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684 orders · Page 2 of 14
The Tribunal held that club expenses incurred for business promotion are allowable under Section 37(1) and that notional rental income arising from Ind-AS adjustments is not taxable. The principle of consistency was applied for allowing similar expenses in earlier years.
The Tribunal held that the penalty proceedings are parallel to the assessment proceedings and that a disallowance does not automatically lead to a penalty. The Tribunal referred to the landmark decision in CIT vs. Reliance Petroproducts (P) Ltd. to support its view.
The Tribunal found that the impugned orders did not clearly indicate whether proper notices were served to the assessee. For the sake of justice, the Tribunal restored the issues to the CIT(A) for fresh consideration.
The Tribunal held that the intimation passed u/s 143(1) was sent beyond the prescribed period of 9 months from the end of the financial year in which the return was filed, making it bad in law. The adjustment made in the intimation was deleted.
The Tribunal noted that the tax effect was below the threshold limit prescribed by the CBDT's Circular No. 9/2024, which was made applicable retrospectively to pending appeals. Therefore, the appeal was rejected.
The Tribunal held that the assessee had a reasonable cause for not maintaining books of accounts, especially as it was the first year of such a levy, and deleted the penalty under Section 271A. Consequently, the penalty under Section 271B was also deleted as it was not leviable when no books of accounts were maintained.
The Tribunal observed that the assessee had explained the delay due to circumstances beyond their control. Citing the case of Collector, Land & Acquisition Vs. Mst. Katiji & Others, the Tribunal held that technicalities should not stand in the way of substantial justice.
The Tribunal noted that the withdrawn amount could form the source of re-deposits, making the peak credit addition potentially unexplained. The addition of Rs. 8,00,000/- was deleted. The issue regarding household withdrawals of Rs. 2,00,000/- was not pressed by the assessee.
The Tribunal held that the assessee did not have a Permanent Establishment (PE) in India through its non-exclusive distributor, CIPL, and thus the income from sale of hardware and software was not taxable in India. The addition made by the AO was deleted.
The Tribunal held that the lower authorities erred in initiating the impugned reopening due to a lack of tangible material. The reassessment proceedings were based on information from the assessee's husband's case, where no such investment was found.
The Tribunal acknowledged the possibility of communication gaps in virtual hearings and observed a lack of effective compliance with Section 250(6) of the Act in the appellate order. Therefore, the Tribunal set aside the appeal and restored the matter to the Assessing Officer for fresh adjudication.
The Tribunal restored the issue to the CIT(A) to provide the assessee with an opportunity to submit reconciliation details. Considering the benefit granted to the assessee for AY 2008-09, the CIT(A) was directed to decide the appeal afresh.
The Tribunal found that while the assessee could not fully prove the claimed expenses, such claims could not be entirely ruled out. The appeal was partly allowed on estimation basis.
The Tribunal held that since there was no indication that the appellant satisfied the statutory criteria of a legal representative, it was appropriate to restore the appeal back to the Assessing Officer. The Assessing Officer was directed to re-adjudicate the appeal after ascertaining her status as the legal representative.
The Tribunal found no reason to sustain the entire addition, acknowledging the assessee's status as an agriculturist. A lump sum addition of Rs. 1,00,000/- was deemed appropriate, considering the agricultural income from the lands owned and leased by the assessee.
The Tribunal observed that no material was produced by the Revenue to show that the assessee had actually availed any cash entries from the searched party or its associated entities. Therefore, the addition of Rs.35,00,000/- was found to be without merit.
The Tribunal condoned the delay in filing the appeal, citing the Covid-19 pandemic period and a landmark Supreme Court decision. The Tribunal also noted a lack of proper adjudication in the lower appellate order.
The Tribunal found merit in both parties' stands, acknowledging the assessee's failure to discharge the onus of reconciliation and the Revenue's estimation of 8% being too high for the unorganized business. A lump sum addition of Rs. 15,00,000 was deemed appropriate on an estimation basis, without setting a precedent.
The Tribunal noted that the CIT(A)/NFAC had proceeded ex-parte and that communication gaps might have occurred due to the new faceless hearing system. In the interest of justice, the appeal was restored to the Assessing Officer for a fresh adjudication.
The Tribunal found merit in the assessee's contention regarding the source of funds, acknowledging the family's socio-economic status. However, it held that a lump sum addition of Rs. 1,00,000/- would be just and proper, without it being treated as a precedent.
The Tribunal held that the car booking was initiated in the subsequent assessment year 2013-14 with a sum of Rs. 1,00,000/-. Therefore, the addition of Rs. 11,00,000/- as unexplained investment for the current assessment year was found to be without merit.
The Tribunal allowed the appeal, finding that the addition for assumed cash sales was not substantiated by proper digital evidence collection and reporting as per the Board's manual and judicial pronouncements. The issue of director's salary was not explicitly decided in the provided excerpt, but the overall result indicates the appeal was allowed.
The Tribunal allowed the appeal, finding that the addition for assumed cash sales was not substantiated by proper digital evidence collection and reporting as per the Board's manual and judicial pronouncements. The issue of director's salary was not explicitly decided in the provided excerpt, but the overall result indicates the appeal was allowed.
The Tribunal held that the AO's attempt to rectify the assessment order under Section 154 using the same grounds for which reassessment proceedings were dropped constituted an issue that required debate and was not a mistake apparent from the record. Therefore, the rectification order was bad in law.
The Tribunal upheld the CIT(A)'s order, which restricted the addition to 5% of the aggregate bank deposits. The assessee's failure to explain the sources of cash deposits was noted.
The Tribunal held that since the reassessment proceedings were initiated beyond four years from the end of the assessment year, the approval should have been obtained from the Principal Commissioner or Commissioner, not the Joint Commissioner. Therefore, the approval granted by the JCIT was invalid, making the reassessment proceedings void-ab-initio.
