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382 orders · Page 6 of 8
The Tribunal noted that its coordinate benches had quashed the quantum assessment orders under Section 153A, finding them to be without any incriminating material. Citing the Supreme Court's ruling in K.C. Builders & Anr vs. ACIT, the Tribunal held that when the additions forming the basis of the penalty are deleted, the penalty cannot survive, and therefore, all appeals are allowed.
The Tribunal noted that its coordinate benches had quashed the quantum assessment orders under Section 153A, finding them to be without any incriminating material. Citing the Supreme Court's ruling in K.C. Builders & Anr vs. ACIT, the Tribunal held that when the additions forming the basis of the penalty are deleted, the penalty cannot survive, and therefore, all appeals are allowed.
The Tribunal noted that its coordinate benches had quashed the quantum assessment orders under Section 153A, finding them to be without any incriminating material. Citing the Supreme Court's ruling in K.C. Builders & Anr vs. ACIT, the Tribunal held that when the additions forming the basis of the penalty are deleted, the penalty cannot survive, and therefore, all appeals are allowed.
The Tribunal noted that its coordinate benches had quashed the quantum assessment orders under Section 153A, finding them to be without any incriminating material. Citing the Supreme Court's ruling in K.C. Builders & Anr vs. ACIT, the Tribunal held that when the additions forming the basis of the penalty are deleted, the penalty cannot survive, and therefore, all appeals are allowed.
The Tribunal noted that its coordinate benches had quashed the quantum assessment orders under Section 153A, finding them to be without any incriminating material. Citing the Supreme Court's ruling in K.C. Builders & Anr vs. ACIT, the Tribunal held that when the additions forming the basis of the penalty are deleted, the penalty cannot survive, and therefore, all appeals are allowed.
The Tribunal noted that its coordinate benches had quashed the quantum assessment orders under Section 153A, finding them to be without any incriminating material. Citing the Supreme Court's ruling in K.C. Builders & Anr vs. ACIT, the Tribunal held that when the additions forming the basis of the penalty are deleted, the penalty cannot survive, and therefore, all appeals are allowed.
The Tribunal noted that its coordinate benches had quashed the quantum assessment orders under Section 153A, finding them to be without any incriminating material. Citing the Supreme Court's ruling in K.C. Builders & Anr vs. ACIT, the Tribunal held that when the additions forming the basis of the penalty are deleted, the penalty cannot survive, and therefore, all appeals are allowed.
The Tribunal noted that its coordinate benches had quashed the quantum assessment orders under Section 153A, finding them to be without any incriminating material. Citing the Supreme Court's ruling in K.C. Builders & Anr vs. ACIT, the Tribunal held that when the additions forming the basis of the penalty are deleted, the penalty cannot survive, and therefore, all appeals are allowed.
The Tribunal noted that its coordinate benches had quashed the quantum assessment orders under Section 153A, finding them to be without any incriminating material. Citing the Supreme Court's ruling in K.C. Builders & Anr vs. ACIT, the Tribunal held that when the additions forming the basis of the penalty are deleted, the penalty cannot survive, and therefore, all appeals are allowed.
The Tribunal noted that its coordinate benches had quashed the quantum assessment orders under Section 153A, finding them to be without any incriminating material. Citing the Supreme Court's ruling in K.C. Builders & Anr vs. ACIT, the Tribunal held that when the additions forming the basis of the penalty are deleted, the penalty cannot survive, and therefore, all appeals are allowed.
The Tribunal noted that its coordinate benches had quashed the quantum assessment orders under Section 153A, finding them to be without any incriminating material. Citing the Supreme Court's ruling in K.C. Builders & Anr vs. ACIT, the Tribunal held that when the additions forming the basis of the penalty are deleted, the penalty cannot survive, and therefore, all appeals are allowed.
The Tribunal noted that its coordinate benches had quashed the quantum assessment orders under Section 153A, finding them to be without any incriminating material. Citing the Supreme Court's ruling in K.C. Builders & Anr vs. ACIT, the Tribunal held that when the additions forming the basis of the penalty are deleted, the penalty cannot survive, and therefore, all appeals are allowed.
The Tribunal held that the CIT(A) ought to have condoned the delay, considering the reasons provided by the assessee and the number of days of delay.
The Tribunal held that the assessee had discharged its initial burden by providing documentary evidence for cash sales, including audited books, invoices, and VAT returns. The Revenue failed to prove the credits were unexplained.
The ITAT found no infirmity or error in the CIT(A)'s order deleting the addition made under Section 68. The assessee had adequately explained the source of the cash deposits as instalments from auto drivers, supported by detailed records and cash book entries. The AO failed to conduct independent enquiries, and the Revenue could not controvert the assessee's explanations or the CIT(A)'s findings.
Following its own precedent and jurisdictional High Court decisions, the Tribunal held that an assessee cannot be treated as "assessee in default" under Section 201(1) nor charged interest under Section 201(1A) where payees are non-identifiable and TDS is deducted upon actual payment in a subsequent year. The machinery provisions for TDS fail in the absence of an ascertainable amount and identifiable payee, as it would amount to a separate levy rather than aiding the charge of tax under Section 4.
