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185 orders · Page 3 of 4
The Tribunal upheld the CIT(A)'s order quashing the assessment order. It found that the proceedings under Section 153C were initiated without proper satisfaction recorded by the Assessing Officer of the searched person, making the assessment order void ab initio.
The Tribunal upheld the CIT(A)'s order, finding that the assessee had discharged its initial onus to prove the identity, genuineness, and creditworthiness of the investor. The Tribunal noted that the CIT(A) had rightly deleted the additions made by the Assessing Officer.
The Tribunal held that the additional grounds raised by the assessee were legal in nature and admitted them for adjudication. Regarding the jewellery, the Tribunal found that the assessee had discharged the onus by explaining its source and corroborating it with an affidavit from his brother-in-law, thus deleting the addition.
The Tribunal held that the additional grounds raised by the assessee were legal in nature and admitted them for adjudication. Regarding the jewellery, the Tribunal found that the assessee had discharged the onus by explaining its source and corroborating it with an affidavit from his brother-in-law, thus deleting the addition.
The Tribunal accepted the additional evidence of FDRs filed by the assessee. However, since this evidence was not verified by the AO, the issue was remanded back to the AO for verification and allowing the claim in accordance with law.
The Tribunal found that the learned CIT(E) passed cryptic orders without providing cogent reasons for rejecting the applications for registration under Section 12AB and approval under Section 80G. The Tribunal acknowledged that the assessee society educates and involves the public in waste management to restore ecological balance, which aligns with the fundamental duty enshrined in Article 51A of the Constitution of India to protect and improve the natural environment. The Tribunal noted that the CIT(E) did not doubt the genuineness of the assessee's activities. Therefore, finding no merit in the CIT(E)'s orders, the Tribunal directed the learned CIT(E) to grant registration under Section 12AB and approval under Section 80G in the interest of justice and to maintain ecological balance for future generations. The grounds raised by the assessee were allowed.
The Tribunal held that the assessee had explained the source of ₹1 crore cash with cogent evidence, acknowledged by the AO in the remand report. The CIT(A) erred in disregarding this explanation solely based on a time gap, without further inquiry.
The Tribunal held that the satisfaction note recorded by the Assessing Officer for initiating proceedings under Section 153C was invalid. This was because the seized documents related to bank accounts already disclosed in the assessee's regular income tax returns.
For AY 2021-2022, the Tribunal found merit in the Revenue's arguments. It noted that the assessee had taken inconsistent stands before the AO regarding the nature of advances and failed to properly explain the impugned amount. The CIT(A) had deleted the addition based on the audited balance sheet without confronting the reconciliation details to the AO. Therefore, the Tribunal remitted the matter back to the AO for de novo decision after affording the assessee an opportunity of being heard. For AY 2022-2023, the Tribunal found that the CIT(A) had passed a cryptic, non-speaking order accepting the assessee's contention without cogent reasons, despite the AO's findings of a drastic fall in GP ratio and the assessee's failure to substantiate its claims. Consequently, the Tribunal remitted the matter back to the AO with a direction for the assessee to furnish documentary evidence to prove its case regarding the difference in GP ratio. In both cases, the grounds raised by the Revenue were allowed for statistical purposes.
The Tribunal condoned the delay in filing the appeal and admitted it for hearing. It then allowed the appeal to be dismissed as withdrawn, granting the assessee liberty to seek reinstatement if the Vivad Se Vishwas Scheme application is not accepted by the Revenue.
The Tribunal held that the impugned additions were made solely on the basis of the statement of a third party, Sri Sunkara Ravi Chandra. The assessee had denied the transactions mentioned in the WhatsApp conversation. The Assessing Officer neither confronted Sri Sunkara Ravi Chandra to the assessee nor brought any corroborative evidence on record to substantiate the additions. The Ld. CIT(A) also sustained the additions by relying on the AO's order. The Tribunal found that additions made merely on the basis of a third-party statement without corroborative evidence are not sustainable in law. Therefore, the Tribunal deleted the impugned additions made by the AO. The Tribunal did not decide on the grounds related to the validity of the assessment proceedings (grounds 1 and 2) as the appeal was allowed based on the merits of the additions.
