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455 orders · Page 9 of 10
The Tribunal held that SAR expenses are in the nature of employee cost and are revenue expenditure, not capital expenditure. Therefore, they are allowable as a deduction.
The Tribunal held that since the assessee was granted registration under Section 12AA retrospectively from AY 2009-10, it is eligible for exemption under Section 11 for the assessment year under appeal. Therefore, the addition made by the Assessing Officer is not sustainable.
The Tribunal held that the penalty could not be sustained. It noted that the assessee had accepted its inexperience and treated the year as the first and last of its business, and that the addition was an estimated one.
The Tribunal held that the assessee failed to provide any relevant or cogent evidence to prove the source of the cash deposit and the creditworthiness of the lenders/donors. Therefore, the addition made by the Assessing Officer was rightly confirmed.
The Tribunal held that the original assessment order was neither erroneous nor prejudicial to the revenue. It found that the AO had conducted inquiries, even if they were considered inadequate by the CIT, and therefore the CIT's revisionary powers under Section 263 were not justified.
The Tribunal condoned the delay in filing the appeal. On merits, the Tribunal noted that the addition of Rs. 6,01,755/- was confirmed by the CIT(A) solely based on the withdrawal of the Section 12AA registration. However, the Tribunal referred to its own order dated 25.10.2016 in the assessee's own case (ITA No. 2425/Del/2013), which had set aside the CIT's order and restored the Section 12AA registration. The Tribunal reasoned that when registration is granted based on specific objects and activities, and these remain consistent, the registration cannot be cancelled. The Tribunal also cited precedents that registration cannot be cancelled by re-examining objects for which it was originally granted, and that cancellation under Section 12AA(3) requires specific grounds of non-genuine activities or activities not in accordance with objects, which were not found to be met. The Tribunal concluded that since the Section 12AA registration was restored, the addition of Rs. 6,01,755/- was unsustainable and deleted it. Regarding the disallowance of Rs. 32,685/- under Section 40A(3), the Tribunal found that the assessee had not filed submissions before the AO or CIT(A). Therefore, it directed the AO to examine this issue afresh after providing the assessee an adequate opportunity to be heard and to produce supporting documents.
The Tribunal found that the reasons provided by the assessee for the significant delay were not plausible and were not supported by any evidence. Consequently, the Tribunal was unable to condone the delay.
The Tribunal permitted the assessee to withdraw the appeals. The assessee was granted liberty to revive the appeals if the Dispute Resolution Scheme application is rejected, withdrawn, or cancelled.
The Tribunal upheld the order of the CIT(A) and dismissed the appeal filed by the Revenue. The Tribunal found that the assessee had provided sufficient evidence to prove the genuineness of the funds invested, including income-tax returns, balance sheets, ROC particulars, and bank statements of the shareholder companies. The Tribunal noted that the AO had not brought any credible evidence to contradict the information filed by the assessee. The Tribunal relied on the ratio of the Delhi High Court judgment in CIT vs. Fair Invest Ltd., which held that if the assessee provides confirmations, bank statements, and returns of the investor companies, the share application money is considered genuine. The Tribunal also referred to CIT vs. Victor Electrodes Ltd., stating that the failure to produce directors of shareholder companies is not a sole ground for addition. Therefore, the addition made by the AO was deleted as it was not based on material facts and was not justified.
The Tribunal, citing various judicial precedents, held that the law aids the vigilant and not those who sleep on their rights. The appeal was treated as unadmitted due to the assessee's non-appearance and lack of prosecution.
The Tribunal permitted the assessee to withdraw the appeals. The assessee was granted liberty to revive the appeals if the Dispute Resolution Scheme application is rejected, withdrawn, or cancelled.
The CIT(A) held that the assessee is a charitable institution and directed the AO to allow exemption under Sections 11 & 12, relying on judicial precedents. The Tribunal upheld the CIT(A)'s order.
The Tribunal permitted the assessee to withdraw the appeals. The assessee was granted liberty to revive the appeals if the Dispute Resolution Scheme application is rejected, withdrawn, or cancelled.
The Tribunal upheld the CIT(A)'s decision, finding that the reassessment proceedings were initiated based on a 'change of opinion' by the AO without any fresh tangible material. The original assessment had already examined and allowed the expenses in question.
The Tribunal found that the assessee had provided sufficient documentary evidence to substantiate its claims, which were not properly considered by the lower authorities. Therefore, the matter was set aside for fresh adjudication by the AO.
The Tribunal held that reopening the assessment based solely on a difference between Form 26AS/TDS certificate and the P&L account, without any fresh tangible material, is not valid. The reopening was quashed as it was an arbitrary exercise of power.
The Tribunal upheld the DRP's direction to allow depreciation on goodwill, relying on Supreme Court and High Court judgments. The Tribunal also found no merit in the department's appeal regarding software license depreciation, as it was similar to an issue raised by the assessee.
