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202 orders · Page 2 of 5
The Tribunal held that the payment made by the assessee on account of reversal of VAT inputs was on account of CST/VAT actually payable for earlier years and paid in the current year. Therefore, the assessee was entitled to a deduction on a payment basis under Section 43B.
The Tribunal condoned the delay in filing the appeal before it. It also found sufficient cause for the assessee's non-appearance before the CIT(Appeals) and set aside the ex parte order.
The Tribunal dismissed the Revenue's appeals, upholding the CIT(A)'s decision to allow the deduction for green leaf cess. The cross-objections concerning Section 80-IC were set aside to the AO for reconsideration.
The Tribunal held that the reopening of assessment was invalid as it was based on a mere change of opinion without any tangible material. It also found that while there was a procedural violation regarding the notice under Section 143(2), the substance of the transaction (supervision charges) should prevail over its form, allowing the deduction.
The Tribunal held that the addition on account of unaccounted stock was a guess work as the stock register was not updated for 5 days between the last entry and the survey. Regarding the truck income, the Tribunal found that the truck was used for the assessee's business, hence depreciation should be allowed and income assessed as business income.
The Tribunal observed that the assessee was not seriously interested in prosecuting the appeal. Applying the principle that law assists the vigilant, the Tribunal treated the appeal as unadmitted.
The Tribunal granted the assessee's request to withdraw the appeal. Consequently, the appeal filed by the assessee was dismissed as withdrawn.
The Tribunal held that CBDT Circulars are binding on the Revenue and that the appeal filed by the Revenue was contrary to the policy decision of the Department. Consequently, the appeal was dismissed in limine.
The Tribunal held that the AO failed to conduct necessary and proper inquiries on several critical issues, including share application money and significant variations in profit margins and expenses. Therefore, the CIT's invocation of Section 263 jurisdiction was justified.
The Tribunal held that the disallowance under Section 40A(3) was not justified. It noted that the primary object of Section 40A(3) is to curb tax evasion and encourage banking habits, and in this case, the genuineness of the transactions was not in doubt, with cash deposited directly into the supplier's account.
The Tribunal held that the payments made to ABPCPL, a government agent and warehouse, were in compliance with the West Bengal Excise Rules and effectively payments to the government. Therefore, the disallowance under Section 40A(3) was not justified.
The Tribunal upheld the CIT(A)'s order, stating that the assessee was entitled to the TDS credit as they owned the bonds and offered the interest income for taxation in the relevant assessment year. The mismatch in the TDS certificate's name and assessment year was not a bar to claiming the credit.
The Tribunal held that the cash payment made by the assessee to the wholesale licensee, who acted as an agent of the State Government for the sale of country spirits, falls under the exceptions provided in Rule 6DD(b) and Rule 6DD(k) of the Income Tax Rules.
The Tribunal held that the CIT(A)'s deletion of the disallowance was justified as there was no obligation to deduct TDS on the date of credit. However, for statistical purposes, the matter was remanded to the AO to verify if the payees had declared the income in their returns, aligning with subsequent amendments to Section 40(a)(ia).
The Tribunal upheld the CIT(A)'s order, stating that the unabsorbed depreciation, in light of the Gujarat High Court's decision in General Motors India Pvt. Ltd., could be carried forward and set off without a time limit. The AO's action of withdrawing the set-off was therefore incorrect.
The Tribunal held that the amendment to Section 40(a)(ia) by the Finance Act, 2012, which allows deduction if the payee has declared and paid tax on the income, is retrospective. Therefore, the matter was remanded to the AO for verification.
The Tribunal held that the source of investment was duly explained by the assessee by submitting documents at the appellate stage. The penalty for non-compliance with notices was quashed due to reasonable cause (pregnancy and childbirth).
The Tribunal held that the AO made the addition based on third-party evidence without confronting the assessee or finding flaws in its books. The onus was on the department to prove the expenditure, which it failed to do. The Tribunal also ruled that a security deposit was correctly adjusted against sundry creditors and no addition was warranted.
The Tribunal held that the transactions were supported by documentation, including contract notes, demat account entries, and bank statements. The suspension of the broker by SEBI after the transaction period did not invalidate the genuine nature of the trades.
The Tribunal held that the cash payments made by the assessee were covered by the exception under Rule 6DD(h) as they were made in a village not served by any bank. Therefore, the disallowance made under Section 40A(3) was not justified.
The Tribunal held that the CIT(A) did not admit fresh evidence, as the documents relied upon were already part of the assessment records. Therefore, there was no violation of Rule 46A, and the CIT(A)'s order was upheld.
The Tribunal held that the magnitude of transactions does not alter their nature and that the principle of consistency should apply. The assessee's claim to treat the income as STCG was upheld.
The Tribunal held that the source of investment was duly explained by the assessee by submitting documents at the appellate stage. The penalty for non-compliance with notices was quashed due to reasonable cause (pregnancy and childbirth).
The Tribunal held that the AO invoked Rule 8D without examining the assessee's accounts or recording satisfaction. Therefore, the disallowance made by the AO under Rule 8D was not permissible.
The Tribunal held that the source of investment was duly explained by the assessee by submitting documents at the appellate stage. The penalty for non-compliance with notices was quashed due to reasonable cause (pregnancy and childbirth).