The Tribunal held that the reopening of the assessment under Section 147 was based on borrowed information and lacked tangible material, making the notice under Section 148 and the subsequent reassessment order illegal and void ab initio.
The Tribunal quashed the assessment order passed by the Assessing Officer under Section 143(3) dated 24.03.2014. The Tribunal held that the assumption of jurisdiction by the Additional Commissioner of Income Tax, Range-2, Hyderabad, and the consequent assessment order passed by the Assessing Officer without a valid order under Section 120(4)(b) of the Act were illegal and void ab initio. The Tribunal relied on the ratio of various decisions, including the Supreme Court's ruling in Kanwar Singh Saini Vs. High Court of Delhi, which states that conferment of jurisdiction is a legislative function and cannot be conferred by consent of parties. If a court or tribunal passes an order without jurisdiction, it is a nullity. The Tribunal found that the case laws relied upon by the Revenue were not applicable to the facts of the present case as the issue was about the validity of the assumption of jurisdiction under Section 120(4)(b). The Tribunal explicitly stated that the assessment order was liable to be quashed. The operative direction was to quash the assessment order. No specific issue was left undecided.
The Tribunal dismissed the assessee's appeal, upholding the CIT(A)'s sustained additions for sales promotion expenses and depreciation, as the assessee failed to provide supporting evidence. The Tribunal also dismissed the revenue's appeal, deleting the penalty levied under Section 271(1)(c) as the primary addition was deleted.
The Tribunal held that the assessee was entitled to the deduction under Section 80IA(4). The CIT(A) had correctly appreciated the facts and the terms of the agreement, which clearly indicated that the assessee had undertaken the development of an infrastructure project. The assessee bore all the financial involvement, risks, and responsibilities, including arranging finance, procuring materials, managing personnel, and undertaking maintenance for a specified period. The project was not a mere work contract where the government provided materials and the assessee only executed civil work. The Tribunal found that the assessee had fulfilled the conditions for being considered a developer of an eligible infrastructure facility as defined in Section 80IA(4). The existence of a subcontract with BGR Mining & Infra Ltd did not negate the assessee's role as the primary developer and risk-taker. The Tribunal also noted that the CIT(A)'s order was well-reasoned and based on a proper interpretation of the contract and the provisions of Section 80IA. Therefore, the disallowance made by the AO was rightly deleted by the CIT(A). The appeals filed by the Revenue were dismissed.
The Tribunal held that the reassessment proceedings under Section 147 were not a 'change of opinion' as the issue was not part of the limited scrutiny. However, the revisional order under Section 263 was quashed as it was passed beyond the limitation period, as it pertained to an issue not covered by the Section 147 proceedings.
The Tribunal found that the basis for the CIT(A)'s relief, namely the Sessions Judge's order and the forensic report, was not substantiated with evidence. Consequently, the matter was remanded back to the CIT(A) for fresh adjudication.
The Tribunal dismissed the assessee's appeal, upholding the CIT(A)'s sustained additions for sales promotion expenses and depreciation, as the assessee failed to provide supporting evidence. The Tribunal also dismissed the revenue's appeal, deleting the penalty levied under Section 271(1)(c) as the primary addition was deleted.
The Tribunal found that the basis for the CIT(A)'s relief, namely the Sessions Judge's order and the forensic report, was not substantiated with evidence. Consequently, the matter was remanded back to the CIT(A) for fresh adjudication.
The Tribunal held that Section 11(1)(a) explicitly requires income to be applied 'in India' to qualify for exemption. Therefore, expenditure incurred outside India, even for charitable purposes, does not qualify for exemption under this section.
The Tribunal found the CIT(A)'s benchmark of Rs. 1,550 per sq. ft. to be insufficient, considering the variations in villa specifications and market trends. The Tribunal set a revised benchmark of Rs. 1,800 per sq. ft., balancing the assessee's commercial justifications and the revenue's concerns.
The Tribunal held that the assessee, as a partner in a joint venture for developing an irrigation project, is eligible for deduction under Section 80IA(4). The project involved significant financial involvement, risk, and responsibility for material procurement and maintenance, aligning with the definition of infrastructure development.
