ITAT Guwahati Judgments — January 2023

The Tribunal held that the investment was adequately explained by the conversion of a partnership firm into a private limited company and the allotment of shares against prior investments. The AO erred in invoking Section 68 instead of Section 69, and the CIT(A) wrongly dismissed the evidence.

The Tribunal held that the investment was adequately explained by the conversion of a partnership firm into a private limited company and the allotment of shares against prior investments. The AO erred in invoking Section 68 instead of Section 69, and the CIT(A) wrongly dismissed the evidence.

The Tribunal held that the assessee was not provided a reasonable opportunity before declining the claim of losses. The issue was restored to the CIT(A) for necessary adjudication.

The Tribunal held that since the underlying additions on which the penalty was levied have been deleted, the penalty cannot survive. Therefore, the penalty orders are not sustainable.

The Tribunal held that since the underlying additions on which the penalty was levied have been deleted, the penalty cannot survive. Therefore, the penalty orders are not sustainable.

The Tribunal held that commission paid to partners as per the partnership deed is not subject to TDS under Section 194H, and thus Section 40(a)(ia) is not applicable. Regarding expenses, the Tribunal found that while the AO's disallowance was high-pitched, some disallowance was warranted due to lack of sufficient evidence.