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124 orders · Page 2 of 3
The Tribunal held that the penalty notice issued under Section 274 read with Section 271 of the Act was defective as it did not specify whether the penalty was for concealment of income or furnishing inaccurate particulars. Consequently, no penalty could be levied on the basis of such a defective notice.
The Tribunal held that the reassessment proceedings were initiated on borrowed satisfaction and that the assessee had provided sufficient details regarding the share issuance. The Tribunal also noted that Section 56(2)(viib) was not applicable for the assessment year under appeal.
The Tribunal held that the assessee had sufficient sources for the cash deposit, including pension income, agricultural income, and opening cash balance, which were adequate to cover the deposit. Therefore, the addition made under Section 69A was deleted.
The Tribunal condoned the delay in filing the appeal, admitted additional evidence, and restored the matter to the Assessing Officer for fresh adjudication, granting one last opportunity to the assessee.
The Tribunal observed that the CIT(A) erred in not considering the circumstances of the assessee, particularly the death of the karta's son which prevented the assessee from participating effectively in the proceedings. The Tribunal allowed the appeal in ITA No. 413/JPR/2024 for statistical purposes, remanding it to the CIT(A) to decide based on additional evidence. The appeal in ITA No. 414/JPR/2024, concerning the penalty, was allowed, directing the AO to delete the penalty.
The Tribunal noted that the AO relied solely on the statement of GCPL's director without proper cross-examination of the director or GCPL. The assessee had provided documentary evidence for the loan, including PAN, bank statements, and confirmations, discharging their onus. The Tribunal also observed that similar additions in cases involving loans from GCPL had been deleted by coordinate benches of the ITAT and High Courts. The Tribunal emphasized that the onus shifts to the revenue to prove otherwise once the assessee provides necessary documentation for the genuineness and creditworthiness of the loan.
The Tribunal noted that the CIT(A) had passed an ex-parte order. Although the assessee was at fault for non-compliance, the Tribunal decided to grant one more opportunity for adjudication.
The Tribunal held that the income considered for disallowance under Section 14A was already taxed in the hands of the assessee. Therefore, there was no merit in making the disallowance under Section 14A.
The Tribunal noted that the issue regarding the Rajasthan Public Trust Act registration was curable and that the assessee deserved another opportunity to present facts and the registration certificate. Similarly, for the 80G approval, considering the set-aside of the 12AB registration and recent relaxation on time limits for applications, similar treatment was deemed appropriate.
The Tribunal noted that the issue regarding the Rajasthan Public Trust Act registration was curable and that the assessee deserved another opportunity to present facts and the registration certificate. Similarly, for the 80G approval, considering the set-aside of the 12AB registration and recent relaxation on time limits for applications, similar treatment was deemed appropriate.
The Tribunal noted that the exact date of filing the audit report was not clearly proven and that the CIT(A) had considered the report filed after the processing of the return. Therefore, the matter was restored to the CIT(A) for de novo consideration.
The Tribunal found that it was unclear if the assessee had been properly notified by the CIT(A). Therefore, the matter was restored to the CIT(A) for a fresh adjudication.
The Tribunal noted that the assessee was granted several opportunities but remained non-cooperative. The appeals are restored to the file of the CIT(A) to decide afresh, providing one more opportunity for hearing, with the condition that the assessee will not seek frivolous adjournments.
The CIT(A) dismissed the appeal, holding that the assessee failed to provide evidence for agricultural income. The ITAT noted that neither the AO nor the CIT(A) specified the relevant section of the Income Tax Act under which the addition was made. Relying on various judicial precedents, the Tribunal held that the non-mentioning of the specific provision of law makes the addition bad in law.
The Tribunal noted that while some expenses were not properly detailed initially, the assessee did provide subsequent clarifications and documents. The Tribunal found that a portion of the indirect expenses were verifiable and statutorily allowable. Therefore, a 10% ad-hoc disallowance was considered appropriate.
The Tribunal held that when an addition is made based on the deeming fiction of Section 50C and there is no documentary proof that the assessee received more than the sale consideration mentioned in the registered deed, a penalty under Section 271(1)(c) is not sustainable. The assessee cannot be held liable for concealment if the addition is based solely on a deeming provision.
The Bench clarified that restoring the matter to the AO does not reflect on the merits of the dispute, which will be adjudicated by the AO independently. Both appeals are allowed for statistical purposes.
