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171 orders · Page 3 of 4
The Tribunal found that the addition was made on assumption and was not sustainable. While acknowledging the issue with self-made vouchers, the Tribunal reduced the disallowance to 5% of the disputed amount.
The Tribunal restored the matter back to the Assessing Officer. The AO was directed to await the decision of the Apex Court and decide the issue accordingly.
The Tribunal held that the prior period salary arrears were crystallized in the current year due to a pay revision notification, making them deductible. It also held that the social service expenses were incurred for business promotion and were directly connected to the assessee's business of milk procurement, thus also deductible.
The Tribunal found that the assessee had provided evidence of drawings in earlier years, which could support the cash introduction. Regarding foreign travel expenses, the Tribunal noted they were incurred from a disclosed bank account, contradicting the AO's finding of undisclosed sources. The Tribunal also found that the CIT(A) failed to adjudicate the foreign travel expense issue on merits.
The Tribunal held that the AO was justified in treating the losses from PMS as speculation loss, considering the volume and frequency of transactions. However, the disallowance under Section 14A was confirmed as the assessee failed to substantiate expenses related to exempt income.
The Tribunal dismissed the assessee's appeal on the issue of bad and doubtful debts, following a co-ordinate bench's decision. The Tribunal partly allowed the Revenue's appeal concerning house property income, restoring it to the AO for fresh adjudication.
The Tribunal held that the AO's estimation of net profit at 10% was not sustainable as it was made on an ad hoc basis without rejecting the books of account or bringing any defects to light. The Tribunal followed the precedent in CIT vs. Shakti Industries.
The Tribunal held that while the assessee failed to provide evidence for the entire cash deposits, accepting the declared turnover and profit meant that further additions based on peak credit theory would lead to double taxation. Therefore, only the difference between the peak credit and the declared turnover could be added.
The Tribunal noted that a similar appeal by the Revenue had been restored to the AO for fresh adjudication. Following this precedent, the Tribunal also restored the assessee's appeal to the AO for fresh examination and adjudication.
The Tribunal held that the advances were utilized for the trust's activities and did not result in direct or indirect benefit to the trustee or his wife. Therefore, there was no contravention of Section 13(1)(c).
The Tribunal held that the AO cannot tax income under two heads, namely peak credit theory and commission received. Since the assessee had already offered commission for taxation, the addition based on peak credit theory was deleted.
The Tribunal, in accordance with Rule 19(2) of the ITAT Rules and citing precedent, treated the appeal as un-admitted. The assessee was granted liberty to seek recall of the order if they were serious about pursuing the appeal.
The Tribunal, considering the repeated non-appearance of the assessee and the provisions of Rule 19(2) of the ITAT Rules, treated the appeal as un-admitted. The assessee was given liberty to pray for a recall of the order if they were serious about pursuing the appeal.
The Tribunal found that the AO adopted the stamp duty valuation for the sale consideration but did not follow a uniform procedure in determining the long-term capital gain. The Tribunal noted that the assessee had submitted before the CIT(A) that the AO did not follow the procedure under Section 50C by referring the matter to the DVO, and that the CIT(A) did not consider this. Citing the decision in Sunil Kumar Agarwal Vs. CIT (Calcutta High Court), the Tribunal held that the AO has a bounden duty to act fairly and give fair treatment by providing an option to follow the procedure prescribed by law, including referring the matter to the DVO to avoid miscarriage of justice. The Tribunal also referred to the Supreme Court's observation in Indore Malwa United Mills Ltd, emphasizing the duty of fact-finding authorities to consider arguments and explanations. Consequently, the Tribunal set aside the order under challenge and remanded the issue to the AO to re-examine it afresh in accordance with law, by following the procedures contemplated under Section 50C, including referring the matter to the DVO. The assessee was given liberty to file requisite evidence. The appeal was allowed for statistical purposes.
The Tribunal held that the CIT(A) erred by proceeding on an erroneous assumption about the Demat account and by using information obtained under Section 133(6) without confronting the assessee. The order of the CIT(A) was set aside for fresh adjudication.