The Tribunal held that the consideration for drawings and designs, integral to equipment supply, was not taxable as Fees for Technical Services but as Business Profits, provided it was inextricably linked to the sale of plant and equipment and not attributable to a Permanent Establishment in India. The levy of Section 234B interest was also addressed based on statutory amendments.
The Tribunal held that the assessee had provided all necessary details to prove the genuineness of its charitable objects and activities. The CIT(Exemption) erred in rejecting the application solely on the ground of certain missing details, without questioning the genuineness of the objects and activities themselves.
The Tribunal held that the assessee had provided sufficient evidence to prove the genuineness of its charitable objects and activities. The CIT(Exemption) erred in rejecting the application solely on the ground of certain missing details, which should have been verified during the assessment proceedings.
The Tribunal held that the issue regarding the sale of investments was covered by previous High Court and ITAT decisions, and the assessee was entitled to exemption. For Section 14A, it was held that the provisions are not applicable while computing total income as per Rule 5 r.w. Section 44. The grounds related to Standard Assets and Investment Written Off were also decided in favor of the assessee based on previous ITAT orders.
The Tribunal dismissed the appeal as the assessee consistently failed to appear and prosecute its case before both the lower appellate authority and the Tribunal. The Tribunal found no reason to interfere with the orders of the lower authorities.
The Tribunal, noting that the CIT(A)/NFAC had also proceeded ex-parte and acknowledging the possibility of communication gaps in faceless hearings, restored the matter back to the CIT(A)/NFAC for fresh adjudication. The assessee is to be granted three effective opportunities to present its case.
The Tribunal allowed the claim under Section 35(2AB), stating that the R&D expenditure was approved by DSIR and the dispute was only on technicalities, not genuineness. However, the Tribunal sustained the disallowance under Section 14A, noting that the AO had properly recorded reasons for invoking Rule 8D due to the assessee's significant investments yielding exempt income and lack of accounting for related administrative expenses.
The Tribunal found that the CIT(A) dismissed the appeal without adjudicating its grounds and violated natural justice. Although the Assessee did not respond to three notices, the Tribunal set aside the CIT(A)'s order and remanded the matter for fresh adjudication after providing a proper opportunity of being heard to the Assessee.
The Income Tax Appellate Tribunal remanded the matter back to the CIT(A) for fresh adjudication. The Tribunal noted that the CIT(A) had failed to address the Assessee's specific contention that its objections were not disposed of in compliance with the ratio laid down by the Hon'ble Supreme Court in GKN Driveshafts (India) Ltd. Vs. DCIT.
The Tribunal restored the matter back to the AO to decide the controversy regarding the jurisdictional defect in the issuance of the notice under Section 143(2). The assessee was granted liberty to raise all related pleas.
The Tribunal held that the case was squarely covered by previous decisions of the ITAT in the assessee's own case and a sister concern's case, and that there was no infirmity in the CIT(A)'s decision.
The Tribunal noted that the underlying quantum additions, which formed the basis for the penalty, had already been deleted by a common order of the Tribunal (ITA No.5944/Del/2018) in the assessee's own case. The additions were deleted as no incriminating material was found during search proceedings, and reliance was placed on a third person's statement. Consequently, the Tribunal held that the penalty, being derivative from these deleted additions, could not survive.
The Tribunal, in the interest of justice, remitted the issues back to the Assessing Officer for fresh adjudication. The AO is directed to decide the matter afresh after providing adequate opportunity of being heard to the assessee, who is, in turn, directed to fully cooperate during the proceedings.
The Tribunal considered whether income from the supply of drawings and designs, inextricably linked to equipment sales, constituted business profits or taxable fees for technical services. It also examined the existence of a Permanent Establishment (PE) in India and the attribution of profits.
The Tribunal held that the consideration for drawings and designs, integral to equipment supply, was not taxable as Fees for Technical Services but as Business Profits, provided it was inextricably linked to the sale of plant and equipment and not attributable to a Permanent Establishment in India. The levy of Section 234B interest was also addressed based on statutory amendments.
The Income Tax Appellate Tribunal (ITAT) held that the CBDT Notification 81/2023, which introduced a 10% safe harbor for variations in share valuation under Rule 11UA, is a curative amendment and applies retrospectively. Since the difference between the issue price and the fair value adopted by the AO in this case was 0.88%, which falls within the 10% safe harbor, the addition made under Section 56(2)(viib) was deemed unsustainable. The ITAT relied on prior judgments affirming the retrospective applicability of curative amendments.
The Tribunal held that the CIT(A) was not justified in rejecting the books of accounts under Section 145(3) as the AO had made specific disallowances. The Tribunal sustained the disallowance for unsubstantiated purchases, finding no material to contradict the AO's finding. However, it held that disallowances under Sections 40(a)(ia) and 40A(3) were subsumed in the purchases and deleted those additions.
