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386 orders · Page 8 of 8
The Tribunal held that the approval granted by the Joint Commissioner under Section 153D was mechanical and lacked due application of mind. Following the precedent set by the Delhi High Court, the Tribunal found this invalidates the entire search assessment proceedings.
The Tribunal held that the approval granted by the Joint Commissioner under Section 153D was mechanical and lacked due application of mind. Following the precedent set by the Delhi High Court, the Tribunal found this invalidates the entire search assessment proceedings.
The Tribunal upheld the CIT(A)'s decision, ruling that the penalty notice issued under Section 274 read with Section 271 was invalid. This was because the notice failed to specifically indicate whether the penalty was proposed for "concealment of income" or "furnishing inaccurate particulars," which is a mandatory requirement as per several High Court judgments.
For A.Y. 2013-14, the appeal was dismissed as additions were made without incriminating material found during search, relying on the Supreme Court's Abhisar Buildwell judgment. For A.Y. 2014-15, appeals regarding unexplained investment and property sale receipts were dismissed due to the primary recipient owning up to the transaction or the inapplicability of presumption under Section 132(4A)(ii) for third-party seized documents. The appeal concerning unexplained bank cash deposits for A.Y. 2014-15 and A.Y. 2015-16 were also dismissed, as the CIT(A) correctly considered cash withdrawals which exceeded deposits, and the AO failed to provide cogent material proving alternative use of withdrawals.
For A.Y. 2013-14, the appeal was dismissed as additions were made without incriminating material found during search, relying on the Supreme Court's Abhisar Buildwell judgment. For A.Y. 2014-15, appeals regarding unexplained investment and property sale receipts were dismissed due to the primary recipient owning up to the transaction or the inapplicability of presumption under Section 132(4A)(ii) for third-party seized documents. The appeal concerning unexplained bank cash deposits for A.Y. 2014-15 and A.Y. 2015-16 were also dismissed, as the CIT(A) correctly considered cash withdrawals which exceeded deposits, and the AO failed to provide cogent material proving alternative use of withdrawals.
The Tribunal upheld the CIT(A)'s decision to delete additions for cash deposits, noting a similar issue was decided in the assessee's favor in earlier assessment years. It also confirmed the deletion of additions for unexplained investment in property, accepting the assessee's explanation of sourcing funds from cash withdrawals, finding no contrary material.
The Tribunal noted that the original assessment was protective and the AO had not thoroughly examined other aspects. It upheld the revisional authority's Section 263 order, which directed a fresh assessment after providing an opportunity of being heard, finding no error in it.
The tribunal found that the appellant's error was merely technical. Following a similar precedent from the Chennai Bench, the tribunal allowed the appeal and set aside the CIT(E)'s order, remanding the matter back for fresh adjudication, directing the CIT(E) to consider the amended application under the correct section.
The Tribunal held that TDS was not deductible under Section 194H on payments to distributors/franchisees as they are independent contractors, not agents. The issue of IUC/roaming charges was also decided in favor of the assessee based on High Court judgments.
The CIT(A) upheld the AO's disallowance, stating the transaction between related entities lacked genuine business purpose and appeared to be a fund shift. The ITAT confirmed the CIT(A)'s order, finding no reason to interfere, and dismissed the assessee's appeal.
The ITAT partly allowed the appeal. It confirmed the applicability of TDS provisions for certain expenses but remitted the issue back to the CIT(A) to consider evidence of TDS actually deducted and deposited in subsequent years. For the Section 14A disallowance, the ITAT ruled it was erroneous as there was no exempt income in the year under consideration.
The Tribunal held that TDS was not deductible under Section 194H on payments to distributors/franchisees as they are independent contractors, not agents. The issue of IUC/roaming charges was also decided in favor of the assessee based on High Court judgments.
The ITAT upheld the CIT(A)'s deletion of the additions. It ruled that the additions were not justified as they related to transactions after the business changed from proprietorship to a separately assessed partnership, and the AO could not interpolate sales and purchases without rejecting the books of accounts under Section 145(3) of the Act.
The Tribunal held that the transfer of shares, even if it results in a change of control, cannot be dissected into a transfer of underlying assets of the company. The company and its shareholders are distinct legal entities, and the sale of shares is a transfer of a capital asset in itself.
The Tribunal admitted additional evidence regarding the agricultural land not being a capital asset and found that the assessment was not legally sustainable as notice under Section 148 was not issued to all legal heirs. Therefore, the assessment was set aside and remanded to the AO to provide an opportunity of hearing to all legal heirs and pass a fresh order.
The Tribunal dismissed the Revenue's appeal, upholding the CIT(A)'s findings. The CIT(A) had directed the AO/TPO to verify the assessee's claim that no interest was charged on outstanding receivables from AEs or non-AEs. The Tribunal agreed, noting that transfer pricing adjustments for notional interest on delayed receivables are unsustainable, especially when the assessee is in a net payable position, citing relevant Delhi High Court precedents.
The Tribunal upheld the CIT(A)'s decision, confirming that no disallowance under Section 14A could be made in the absence of exempt income. It also found no error in the CIT(A)'s deletion of additions related to the Percentage Completion Method, processing fees, marketing/administration expenses (which fall under Section 37), and penalties, relying on established legal propositions and consistency in accounting.
The Tribunal acknowledged the assessee's belief of settlement under VSVS and observed that a question on the merits of the PCIT's section 263 proceedings existed. It decided to allow the appeal for statistical purposes, granting the assessee the opportunity to present their VSVS settlement plea and contest the case on merits before the PCIT.