The Tribunal observed that the assessee was involved in regular business activity and likely used M/s Shree Balaji Wooltex for billings while sourcing actual purchases elsewhere. A lump sum disallowance of Rs.2,00,000/- was deemed appropriate, and the disallowance was directed to be assessed under normal provisions, not under Section 115BBE.
The Tribunal held that the Ld. CIT(A) erred in upholding the addition made by the AO. The Tribunal found that the cash deposits were duly explained by the sale proceeds and directed the AO to delete the addition.
The Tribunal held that the management fee was closely linked to the loan granted and partook the character of interest, making it exempt from taxation in India under Article 11(3)(b) of the India-Germany Double Taxation Avoidance Agreement (DTAA). Consequently, the addition made by the AO was deleted.
The Tribunal held that the GIT charges received by the assessee were for the use of third-party software and did not involve making available any technical knowledge or skill. Therefore, it was not taxable as FIS or royalty.
The Tribunal held that while the assessee failed to factually reconcile the cash deposits with its turnover and withdrawals, the entire amount could not be added. A lump sum addition of Rs. 1,60,000/- was deemed appropriate in the interest of justice. Furthermore, Section 115BBE was held applicable only for transactions on or after 01.04.2017, directing assessment under normal provisions for earlier transactions.
The Tribunal held that the delay in filing the audit report in Form No. 10B is a curable defect and that the denial of exemption under Section 11 on this ground is not justified. The Tribunal condoned the delay and directed the AO to allow the benefit of Section 11.
The Tribunal, relying on the High Court and Supreme Court judgments in similar cases, held that payments made up to February 16, 2017, to authorities like NOIDA did not require TDS deduction. Therefore, the assessee could not be declared an 'assessee in default'.
The Tribunal held that the notice issued under Section 148 of the Act was time-barred. Following the Supreme Court's decision in UOI vs. Rajeev Bansal, it was found that the notice was issued beyond the permissible 'surviving time'.
The tribunal held that while the purchases were indeed bogus, disallowing the entire purchases was not justified as the corresponding sales were not rejected. The disallowance was restricted to 8% of the purchases, to be treated as business expenditure disallowance under Section 37 of the Act.
The tribunal held that while the purchases were indeed bogus, disallowing the entire purchases was not justified as the corresponding sales were not rejected. The disallowance was restricted to 8% of the purchases, to be treated as business expenditure disallowance under Section 37 of the Act.
The Tribunal held that the reassessment notice issued to a non-existent entity is vitiated. The decision of the Delhi High Court in Sky Light Hospitality LLP vs. ACIT was relied upon.
The Tribunal held that while the assessee did not carry out charitable activities in the relevant years due to financial constraints, its objective was not questionable and it had a regular registration. Therefore, the impugned order was set aside.
The Tribunal found that the impugned orders did not clearly indicate whether proper notices were served to the assessee. For the sake of justice, the Tribunal restored the issues to the CIT(A) for fresh consideration.
The Tribunal condoned the delay in filing the appeal, acknowledging that the assessee was prevented by sufficient cause. The Tribunal set aside the ex-parte order of the Ld. CIT(A) and restored the matter for fresh adjudication after affording the assessee a reasonable opportunity of being heard.
The Tribunal noted that the assessee wished to withdraw the appeal as the issue was settled under the VSVS. The appeal was dismissed as withdrawn, with liberty to revive it if the VSVS application fails.
The Tribunal found that the impugned orders did not clearly indicate whether proper notices were served to the assessee. For the sake of justice, the Tribunal restored the issues to the CIT(A) for fresh consideration.
The Tribunal held that since the cash deposits were explained as sale proceeds from cash sales, and these sales were recorded in the books of accounts which were not rejected by the AO or the VAT department, the addition made under Section 68 was not sustainable. The source of the cash deposit was clearly explained.
The Tribunal found that the impugned orders did not clearly indicate whether proper notices were served to the assessee. For the sake of justice, the Tribunal restored the issues to the CIT(A) for fresh consideration.
The Tribunal held that the CIT(A) erred in dismissing the appeal ex-parte due to non-prosecution without adjudicating the case on merit. The CIT(A) is obliged to dispose of appeals on merit even in ex-parte orders, as per statutory provisions.
The Tribunal held that the statement recorded under Section 132(4) of the Act, without confronting the evidentiary aspect of the incriminating documents, has no substantive evidentiary value, especially when the documents themselves are ambiguous. The AO's conclusions were found to be unsubstantiated by cogent evidence.
The Tribunal held that Section 79 is attracted only in the year the set-off is claimed, not in the year the loss is incurred. Since the assessee's appeal was for carrying forward losses and not set-off, Section 79 was not applicable for the current assessment year. Furthermore, the shareholding records showed no change relevant to the assessment year.
The Tribunal held that the notice u/s 148 was issued after the expiry of four years from the end of the relevant assessment year, and there was no compliance with the first proviso to Section 147, which requires the AO to record the failure of the assessee to disclose fully and truly all material facts. Therefore, the assumption of jurisdiction by the AO was invalid.
The Tribunal held that the statement recorded under Section 132(4) of the Act, without confronting the evidentiary aspect of the incriminating documents, has no substantive evidentiary value, especially when the documents themselves are ambiguous. The AO's conclusions were found to be unsubstantiated by cogent evidence.
The Tribunal held that the interest received under Section 28 of the Land Acquisition Act is part of enhanced compensation and exempt under Section 10(37) of the Income Tax Act, following the Supreme Court's decision in CIT vs. Ghanshyam HUF. The decision in Mahender Pal Narang was distinguished as not being a binding precedent due to the dismissal of SLP in limine and overlooking subsequent Supreme Court judgments.