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420 orders · Page 4 of 9
The Tribunal observed that the assessee's application was rejected summarily without a speaking order. Consequently, the Tribunal decided to remand the matter back to the Ld. CIT(E) for a de-novo examination of the issue and to pass a speaking order.
The Tribunal noted that the Revenue had filed two appeals (ITA No. 2013/Del/2024 and 2012/Del/2024) for the same assessment year, involving the same assessee and additions. Consequently, the present appeal (ITA No. 2013/Del/2024) was dismissed, with the other appeal to be taken up for hearing in due course.
The Tribunal upheld the decision of the CIT(A) to exclude certain comparable companies proposed by the TPO, finding them functionally dissimilar. The Tribunal also agreed with the assessee's contention for exclusion of APITCO Ltd. based on functional comparability.
The Tribunal held that the satisfaction note recorded by the Assessing Officer was flawed as it did not clearly indicate that the seized material pertained to the assessee and did not specify amounts for each assessment year. Therefore, the entire proceedings under Section 153C were vitiated.
The Tribunal observed the assessee's consistent failure to appear before lower authorities. For the sake of justice, it imposed a cost of Rs. 5,000/- on the assessee, to be deposited in the PM Care Fund. The case was remitted back to the Jurisdictional Assessing Officer for fresh adjudication, allowing the assessee a proper opportunity to be heard and to verify their claim regarding the source of the cash deposit.
The Tribunal held that the CPC made the disallowance of advertisement expenditure without proper verification and without giving the assessee an opportunity to be heard, especially during rectification proceedings. The CIT(A)'s findings were also found to be contrary to the facts on record.
The Tribunal found that the CIT(A) did not provide adequate opportunity to the assessee to present its case or consider the filed paper book. To uphold natural justice, the Tribunal set aside the CIT(A)'s order and remanded the matter for fresh adjudication after affording the assessee a proper opportunity of being heard.
The Tribunal noted that the allowability of depreciation on non-compete fees is a debatable issue, with conflicting High Court decisions and the matter currently pending before the Supreme Court. Given the contentious nature of the issue, the Tribunal held that the provisions of Section 271(1)(c) could not be invoked against the assessee. Consequently, the penalty order dated 31/03/2019 was quashed.
The Tribunal partly allowed the appeal regarding Section 14A disallowance, restricting it to the actual exempt income earned. The issues of rental income and sundry balances were remanded to the AO for fresh adjudication. The disallowance under Section 43B was allowed in favor of the assessee.
The Tribunal, noting the assessee's non-appearance and the lack of documentation before lower authorities, decided to restore the matter to the file of the Assessing Officer. The AO was directed to pass a fresh order after affording the assessee a reasonable opportunity to be heard and present all necessary details.
The Tribunal held that the assessee had fulfilled the burden under Section 68 by providing documentary evidence for identity, creditworthiness, and genuineness of transactions. The AO's acceptance of explanations during remand proceedings for the Rs. 1,00,000/- deposit was also noted.
The Tribunal observed that the CIT(A) had dismissed the appeal solely due to the assessee's non-compliance and lack of interest in prosecuting the case, without any adjudication on the merits of the additions. Therefore, the Tribunal decided to remand the matter back to the CIT(A) to adjudicate the issues on their merits.
The Tribunal upheld the validity of the assessment reopening based on new information from the Enforcement Directorate. However, it confirmed the deletion of the addition by the CIT(A), finding that the assessee had a sufficient opening cash balance (Rs. 1,46,43,757/-) which was accepted in earlier assessments, and the cash deposit was made from this existing cash in hand, which the AO had previously enquired about and accepted.
The tribunal observed that the Ld. CIT(A) indeed issued notices to an unrelated email ID. Consequently, the tribunal remitted the matter back to the Ld. CIT(A) with directions to issue fresh notices to the correct email ID, provide the assessee with a proper opportunity of hearing, and re-adjudicate the appeal on merits.
The Tribunal held that income from Non-Current Investments should be treated as LTCG, not business income, and allowed exemption under Section 10(38) and indexation benefits. It also directed the deletion of disallowance under Section 14A and the addition for diminution in value of investments.
The Tribunal held that the statement of the director, recorded under oath during search proceedings and corroborated by seized material (WhatsApp chat), is strong evidence. The company's attempt to distance itself from the director's admission was considered an attempt to create a corporate veil.
The Tribunal held that adjustments made by the CPC while processing the return under Section 143(1) without prior intimation to the assessee are contrary to the proviso to Section 143(1)(a) and are therefore bad in law. The order of the CIT(Appeals) deleting these adjustments was upheld.
The Tribunal held that the addition of Rs. 2 crore in the hands of the assessee was not sustainable as the amount was already offered to tax by the group company and was on a returnable basis. The CIT(A)'s deletion of the addition was upheld.