The Tribunal held that the assessee failed to provide a sufficient explanation for the inordinate delay in filing the appeal and that the delay was attributable to negligence and lack of diligence. The condonation petition was dismissed, and consequently, the appeal was dismissed as time-barred.
The Tribunal held that the reassessment proceedings under Section 147 were not a 'change of opinion' as the issue was not part of the limited scrutiny. However, the revisional order under Section 263 was quashed as it was passed beyond the limitation period, as it pertained to an issue not covered by the Section 147 proceedings.
The Tribunal held that the assessee is engaged in the business of developing infrastructure projects and is entitled to deduction under Section 80IA(4) of the Act. The appeals filed by the Revenue were dismissed.
The Tribunal, considering the principles of natural justice and to provide one more opportunity to the assessee, decided to remand the matter back to the Assessing Officer for fresh adjudication. The assessee is directed to cooperate and provide necessary details.
The Tribunal found that the lower authorities confirmed actions based on the assessee's non-participation, despite multiple notices. Considering principles of justice, the matter was remanded to CIT(A) for a fresh adjudication.
The Tribunal held that the CIT(A) erred by confirming the addition without considering contra entries of fixed deposits, CDR closers, and subsequent cash withdrawals and deposits, which could explain the cash in the bank account. The Tribunal also noted that the assessee's contention regarding opening cash balance and withdrawals for redeposits was not properly considered.
The Tribunal held that goodwill arising from amalgamation is an intangible asset eligible for depreciation. It also held that interest paid on loans taken by the transferor company for acquiring shares of the assessee, which consolidated business operations, is deductible as a business expenditure.
The Tribunal held that the ill health of the accountant, supported by medical evidence, constituted a reasonable cause for the delay in filing the tax audit report. Since the report was obtained before the extended due date, the levy of penalty could not be sustained.
The Tribunal held that the AO must verify if the assessee's business is construction and letting out, and if so, rental income should be treated as business income. The Tribunal also directed the AO to allow set-off of brought forward losses and unabsorbed depreciation.
The Tribunal found that the assessee had taken inconsistent stands before the Assessing Officer and that the CIT(A) had not properly verified the details before deleting the addition. Therefore, the matter was remitted back to the Assessing Officer for de novo examination.
The Tribunal held that the assessee had discharged their onus by providing necessary evidence for the purchase and sale of shares, including Demat statements and bank transactions. The additions made by the Assessing Officer and confirmed by the CIT(A) were set aside.
The Tribunal heard both parties and considered the assessee's application for withdrawal. Since the assessee settled the dispute under the Vivad Se Vishwas Scheme, 2024 and filed a withdrawal letter, the appeal was dismissed as withdrawn.
The Tribunal held that the assessment order was passed beyond the statutory time limit prescribed under Section 144C(13) of the Income Tax Act. The AO was required to pass the order within one month from the end of the month in which the DRP's directions were received.
The Tribunal upheld the CIT(A)'s order, agreeing that once business income is estimated, no further disallowance of expenditure can be made. The Tribunal found the issue covered by its earlier decisions in similar cases.
The Tribunal held that the Assessing Officer validly assumed jurisdiction under Section 153A for assessment years falling within ten years from the search, provided certain conditions regarding incriminating material indicating escaped income as an asset were met. The satisfaction note of the AO was found to be sufficient.
The Tribunal considered the rival submissions and the material on record. It noted that the Assessing Officer had determined the liability, and the CIT(A) had called for a remand report and granted relief based on it. The Tribunal then analyzed various grounds of appeal.
The Tribunal held that the notice under Section 153A for AY 2011-12 was invalid as it fell outside the 'relevant assessment year' as defined. It also ruled that payments made by the appellant company to other companies did not constitute deemed dividend under Section 2(22)(e) as the funds were used for business purposes and not for the benefit of the shareholder.
The Tribunal held that the sale of scrap material is an integral part of the eligible business and therefore entitled to deduction under Section 80IA. Previous decisions of the Tribunal in the assessee's own case and similar cases supported this view.
The Tribunal held that the disallowance of expenditure related to sub-contract payments, even if considered inflated, should lead to an increase in business profits. Consequently, the assessee is eligible to claim deduction under Section 80IA on these enhanced profits.