The Tribunal held that the assessee's grounds of appeal were allowed. The Tribunal found that the accounting entries for converting the capital asset into stock-in-trade were passed in the books of all six family members on 01/04/2009, and the resultant gain was accounted for as per Section 45(2). The AO disregarded this conversion by stating that purchase and sale of property was not a regular activity in preceding years. However, the Tribunal relied on the decision in Mrs. Rajni D Jain v. DCIT, which held that the assessee is not required to be carrying on business at the point of conversion. The Tribunal also noted that selling the joint land in smaller portions to 21 buyers was sufficient proof of the assessee's intention to carry on business. Therefore, the AO's invocation of Section 50C was considered not in accordance with law. Regarding the sale consideration, the Tribunal accepted that the proceeds were received by the assessee as a power of attorney holder and distributed to co-owners. Consequently, all grounds raised by the assessee were allowed, and the appeal was allowed.
The Tribunal noted that the original return filed on 31.10.2019 was unverified and thus invalid. However, considering the CBDT Circular No. 03/2020, which provided relaxation for unverified returns for AY 2015-16 to 2019-20, the Tribunal condoned the delay in filing the appeal and allowed the benefit of the circular to the assessee. The Tribunal held that the CPC erred in not considering the genuine hardship and the CBDT circular.
The Tribunal noted that the assessee was ex-parte before the Addl. CIT(A) and did not present their defense. While acknowledging the assessee's right to be heard, the Tribunal restored the matter to the Addl. CIT(A) for a fresh decision with an opportunity for hearing, imposing a cost on the assessee.
The Tribunal admitted the additional evidence, finding it necessary for a fair decision. The matter was restored to the CIT(A) to decide afresh, providing the assessee another opportunity to present their case.
The Tribunal noted that the assessee failed to appear before the CIT(A) despite opportunities, leading to an ex-parte order. Although the assessee's representative reiterated arguments before the Tribunal, no documentary evidence was provided to substantiate the claim regarding the Rs. 1.45 lacs deposit. The Tribunal restored the matter to the CIT(A) for a fresh decision with an opportunity for the assessee to be heard.
The Tribunal noted that the additions in the assessment were made on an estimation basis. Relying on various judicial precedents, it was held that penalty under section 271(1)(c) cannot be imposed when income is determined on an estimate. The Tribunal found no justification for the penalty.
The Tribunal noted that the assessee was ex-parte before the CIT(A) and had failed to produce necessary documents. However, considering the assessee's plea, the Tribunal restored the appeals to the file of the CIT(A) to provide one more opportunity for fresh adjudication.
The Tribunal held that the assessee's case was covered by a coordinate bench decision which found that M/s. Channel Nine Entertainment Ltd. was not a penny stock company and that the transactions were genuine. The addition made by the AO was deleted.
The Tribunal held that the assessee's claim for LTCG exemption was not infirm and could not be considered bogus. Consequently, the additions made by the AO and confirmed by the CIT(A) were deleted.
The Tribunal held that the assessee had provided sufficient evidence to prove the genuineness of the share transactions and the claim for exemption. The reliance on the principle of preponderance of probabilities by the lower authorities was found to be unsupported by material evidence.
The Tribunal held that the addition under Section 68 and 69C could not be sustained solely on the theory of preponderance of probabilities. The assessee had provided documentary evidence for the transactions, and crucial evidence like cross-examination of parties was denied.
The Tribunal condoned the delay, acknowledging the assessee's illiteracy and lack of digital knowledge. It restored the appeal to the CIT(A) for a fresh adjudication, granting one more opportunity to present the case, subject to a cost of Rs. 2,000.
The Tribunal noted that the assessee subsequently obtained registration under the Rajasthan Public Trust Act, 1959, after the impugned order was passed. Therefore, the matter was restored to the CIT(E) to re-decide the registration and approval afresh, considering the new evidence and providing an opportunity of being heard.
The Tribunal acknowledged that the assessee was ex-parte and had not been provided a full opportunity to present their defense. Despite the assessee's lethargic approach, the Tribunal restored the matter to the AO for a fresh decision.
The Tribunal noted that the CIT(A) did not provide an opportunity to the assessee to explain the delay before dismissing the appeal. The Bench found the assessee's plea regarding unawareness of the delay to be reasonable.
The Tribunal noted that the AO had erroneously treated the losses from commodity trading as profits, which was a patent error not considered by the CIT(A). The Tribunal found that the assessee had provided documentary evidence like broker's ledger and bank statements to substantiate the losses. Therefore, the matter needed to be re-examined and restored to the AO for proper appreciation of the documents.
