructuous.
The Tribunal held that the substance of the transaction regarding lease rental paid to IBM indicated that beneficial ownership remained with IBM, not the assessee. Therefore, the assessee rightly claimed the entire lease rent as expenditure.
The Tribunal held that the disallowance of 10% of advertisement and publicity expenses treated as capital expenditure was not justified. However, the matter concerning the disallowance for brand building of the AE was set aside and remanded to the AO for fresh adjudication. The disallowance of provisions for doubtful debts/advances was upheld.
The Tribunal held that the provision for special discount was allowable as it was ascertainable and based on past practice. The write-off of advances as bad debts was also allowed as a business loss. However, the claim for license fees was dismissed as infructuous due to a related deletion in another assessment year.
The Tribunal upheld the addition made by the AO, finding that the assessee failed to demonstrate sufficient cash in hand to make the loan repayment. The Tribunal also found the ground regarding the assessment order being time-barred to be unsustainable.
The Tribunal noted that as per CBDT Circular No. 21/2015, appeals with a tax effect below Rs. 10 lakhs should be withdrawn or not pressed. Therefore, the appeal was dismissed in limine.
The Tribunal held that the appeal was not maintainable due to the low tax effect, as per CBDT Circular No. 21/2015. The appeal was dismissed without going into the merits of the case.
The Tribunal noted that as per CBDT Circular No. 21/2015, appeals with a tax effect below Rs. 10 lakhs should be withdrawn or not pressed. Therefore, the appeal was dismissed at the outset.
The Tribunal held that the appeal was not maintainable due to the low tax effect, as per CBDT Circular No. 21/2015. The Revenue's contention regarding future appeals was also noted.
The Tribunal held that the CIT failed to specify the issues making the assessment order erroneous and prejudicial to the revenue. The revisionary proceedings were initiated without proper application of mind and failed to dispose of the assessee's objections.
The Tribunal found that the reasons provided for the belated filing of the appeal constituted sufficient cause. Therefore, the Tribunal condoned the delay of 30 days and set aside the matter back to the CIT(A) for adjudication on merits.
The Tribunal upheld the CIT(A)'s order, finding no infirmity. It held that disallowance under Section 40(a)(ia) is not applicable for short deduction of TDS when TDS has been deducted and deposited. It also held that liquidated damages paid as compensation for failure to perform contract terms are allowable business expenses.
The Tribunal noted that as per CBDT Circular No. 21/2015 and Section 268A of the Income Tax Act, appeals with a tax effect below Rs. 10 lakhs should be withdrawn or not pressed. Therefore, the appeal was dismissed.
The Tribunal held that the assessee had voluntarily offered the additional income and paid the taxes before detection by the Assessing Officer. The assessee's explanation was found to be bona fide, and therefore, no penalty was leviable under Section 271(1)(c).
The Tribunal noted that as per CBDT Circular No. 21/2015, appeals with a tax effect below Rs. 10 lakhs should be withdrawn or not pressed. Therefore, the appeal was dismissed.
The Tribunal found that though the payment related to AY 2007-08, it was received in the current year. The matter was sent back to the AO for verification of facts based on the documents submitted.
The Tribunal held that the appeal was not maintainable due to the low tax effect, as per CBDT Circular No. 21/2015. The appeal was dismissed without going into the merits of the case.
The Tribunal noted that the tax effect was less than Rs. 10 lakhs. Consequently, the appeal filed by the Revenue was dismissed in limine.
The Tribunal found that the TPO's application of the CUP method for import of raw materials was not justified due to significant differences and lack of comparable uncontrolled transactions. The Tribunal also found the TPO's application of the RPM method for another transaction to be flawed due to the absence of comparable uncontrolled transactions.
The Tribunal held that in terms of CBDT Circular No. 21/2015 and Section 268A of the Income Tax Act, appeals with a tax effect below Rs. 10 lakhs should be withdrawn or not pressed. Therefore, the appeal was dismissed in limine.
The Tribunal held that the transactions between the assessee and advertising agencies were on a principal-to-principal basis, not principal-agent. Therefore, the assessee was not obligated to deduct tax under Section 194H, and the disallowance under Section 40(a)(ia) was unsustainable.
The Tribunal held that the CIT(A) did not err in admitting additional evidence as the assessee was not granted sufficient time by the AO to file them. The Tribunal found that the evidence was relevant and crucial, and the AO had adequate opportunity to present objections.
The Tribunal held that the CIT(A) did not err in admitting additional evidence as the assessee was not granted sufficient time by the AO to file them. The Tribunal found that the evidence was relevant and crucial, and the AO had adequate opportunity to present objections.
The Tribunal held that the CIT(A) did not err in admitting additional evidence as the assessee was not granted sufficient time by the AO to file them. The Tribunal found that the evidence was relevant and crucial, and the AO had adequate opportunity to present objections.
The Tribunal held that Section 14A is attracted only when there is an actual receipt of income which does not form part of the total income. Since the assessee had not earned any exempt income during the year, the disallowance under Section 14A was not sustainable.
The Tribunal held that the issue of royalty payment to the AE was settled in favor of the assessee by the jurisdictional High Court in the assessee's own case for AY 2008-09. Therefore, the department's appeal was dismissed.
The Tribunal held that exports made through a third party, where the goods are directly sent for shipment by the assessee and foreign exchange is brought into India, qualify as deemed exports eligible for deduction under Section 10B. The Tribunal followed the Karnataka High Court's decision in M/s Tata Elxsi Ltd.
The Tribunal decided that the issue of notional income from house property needed to be adjudicated afresh by the AO. Regarding the disallowance of expenses, the Tribunal found a lack of clear nexus between interest-bearing loans and investment in a partnership firm, remanding the issue for fresh adjudication.
The Tribunal decided that the issue of notional income from house property needed to be adjudicated afresh by the AO. Regarding the disallowance of expenses, the Tribunal found a lack of clear nexus between interest-bearing loans and investment in a partnership firm, remanding the issue for fresh adjudication.
The Tribunal held that the issue of capital gains vs. business income was settled in favour of the assessee by the Delhi High Court. Regarding Section 14A, the disallowance was made without proper analysis and nexus, hence restored to the AO for fresh calculation.
The Tribunal found that the CIT(A) had not considered the documentary evidence provided by the assessee, including confirmations of share allotment and the depositor's financial records. The AO also failed to verify these details. Therefore, the matter was restored to the AO for proper verification.