The Tribunal observed that coordinate benches have previously restored identical issues to the Assessing Officer (AO). Following these precedents, the Tribunal restored the issue of determining the due date for ESI and PF deposits to the AO for re-examination, instructing the AO to provide the assessee an adequate opportunity to present relevant information.
The Tribunal held that notices that are not digitally or manually signed are illegal, invalid, and inoperative, and thus amount to no notice in the eyes of law. Consequently, such invalid notices cannot confer jurisdiction upon the Assessing Officer, and any non-compliance with them cannot justify the imposition of a penalty. The argument that the assessee's awareness of proceedings negates prejudice does not validate an invalid notice.
The Tribunal held that notices that are not digitally or manually signed are illegal, invalid, and inoperative, and thus amount to no notice in the eyes of law. Consequently, such invalid notices cannot confer jurisdiction upon the Assessing Officer, and any non-compliance with them cannot justify the imposition of a penalty. The argument that the assessee's awareness of proceedings negates prejudice does not validate an invalid notice.
The ITAT condoned the 18-day delay in filing the appeal, accepting the reason as genuine. The tribunal remitted the entire matter back to the CIT(A) for fresh adjudication, directing that the assessee be provided a full opportunity of hearing and for all evidence to be considered to prevent a miscarriage of justice. It was clarified that non-cooperation by the assessee would allow the CIT(A) to dispose of the appeal as per law.
The ITAT observed that the CIT(Appeals) dismissed the appeal for non-prosecution after providing only three opportunities, without delving into the merits of the addition. Recognizing that notices were sent to an incorrect email, the ITAT set aside the CIT(Appeals)'s order and restored the appeal for fresh adjudication, ensuring the assessee receives adequate opportunity.
The Tribunal ruled that the defect in filing the appeal was rectifiable and restored the appeal to the CIT(A) for de novo adjudication on merits. The assessee is directed to rectify the defect within 30 days.
The Tribunal ruled that the Assessing Officer and CIT(A) failed to conduct any independent inquiry beyond third-party information, did not find any defects in the assessee's books of account, stock register, or sales, and did not demonstrate a lack of raw material, manufacturing activity, or matching sales/stock increase. Therefore, the allegation of bogus entries was deemed unsustainable, and the findings of the lower authorities were set aside.
The Ld. Sr. DR for the Revenue conceded the applicability of CBDT Circular No.09 of 2024. Consequently, the tribunal dismissed the Revenue's appeals in limine as not maintainable due to the monetary threshold. The Revenue was granted liberty to seek restoration of the appeals if they could demonstrate the inapplicability of the said circular.
The Ld. Sr. DR for the Revenue conceded the applicability of CBDT Circular No.09 of 2024. Consequently, the tribunal dismissed the Revenue's appeals in limine as not maintainable due to the monetary threshold. The Revenue was granted liberty to seek restoration of the appeals if they could demonstrate the inapplicability of the said circular.
The Tribunal held that crediting and debiting 'budgeted/hypothetical income and expense' to the Profit and Loss Account does not result in real income or expense accruing to the assessee. Real income, not notional income, is subject to tax. The AO misinterpreted the notes to accounts and based the addition on conjectures.
The Tribunal noted that the assessee had opted for the Vivad Se Vishwas Scheme and wished to withdraw the appeal. Both parties agreed, and the Tribunal allowed the withdrawal.
The Tribunal condoned the 788-day delay in filing the appeal, finding 'sufficient cause' based on Apex Court precedents. On merits, it held that the belated filing of Form 10B is a procedural defect and restored the issue of denial of exemption under Section 11(1)(d) to the Assessing Officer for verification. The AO is directed to verify the nature of donations and allow the exemption if they are corpus donations, in accordance with law.
The Tribunal considered the assessee's grounds challenging the taxability of consideration for drawings and designs as Fees for Technical Services (FTS) and the taxability of plant and equipment sales. The core dispute revolved around whether these were business profits or FTS, and the applicability of the India-Germany DTAA.
The Tribunal held that the consideration for drawings and designs, integral to equipment supply, was not taxable as Fees for Technical Services but as Business Profits, provided it was inextricably linked to the sale of plant and equipment and not attributable to a Permanent Establishment in India. The levy of Section 234B interest was also addressed based on statutory amendments.
The Tribunal found no evidence that the mandatory Section 143(2) notice was issued for AY 2002-03, making the assessment void ab initio. Consequently, the assessment order framed under Section 147/143(3) and the consequential penalty order under Section 271(1)(c) were quashed.
The Tribunal condoned the delay in filing the appeal. It found that the first appellate order by the CIT(A) was passed ex-parte without providing an opportunity to the assessee, violating principles of natural justice. The matter was, therefore, restored to the CIT(A) for fresh adjudication.
The tribunal dismissed the appeal as withdrawn, acknowledging the assessee's participation in the DTVSV Scheme. It granted liberty to the assessee to seek restoration of the appeal if they are unable to avail the scheme's benefits for bonafide reasons.