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399 orders · Page 2 of 8
The Tribunal held that the transaction was a sale of commercial property for money between two companies and not a 'payment' in cash to the assessee. Since the assessee did not receive any money and held less than 10% interest in the transferor company (VAPL) at the time of the transaction, the provisions of section 2(22)(e) were not applicable.
The Tribunal inferred that the assessee was not serious about pursuing the appeal. Consequently, the appeal was dismissed in limine.
The Tribunal found that the CIT(A) had passed an ex-parte order despite the assessee's authorized representative appearing and requesting a demand notice. Adhering to the principles of natural justice, the Tribunal set aside the CIT(A)'s order.
The Tribunal held that back-to-back transactions at the same price are inherently arm's length transactions based on the CUP method. However, for the third transaction, due to issues with the comparable data and the CIT(A)'s insufficient analysis, the matter was remanded to the TPO for verification.
The Tribunal held that the assessee had correctly shown the net income/expenditure on account of cartage/transport. By netting off the receipts against expenses, the taxable income was not understated, and therefore, the addition made by the AO was not justified.
The Tribunal held that the issue of whether printing is manufacturing is debatable. Rectification under Section 154 is only for patent mistakes, not debatable issues. Therefore, the AO was not justified in disallowing the claim via rectification.
The ITAT set aside the CIT(A)'s order and remanded the matter back for fresh adjudication. This was done to ensure the principles of natural justice were followed and the assessee was given a reasonable opportunity to be heard.
The Tribunal upheld the addition of Rs. 13 lacs from two loan creditors, Sh. Inderjeet Kumar and Sh. Mahavir Singh, as their transactions were not reflected in their Income Tax Returns and lacked satisfactory explanation. However, the addition of Rs. 10 lacs from Sh. Kumudani Jhangu was deleted based on the submission of her Income Tax Return and other financial documents.
The Tribunal held that the assessee was an employee holding a civil post under the State, making them eligible for exemption under Section 10(10)(i) for gratuity and Section 10(10AA)(i) for leave encashment. The additions made by the AO and sustained by the CIT(A) were deleted.
The Tribunal held that the CIT(A) had not thoroughly examined the contentions and additional evidence. The Tribunal admitted the additional evidence in the interest of justice.
The Tribunal found the facts to be identical to previous ITAT decisions where similar issues were set aside. The Tribunal directed the Assessing Officer to re-adjudicate the issue after allowing the assessee an opportunity to cross-examine Sh. Miglani.
The Tribunal held that Section 40(a)(ia) is applicable only when expenses are debited in the profit and loss account. Since the assessee acted as an intermediary and the expenses were reimbursed by the principal after TDS deduction, the disallowance was not justified.
The Tribunal held that since the additions forming the basis of the penalty were deleted, the penalty itself was not sustainable. Following the Supreme Court's decision in K. C. Builders, the Tribunal ruled that a penalty cannot survive if the underlying assessment addition is set aside.
The Tribunal dismissed the appeal, respectfully following its previous orders and the High Court's decision. The Tribunal found that the assessee failed to provide evidence for business use of the car and justification for building additions, and also failed to substantiate legal expenses.
The Tribunal held that for agricultural land to be considered not a capital asset, it must be beyond 8 km from *any* municipality, not just the jurisdictional one. Therefore, the land within 8 km of Delhi Municipal Corporation was a capital asset.
The Tribunal noted that CBDT Circular No. 21 of 2015 mandates not filing or withdrawing appeals where the tax effect is below Rs. 10,00,000/-. Since the tax effect was below this limit, the appeal was dismissed.
The Tribunal held that a best judgment assessment was justified due to the lack of proper books of account. Considering the past history and the nature of discounts, a net profit rate of 3% of total sales was deemed reasonable.
The Tribunal held that the Rs. 45 lakhs cash was part of the sale consideration and not undisclosed income, agreeing with the CIT(A). However, regarding the disallowance of expenses, the Tribunal set aside the CIT(A)'s order and remanded the issue to the AO for further examination.
The Tribunal held that MTM losses on hedging forward contracts are not allowable as there is no additional liability or benefit on the settlement date. Since the forward contracts were settled by actual delivery against export receivables, the MTM losses are not deductible.
The Tribunal held that for charitable trusts, income should be computed on commercial principles, and excess expenditure in earlier years, even if due to capital expenditure, should be allowed to be carried forward and set off against subsequent income. The lower authorities' view was deemed erroneous.
The Tribunal held that the allocation of expenses to the agency segment based on sales ratio was incorrect and directed the TPO to conduct a fresh transfer pricing study. Regarding receivables, the Tribunal found that the AO made additions without proper verification and directed recomputation after verification.
