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328 orders · Page 6 of 7
The Tribunal found that the CIT(A) had not considered the assessee's detailed submissions in the right spirit. Therefore, the Tribunal set aside the CIT(A)'s order and remanded the matter back for fresh adjudication.
The Tribunal held that the 'right to get annuity' for constructing a road project does not create an 'intangible asset' under Section 32(1)(ii) of the Income-tax Act, distinguishing previous rulings. However, it upheld the CIT(A)'s decision to allow amortization based on the provisional certificate.
The Tribunal held that the PCIT's jurisdiction under Section 263 is ousted for matters that have already been decided in appeal. Since the CIT(A)'s order preceded the PCIT's order and addressed the same issues, the PCIT acted without jurisdiction.
The Tribunal upheld the deletion of additions for AY 2016-17 due to lack of incriminating material, citing the Supreme Court ruling in Abhishar Buildwell. For other years, undisclosed profits were to be calculated based on seized documents, and farmhouse expenses were allowed as business expenditure.
The Tribunal held that the notice issued under Section 148 of the Act was unsigned and therefore invalid. Furthermore, the notice under Section 143(2) was vague and its annexure was blank, making it ambiguous. Consequently, the assessment proceedings were vitiated.
The Tribunal held that the Hon'ble Delhi High Court's decisions in Sahara India Financial Corporation Ltd. and Era Infrastructure India Ltd. indicate that Section 14A invocation is not permissible if no exempt income is offered. The Explanation to Section 14A of the Finance Act, 2022, was held to be prospective. Therefore, no addition under Section 14A read with Rule 8D was liable.
The Tribunal held that the AO's basis for estimation of cash sales by adopting an average daily sale and considering it uniform throughout the year was flawed and not supported by law or accounting principles. The Assessee had provided all relevant records, and the cash sales were already disclosed in the return of income.
The Tribunal condoned the delay in filing the appeal, noting the assessee's explanation was bonafide. The Tribunal restored the matter to the AO for fresh consideration, as the valuation report was received after the assessment order, and directed the assessee to cooperate.
The Tribunal condoned the delay, acknowledging the assessee's explanation for non-compliance. Given that the CIT(A) order was ex-parte, the matter was restored to the CIT(A) for fresh adjudication on merits after providing the assessee an opportunity to be heard.
The Tribunal upheld the deletion of additions for AY 2016-17 due to lack of incriminating material, citing the Supreme Court ruling in Abhishar Buildwell. For other years, undisclosed profits were to be calculated based on seized documents, and farmhouse expenses were allowed as business expenditure.
The Tribunal upheld the deletion of both additions. It found that the turnover difference was indeed related to prior financial years, as confirmed by the Assessing Officer in a remand report. Regarding the interest income, the Tribunal noted that the assessee correctly treated it as notional and reduced it from taxable income, a practice accepted in subsequent assessment years.
The Tribunal held that the AO's assessment order was erroneous and prejudicial to the revenue due to a lack of proper inquiry and verification. The PCIT's order invoking revisionary powers under Section 263 was therefore confirmed.
The Tribunal upheld the CIT(A)'s decision to delete all disallowances. It ruled that the forward contract loss was for hedging, not speculative, and fell under the proviso to Section 43(5)(a). It further held that no disallowance under Section 14A is permissible without exempt income and that short deduction of TDS does not attract disallowance under Section 40(a)(ia) based on legal precedents and the assessee's own case. The depreciation rates allowed by the CIT(A) were found to be correct based on prior tribunal orders.
The Tribunal condoned the delay in filing the appeal. Observing that the CIT(A) had not properly adjudicated the issues and that the AR requested restoration to the AO for denovo adjudication, the Tribunal restored the appeal to the AO for fresh assessment.
The Tribunal upheld the deletion of additions for AY 2016-17 due to lack of incriminating material, citing the Supreme Court ruling in Abhishar Buildwell. For other years, undisclosed profits were to be calculated based on seized documents, and farmhouse expenses were allowed as business expenditure.
The Tribunal held that the Assessing Officer (AO) lacked valid reasons to believe that income had escaped assessment, thus invalidating the reopening of the assessment under Section 147 of the Income Tax Act, 1961. The Tribunal observed that the AO received information from the Investigation Wing about the round-tripping of funds within group entities but failed to conduct initial investigations to verify potential escapement of income. The AO noted that the assessee had not carried out any business during the year, and only share application money was received. The Tribunal found that the AO proceeded to reopen the assessment without forming an independent opinion on the issue of escapement of income. The mere movement of funds between related parties, especially in the context of a financing and leasing business, does not automatically lead to the belief that income has escaped taxation. The Tribunal emphasized that the AO's belief was based on suspicion rather than concrete evidence, lacking a "live link" or "close nexus" between the material on record and the satisfaction recorded for reopening. The Tribunal cited judicial precedents, including Lakhmani Mewal Das, PCIT vs Sheetal Dushyant Chaturvedi, Vipin Khanna vs CIT, Ranbaxy Laboratories Ltd vs CIT, Sartak Security Company Ltd, and SFIL Stocks Broking Ltd, to support its view that suspicion cannot replace legal evidence and that the AO must apply independent mind. The Tribunal also noted that the reasons recorded for escapement of income by the AO were different from the addition made on merits, further weakening the case for reopening. Therefore, the appeal filed by the assessee was allowed.