The Tribunal held that the satisfaction note recorded by the Assessing Officer was flawed as it did not clearly indicate that the seized material pertained to the assessee and did not specify amounts for each assessment year. Therefore, the entire proceedings under Section 153C were vitiated.
The Tribunal held that Section 28(iv) is not applicable to monetary benefits and that the shares were held as long-term investments, not for trading purposes. Therefore, any gain would fall within the capital gains field, not business income.
The Tribunal upheld the CIT(A)'s deletion of the Rs. 10,00,000 addition, finding the assessee provided sufficient evidence of cash withdrawal and its intended use. The Tribunal also upheld the deletion of the protective addition of Rs. 15,24,50,000, noting it did not arise from any incriminating material.
The Tribunal upheld the decision of the CIT(A) to exclude certain comparable companies proposed by the TPO, finding them functionally dissimilar. The Tribunal also agreed with the assessee's contention for exclusion of APITCO Ltd. based on functional comparability.
The Tribunal found no error in the CIT(A)'s order, noting that the assessee had provided documentary evidence to establish the identity, creditworthiness, and genuineness of transactions. The AO's satisfaction during remand proceedings regarding the cash deposit also supported the deletion.
The CIT(A) dismissed the appeals by not condoning the inordinate delays. The ITAT upheld this decision, finding the assessee negligent as it regularly accessed the e-filing portal for other filings and the reasons provided (President's death, lack of knowledge) did not adequately explain the entire delay nor absolve the trust of its responsibilities. The ITAT concluded there was no sufficient cause for the delay.
The CIT(A) dismissed the appeals by not condoning the inordinate delays. The ITAT upheld this decision, finding the assessee negligent as it regularly accessed the e-filing portal for other filings and the reasons provided (President's death, lack of knowledge) did not adequately explain the entire delay nor absolve the trust of its responsibilities. The ITAT concluded there was no sufficient cause for the delay.
The CIT(A) deleted the addition made by the AO, relying on previous Tribunal decisions for the assessee's own case for earlier assessment years. The Tribunal upheld the CIT(A)'s decision, affirming that AMP expenses cannot be characterized as an international transaction under Section 92B of the Income Tax Act, citing precedents from the Jurisdictional High Court.
The Tribunal observed that the CIT(A) order was passed ex-parte. To ensure substantial justice, the Tribunal set aside the impugned order and remanded the matter back to the file of the Ld. CIT(A) for fresh consideration after hearing the assessee. The assessee was also directed to cooperate fully with the proceedings.
The Tribunal held that the assessee does not have a PE in India as none of the tests for a fixed place PE were met. The offshore sale of goods cannot be taxed in India as the transaction lacked sufficient territorial nexus and was contrary to the India-Italy Tax Treaty.
The Tribunal restored the matter to the Assessing Officer for re-adjudication, directing the AO to provide the assessee with a sufficient opportunity of being heard. The assessee was also directed to appear before the lower authorities to present their case.
The Tribunal dismissed the Revenue's appeal, affirming the deletion of penalties related to cost sharing, service charges, and sales commission, as these issues were debatable and similar penalties had been deleted in prior years. For the assessee's appeal, the Tribunal allowed it, finding no intent to furnish inaccurate particulars regarding the sales tax concession. It noted that even large organizations can make inadvertent mistakes and that the assessee had reported correct facts elsewhere in the return, negating any malice.
The Tribunal observed that the CIT(A) erred by not addressing the assessee's plea of being a startup exempt from the applicability of section 56(2)(viib) of the Act. Consequently, the Tribunal restored the issue back to the file of the AO for fresh consideration regarding the assessee's startup exemption claim, directing the AO to examine findings and evidence, and provide an opportunity of hearing to the assessee.
The Tribunal quashed the reassessment proceedings initiated under Section 147, holding that the AO's assumption of jurisdiction was invalid. It found that the AO did not have fresh tangible material and the assessee had fully and truly disclosed all material facts during the original assessment. The Tribunal further held that the reopening was based on an audit objection without independent application of mind, and that the SSI threshold limit for plant and machinery does not automatically deny Section 80IB deduction, especially considering consistency with previous and subsequent assessment years where the deduction was allowed.
The Tribunal considered the assessee's ground that the ex-parte assessment and appeal orders were passed due to non-compliance and were contrary to facts and law. In the interest of justice, the Tribunal remitted the issue back to the file of the Assessing Officer to pass a fresh order as per law. The AO is directed to provide the assessee with a proper opportunity of being heard before making a decision on merits.
The Tribunal noted that the assessee failed to pursue the appeal or provide any material to controvert the findings of the CIT(A). Consequently, the Tribunal found no reason to interfere with the First Appellate Authority's order. The appeal of the assessee was dismissed, and the impugned order was upheld.
