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290 orders · Page 5 of 6
The Tribunal held that the possibility of communication gaps at various levels, particularly with the newly introduced virtual hearing mechanism, could not be ruled out. In the larger interest of justice, it was deemed appropriate to restore the assessee's appeal back to the Assessing Officer for fresh adjudication. The Assessing Officer was directed to provide three effective opportunities of hearing to the appellant. The appeal was allowed for statistical purposes. The Tribunal did not decide the merits of the additions made by the lower authorities.
The Tribunal held that leasing equipment on a bareboat basis, without master and crew, does not constitute a PE in India. This is because the foreign company does not have full control over the equipment, with control resting with the Indian lessee.
The Tribunal held that the approval for reopening under Section 151 was not mechanical and that the prior annulment of assessments under Section 153C did not invalidate the reassessment proceedings. For most appeals, the additions made by the AO were upheld.
The Tribunal noted that the assessee wished to withdraw the appeals for AY 2010-11 and AY 2011-12, as they were self-explanatory and the CIT-DR had no objection. Consequently, these appeals were dismissed as withdrawn.
The Tribunal held that the approval granted under Section 153D of the Act was mechanical and not granted for each assessment year and each assessee separately, violating the statutory provisions. Consequently, the assessments framed were quashed.
The Tribunal held that the learned departmental authorities ought to follow the DVO's valuation report. The Tribunal noted that the DVO's report, submitted in the case of the assessee's brother, determined the cost of acquisition of the capital asset at Rs. 1,25,70,400/- as on 01.04.1985. Citing the precedent of CIT Vs. Dr. Indra Swaroop Bhatnagar (2013) 30 taxmann.com 293 (All.), the Tribunal considered the DVO's report to be binding on the revenue authorities. Therefore, the Tribunal found it appropriate to restore the assessee's ground to the Assessing Officer for a fresh computation of the assessee's long-term capital gains in light of the DVO's report, as per law. The issue of the quantum of LTCG was not decided on merits but remanded for fresh calculation.
The Tribunal upheld the deletion of the addition. It was held that the CIT(A) rightly deleted the addition as the transactions were supported by documents like contract notes, payments through banking channels, and through SEBI registered brokers, and that the company was not held as a shell company by SEBI or in previous assessment orders.
The Tribunal found that the assessee, being a woman, deserved sympathetic consideration for the delay. It was noted that the delay was substantial but the claim of wrong addresses needed inquiry. The Tribunal restored the issue to the AO for fresh adjudication.
The Tribunal held that the assessment orders were passed beyond the statutory time limit prescribed under Section 153(3) of the Income Tax Act. Consequently, these orders were considered void and non est.
The Tribunal noted that the assessee had opted to settle the disputes under the Direct Tax Vivad se Vishwas Scheme, 2024. Consequently, both appeals were treated as withdrawn.
The Tribunal held that the reassessment proceedings initiated under Section 147 read with Section 148 of the Income-tax Act, 1961, were void ab initio. The reasoning was that the assessee company's name was struck off from the records of the Registrar of Companies on 29.04.2015. The notice for reopening the assessment under Section 148 was issued on 30.03.2017, which was significantly after the company had ceased to exist. The assessee had also duly intimated this fact to the Assessing Officer on 27.10.2015 and again on 19.05.2017. Furthermore, information obtained under the RTI Act indicated that the Income Tax Department was aware of the company's non-existence and had initiated proceedings for its restoration. Therefore, a valid notice could not have been issued to a non-existent entity. The Tribunal concluded that the entire reassessment proceedings deserved to be quashed. The grounds raised for AY 2010-11 were allowed, and this decision was to apply mutatis mutandis to AY 2011-12.
The Tribunal held that the assessee's inability to produce documents was due to ailments and surgeries. The CIT(A) had enhanced the addition and refused to admit additional evidence.
The Tribunal observed that the CIT(A) did not decide the issue on merit and affirmed the ex-parte order of the AO. In the interest of justice, the matter was remitted back for denovo assessment.
The Tribunal held that the assessee failed to provide evidence of ownership of the new property, specifically the sale deed, despite a notice under Section 133(6). Therefore, the exemption under Section 54F could not be allowed.