The Tribunal held that the Assessing Officer erred by relying on evidence obtained behind the assessee's back, violating principles of natural justice. If the AO disagreed with the registered valuer's report, the proper course was to refer it to the Departmental Valuation Officer.
The Tribunal held that the Assessing Officer had not brought any contrary evidence to disprove the genuineness of the commission payments. The Tribunal also noted the principle of consistency, as the revenue had accepted the CIT(A)'s order for a prior assessment year on identical facts.
The Tribunal found that the CIT(A) had not adjudicated the appeals properly, potentially due to ex-parte proceedings. Therefore, the matter was set aside back to the CIT(A) for fresh adjudication after hearing both parties, in line with the principles of natural justice.
The Tribunal, following various High Court and Supreme Court decisions, held that an appeal must be prosecuted diligently. Since the assessee failed to do so, the appeal was dismissed for want of prosecution.
The Tribunal held that an appeal requires effective pursuit and not just filing. Since the assessee failed to appear or pursue the appeal, it was dismissed for non-prosecution.
The Tribunal held that the appeal filed by the Revenue was contrary to the CBDT's policy decision regarding monetary limits for filing appeals. Therefore, the appeal was dismissed in limine.
The Tribunal noted that the assessee did not appear before the CIT(A) at the first appellate stage, leading to an ex-parte order. Therefore, the Tribunal set aside the order and remanded the case back to the CIT(A) for fresh adjudication after hearing both parties.
The Tribunal accepted the assessee's request to withdraw the appeal. Therefore, the appeal filed by the assessee was dismissed as withdrawn.
The Tribunal held that the interest expense had no relation to the earning of the assessee's income. The advances made to other entities were not substantiated as being for the purpose of earning income, and therefore, the deduction under Section 57(iii) was not allowable.
The Tribunal set aside the orders of the lower authorities and remitted the matter back to the Assessing Officer. This was done to allow the AO to examine the issue afresh after considering the assessee's submissions and evidence, acknowledging the principles of natural justice.
The Tribunal noted that the CIT(A) passed an ex-parte order because the assessee did not appear for hearings. Therefore, the assessee's case was not properly adjudicated. The matter was set aside to the CIT(A) for fresh adjudication after hearing both parties.
The tribunal set aside the issue of notional interest on advances to HPL to the AO for fresh adjudication, following a co-ordinate bench decision. The disallowance of expenses for the Employees Recreation Club was also set aside to the AO. The revenue's appeal regarding cess on green leaf and depreciation was dismissed.
On the first issue, the Tribunal held that the fee paid to the Registrar of Companies for an increase in authorized share capital is a capital expenditure, as concluded by the Hon'ble Supreme Court. Furthermore, the Tribunal found that the expenses do not fall within the ambit of Section 35D(2) of the Act, as fees paid to ROC for increasing authorized share capital are not listed. Expenses for the issue of shares to the public under Section 35(2)(c)(iv) are also not applicable as there was no public issue. Therefore, the disallowance was upheld. On the second issue, the Tribunal held that under the mercantile system of accounting, expenses crystallize as liabilities when the bills or details are received, even if the services relate to a prior period. Citing CIT vs. Modipan Ltd., the Tribunal found that the assessee demonstrated this with the maintenance expenses example, where the bill was received in April 2008 for March 2008 services. Thus, the expenses accrued as a liability in AY 2009-10 and the claim was allowed. On the third issue, the Tribunal held that under the mercantile system, income accrues when the right to receive the sum is determined, and parties cannot postpone this by agreement. The entire sum of Rs. 63,12,00,000 was deemed to have accrued on March 31, 2009, when the agreement was signed, especially since a substantial part of the consideration was received. The argument of completion of construction or percentage completion method was rejected as the income arose from trading built-up space, not from executing a construction contract. Grounds 3 to 7 were dismissed.
The tribunal deleted the disallowance on vehicle expenses, stating personal use is not applicable to companies. It upheld the disallowance on festival and travelling expenses as sustained by the CIT(Appeals) due to unverifiable elements. The disallowance under Section 14A related to interest expenses was deleted, but the disallowance for other expenses under Rule 8D(2)(iii) was to be recomputed.