The Tribunal held that additions made on account of notional interest and ad-hoc disallowances for expenses without pointing out discrepancies are not sustainable in law. Grounds related to income from undisclosed sources were not pressed.
The Tribunal held that the assessee failed to provide evidence of efforts made to obtain bank statements, which are logically available with the account holder. The general argument of the bank refusing a copy was not accepted without proof.
The Tribunal held that depreciation on goodwill is allowable, following Supreme Court and High Court precedents. Regarding software licenses, the Tribunal found the issue similar to one raised by the assessee and applied the same reasoning.
The Tribunal held that no disallowance under Section 14A is warranted if the assessee has not earned any exempt income during the relevant assessment year. The genuineness of the expenditure was not in doubt.
The Tribunal permitted the assessee to withdraw the appeals. The assessee was granted liberty to revive the appeals if the Dispute Resolution Scheme application is rejected, withdrawn, or cancelled.
The Tribunal held that the penalty under Section 271(1)(c) was unwarranted as there was no finding that the assessee furnished inaccurate particulars or concealed income. Relying on the Supreme Court's decision in CIT vs. Reliance Petro Products, the Tribunal deleted the penalty.
The Tribunal held that the assessee is eligible for deduction under Section 80P(2)(d) on interest earned from deposits with cooperative banks. Regarding the penalty, the Tribunal found that since the issue involved a substantial question of law as framed by the High Court, the penalty under Section 271(1)(c) was not exigible.
The Tribunal restored the issue to the Assessing Officer for verification of whether the assessee had accepted the penalty order under Section 271(1)(c) or challenged it. The appeal was allowed for statistical purposes.
The Tribunal held that the commission was paid on a per-unit volume basis (INR 200/MT of soda ash) and not as a percentage of sales. The increase in commission was justified by the full year's engagement of agents and improved sales returns per unit.
The Tribunal upheld the CIT(A)'s decision, noting that the AO's assessment was based on scanty information and lacked proper enquiry. The Tribunal agreed that additions under Section 68 cannot be justified with a casual approach.
The Tribunal held that the AO had not applied his mind to the material before him and had mechanically issued the notice for reassessment based on information received from the Directorate of Income Tax (Investigation). Therefore, the reassessment proceedings were quashed.
The Tribunal set aside the impugned order and restored the issue to the CIT(A). This was done to allow the CIT(A) to pass a speaking order after giving the assessee a reasonable opportunity of being heard, due to a lack of detailed discussion in the impugned order regarding the assessee's claims.
The Tribunal held that the Pr. CIT passed the order contrary to the principle of natural justice as the show cause notice was not served on the correct address. Therefore, the impugned order was not sustainable in law.
The Tribunal permitted the assessee to withdraw the appeals. The assessee was granted liberty to revive the appeals if the Dispute Resolution Scheme application is rejected, withdrawn, or cancelled.
The Tribunal held that the Revenue should not have filed the appeal as the tax effect was below the monetary limit prescribed by the CBDT circular. Consequently, the assessee's cross-objection became infructuous.
The Tribunal found merit in the assessee's contention that proper opportunity was not given. Therefore, the issues were set aside to the CIT(A) for fresh consideration after examining all documentary evidence.
The Tribunal, following established legal principles and precedents, treated the appeal as unadmitted due to non-prosecution. The appeal was dismissed for failure to appear and prosecute the matter effectively.
The Tribunal held that deep discount bonds are capital assets and the profit arising on their redemption should be treated as capital gain. Consequently, the interest under sections 234B and 234C was not leviable.
The Tribunal held that deep discount bonds are capital assets, and the profit arising on their redemption should be treated as capital gain. Consequently, the interest charged under sections 234B and 234C was also deleted.
The Tribunal held that the AO had not applied his mind independently to form a belief that income had escaped assessment. The reasons recorded were vague and not based on tangible material, making the reopening bad in law.
The ITAT allowed depreciation on CCTV cameras at 60% as they are integral to computers. The tribunal also deleted disallowances for advertisement expenses, ad-hoc disallowances on telephone and vehicle expenses, festival expenses, and a donation treated as advertisement, finding them to be business-related.
The Tribunal upheld the CIT(A)'s order, finding that the cash deposits and credit entries were explained by the sale of agricultural land and transfers from the assessee's son. The interest income was also correctly attributed to the HUF.
The ITAT found the CIT(A)'s order to be non-speaking and ex-parte, thus unsustainable. The matter was set aside to the CIT(A) for a fresh decision after providing adequate opportunities to both parties.
The Tribunal held that the reopening of the assessment was bad in law as the AO mechanically issued the notice without applying his own mind to the information received. The Tribunal relied on High Court judgments that quashed reassessment proceedings initiated on vague and unsubstantiated information.
The Tribunal held that if there is no exempt income, then no disallowance under Section 14A of the Act can be made. Respectfully following the jurisdictional High Court's decisions, the disallowance was deleted.