The Tribunal held that the allocation of expenses to the agency segment based on sales ratio was incorrect and directed the TPO to conduct a fresh transfer pricing study. Regarding receivables, the Tribunal found that the AO made additions without proper verification and directed recomputation after verification.
The Tribunal held that the assessee was not asked to substantiate the manner of earning the undisclosed income during the statement recording. Following various coordinate bench decisions, the Tribunal reversed the CIT(A)'s order.
The Tribunal held that the allocation of expenses to the agency segment based on sales ratio was incorrect and directed the TPO to conduct a fresh transfer pricing study. Regarding receivables, the Tribunal found that the AO made additions without proper verification and directed recomputation after verification.
The Tribunal restored the issue of determining the arm's length price for second line support services to the Assessing Officer/TPO for redetermination. It also deleted the disallowance of advertisement and business promotion expenses and the addition of provisions for leave encashment and gratuity.
The Tribunal held that the Assessing Officer and CIT(A) correctly upheld the valuation of shares at face value, considering the lack of evidence from the assessee to prove otherwise. It was also held that the assessee was provided with adequate opportunities for objections.
The tribunal held that an appeal requires effective prosecution, not just filing. Since the assessee failed to appear and prosecute the appeal, it was dismissed for non-prosecution.
The Tribunal held that the reassessment proceedings were validly initiated as the initial assessment was processed under Section 143(1). Depreciation on "Government Authorizations" and non-compete rights was disallowed as they were not considered specified assets under Section 32. However, depreciation on goodwill was allowed for the later assessment years.
The Tribunal upheld the addition of Rs. 95,50,000/- as the assessee failed to discharge its onus under Section 68 regarding unexplained cash credits from untraceable debtors. However, the Tribunal also upheld the deletion of Rs. 50,00,000/-, finding that the assessee had discharged its onus as the amount originated from a partner and its taxability should be examined in her hands.
The Tribunal decided not to delve into the jurisdictional issue, given that the assessee submitted that technical defaults leading to the 'assessee in-default' status had been rectified. The AO was directed to verify this rectification.
The Tribunal held that the mistake in calculating the sale consideration was inadvertent and not a willful concealment or furnishing of inaccurate particulars. Furthermore, the Assessing Officer levied penalty on twin charges without specifying which charge was applicable, making the penalty unsustainable.
The Tribunal held that findings in quantum proceedings are not conclusive for penalty proceedings. Crucially, the assessee was denied the opportunity to cross-examine the broker whose statement formed the basis of the addition, violating principles of natural justice. Therefore, the penalty cannot be sustained.
The Tribunal held that income from Annual Maintenance Contract (AMC) charges is directly relatable to the manufacturing business and therefore eligible for deduction under Section 80IC. The Tribunal relied on previous High Court and Tribunal decisions that established a direct nexus between such service income and the core business activity.
The Tribunal held that income from Annual Maintenance Contract (AMC) charges is directly relatable to the manufacturing business and therefore eligible for deduction under Section 80IC. The Tribunal relied on previous High Court and Tribunal decisions that established a direct nexus between such service income and the core business activity.
The Tribunal held that the addition of Rs. 4,50,000/- on account of share application money from JMK Securities Pvt. Ltd. was not justified as the assessee had provided sufficient evidence and the authorities below could not falsify it. Similarly, the addition of Rs. 8 lakhs related to Elbee Portfolio Pvt. Ltd. was also deleted due to lack of evidence from the revenue's side.
The tribunal held that accounting standards cannot override taxability principles and disallowed the impairment loss, directing the AO to allow depreciation instead. It upheld the deletion of additions for waived unsecured loans and a portion of waived interest, but treated the remaining waived interest as taxable.
The Tribunal held that the issue of AMP expenses being an international transaction needs to be re-adjudicated in light of subsequent High Court judgments. The Tribunal also directed that the Resale Price Method (RPM) should be applied as the most appropriate method for determining the ALP of the international transaction of purchase of material, with an AMP intensity adjustment.
The Tribunal upheld the CIT(A)'s decision to delete the penalty. It held that mere disallowance or addition to income is not sufficient for levying penalty under Section 271(1)(c) without proving conscious concealment or furnishing of inaccurate particulars.
The Tribunal held that the issue was covered by its own decision in the assessee's own case for the preceding assessment year. Therefore, the CIT(A)'s decision to allow the Section 10A exemption was upheld.
The Tribunal held that the issue of AMP expenses being an international transaction needs to be re-adjudicated in light of subsequent High Court judgments. The Tribunal also directed that the Resale Price Method (RPM) should be applied as the most appropriate method for determining the ALP of the international transaction of purchase of material, with an AMP intensity adjustment.