The Tribunal held that the disallowance of expenditure related to sub-contract payments, even if considered inflated, should lead to an increase in business profits. Consequently, the assessee is eligible to claim deduction under Section 80IA on these enhanced profits.
The Tribunal addressed the issue of expenditure deduction against unaccounted cash receipts from the sale of spent solvents and scrap. For AY 2013-14, the CIT(A) had allowed a deduction of 10% on an estimated basis. For AY 2020-21 (ITA No.1072/Hyd/2024), the Tribunal directed the AO to allow a deduction of 60% of the cash receipts towards expenditure and treat the balance 40% as income. The Tribunal also dealt with the issue of deemed dividend under Section 2(22)(e). It held that the AO's view regarding the applicability of Section 2(22)(e) was contrary to the Gujarat High Court's decision in Jayesh T Kotak, affirmed by the Supreme Court. The Tribunal found that the payments made by the assessee company were used for the business purposes of the recipient companies and not for the benefit of the common substantial shareholder. Therefore, the transactions did not fall under Section 2(22)(e), and the addition made by the AO and upheld by the CIT(A) towards deemed dividend was deleted for AYs 2019-20 and 2020-21. The Tribunal also set aside the CIT(A)'s order on this issue and directed the AO to delete the addition. The issue regarding the AO's jurisdiction under Section 153A was not explicitly decided in the provided excerpt, but the outcome suggests it was resolved in favour of the assessee or rendered moot by other decisions.
The Tribunal held that the assessment year 2011-12 falls outside the scope of 'relevant assessment year or years' as defined in Explanation 1 to Section 153A(1) of the Act. Therefore, the notice issued under Section 153A for this assessment year is invalid.
The Tribunal held that the notice issued under Section 153A for AY 2011-12 was indeed bad-in-law as it fell outside the scope of 'relevant assessment years' as defined in Explanation 1 to Section 153A(1). The Tribunal followed the decisions of the Madras and Delhi High Courts, quashing the assessment for AY 2011-12 on this ground. Regarding the deduction for expenditure against unaccounted receipts from spent solvents and scrap, the Tribunal noted that the CIT(A) had allowed a 10% deduction. While the assessee sought a higher deduction, the Tribunal, by following a previous decision of the ITAT Hyderabad Benches for AY 2019-20 in a similar case (MSN Pharmachem Private Limited), upheld the CIT(A)'s order on this issue, directing the AO to delete the addition. Concerning Section 2(22)(e), the Tribunal held that payments made by the assessee company to recipient companies did not fall under the scope of deemed dividend. It relied on the Supreme Court's affirmation of the Gujarat High Court's decision in Jayesh T Kotak, stating that receipt of benefit by the shareholder is a sine qua non for deeming such payments as dividend. Since the funds were used for the business purposes of the recipient companies and not for the benefit of the common shareholder, the addition made by the AO and upheld by the CIT(A) towards deemed dividend and consequent Dividend Distribution Tax was deleted.
The Tribunal held that the assessment year 2011-12 was beyond the scope of 'relevant assessment year' as defined in Explanation 1 to Section 153A, considering the date of search. Therefore, the notice issued under Section 153A for this year was invalid.
The Tribunal examined the provisions of Section 153A and Explanation 1 to determine the validity of the notice issued for AY 2011-12. The court analyzed the calculation of 'relevant assessment years' based on the date of the search.
The Tribunal held that the disallowance of expenditure related to sub-contract payments, even if considered inflated, should lead to an increase in business profits. Consequently, the assessee is eligible to claim deduction under Section 80IA on these enhanced profits.
The Tribunal held that the assessment year in question (2011-12) falls outside the scope of 'relevant assessment years' as defined in Explanation 1 to Section 153A of the Act, based on the date of search. Therefore, the notice issued under Section 153A and the consequent assessment order are void.
The Tribunal observed that the assessee failed to provide supporting evidence before the CIT(A). Considering natural justice, the issue is remanded back to the CIT(A) for a fresh opportunity to the assessee to submit all details and evidence, with a levy of Rs. 5,000/- on the assessee for previous non-compliance.