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188 orders · Page 2 of 4
The Tribunal held that interest earned on fixed deposits made from business funds, even if temporarily surplus, is incidental to the assessee's business activity and should be treated as business income. Therefore, it is eligible for deduction under Section 80IB(10).
The Tribunal held that an appeal requires active pursuit and not just filing. Since the assessee failed to appear or pursue the appeal, it was dismissed for non-prosecution.
The Tribunal restored the issue of disallowance under Section 14A read with Rule 8D(2)(iii) to the AO for recomputation, considering only investments that yielded dividend income. The disallowance under Rule 8D(2)(i) and (ii) was not to be made.
The Tribunal held that the CIT rightly exercised jurisdiction under Section 263 as the Assessing Officer's order was erroneous and prejudicial to the revenue. The Tribunal confirmed the CIT's order, emphasizing that TDS credit should be given for the assessment year in which the income is assessable.
The Tribunal held that a cold storage building, due to its specific construction and insulation required for its function, should be treated as plant and machinery. Therefore, the assessee is entitled to claim depreciation at the higher rate.
The Tribunal held that Section 40(a)(ia) is not applicable to capital expenses not claimed in the profit and loss account. It also held that disallowance under Section 40(a)(ia) cannot be made for short deduction of TDS, relying on a jurisdictional High Court decision.
The Tribunal held that the penalty under Section 271AAA should not be levied as no incriminating material was found during the search, and the addition was made on an estimated basis. The Tribunal deleted the penalty.
The Tribunal held that the CIT has the power to revise assessment orders under Section 263 if the Assessing Officer's inquiry was not proper or thorough. It also affirmed that the CIT's orders were validly passed, even if the original assessment was based on a possible view, as the revision was based on the AO's failure to conduct adequate inquiries.
The Tribunal held that the CIT has the power to revise assessment orders under section 263 when the Assessing Officer's inquiry was inadequate or not properly concluded. The Tribunal upheld the impugned orders passed by the CIT.
The Tribunal held that Section 2(22)(e) is not applicable because the assessee company was not a beneficial shareholder in Jet Age Finance Pvt. Ltd. Therefore, the order passed by the Assessing Officer was neither erroneous nor prejudicial to the interest of the revenue.
The Tribunal noted that both parties agreed that the stay petition could be rejected and early hearing granted. The assessee's stay petition was dismissed as infructuous. However, the Tribunal, after hearing both parties and perusing the materials, found that the lower authorities had passed ex-parte orders. In the interest of justice, the Tribunal was inclined to restore the issue to the file of the AO for fresh adjudication in accordance with the law. The assessee was directed to cooperate in the assessment proceedings, and a hearing date of April 15, 2017, was fixed before the AO, with no separate notice to be issued. The appeal of the assessee was allowed for statistical purposes. The Tribunal also dealt with other stay applications (S.A. No. 07/Kol/2017 to S.A. No. 13/Kol/2017) concerning AYs 2008-09 to 2014-15, where the assessee challenged penalty orders under Section 271(1)(c). In these cases, the Tribunal granted stay and fixed the appeals for hearing on April 3, 2017.
The Tribunal held that the interest income earned by the assessee was attributable to its business activities and eligible for deduction under Section 80P(2)(a)(i). This decision was based on previous judgments in the assessee's own case and other similar cases.
The Tribunal held that medical relief is a charitable activity as defined under Section 2(15) of the Income Tax Act. The Tribunal found merit in the assessee's submissions and concluded that the trust's activities fell within the framework of Section 2(15).
The Tribunal held that the undisclosed cash deposits should be treated as part of sales and taxed at the assessee's disclosed Gross Profit (GP) rate of 3.81%. The AO was directed to add 3.81% of the total deposit to the assessee's income.
The Tribunal held that medical relief is a charitable activity as defined under Section 2(15) of the Income Tax Act. The Tribunal found merit in the assessee's submissions and concluded that the trust's activities fell within the framework of Section 2(15).
The Tribunal condoned the delay in filing the cross-objection, allowing the assessee to argue the merits of Section 115JB. It also upheld the CIT(A)'s decision to delete additions related to TDS, finding the amendment to Section 40(a)(ia) to be retrospective.
The Tribunal held that while the PCIT had the power to revise the order due to inadequate inquiry by the AO, the PCIT should have set aside the assessment and directed the AO to conduct a fresh inquiry. The PCIT erred in directly directing the addition of the share capital and premium as unexplained credit.
The Tribunal held that the appeal was not maintainable as the tax effect was below the prescribed monetary limit. The circular is binding on tax authorities and applies retrospectively to pending appeals.