The Tribunal held that the credit entries, comprising interest already offered to tax and an income tax refund, did not warrant an addition under Section 69A. It found the addition to be palpably bad and deleted it, accepting the assessee's explanation.
The Tribunal held that the appellant, Mr. Pankaj Sethi, had not provided any material to establish his status as a legal representative of the deceased assessee, Late Sh. Brij Mohan Sethi. Specifically, there was no indication that he had succeeded to the estate, was managing it, or was acting as an intermeddler, as required by the definition of a "legal representative" under section 2(29) of the Act read with section 2(11) of the CPC. Additionally, the department had not initiated any proceedings against the appellant under section 159 of the Act. Consequently, the Tribunal found no merit in the appellant's claim to maintain the appeal in his capacity as a legal representative at this stage. The appeal was rejected as premature. However, the appellant was granted liberty to file a fresh appeal once he satisfied the statutory conditions of a "legal representative" or if the department proceeded against him under section 159 of the Act, whichever occurred earlier.
The tribunal held that the reopening of the assessment was invalid because the approval from the prescribed authority under Section 151 was mechanical and not based on an independent application of mind. The decision relied on the precedent set in CIT vs. S. Goyanka Lime and Chemical Pvt. Ltd.
The Tribunal held that the assessee had established the identity and genuineness of the share applicants and the transactions were through banking channels. The Revenue failed to provide evidence that the money originated from the assessee's own sources.
The Tribunal held that the assessee had provided sufficient documentary evidence to the CIT(A) to substantiate the claim for deduction under Section 54F and the source of funds for the new property. The Tribunal also found that the cash deposits were explained as withdrawals from the bank.
The Tribunal upheld the deletion of additions for AY 2016-17 due to lack of incriminating material, citing the Supreme Court ruling in Abhishar Buildwell. For other years, undisclosed profits were to be calculated based on seized documents, and farmhouse expenses were allowed as business expenditure.
The Tribunal upheld the deletion of additions for AY 2016-17 due to lack of incriminating material, citing the Supreme Court ruling in Abhishar Buildwell. For other years, undisclosed profits were to be calculated based on seized documents, and farmhouse expenses were allowed as business expenditure.
The Tribunal upheld the deletion of additions for AY 2016-17 due to lack of incriminating material, citing the Supreme Court ruling in Abhishar Buildwell. For other years, undisclosed profits were to be calculated based on seized documents, and farmhouse expenses were allowed as business expenditure.
The Tribunal upheld the deletion of additions for AY 2016-17 due to lack of incriminating material. It directed the AO to adopt undisclosed profitability based on seized documents for other AYs and deleted the disallowance of farmhouse expenses, finding them to be for business purposes.
The Tribunal held that the Assessee had discharged its primary onus by furnishing all relevant documents and that the revenue failed to provide evidence that the suppliers were not traceable or that the transactions were not genuine. The AO's disallowance was based on unsubstantiated grounds, and the Assessee's explanation regarding e-Way bills was accepted.
The Tribunal held that the addition made by the AO on account of cash deposits was a double addition since the cash sales were already accepted and part of the total income. The assessee had also proved the source of cash deposits from its regularly maintained books of account and cashbook, which were not rejected by the AO. Therefore, the addition was directed to be deleted.
The Tribunal held that the documents submitted by the assessee (audited financial statement, bank statements, ledger, invoices, and airway bills) were crucial for adjudication but required factual verification by the AO. Therefore, the Tribunal restored the appeal to the AO for de novo adjudication.
The Tribunal admitted additional evidence filed by the assessee for verification and restored the issue to the Assessing Officer for a fresh decision in light of these evidences. The assessee was also given liberty to furnish further evidence.
The Tribunal held that the relevant date for reckoning the block period for Section 153C is the date of the satisfaction note (25-06-2021). Consequently, the six preceding assessment years would commence from AY 2016-17. Therefore, AY 2015-16 was beyond the permissible block period and the proceedings were barred by limitation.
The Tribunal held that the Assessing Officer relied solely on the Investigation Wing's report without conducting independent enquiries. The statement from the vendor was not confronted to the assessee. The assessee provided sufficient documentary evidence to prove the genuineness of the purchases.