The Tribunal held that the penalty under Section 271(1)(c) is not leviable due to a defective show cause notice. The notice failed to specify whether the penalty was for concealment of income or furnishing inaccurate particulars, violating principles of natural justice.
The Tribunal found that the assessee had sufficient cause for non-compliance with the CIT(Appeals)'s notices, as its appeal was pending. Therefore, the ex-parte order was set aside.
The Tribunal held that the assessee was not aggrieved by the AO's intimation under section 143(1) as his returned income was accepted. The CIT(A) correctly dismissed the appeal as it was not maintainable, and the AO could not be directed to issue a notice under section 147 for the assessee's benefit.
The Tribunal held that certain receipts, if part of the business income, should be considered for Section 10B deduction. However, prior period expenses were disallowed due to lack of crystallization evidence.
The Tribunal found that the assessee did not get a proper opportunity of being heard before the CIT(A). Therefore, the order of the CIT(A) was set aside.
The Tribunal observed that the amount in question might have been included in the gross receipts of the succeeding assessment year, leading to a potential double addition. Therefore, the matter was restored to the Assessing Officer for verification.
The Tribunal set aside the ex-parte order of the CIT(Appeals) and restored the matter to the Assessing Officer for fresh assessment. The assessee was granted an opportunity to present additional evidence regarding freight expenses.
The Tribunal held that the CIT has the power to revise an assessment order if the Assessing Officer's inquiry was not proper or was inadequate. The Tribunal upheld the CIT's orders, finding them to be validly passed.
The Tribunal dismissed the assessee's appeal as infructuous because the AO, in the subsequent proceedings initiated by the CIT's order, did not take any adverse view on the disputed issues.
The Tribunal held that the payment to hawkers was in the nature of a discount on the sale of newspapers, not commission. Therefore, TDS was not required under Section 194H, and the disallowance under Section 40(a)(ia) was not sustainable.
The Tribunal found that the assessee had sufficient cause for non-compliance as the related appeal was pending. Therefore, the ex-parte order of the CIT(Appeals) was set aside.
The Tribunal held that the penalty under Section 271(1)(c) is not leviable due to a defective show cause notice. The notice failed to specify whether the penalty was for concealment of income or furnishing inaccurate particulars, violating principles of natural justice.
The Tribunal held that the impugned amount was part of the gross receipts and already offered to tax. Therefore, it could not be added again for not following accounting principles, as this would amount to taxing the same income twice.
The tribunal set aside the issue of notional interest on advances to HPL to the AO for fresh adjudication, following a co-ordinate bench decision. The disallowance of expenses for the Employees Recreation Club was also set aside to the AO. The revenue's appeal regarding cess on green leaf and depreciation was dismissed.
The Tribunal upheld the CIT(A)'s decision to delete the additions related to bad debts and unexplained cash credits, finding that the assessee had provided sufficient evidence and discharged its burden of proof. The appeal by the Revenue was dismissed.
The Tribunal held that the supervision charges were for a simple watchman-like job and did not require professional skills, thus not falling under Section 194J. Consequently, there was no obligation to deduct TDS under that section.
The Tribunal held that reassessment proceedings were invalid because the condition of failure to disclose material facts by the assessee was not met. Since the original assessment had already considered the nature of income, initiating reassessment after four years without new evidence was not permissible.
The CIT(A) was justified in deleting the disallowance of interest. The expenditure was incurred for the purpose of business and met the conditions for deductibility under Section 36(1)(iii) of the Income Tax Act.
The Tribunal set aside the order of the CIT(Appeals) and restored the matter to the Assessing Officer for fresh assessment. The assessee was granted one more opportunity to be heard and make due compliance.
The Tribunal found that the assessee had sufficient cause for non-compliance due to illness and lack of assistance. Therefore, the ex-parte order of the CIT(Appeals) was set aside to provide the assessee with another opportunity to be heard.
The Tribunal noted that the tax effect in the Revenue's appeal was below Rs. 10 lakhs. Following CBDT Circular No. 21/2015, which sets this monetary limit for appeals, the Tribunal held the appeal to be not maintainable.