The Tribunal found that the notice issued to the assessee indeed lacked specific mention of the limb under which the penalty was to be levied, leading to ambiguity. It held that this ambiguity in the charge vitiated the levy of penalty, and therefore, the appeal of the assessee was allowed, and the impugned penalty order was set aside.
The Tribunal affirmed the CIT(A)'s decision, ruling that no additions could be made under Section 153C in the absence of incriminating material specifically pertaining to the assessment years under appeal. It noted that the seized material related to AY 2018-19, and the satisfaction note did not name the assessee, thereby dismissing the Revenue's appeals.
The Tribunal affirmed the CIT(A)'s decision, ruling that no additions could be made under Section 153C in the absence of incriminating material specifically pertaining to the assessment years under appeal. It noted that the seized material related to AY 2018-19, and the satisfaction note did not name the assessee, thereby dismissing the Revenue's appeals.
The Tribunal held that once the income was declared under IDS 2016 and accepted by the relevant authority, further inquiry into the sources was not warranted due to the immunity provided by the scheme. It found that the Pr. CIT erred in concluding that the assessee failed to prove genuineness, as the IDS 2016 Form 1 explicitly disclosed the assessee company and shareholders, establishing a direct nexus. Therefore, the AO's order accepting the source was not erroneous or prejudicial to the revenue's interest, as tax had already been paid.
The Tribunal noted that the AO's penalty order stated the reason as 'furnishing of inaccurate particulars' but levied it for 'concealment of income', which was a misdirection. The CIT(A) erred by affirming the penalty without addressing this discrepancy. Consequently, the Tribunal directed the AO to delete the impugned penalty.
The Tribunal held that for an appeal, especially under Section 144, access to premises for relevant papers and evidence is crucial, and the CIT(A) failed to justify their discretion. Consequently, the impugned CIT(A) order was quashed. The matter was remanded back to CIT(A) to condone the delay and decide the appeal afresh on merits.
The Tribunal upheld the CIT(A)'s order, affirming that for completed assessments, additions under Section 153A can only be made based on incriminating material found during a search, as per the Supreme Court's decision in *PCIT vs. Abhisar Buildwell (P) Ltd.* It found that the material relied upon by the Revenue was not incriminating or did not pertain to the relevant assessment year, thus concluding the jurisdiction exercised by the AO was illegal.
The Tribunal dismissed the Revenue's appeal, holding that the CIT(A) was justified in deleting the additions. It found no error in the admission of additional evidence or the verification process, noting that the AO's remand report itself confirmed the genuineness and veracity of the assessee's claims regarding expenditures, sundry creditors, and Section 68 loans after due inquiry, including issuing notices under Section 133(6).
The Tribunal held that the AO/TPO erred in not proportionately excluding expenses related to third-party income when calculating the operating margin. Regarding notional interest on receivables, the Tribunal followed its own prior decisions in the assessee's own case and the Delhi High Court's observation for a debt-free company, deleting the addition.
The Tribunal affirmed that hiring of 'goods carriage' is covered by Section 194C and Section 44AE, not Section 194I. However, it noted that the factual claim by the assessee that the contractor had less than 10 trucks, which would exempt them from TDS under Section 194C(6), was not examined by either the AO or CIT(A). Therefore, the matter is remanded to the AO for verification of this factual aspect.
The tribunal held that the professional fees for due diligence and feasibility reports for share acquisition were revenue expenditure, being preliminary steps for investment. It also held that the interest on the loan was an allowable business expense because investment in securities was a stated object of the company and the loan was used for trading securities, supported by documentary evidence.
The Tribunal condoned the delay in filing the appeal, acknowledging the issue with notice service. The matter was restored to the CIT(A) for fresh adjudication on merits, with a direction to provide effective opportunity of hearing by serving notices to the updated email IDs.
The Tribunal held that the reassessment proceedings were invalid due to the AO's non-application of mind and reliance on unverified or incorrect information. The AO's satisfaction for reopening was considered a 'borrowed satisfaction' without independent verification.
The Tribunal allowed both contested grounds. It ruled that expenses for abandoned business expansion projects (consultancy, contractor fees) were revenue expenditure, as they were not new ventures but an expansion of the existing business. For the interest disallowance, the Tribunal relied on its previous decision in the assessee's own case, finding that the assessee had sufficient interest-free funds to cover advances to its subsidiary and that the advances were driven by business exigency.
The Tribunal held that the AO violated CBDT instructions by expanding the scope of limited scrutiny to issues not related to the initial reason for selection, without prior approval. Consequently, the assessment order was quashed.
The Tribunal held that the Assessing Officer had made extensive inquiries regarding the share premium and accepted the valuation report after considering the Chartered Accountant's report. Therefore, the Pr. Commissioner erred in concluding that the assessment order was erroneous and prejudicial to the revenue.
The Departmental Representative raised no objection to the request for withdrawal. Consequently, the tribunal granted permission for the assessee to withdraw the appeal and dismissed it as withdrawn.
The Tribunal held that the agricultural land sold by the assessee was situated beyond 8 KM from the municipal limit of Gurgaon as per CBDT Notification No. 9447 dated 06.01.1994, and therefore, did not fall within the definition of a capital asset under Section 2(14). The Tribunal also found that the assessment proceedings initiated under Section 148 were bad in law due to a jurisdictional error (notice issued by ITO Ward 3(5) but assessment by ITO Ward 3(1)). Consequently, the capital gains addition and disallowance of exemption under Section 54/54F were incorrect.