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918 orders · Page 10 of 19
The Tribunal held that the gain on cancellation of the forward contract was a capital receipt, not speculative income. It also restored certain additional grounds raised by the assessee to the AO for examination.
The Tribunal found that the Assessing Officer's satisfaction recorded for initiating proceedings under Section 153C was not in accordance with the law. The use of both 'belongs to' and 'relates to' in the satisfaction was deemed improper.
The Tribunal found that the Assessing Officer's satisfaction notice, which used both "belongs to" and "relates to" in relation to the seized material, was not in accordance with the law. This dual phrasing rendered the satisfaction invalid for initiating proceedings under Section 153C.
The Tribunal found that the Assessing Officer's satisfaction recorded for initiating proceedings under Section 153C was not valid. The satisfaction notice used both the expressions "belongs to" and "relates to", which the Tribunal held to be improper according to the law.
The Tribunal held that there was no dispute regarding the allowability of the expenditure in principle. The lower authorities failed to discuss market comparables for the assessee's commission agent business. A lump sum disallowance of Rs.1,00,000 was deemed appropriate in the interest of justice, with no precedential value.
The Tribunal held that the assessee itself is the recipient of the income as it runs the educational institution, and therefore, the condition of receiving income 'on behalf of' another institution is not applicable. The lower authorities' findings were reversed.
The Tribunal found merit in the assessee's explanation, noting that the assessee and his wife were pensioners and had previously withdrawn Rs.24,63,000/-, which was un-rebutted by the Revenue. The Revenue's contentions were rejected.
The tribunal held that the Assessing Officer exceeded his jurisdiction by making an addition on an issue not covered by the 'limited scrutiny' under Section 143(2). The action was beyond the scope of the limited inquiry and thus not permissible.
The tribunal found no merit in the Revenue's contentions, stating that Section 50C applies only when the actual sale price is less than the stamp valuation. In this case, the assessee sold the asset at stamp price, and there was no other sale consideration. The addition of short-term capital gains was deleted.
The Tribunal held that the assessee itself is the recipient of the income as it runs the educational institution, and therefore, the condition of receiving income 'on behalf of' another institution is not applicable. The lower authorities' findings were reversed.
The Tribunal held that different floors of a single residential house cannot be considered as separate residential units for the purpose of Section 54F. The issue of cost of construction was restored to the CIT(A) for fresh consideration.
The Tribunal noted that the assessee claimed the deposits were from regular business activity, but it neither proved this nor provided corresponding business details. Considering the interest of justice, a lump sum addition of Rs. 2,00,000/- was deemed appropriate, making the assessee's relief Rs. 16,50,000/-. The Tribunal also held that Section 115BBE applies only to transactions after April 1, 2017, directing assessment under normal provisions.
The Tribunal observed that the fixed assets in question were acquired in 2014 and had been allowed to form part of the assessee's block of assets. Therefore, the lower authorities could not disallow the depreciation or other relevant expenditure.
The Tribunal noted that the CIT(A) had also proceeded ex-parte and that there might have been communication gaps due to the new faceless hearing system. Therefore, in the interest of justice, the appeal was restored to the CIT(A).
The Tribunal acknowledged the possibility of communication gaps with the newly introduced virtual hearing mechanism and the lack of effective compliance 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 with three effective opportunities for hearing.
The Tribunal held that technicalities must give way to substantial justice. The appeal was restored to the CIT(A)/NFAC for adjudication on merits, with the assessee to prove their case.
The Tribunal condoned a significant delay in filing the appeal and acknowledged the possibility of communication gaps during virtual hearings. The matter was restored to the CIT(A)/NFAC for fresh adjudication.
The Tribunal held that technical issues should not impede substantial justice. The appeal was restored to the CIT(A)/NFAC for adjudication on merits, giving the assessee three opportunities, provided the assessee proves their case at their own risk.
The Tribunal held that the impugned assessment was pending as on the date of the search on 16.10.2013 and thus had to be mandatorily abated in light of Section 153A(1) of the Income Tax Act. Consequently, the assessment was quashed as non-est in the eyes of law.