The Tribunal held that the CIT(A) erred in confirming the additions made by the AO. The Tribunal noted that the AO had reopened the assessment after a significant delay (notice u/s 148 issued on 29.09.2016 for AY 2012-13). The Tribunal found that the assessee had provided documentary evidence for the share transactions, including contract notes, demat statements, and bank statements. The Tribunal observed that the AO had not conducted any independent investigation to disprove the genuineness of the transactions and had relied on general observations and the presumption of 'penny stocks'. The Tribunal also noted that the assessee had not been provided with an opportunity for cross-examination, which is a crucial aspect of natural justice. The Tribunal found that the CIT(A) had dismissed the appeal by relying on the AO's observations and a single judgment without considering the evidence presented by the assessee. Therefore, the Tribunal set aside the order of the CIT(A) and remanded the issue back to the AO for fresh adjudication after providing the assessee with an opportunity for cross-examination and a proper opportunity to present evidence.
The Tribunal condoned the delay of 614 days, noting that the delay was unintentional and beyond the assessee's control. It was held that it is in the interest of equity and justice to restore the matter for fresh adjudication by the AO, providing one more opportunity of being heard to the assessee.
The Tribunal condoned the delay in filing the appeal due to sufficient cause shown by the assessee. The appeal was then admitted for hearing on merits.
The Tribunal held that the cash deposits were in line with the assessee's business nature and supported by audited books of accounts and VAT returns. The addition made under Section 69A was not justified without rejecting the books of accounts.
The Tribunal upheld the CIT(A)'s decision, stating that the reasons provided for the delay were not genuine or sufficient. The Tribunal emphasized that the law of limitation must be applied with rigor and that delay due to negligence cannot be condoned.
The Tribunal held that the source of the cash deposit was verifiable from the withdrawals made by the assessee from the same bank account. Therefore, the addition made by the AO was deleted.
The Tribunal held that the addition of ₹1,30,000 as unexplained cash credit was not sustainable. The Tribunal noted that the assessee had provided the identity of the lender, Shri S.K. Jain, through a loan confirmation and the transaction was routed through banking channels, as evidenced by the bank statement. The Tribunal found that the assessee had discharged the initial onus placed upon him under Section 68 of the Income Tax Act, 1961. The Tribunal further observed that while the AO had sought to produce the lender, the proceedings were protracted, and the lender could not be produced. However, the Tribunal emphasized that the failure to produce the lender in person should not automatically lead to an addition if the assessee has otherwise discharged their onus by providing sufficient documentary evidence regarding the identity, creditworthiness, and genuineness of the transaction. Relying on established precedents, the Tribunal concluded that the CIT(A) had erred in upholding the addition. The addition of ₹1,30,000 was deleted.
The Tribunal held that while statements recorded under oath have evidentiary value, they are not conclusive and can be retracted if shown to be made under coercion or misrepresentation. The CIT(A) was justified in considering the retraction and deleting additions if no other corroborative evidence existed.
The Tribunal held that the AO and CIT(A) misinterpreted the salary figures and failed to appreciate that the salary from one employer was incorporated in the Form-16 of the other. The Tribunal directed the AO to recompute the total income based on the correct salary of Rs. 5,60,999/-.
The Tribunal restored the issue of denial of exemption under Section 11 and the disallowance of donation to the file of the AO for fresh adjudication. The Tribunal also restored the claim for depreciation to the AO for fresh decision in light of the decision on Ground No. 1.
The Tribunal held that the expenses were genuinely claimed and supported by bills, vouchers, and bank statements, as verified in the remand report. The Tribunal found no substance in the Revenue's grounds of appeal, stating that the addition was based on suspicion without corroborative evidence.
The Tribunal held that no addition can be made solely on the basis of a statement without corroborative evidence, especially when the statement was made during a survey under Section 133A and later retracted. The Tribunal found no perversity in the CIT(A)'s order.
The Tribunal condoned the 312-day delay in filing the appeal, noting the assessee's explanation and the circumstances. The Tribunal observed that the assessee remained ex-parte before the AO and CIT(A) and thus couldn't present their defense. However, to decide the matter on merits, the case was restored to the AO for fresh adjudication with one more opportunity for hearing.
The Tribunal condoned the 24-day delay in filing the appeal, acknowledging the assessee's bona fide mistake and lack of understanding of tax matters. It was held that the penalty under section 272A(1)(d) should not be imposed when a reasonable cause for non-compliance is shown.
The Tribunal noted that the assessee did not pursue the appeal diligently and was provided ample opportunities by lower authorities which were not availed. The Tribunal cited judicial pronouncements emphasizing the power of appellate authorities to dismiss appeals for non-prosecution.
The Tribunal held that the penalty order is unsustainable in law. The AO was unclear whether the charge was for furnishing inaccurate particulars or for concealment of income, both at the time of initiation and imposition. This inconsistency renders the penalty illegal.
The Tribunal held that the reasons provided for the delay in filing the appeal were casual and lacked sufficient cause. The Tribunal emphasized that the law of limitation must be applied rigorously and condonation of delay requires a reasonable explanation.