The Tribunal held that the assessee had discharged its onus by providing all requisite documents. Since the revenue failed to discharge the shifted onus to prove otherwise, no adverse inference could be drawn. The addition was deleted.
The Tribunal held that the addition made by the AO on account of cash deposits was a double addition since the cash sales were already part of the total turnover accepted by the AO. Furthermore, the assessee had sufficiently proved the source of deposits from its regularly maintained books of account. The Tribunal also admitted and allowed an additional ground regarding the applicability of Section 115BBE.
The Tribunal held that the cancellation of registration was bad in law as the Principal Commissioner failed to specify which 'specified violation' under Section 12AB(4) was attracted. The Tribunal also noted that the alleged violations did not fall under the definition of 'specified violation' as per the Act.
The Tribunal upheld the deletion of additions for AY 2016-17 due to lack of incriminating material, citing the Supreme Court ruling in Abhishar Buildwell. For other years, undisclosed profits were to be calculated based on seized documents, and farmhouse expenses were allowed as business expenditure.
The Tribunal upheld the deletion of additions for AY 2016-17 due to lack of incriminating material, citing the Supreme Court ruling in Abhishar Buildwell. For other years, undisclosed profits were to be calculated based on seized documents, and farmhouse expenses were allowed as business expenditure.
The CIT(A) deleted the addition after considering additional evidence and the AO's remand report, finding a direct connection between the funds received and the impugned amount, and concluding that the identity, creditworthiness, and genuineness of the transactions were established.
The Tribunal upheld the deletion of additions for AY 2016-17 due to lack of incriminating material, citing the Supreme Court ruling in Abhishar Buildwell. For other years, undisclosed profits were to be calculated based on seized documents, and farmhouse expenses were allowed as business expenditure.
For AY 2017-18, the Tribunal allowed the appeal, following a Delhi High Court decision that Section 194I was not applicable to EDC payments. For subsequent AYs, the Tribunal remanded the matters to the AO to verify if the conditions of the first proviso to Section 201(1) were met.
For AY 2017-18, the Tribunal allowed the appeal, following a Delhi High Court decision that Section 194I was not applicable to EDC payments. For subsequent AYs, the Tribunal remanded the matters to the AO to verify if the conditions of the first proviso to Section 201(1) were met.
For AY 2017-18, the Tribunal allowed the appeal, following a Delhi High Court decision that Section 194I was not applicable to EDC payments. For subsequent AYs, the Tribunal remanded the matters to the AO to verify if the conditions of the first proviso to Section 201(1) were met.
The Tribunal upheld the addition of Rs. 61,70,000 as unexplained cash deposits. The assessee's failure to provide evidence, even during appeal proceedings, meant the cash deposits remained unexplained.
The Tribunal held that the initiation of proceedings under Section 153C was not proper and bad in law as the additions made by the AO were not based on the satisfaction note. The Tribunal found no clear link between the bank withdrawals noted and the alleged accommodation entries, deeming the presumption made by the AO unsustainable.
The Tribunal held that the CIT(A)'s dismissal of the appeal was a mistake apparent on the record. The matter was restored to the file of the CIT(A) to consider the issue afresh after giving an opportunity of hearing to the assessee and considering all evidence.
The Tribunal held that given the Coordinate Bench's decision allowing the quantum appeal for the same assessment year, the penalty proceedings under Section 271(1)(c) became infructuous and the appeal was dismissed.
The Income Tax Appellate Tribunal held that the penalty levied under Section 271(1)(c) was bad in law and void ab initio because the Assessing Officer failed to issue a mandatory notice specifically alleging concealment of income or furnishing inaccurate particulars. Consequently, the penalty proceedings were quashed.
The Tribunal held that the initiation of proceedings under Section 153C was not proper and bad in law as the additions made by the AO were not based on the satisfaction note. The Tribunal found no clear link between the bank withdrawals noted and the alleged accommodation entries, deeming the presumption made by the AO unsustainable.
The Tribunal noted that the appeal was wrongly filed before it. The assessee's counsel sought to withdraw the appeal, which was not controverted by the DR. Consequently, the Tribunal dismissed the appeal as withdrawn.
The Income Tax Appellate Tribunal (ITAT) noted that the Ld. CIT(A)'s order was ex parte and the assessee's case was not effectively adjudicated. The ITAT remitted the matter back to the Ld. CIT(A) with a direction to re-adjudicate the issue after providing the assessee a proper opportunity of being heard and presenting evidence.
The Tribunal held that the assessee did not place necessary documents before the authorities below. The appeal was disposed of by remitting the issue back to the Ld. CIT(A) to re-adjudicate after providing an opportunity of hearing and considering evidence.