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534 orders · Page 11 of 11
The Tribunal, relying on its own Coordinate Bench judgment in the assessee's case and CBDT Circular No. 37/2016, held that if disallowance of depreciation leads to an enhancement of the profits of an eligible business, then deduction under Section 80IAB is admissible on such enhanced profits. The Assessing Officer was directed to allow the deduction under Section 80IAB on the disallowed depreciation, rendering the primary ground on depreciation academic.
The Tribunal dismissed the grounds concerning the invalidity of reassessment for non-issuance of notice u/s 143(2) as no return was filed in response to the u/s 148 notice. However, it remanded the matter to the CIT(A) for a de-novo hearing to consider the admission of additional evidence under Rule 46A, provided the assessee shows sufficient cause for previous non-production. The assessee was also directed to pay Rs. 5,000/- to the Prime Minister's National Relief Fund.
The Tribunal, relying on precedent from the Bombay High Court upheld by the Supreme Court, found that the approval for the section 148 notice, issued beyond four years, was invalid as it was granted by an incompetent authority (Additional Commissioner of Income Tax) contrary to section 151(1) of the Act. Consequently, the reassessment proceedings and the resulting assessment order, along with the CIT(A) order, were deemed void ab initio and set aside.
The Tribunal found it just to provide the assessee with a further opportunity to be heard. Consequently, the issue was restored to the file of the Assessing Officer to be decided afresh, requiring the AO to grant the assessee an opportunity to present all relevant evidence.
The Tribunal held that the block of assets consisting of oil rigs and computers qualifies for 60% depreciation. It also held that the repair and maintenance expenses were revenue in nature and not capitalizable, following its own previous decisions and High Court rulings.
The Tribunal held that surcharge and education cess levied on income taxed at a special rate under the India-France DTAA should be deleted, following previous judgments. The appeal was partly allowed on this ground.
The Tribunal deleted the addition of notional interest, following the Delhi High Court's decision that such additions cannot be made without incriminating material. Consequently, the penalty under section 271(1)(c) was also vacated.
The Income Tax Appellate Tribunal (ITAT) noted that all issues in the present appeal were covered by its own earlier orders and a judgment of the Delhi High Court in the assessee's own case for previous assessment years. These prior decisions, following the Sheraton International Inc. case, had concluded that similar receipts did not constitute FTS/FIS. Finding no change in the factual matrix or legal proposition, the tribunal allowed the assessee's appeal.
The Tribunal held that the CIT(A) erred in not appreciating the arbitration awards. The awards clearly indicated the dissolution of the partnership and the assessee's sole proprietorship status for realizing firm dues, making the receipts taxable in his hands.
The Tribunal held that the CIT(A) erred in not appreciating the arbitration awards. The awards clearly indicated the dissolution of the partnership and the assessee's sole proprietorship status for realizing firm dues, making the receipts taxable in his hands.
Following the Delhi High Court's order dated 13.12.2023, which quashed the assessment due to the absence of incriminating material found during the search and the unreliability of the material relied upon by the revenue, the ITAT held that the original assessment order had no legal standing. Consequently, all subsequent orders by the AO and CIT(A) in both rounds of proceedings, which sustained the addition, were quashed.
The Tribunal, relying on the co-ordinate bench's decision in the assessee's brother's case, which questioned the relevancy and admissibility of retracted statements and incriminating documents during search, allowed the appeal. It concluded that the additions were unsustainable as the assessee had not made any surrender of income and had validly disowned his brother's statement regarding the alleged undisclosed income.
The Tribunal dismissed the disallowance under section 14A, noting the assessee earned no exempt income. It upheld the CIT(A)'s deletion of additions under section 68 for share capital, share premium, and related commission, finding that the assessee submitted all relevant documents to prove identity, capacity, and genuineness. The Tribunal also noted that the 'source of source' requirement and restrictions on share premium (Section 56(2)(vii b)) were not applicable for the AY 2012-13, particularly for foreign shareholders.
The Ld. CIT(A) substantially deleted the addition made by the AO. The ITAT upheld the CIT(A)'s decision, reasoning that the loans, for which repayment was made, were already subject to addition under Section 68 of the Act in earlier assessment years. Therefore, the same loan repayment could not be added again as unexplained money under Section 69A, and the AO's action was not justified.
The Tribunal held that the assessee's receipts were business income and not taxable in India as the assessee did not have a Permanent Establishment (PE) in India. Consequently, the levy of interest under Section 234B was also found to be not leviable.
The Tribunal noted that no one was present on behalf of the assessee at the time of hearing. However, a letter dated 30.04.2024 was filed by the assessee expressing the desire to withdraw the present appeal. The assessee's letter explained that the registration was cancelled due to issues with providing information in response to Form 12AB, as notices were sent to the income tax portal. The CIT(E) has since offered an opportunity to file a fresh Form 12AB, which the assessee has done, and therefore wishes to withdraw the appeal against the cancellation of registration. The Ld. Departmental Representative for the Revenue expressed no objection to the withdrawal. In view of the foregoing, the Tribunal decided to dismiss the appeal filed by the assessee as withdrawn. No specific issue was left undecided, as the appeal was withdrawn by the assessee.