The Tribunal held that the amendment by Finance Act 2014 to the Explanation to Section 73 should be given retrospective effect as it is curative in nature. Consequently, the loss incurred on delivery-based share transactions is not to be construed as speculation loss.
The Tribunal held that the CIT wrongly invoked Section 263 as the AO's order was neither erroneous nor prejudicial to the revenue. The assessee's case fell under the exceptions to Explanation to Section 73 due to substantial interest income and closing stock of sarees.
The Tribunal considered the assessee's conduct as an indication of not being seriously interested in the appeal. Following legal principles and precedent, the Tribunal decided to treat the appeal as unadmitted.
The Tribunal noted the assessee's lack of vigilance and disinterest in prosecuting the appeal. Applying the principle that law assists the vigilant, the appeal was treated as unadmitted.
The Tribunal held that the CIT's power to revise assessment orders under section 263 is valid when the Assessing Officer has failed to conduct a proper inquiry. The Tribunal upheld the impugned orders, finding them to be in line with previous decisions on similar issues.
The Tribunal, citing the principle that law assists the vigilant, treated the appeal as unadmitted and dismissed it for non-prosecution. This was based on the assessee's conduct and relevant ITAT Rules.
The Tribunal noted that the tax effect of the appeal was below the revised monetary limit set by the CBDT for filing appeals. Following CBDT Circular No. 21/2015, the Tribunal treated the appeal as withdrawn/not pressed.
The Tribunal upheld the CIT's order, finding that the AO's allowance of rent and salary expenses without proper inquiry into the alleged restriction on outside practice was erroneous and prejudicial to revenue. The assessee was given liberty to present their case afresh on this issue.
The Tribunal restored the issue of commission payments to the AO for fresh adjudication due to additional evidence filed. The disallowance for printing and stationery was also remitted to the AO for fresh consideration based on additional evidence. The disallowance for contract expenses was allowed in favour of the assessee, following a precedent on short-deduction of TDS.
The Tribunal held that since the revenue had already imposed a penalty under Section 271AAA for failure to maintain books of accounts, it could not simultaneously contend that books were maintained for the purpose of Section 271B. Therefore, the penalty under Section 271B was not sustainable.
The Tribunal held that for Section 2(22)(e) to apply, the recipient of the loan must be a shareholder of the lending company or a concern in which such a shareholder has a substantial interest. Since the assessee was not a shareholder in the lending company, the provision was not attracted.
The Tribunal held that the payments made by the assessee to the wholesale licensee fell under the exceptions provided in Rule 6DD(b) and Rule 6DD(k) of the Income Tax Rules. Therefore, the disallowance made under Section 40A(3) was deleted.
The Tribunal held that the CIT(Appeals) was justified in rejecting the assessee's book results and estimating income. However, the Tribunal reduced the estimated net profit rate from 5% to 3%, considering the rate accepted in the preceding year.
The Tribunal found sufficient cause for the assessee's non-appearance before the CIT(Appeals). Therefore, the ex parte order of the CIT(Appeals) was set aside.
The Tribunal held that payment by cheque and TDS are insufficient to prove the genuineness of commission expenses. The assessee must provide evidence of services rendered to support the expenditure. For partner remuneration, the CIT(A) should have given the AO an opportunity to verify the supplementary partnership deed.
The Tribunal noted that the tax effect of the appeal was below the revised monetary limit set by the CBDT for filing appeals. Following CBDT instructions, the Tribunal treated the appeal as withdrawn/not pressed.
The Tribunal held that Section 115JB is not applicable to the assessee as it is a power generating company governed by specific regulations. The issue of provision for leave encashment was remitted back to the AO pending a Supreme Court decision.
The Tribunal held that the CIT(Appeals) violated Rule 46A of the Income Tax Rules by admitting additional evidence without giving the Assessing Officer an opportunity to verify it. The matter was restored to the Assessing Officer for fresh adjudication.
The Tribunal held that the loan could not be treated as deemed dividend under Section 2(22)(e) as the assessee-company was not a shareholder of the lending company. The shares in the lending company were held by an individual in their personal capacity, not on behalf of the assessee.
The Tribunal held that the AO was justified in rejecting the books of accounts due to the numerous defects and discrepancies. The matter was restored to the AO for fresh adjudication on an estimation basis after rejecting the books.
The Tribunal held that no disallowance under Section 14A was warranted as the investment in shares was made from own funds and not borrowed funds. Regarding commission payments, the Tribunal found that the AO cannot dictate business expenses and upheld the CIT(A)'s deletion of additions.
The Tribunal held that the income must first be computed by applying Rule 8 of the Income Tax Rules, then apportioned at a 60:40 ratio, and only the 40% portion is subjected to tax. The cess paid on green leaf was rightly excluded while computing income under Rule 8.
The Tribunal found merit in the assessee's argument that they were not given adequate opportunity to be heard and to rectify the trust deed. Therefore, the CIT's orders were set aside and the matter was restored to the CIT for re-adjudication.
The Tribunal held that the assessee's omission was a bona fide mistake due to a misunderstanding of accounting principles. Since the assessee voluntarily rectified the error before detection, it did not amount to concealment or furnishing of inaccurate particulars of income.
The Tribunal held that the AO's adjustments regarding cost variances were without merit, as they did not represent actual expenditure and were based on a misapprehension of the cost accounting standards. The Tribunal also directed apportionment of director's remuneration between manufacturing and trading units based on turnover ratio.