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808 orders · Page 5 of 17
The Tribunal partly allowed the assessee's appeals and dismissed the Revenue's appeals. Specifically, a disallowance of portfolio management charges was upheld, while disallowances related to legal and professional fees and business promotion expenses were either deleted or partly allowed. Interest expenditure disallowances were deleted based on sufficient interest-free funds.
The Tribunal held that since the CIT(A) did not decide the appeal on merits, it was appropriate to remand the matter back to the CIT(A) for a fresh decision.
The Tribunal found that the Assessing Officer did not provide sufficient opportunity to the assessee to prove the source of cash deposit and the CIT(A) order was ex-parte. Therefore, in the interest of natural justice, the matter was remanded for de-novo assessment.
The Tribunal partly allowed the assessee's appeals and dismissed the Revenue's appeals. Specifically, a disallowance of portfolio management charges was upheld, while disallowances related to legal and professional fees and business promotion expenses were either deleted or partly allowed. Interest expenditure disallowances were deleted based on sufficient interest-free funds.
The Tribunal held that the lower authorities relied solely on a search statement without any supporting receipt or admission details from the assessee. It further noted that such reliance was insignificant in light of CBDT's circular dated 10.03.2022.
The Tribunal noted that the assessee had been held to be a commission agent with a miniscule margin, and that the cash deposits were explained, though not reconciled item-wise. A lump-sum addition of Rs.4,50,000/- (inclusive of profits already declared) was deemed appropriate, with a clarification that it should not be treated as a precedent. The applicability of Section 115BBE was also discussed.
The tribunal, referencing its Standing Order (1963) and a Supreme Court ruling, held that the situs of the Assessing Officer determines territorial jurisdiction. Consequently, the appeal was dismissed for want of territorial jurisdiction by the ITAT Delhi Benches, granting the assessee liberty to file it afresh before the appropriate tribunal, with any resultant delay condoned.
The Tribunal partly allowed the assessee's appeals and dismissed the Revenue's appeals. Specifically, a disallowance of portfolio management charges was upheld, while disallowances related to legal and professional fees and business promotion expenses were either deleted or partly allowed. Interest expenditure disallowances were deleted based on sufficient interest-free funds.
The Tribunal held that while the explanation for the full amount might not be entirely satisfactory, the assessee's status as a qualified computer teacher and socio-economic background suggest some income from teaching and past accumulations are plausible. A lump sum addition of Rs.2,00,000/- was deemed just and proper, with the rider that it should not be a precedent.
The Tribunal noted that the CIT(A)/NFAC's proceedings were ex-parte and acknowledged the possibility of communication gaps due to the new faceless hearing system.
The Tribunal held that while the assessee failed to satisfactorily discharge the onus of proving the source of the deposits, considering the assessee's socio-economic status, past savings of Rs.6,00,000/- could be accepted. Therefore, an addition of Rs.1,40,000/- was deemed just and proper, granting relief of Rs.6,00,000/-.
The Tribunal observed that the CIT(A) had proceeded ex-parte against the assessee and that communication gaps might have occurred due to the faceless hearing system. Therefore, in the interest of justice, the appeal was restored to the CIT(A)/NFAC for fresh adjudication.
The Tribunal found no merit in the additions as the source of funds was likely the salary. The lower authorities failed to examine the assessee's complete emoluments and TDS credit before making additions.
The Tribunal condoned the delay in filing the appeal before the NFAC, holding that the assessee had shown sufficient cause. The matter was remanded back to the NFAC to decide the appeal on its merits.
The Tribunal noted that the Assessing Officer had accepted the assessee's cash sales of Rs. 3,78,54,792/-. Therefore, the impugned cash deposits were held to prima facie represent cash sales and wrongly added as unexplained.
The Tribunal acknowledged the possibility of communication gaps and found that the lower appellate order did not comply with Section 250(6) of the Act. Therefore, in the interest of justice, the appeal was set aside and restored to the CIT(A)/NFAC for fresh adjudication.
The Tribunal noted the possibility of communication gaps with virtual hearings and lack of compliance with Section 250(6) in the lower appellate order. Therefore, to serve the interest of justice, the appeal was set aside.
The Tribunal noted that the lower appellate authority had proceeded ex-parte against the assessee and observed that communication gaps might have occurred due to the new faceless hearing system. Therefore, the Tribunal deemed it appropriate to restore the appeal for fresh adjudication.
The Tribunal held that the CIT(A)/NFAC's rejection of the assessee's appeals in limine under section 249(4)(b) of the Act for non-payment of admitted advance tax was not sustainable. The Tribunal noted that there was no indication in the CIT(A)/NFAC's order quantifying the assessee's advance tax liability, nor was any prior notice or opportunity granted to the assessee to address this specific issue. Consequently, the Tribunal deemed it appropriate to restore the assessee's appeals back to the CIT(A)/NFAC for fresh adjudication. The appeals were allowed for statistical purposes, with the direction that the CIT(A)/NFAC should adjudicate the matters afresh within three effective opportunities, subject to the condition that the taxpayer pleads and proves their case at their own risk and responsibility. No other issues were expressly left undecided.