The Tribunal held that the assessee had established all three ingredients of Section 68 of the Income Tax Act, namely identity, creditworthiness, and genuineness of the transactions. The Tribunal found no infirmity in the CIT(A)'s order deleting the addition.
The Tribunal held that the appeal filed by the Revenue was not maintainable. The reasoning was based on the fact that the tax effect involved in the appeal was below the prescribed limit of Rs. 60 lacs, as stipulated in CBDT Circular No. 09/2024 dated 17.09.2024. The Senior Departmental Representative for the Revenue fairly agreed with this position. Consequently, the Tribunal deemed it fit and proper to dismiss the appeal of the Revenue in light of the aforesaid circular. The operative direction was the dismissal of the appeal.
The Tribunal noted that the lower appellate authority had proceeded ex-parte against the assessee. Considering the possibility of communication gaps due to the new faceless hearing system, the Tribunal restored the appeal to the CIT(A)/NFAC for fresh adjudication.
The Tribunal held that a statement recorded under Section 132(4) of the Income Tax Act, 1961, cannot solely form the basis for an addition without corroborative material. Retracted statements, without supporting evidence, are insufficient to sustain additions.
The Tribunal restored the entire matter back to the file of the CIT(A). The CIT(A) was directed to pass a speaking order on the points raised by the assessee after giving a proper opportunity, considering the orders of the Delhi High Court and the Tribunal.
The Tribunal held that the approval granted by the JCIT was mechanical and lacked independent application of mind, as it was a combined approval for multiple assessment years and cases. Consequently, the assessment orders passed without valid approval were quashed.
The Tribunal dismissed the appeal as withdrawn due to the assessee's opting for the VSVS Scheme 2024. The assessee was granted liberty to revive the appeal if the scheme benefits were not extended.
The Tribunal set aside the order of the Ld. CIT(A) and restored the matter back for re-adjudication. The assessee was directed to participate and present evidence before the Ld. CIT(A) to ensure substantive justice.
The Tribunal held that the claim for depreciation on acquired goodwill is justified, following the Delhi High Court's decision in Eltek SGS Pvt. Ltd. The valuation of goodwill was not disputed by the revenue.
The Tribunal rejected the Revenue's appeals and the assessee's cross-objections. It upheld the CIT(A)'s decision to restrict certain additions and delete others, finding that some additions were not supported by sufficient incriminating material or were based on rough notings.
The Tribunal held that the interest expenditure claimed in P&L account was for business purposes and that the specific interest expenditure of Rs. 3,11,520/- related to loans for property investments was not debited to the P&L account.
The Tribunal found that the notices under Section 148 were issued beyond the permissible limitation period as per the Supreme Court's decision in Rajeev Bansal. Consequently, the reassessment proceedings were quashed.
The Tribunal dismissed the Revenue's appeal, upholding the CIT(A)'s decision to delete the additions. The Tribunal found that the AO could not resort to ad-hoc disallowances without specific defects and that the insurance claim was not taxable as revenue.
The Tribunal dismissed the assessee's appeals as withdrawn and the Revenue's appeals as infructuous due to the settlement under VSVS. Liberty was granted to revive appeals if the VSVS settlement fails.
The tribunal held that the assessees were accommodation entry providers. While agreeing that the entire disallowance was not sustainable, it found merit in the CIT(A)'s principle of assessing a profit element. However, the tribunal reduced the profit element to 1% from 2.5%, stating it would not be a precedent.
The Tribunal held that the consolidated approval granted for multiple assessment years under Section 153D was not sustainable, as it did not comply with the mandate of the law. Consequently, the assumption of jurisdiction for passing the assessment orders under Section 153C was vitiated.
The ITAT observed that the addition was sustained by the Ld. CIT(A) relying on the Assessing Officer's order. The Tribunal held that the assessee should be granted another opportunity to be heard on merit. Therefore, the matter was restored to the file of the Ld. CIT(A) with directions to provide an opportunity of hearing to the assessee and decide the issue on merit as per law.
The Tribunal dismissed the assessee's appeals as withdrawn and the Revenue's appeals as infructuous due to the settlement under VSVS. Liberty was granted to revive appeals if the VSVS settlement fails.