The Tribunal upheld the CIT(A)'s deletion of additions related to cessation of liabilities (Rs. 1,05,69,417/-) and reduction in trade receivables (Rs. 1,05,57,313/-), concluding that these adjustments were either against trade payables or eligible as bad debt deductions under section 36(2). However, for the addition of Rs. 3,84,82,411/- for unexplained creditors, the Tribunal found that the assessee failed to provide confirmations and remitted the matter back to the AO for fresh verification, allowing the assessee an opportunity to file relevant details.
The Tribunal held that the approval granted by the JCIT under Section 153D was mechanical and without due application of mind, rendering it invalid. Consequently, the entire assessment order was quashed as void ab initio.
The Tribunal held that the reimbursements were on a cost-to-cost basis without any profit element, and therefore, not taxable as income. It was also noted that the services did not 'make available' technical knowledge to the Indian AEs.
The Tribunal held that the assessee does not have a Permanent Establishment (PE) in India. Consequently, offshore supplies and Fees for Technical Services (FTS) receipts are not taxable in India, especially in the absence of a specific FTS article in the India-Thailand Double Taxation Avoidance Agreement (DTAA).
The Tribunal held that the First Proviso to Section 50C, which allows considering the date of agreement for sale consideration, applies retrospectively and that the assessee had provided sufficient evidence for the investment in the new property, including an agreement to sell and proof of payment. Therefore, the disallowance of deduction under Section 54F was incorrect.
The Tribunal held that the authorities below erred in making an ad hoc disallowance of purchases without pointing out any errors in the books of account. The Tribunal allowed the ground related to the disallowance of purchases.
The Tribunal held that the reimbursements were on a cost-to-cost basis without any profit element, and therefore, not taxable as income. It was also noted that the services did not 'make available' technical knowledge to the Indian AEs.
The Tribunal, after considering the matter, found it appropriate to reproduce the relevant part of the Hon'ble Supreme Court's judgment in ACIT vs. Ahmedabad Urban Development Authority. The Supreme Court held that sports promotion does not fall within 'education' as defined in Section 2(15) and must be examined under the fourth limb of Section 2(15). The Court observed that state cricket associations and BCCI are closely linked, with state associations owning vital infrastructure and being channels for player selection. The Court opined that the ITAT and High Court erred in accepting at face value the submission that amounts made over by BCCI to cricket associations were infrastructure subsidies. It emphasized the need to carefully examine the pattern of receipts and expenditure, the nature of rights conveyed by BCCI, and the arrangements with state associations. Consequently, the Tribunal held that the CIT(A)'s order, which was based on judgments that did not consider the Supreme Court's determination, could not be sustained. The issue was restored to the CIT(A) to decide afresh in light of the Supreme Court's judgment.
The Tribunal held that the approval granted by the JCIT under Section 153D was mechanical and without due application of mind, rendering it invalid. Consequently, the entire assessment order was quashed as void ab initio.
The Tribunal held that the SEBI information relied upon by the AO pertained to subsequent assessment years and was not relevant for the impugned year. It found that the assessee possessed a valid TRC and other licenses, and its directors were Mauritius residents, supporting its claim of being a tax resident of Mauritius.
The Tribunal held that the services rendered by the assessee did not 'make available' technical knowledge or skills to the Indian clients, as the clients could not independently use the technology or knowledge gained from the reports without further recourse to the assessee. Therefore, the receipts were not FTS.
The Tribunal held that the assessee does not have a Permanent Establishment (PE) in India. Consequently, offshore supplies and Fees for Technical Services (FTS) receipts are not taxable in India, especially in the absence of a specific FTS article in the India-Thailand Double Taxation Avoidance Agreement (DTAA).
The Tribunal found that the assessee had sufficient cause for not providing evidence to the AO earlier, as notices were issued to an incorrect address. Therefore, the Tribunal decided to remand the matter back to the Assessing Officer for a de-novo assessment, allowing the assessee to present their evidence regarding the source of cash deposits.
The Tribunal held that the assessment proceedings were vitiated due to the arbitrary exercise of jurisdiction and the failure to issue a notice u/s 143(2) by the jurisdictional Assessing Officer. The objections raised by the assessee regarding jurisdiction were not properly addressed.
The Income Tax Appellate Tribunal noted that the CIT(A) had failed to adjudicate the appeal on merits, despite the assessee's non-appearance. Recognizing the significant additions made by the AO, the ITAT decided that in the interest of justice, the assessee should be granted another opportunity. The case was remanded back to the CIT(A) for fresh adjudication on merits, with a directive for the assessee to cooperate and the CIT(A) to provide a proper hearing.