The Tribunal restored the appeals back to the CIT(A)/NFAC for fresh adjudication. The assessee was given three opportunities to plead and prove their case at their own risk.
The Tribunal held that since the quantum appeal was set aside by the Coordinate Bench to the file of the AO, the instant appeal arising from the penalty order lost its force and became infructuous. Therefore, the appeal was dismissed as infructuous.
The Tribunal held that the seized cash could be adjusted towards the assessee's self-assessment tax liability upon filing the return of income, following a precedent. However, the appeal regarding the invocation of Section 153A and initiation of penalty proceedings was dismissed.
The Tribunal rejected the adjournment application due to the assessee's consistent non-appearance and failure to provide documents. The Tribunal noted the assessee's recalcitrant attitude and remanded the matter back to the CIT(A) for fresh adjudication.
The Tribunal held that interest income earned on surplus funds invested with cooperative banks, cooperative societies, and nationalized banks is eligible for deduction under Section 80P(2)(a)(i) and 80P(2)(d) of the Income Tax Act.
The Tribunal partly allowed the assessee's appeals and dismissed the Revenue's appeals. Specifically, a disallowance of portfolio management charges was upheld, while disallowances related to legal and professional fees and business promotion expenses were either deleted or partly allowed. Interest expenditure disallowances were deleted based on sufficient interest-free funds.
The Tribunal noted that the assessee requested to withdraw the appeal as the matter was being resolved under the Vivad Se Vishwas Scheme. The appeal was treated as dismissed as withdrawn.
The Tribunal found that while the assessee's explanation of cash sales was not entirely satisfactory and the increase in sales was not justified, a complete disallowance was not warranted. The Tribunal decided that a sum of INR 5.00 Lakhs was a reasonable addition to meet the ends of justice, considering the unexplained source of deposit.
The Tribunal partly allowed the assessee's appeals and dismissed the Revenue's appeals. Specifically, a disallowance of portfolio management charges was upheld, while disallowances related to legal and professional fees and business promotion expenses were either deleted or partly allowed. Interest expenditure disallowances were deleted based on sufficient interest-free funds.
The Tribunal held that the expenditure of Rs. 35,00,000/- incurred on the assessee's marriage was duly explained. The Tribunal observed that seized documents indicated payments of Rs. 15,34,000/- to Mr. Manish Malhotra for clothing during the marriage. The fund flow statement showed an application of Rs. 35,00,000/-, with the immediate sources being withdrawals from partnership firms, withdrawals by the assessee's brother, and income offered for tax on account of marriage gifts. Therefore, the expenditure was considered explained. Consequently, the Tribunal found the action of the AO in invoking Section 69C to be incorrect. As the expenditure was held to be explained and Section 69C could not be invoked, the question of applying Section 115BBE did not arise. The Tribunal noted that the observation of the Ld. CIT(A) in paragraph 17 of the order was not correct and was excluded. The ratio decidendi is that if an expenditure is demonstrably sourced from explained funds, even if it pertains to a significant event like a marriage, it cannot be added as unexplained expenditure under Section 69C, nor can special rates under Section 115BBE be applied.
The Tribunal held that the assessee failed to provide documentary evidence to support the source of cash deposits despite opportunities. The CIT(A) had correctly upheld the addition made by the Assessing Officer as unexplained money, and therefore, the appeals were dismissed.
The Tribunal held that the assessee failed to provide documentary evidence to support the source of cash deposits despite opportunities. The CIT(A) had correctly upheld the addition made by the Assessing Officer as unexplained money, and therefore, the appeals were dismissed.
The Tribunal held that the PCIT's order was not sustainable as the AO's view was based on Supreme Court decisions affirming that interest under Section 28 of the Land Acquisition Act is part of enhanced compensation. The Tribunal distinguished the High Court decisions relied upon by the PCIT.
The Tribunal held that initiating proceedings against a dead person, after their demise, is not sustainable in law. The reopening was quashed on this ground.
The Tribunal decided that the impugned disallowance of Rs. 31 lakhs should be deleted. The reasoning was that while the Revenue drew support from the CIT(A)/NFAC's finding that the donation was a corpus donation from the recipient's books, it could hardly dispute the clinching fact that there was neither any specific direction from the assessee/donor to the recipient to this effect, nor any supportive evidence in the department's favor. The Tribunal found this situation peculiar and deemed it appropriate to delete the disallowance/addition. The ratio decidendi is that a donation treated as corpus by the recipient, without a specific direction from the donor and without supporting evidence for the revenue's claim, should not be disallowed as an application of income for exemption under section 11.
The Tribunal held that the assessee failed to provide documentary evidence to support the source of cash deposits despite opportunities. The CIT(A) had correctly upheld the addition made by the Assessing Officer as unexplained money, and therefore, the appeals were dismissed.
The Tribunal held that the PCIT's exercise of Section 263 jurisdiction, based on the assessee not following IND AS103 for AY 2016-17, was not legal, as clarified by Finance Act, 2021. The Finance Act confirmed that depreciation on goodwill was not applicable for the assessment year in question, rendering the PCIT's order unsustainable.