The Tribunal upheld the CIT(A)'s decision to delete the addition. The Tribunal found that the assessee had sufficiently explained the source of the cash with documentary evidence and that the AO had not properly considered this evidence.
The Tribunal ruled that Section 41(1) was not applicable as the liabilities had not ceased to exist, were duly reflected in the balance sheet, and the creditors (family members) had not waived their right to recovery. The ground concerning repair and maintenance expenses was dismissed as not pressed by the assessee's counsel.
The Tribunal held that the advance was made for the purpose of business, establishing a direct and proximate nexus between the business operation and the loss. Citing various precedents, it concluded that such irrecoverable business advances, given for acquiring trading goods, constitute revenue expenditure and are allowable as a deduction under Section 37 of the Income Tax Act, 1961, rather than being disallowed under Section 36(2).
The Tribunal held that the trust deed alone is not incriminating material and statements recorded during search cannot constitute such material. Therefore, the assumption of jurisdiction under Section 153C was invalid.
The Tribunal held that income from car parking and interest on fixed deposits is eligible for deduction under Section 80-IAB as it is linked to the main SEZ business. However, other non-operating income of Rs 71,600 was not eligible for deduction. The Revenue's appeal regarding brokerage expenses was dismissed.
The Tribunal held that the trust deed alone is not incriminating material and statements recorded during search cannot constitute such material. Therefore, the assumption of jurisdiction under Section 153C was invalid.
The Tribunal noted that the primary issue was the disallowance under section 36(1)(va) of the Act. However, the Ld. AR for the assessee filed a submission to withdraw the appeal, and the Ld. DR had no objection to this withdrawal. Consequently, the appeal was dismissed as withdrawn.
The tribunal found the assessee's explanation plausible, noting that bank pressure forced more cash sales, and the books of accounts, including cash book and stock registers, were not rejected by the AO. It was established that the assessee had a sufficient cash balance of Rs 80,92,644.75 as on 8.11.2016, covering the deposits of Rs 72,74,000/-. The tribunal deemed the AO's basis for addition, which relied on comparing current year's cash sales with the previous year's average, as misconceived and devoid of merit.
The Tribunal held that the AO's addition was a double addition, misconceived, and devoid of merit. It noted that the cash sales were already offered to tax and reflected in the profit and loss account, and the assessee had furnished all requisite documents, including books of accounts, VAT returns, and stock registers, to explain the cash deposits. There were no allegations of unreflected sales or receipt of demonetized currency during the post-demonetization period.
The Tribunal observed that the AO was given two opportunities to verify the STCL claim but failed to do so. Therefore, it held that the assessee's claim for carry forward of STCL must be accepted without further scrutiny into its merits, directing the AO to allow the same.
The Tribunal held that the weighted deduction under Section 35(2AB) is only eligible to the extent of expenditure quantified by the prescribed authority as per the amended Rule 6(7A). Therefore, the claim for deduction on unapproved expenditure was rejected.
The Tribunal upheld the CIT(A)'s decision, stating that Section 153C was applicable as the assessment was based on incriminating material found during a search of a third party. Therefore, the reassessment proceedings under Section 147 were void ab initio.
The Tribunal held that the software licensing fees and associated support/maintenance services are not taxable as FTS in India. These receipts are considered business profits of the assessee, which are not taxable in India due to the absence of a Permanent Establishment.
The Tribunal held that income from car parking and interest on fixed deposits is eligible for deduction under Section 80-IAB as it is linked to the main SEZ business. However, other non-operating income of Rs 71,600 was not eligible for deduction. The Revenue's appeal regarding brokerage expenses was dismissed.
The Tribunal noted a lack of details regarding which quantum additions were sustained by the CIT(A) and that lower authorities stated no appeal was filed against quantum proceedings. Finding that the matter required factual verification, the Tribunal restored the penalty appeal to the Assessing Officer for a de novo adjudication, granting the assessee a fresh opportunity to be heard.
The Income Tax Appellate Tribunal (ITAT) noted that neither the AO nor the CIT(A) provided proper opportunities of being heard to the assessee. The CIT(A) decided the appeal on merits without explicitly condoning or rejecting the delay in filing. Considering the interest of justice, the ITAT set aside the impugned order and remitted the matter back to the AO for de-novo consideration, ensuring the assessee is given reasonable opportunities to present their case.
The ITAT observed that the underlying transfer pricing adjustment, for which the penalty was imposed, is a debatable issue, as a substantial question of law has been framed by the Hon'ble Delhi High Court in the assessee's appeal. Relying on judicial precedents, the Tribunal held that no penalty can be levied under section 271(1)(c) when the issue is debatable and pending before a higher court. Therefore, the Revenue's appeal was dismissed.
The Tribunal held that the Pr.CIT's initiation of revisional proceedings u/s 263 was based on "borrowed satisfaction" from a proposal by a subordinate officer, rather than his own independent application of mind. Citing various precedents, the Tribunal ruled that the Commissioner must initiate such proceedings on his own volition. Therefore, the initiation of proceedings u/s 263 was deemed invalid at the threshold.