The Tribunal held that the assessee had duly explained the source of the impugned cash by attributing it to the company's cash in hand, as evidenced by the director's paper book showing a significant amount of cash on hand.
The Tribunal held that the submission of Form 10IE is a directory provision, not mandatory. The assessee had filed Form 10IE after filing the return but before the lower authorities' decision, and this was considered sufficient.
The assessee's counsel sought to withdraw the appeal, with liberty to argue before the assessing authority. The Revenue did not contest this request.
The Tribunal held that while the assessee provided ledger accounts, they failed to provide documentary proof for acquiring jewellery from known sources, especially for the period prior to 2006. However, considering the facts, the assessee was granted some relief.
The Tribunal held that since the cash receipts were duly credited to the accounts of the corresponding customers and this was not rebutted by the department, they could not be treated as unexplained. The Tribunal followed a previous decision in Shrijeet Finance (P) Ltd. Vs. ACIT.
The Tribunal noted that the assessee was proceeded ex-parte by the CIT(A) and acknowledged the possibility of communication gaps due to faceless hearings. In the interest of justice, the appeal was restored to the CIT(A) for a fresh adjudication.
The Tribunal held that the Revenue could not dispute that the assessee had not claimed the cost of improvement in the relevant previous year. The property was acquired in preceding assessment years, making the addition under Section 68 unsustainable.
The Tribunal held that the period of delay falls within the Covid-19 pandemic exclusion period and relied on landmark decisions for condoning the delay. The Tribunal also noted non-compliance with Section 250(6) of the Act in the lower appellate order.
The Tribunal acknowledged the possibility of communication gaps and non-compliance with Section 250(6) of the Act in the lower appellate order. Therefore, in the interest of justice, the matter was set aside and restored to the CIT(A)/NFAC for a fresh adjudication.
The Tribunal noted that the primary issue concerns the validity of the reopening due to a lack of proper approval from the prescribed authority under Section 151. The approval on record was examined.
The Tribunal held that the initiation of proceedings under Section 147 was based on sufficient material and dismissed the ground related to the reopening. However, regarding the addition under Section 68, the Tribunal found it unclear from the orders if proper verification of the assessee's claim of receivables was done. Therefore, the matter was remanded back to the Assessing Officer for verification.
The Tribunal acknowledged the possibility of communication gaps in virtual hearings and noted non-compliance with Section 250(6) of the Act in the lower appellate order. Consequently, the Tribunal set aside the appeal to the CIT(A)/NFAC for a fresh adjudication.
The Tribunal held that the notice for reassessment was invalid because it was issued beyond the three-year period without obtaining the necessary approval from the Principal Chief Commissioner or Principal Director General as required by Section 151(ii) of the Act. Consequently, the reassessment proceedings were quashed.
The Tribunal held that the notice issued under Section 148 of the Act was barred by limitation. Consequently, the reassessment order passed under Section 147 r.w.s. 144 r.w.s. 144B was quashed.
The Tribunal held that the Assessing Officer exceeded his jurisdiction by making additions on issues not part of the limited scrutiny. Reliance was placed on CBDT instructions and judicial precedents that prohibit expanding the scope of limited scrutiny without proper procedure.
The Tribunal found that the possibility of communication gaps could not be ruled out. Therefore, in the interest of justice, the appeal was restored back to the CIT(A) for fresh adjudication with three opportunities of hearing.
The Tribunal held that interest income earned from surplus funds invested in cooperative banks/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 acknowledged the possibility of communication gaps and the lack of effective compliance with Section 250(6) of the Act in the lower appellate order. Therefore, in the interest of justice, the appeal was set aside and restored to the CIT(A)/NFAC for a fresh adjudication.
The Tribunal condoned the delay in filing the appeal. It held that the possibility of communication gaps during virtual hearings could not be ruled out and there was a lack of effective compliance with Section 250(6) of the Act in the lower appellate order. Therefore, the matter was set aside to the CIT(A)/NFAC for fresh adjudication.