The Tribunal found that the possibility of family members having cash was not satisfactorily proved but also not entirely denied. Therefore, in the interest of justice, a lump sum addition of Rs. 2 lakhs was deemed appropriate, with a rider that it should not be treated as a precedent.
The Tribunal held that the AO did not provide sufficient opportunity and the assessee had valid reasons for not filing the evidences earlier. The Ld. CIT(A) erred in not admitting the additional evidences.
The Tribunal held that the impugned reopening of the assessment for assessment year 2012-13 was invalid. This decision was based on the fact that the approval granted by the prescribed authority under section 151 of the Income-tax Act, 1961, was found to be mechanical, as indicated by the noting "perused reasons, satisfied fit case...". This crucial fact, that the approval was mechanical, went unrebutted by the department. Citing the Supreme Court decision in CIT Vs. S. Goyanka Lime and Chemical Pvt. Ltd. (2015) 64 taxmann.com 313 (SC), the Tribunal quashed the impugned assessment. Consequently, all other pleadings on merits were rendered academic. The appeal filed by the assessee was allowed.
Recognizing the possibility of communication gaps within the newly introduced faceless hearing system leading to the ex parte orders, the Tribunal restored the appeals to the CIT(A)/NFAC. The CIT(A) was directed to adjudicate the matters afresh, providing the assessee three effective opportunities to present its case.
Recognizing the possibility of communication gaps within the newly introduced faceless hearing system leading to the ex parte orders, the Tribunal restored the appeals to the CIT(A)/NFAC. The CIT(A) was directed to adjudicate the matters afresh, providing the assessee three effective opportunities to present its case.
Recognizing the possibility of communication gaps within the newly introduced faceless hearing system leading to the ex parte orders, the Tribunal restored the appeals to the CIT(A)/NFAC. The CIT(A) was directed to adjudicate the matters afresh, providing the assessee three effective opportunities to present its case.
The Tribunal upheld the order of the Ld. CIT(A). Regarding the first issue, the Tribunal found no infirmity in the Ld. CIT(A)'s decision. The Ld. CIT(A) had extensively discussed the facts and concluded that the assessee was in the business of purchasing sick industrial units for trading purposes. The purchase of the entire unit, including land, was considered a composite deal and stock-in-trade. The assessee's own actions, such as claiming interest on loans for the purchase as business expenses and treating plant and machinery as stock-in-trade, supported this conclusion. The Ld. CIT(A) noted that the assessee had previously admitted that entries changing the land's character to investment were wrongly made. The Tribunal agreed that the land was a trading asset, and the profit was business income. The second issue regarding set-off of LTCG against LTCG loss was not explicitly addressed in the provided excerpt of the judgment, but the overall dismissal of the appeal implies it was also decided against the assessee or not pressed. The operative direction was the dismissal of the assessee's appeal.
Recognizing the possibility of communication gaps within the newly introduced faceless hearing system leading to the ex parte orders, the Tribunal restored the appeals to the CIT(A)/NFAC. The CIT(A) was directed to adjudicate the matters afresh, providing the assessee three effective opportunities to present its case.
The Assessee sought withdrawal of the present appeal, and the Department's Representative had no objection. Therefore, the appeal was dismissed as withdrawn.
The Tribunal held that the Ld. CIT(A) should have heard the appeal on merits after providing the assessee with an opportunity of being heard. In the interest of justice and fair play, the Tribunal restored the issue to the file of the Ld. CIT(A). The reasoning was that even though the assessee failed to appear, the appellate authority has a duty to ensure that an appeal is decided on merits after affording a proper hearing. Therefore, the order passed by the Ld. CIT(A) was set aside. The operative direction was to remand the appeal back to the Ld. CIT(A) for a decision on merits after giving the assessee an opportunity of being heard. No specific issue was left undecided, as the matter was sent back for a fresh adjudication.
The Tribunal restored the appeal to the CIT(A) for fresh adjudication, allowing the assessee three effective opportunities to present their case. The Tribunal noted the possibility of communication gaps due to the new faceless hearing system.
The Tribunal noted that the assessee had filed a condonation petition explaining reasons beyond their control. Citing the case of Collector, Land & Acquisition vs. Mst. Katiji & Others, the Tribunal held that technicalities should not impede substantial justice and restored the appeal to the CIT(A)/NFAC for fresh adjudication.
The Tribunal held that the PCIT's order was not sustainable as the Assessing Officer's view was based on Supreme Court decisions affirming that interest under Section 28 is part of enhanced compensation. The Tribunal also noted that the PCIT's order was solely based on an audit objection.
The Tribunal held that since the CIT(A)/NFAC had proceeded ex-parte against the assessee, there was a possibility of communication gaps, especially with the introduction of faceless hearings. In the larger interest of justice, the Tribunal decided to restore the appeal back to the CIT(A)/NFAC for fresh adjudication. The assessee was granted three effective opportunities to plead and prove their case at their own risk and responsibility. The appeal was allowed for statistical purposes.