The Tribunal held that Section 234E was introduced w.e.f. 01.06.2015, and the levy of late fee for the quarter prior to this date was not applicable. The Tribunal also noted that in similar cases for the same year, the penalty was deleted by the CIT(A).
The Tribunal dismissed the assessee's appeals as withdrawn, as the issues were resolved under MAP. The Revenue's appeal was dismissed as infructuous, with liberty granted to revive it if the issue is not settled under MAP.
The Tribunal noted that the CIT(E) had provided multiple opportunities for furnishing information, which the assessee failed to utilize. However, considering the totality of facts, the Tribunal decided to grant one more opportunity to the assessee to file the necessary information.
The Tribunal dismissed the assessee's appeals as withdrawn, as the issues were resolved under MAP. The Revenue's appeal was dismissed as infructuous, with liberty granted to revive it if the issue is not settled under MAP.
The Tribunal observed that the CIT(A) failed to consider the assessee's documentary evidence regarding the agricultural nature of the land, relying on the Goetze India Ltd. judgment to reject new claims made without a revised return. The Tribunal found this problematic, set aside the orders of both the CIT(A) and the AO, and restored the matter to the AO for a fresh decision after providing the assessee a fair opportunity to be heard.
The Tribunal condoned the delay in the Revenue's appeal. For the assessee's appeal, the Tribunal directed the AO to verify when surcharge income was realized and offered to tax, deleting additions on unrealized surcharge.
The Tribunal condoned the delay in filing the appeal before the CIT(A), finding reasonable cause for the delay. The matter was remanded back to the CIT(A) to decide the issues on merits after providing an adequate opportunity of being heard to the assessee.
The Tribunal treated both the Revenue's appeal and the assessee's cross-objection as withdrawn. Liberty was granted to restore the appeals if the Vivad Se Vishwas Scheme declaration does not attain finality.
The ITAT found that while the interest certificate was dated after the AO's order, it was presented to the PCIT along with other loan documents establishing the transfer of a prior loan to the property in question. Despite a minor mismatch in the interest amount, the Tribunal concluded that finding fault for a document not submitted earlier, when it was subsequently available, would be an academic exercise. Therefore, the twin conditions for invoking Section 263 were not met, and there was no reason to sustain the PCIT's order.
The Tribunal held that the Ld. CIT(E) failed to provide adequate opportunity to the assessee and violated principles of natural justice. The impugned orders were set aside, and the matter was restored to the Ld. CIT(E) for a fresh decision.
The Tribunal held that the notice under Section 148 was not properly served on the assessee, either through postal mail or email. Consequently, the entire reassessment proceedings were vitiated.
The Tribunal observed that the addition was sustained ex-parte by the CIT(A) and in the interest of justice, directed the CIT(A) to grant the assessee an opportunity of being heard on merit.
The Tribunal held that the Section 153D approval, being a common one for all assessment years, was not valid. Consequently, the assessments framed under Section 153A were quashed.
The Tribunal held that protective assessments of amounts already confirmed as substantive additions in the hands of SCIPL would amount to double taxation. Therefore, such protective additions were to be deleted.
The Tribunal noted that a co-ordinate bench had previously held that unregistered trusts are assessable as AOP/individuals entitled to statutory exemptions, not at the maximum marginal rate. Following this precedent, the Tribunal directed a fresh computation.
The Tribunal found that while the assessee could not fully satisfy the AO, the CIT(A)'s findings regarding genuine business transactions were largely correct. However, a lump sum addition of Rs. 1.5 lakhs was deemed appropriate, not to be treated as a precedent.
The Tribunal directed the AO to retain the GP ratio of 0.6% as declared by the assessee for AY 2014-15, following the decision for AY 2013-14. Regarding the cash credit, the Tribunal allowed the assessee's grounds related to gifts from Shimla Devi, finding sufficient source of funds, and dismissed the Revenue's appeal on this issue.
The Tribunal held that Section 68 is not applicable to cases of share swapping where no cash consideration is involved. Furthermore, Section 14A disallowance is not applicable when no exempt income is received by the assessee.