The Tribunal held that the assessee followed a standard accounting policy for lease equalization charges as per ICAI guidelines, which was declared in financial statements and regularly followed. Since this accounting method did not result in revenue loss and equalized tax effects over subsequent years, it should not be disturbed.
The Tribunal held that the AO had conducted adequate verification regarding the cash deposits during demonetization and had taken a plausible view. The PCIT failed to demonstrate how the AO's view was prejudicial to the revenue, and therefore, the PCIT's order setting aside the assessment was not justified.
The Tribunal held that the CIT(A) was correct in deleting the addition for the director's remuneration as the director was qualified and declared the income, and the AO could not dictate business operations. Regarding the fall in GP/NP, the Tribunal found that the AO had rejected the books of account without proper justification or opportunity to the assessee.
The Tribunal condoned the delay in filing the appeal in the larger interest of justice. The Tribunal set aside the appeal to the CIT(A) for a fresh adjudication, citing communication gaps and non-compliance with Section 250(6) of the Act.
The Tribunal held that the Assessing Officer had initially disallowed the claim for relief under Section 89(1) but subsequently rectified this by passing an order under Section 154. Therefore, there was no liability on the part of the assessee concerning this disallowance. The CIT(A)'s confirmation of the addition was found to be infructuous.
The Tribunal held that the AO exceeded the scope of limited scrutiny by examining issues from a prior assessment year without converting it to complete scrutiny. Furthermore, the Tribunal ruled that the assessee had utilized the funds for construction within the stipulated time, and Section 54F, being a beneficial provision, should be construed liberally, allowing the exemption despite minor delays in completion.
The Tribunal held that the payment received by the assessee was for the sale of software products, not for rendering technical services. The Tribunal emphasized that for income to be classified as FTS, there must be an indelible link to technical services, which was not established by the Revenue.
The Tribunal held that the assessee, following the mercantile system of accounting, was justified in recognizing the foreign exchange loss based on the prevailing exchange rate at the end of the financial year. The consistent accounting method adopted by the assessee was considered valid.
The Tribunal held that the assessee's appeal (ITA No.3658/Del/2023) is partly allowed and the Revenue's appeal (ITA No.43/Del/2024) is dismissed. Regarding the Rs. 1.5 crores addition under section 69A, the Tribunal found that while the explanation for the entire amount was not fully reconciled or verified, it prima facie represented business sales. Therefore, a lumpsum Gross Profit (GP) addition at 10%, amounting to Rs. 15 lakhs, was deemed just and proper, providing relief of Rs. 1.35 crores to the assessee. This addition was not to be treated as a precedent. For the issues concerning unexplained stock (Rs. 1.27 crores) and 6 kg gold (Rs. 1,54,48,608/-), the Tribunal noted that the CIT(A) had fairly directed these to be assessed in the hands of M/s. HP & Sons. Consequently, the assessee had already received relief, and the assessee's grounds on these issues were rejected. The Revenue's grounds seeking to revive these additions were also rejected as the CIT(A)'s order directing assessment in the hands of M/s. HP & Sons was considered appropriate. The Revenue's ground regarding hedging loss of Rs. 22,48,580/- was rejected as the CIT(A) had accepted the assessee's evidence proving it was not a speculative transaction under section 43(5). The issue of GP rate addition was not explicitly decided in the provided text, but the Revenue's appeal was dismissed overall.
The Tribunal upheld the deletion of the addition made by the Assessing Officer. It was held that the fixed deposit in question was a renewal of an old FDR and not a fresh investment, especially considering the company's defunct status and lack of business operations during the relevant period.
The Tribunal found that the assessee failed to provide required details to the Ld. CIT(E) to establish the genuineness of its charitable activities. However, to ensure natural justice, one more opportunity is granted.
The Tribunal found that the assessee failed to provide required details to the Ld. CIT(E) to establish the genuineness of its charitable activities. However, to ensure natural justice, one more opportunity is granted.