The Tribunal found that the AO did not point out any specific defects in the assessee's working for the disallowance. Therefore, the issue was restored to the AO for fresh adjudication.
The Tribunal upheld the CIT(A)'s decision, agreeing that the amounts represented business receipts and only the profit element should be taxed. The Tribunal found no reason to interfere with the CIT(A)'s order.
The Tribunal upheld the CIT(A)'s deletion of the addition, finding that the advance was a trade advance for contract work and not a simple loan or advance as contemplated by Section 2(22)(e). The Tribunal also noted that the assessment for the relevant year was already completed and no incriminating material was found during search proceedings to justify a review.
The Tribunal found that the assessee failed to produce relevant evidence before the lower authorities. However, considering the assessee's readiness to submit the required documents, the issue was remanded to the AO for fresh consideration.
The Tribunal held that the explanation for the gift of Rs. 1,00,000 from the father-in-law was plausible and required verification of the bank credit. For cash gifts, the Tribunal found that the assessee had provided donor details and directed the Assessing Officer to reconsider the issue after allowing further opportunity to prove genuineness, considering societal practices.
The Tribunal held that the CIT erred in cancelling the registration without proper inquiry and natural justice. The assessee's own charitable activities were not in doubt, and the donation was made through banking channels. The Revenue failed to prove the money was returned to the assessee.
The Tribunal held that the assessee discharged its burden by providing ledger copies and showing subsequent sales to these parties. The Tribunal found that the lower authorities failed to point out any defects in the provided details and reversed their orders.
The Tribunal held that the CIT(Exemptions) exceeded the scope of inquiry under Section 12AA by rejecting the application on grounds not related to the genuineness of the trust's objects or activities. The Tribunal relied on a coordinate bench's decision in a similar case.
The Tribunal found that the account in question was a current account, not a cash credit account, and that the bank statements submitted were additional evidence. Therefore, the issue was restored to the AO for fresh adjudication.
The Tribunal upheld the CIT(A)'s decision that the rectification order was bad in law. The issue of disallowance under Section 43B was debatable, and the rectification was made after a significant delay and without considering the assessee's submissions.
The Tribunal held that the disallowance under section 40A(2)(a) was made without complying with the provisions of section 40A(2)(b) as the lower authorities did not provide details of the specified persons. Therefore, the order of the lower authorities was reversed.
The Tribunal upheld the CIT(A)'s order, allowing the deduction for gratuity liability as it had accrued during the year and was payable. It also allowed the employees' contributions as they were either paid within the due date or within the grace period allowed by law.
The Tribunal held that the assessee failed to discharge its onus to satisfactorily explain the cash credits in the form of share capital introduction. The attempts to verify the identity and addresses of the shareholders/creditors were unsuccessful.
The Tribunal held that the reassessment proceedings were invalid as they were based on a mere change of opinion by the AO, as the issue of opening stock was already examined during the original assessment. Therefore, the reassessment order was quashed.
The Tribunal held that the foreign exchange loss, recognized on an accrual basis as per the mercantile system of accounting and Accounting Standard-11, is an allowable deduction. The decision relied on the Supreme Court's ruling in CIT vs. Woodward Governor India (P) Ltd.
The Tribunal noted that the tax effect in the appeals was less than the revised monetary limit of Rs. 10,00,000/- for filing appeals by the Revenue. Following CBDT Circular No. 21/2015, the appeals were treated as withdrawn and dismissed.
The Tribunal upheld the CIT(A)'s deletion of the Section 43B disallowance for prior years. However, regarding additional depreciation, the Tribunal found that the AO had not properly examined the assessee's manufacturing activity and restored the issue to the AO for fresh adjudication.
The Tribunal held that the reassessment proceedings were invalid as the AO lacked valid reasons. Even if income accrued to the firm, a partner's share is exempt under Section 10(2A).
The Tribunal held that the reassessment proceedings were invalid as the AO lacked tangible material to form a belief of escaped income. Even if income accrued to the firm, the partner's share would be exempt under Section 10(2A).
The Tribunal held that the lease premium amortization was indeed disallowed twice by the AO, and the subsidy received for setting up a unit in a backward area was a capital receipt, following Supreme Court precedents.
The Tribunal followed its previous decision for earlier assessment years, finding that the AO lacked fresh tangible material to reopen the case under Section 147 and failed to dispose of objections in a speaking order. Therefore, the assessment was quashed as bad in law.
The Tribunal held that expenses claimed as business expenses for a temporarily suspended business require further substantiation. It also ruled that payment of Fringe Benefit Tax (FBT) alone does not legitimize the entire expense claim. Disallowances under Section 14A were also to be recomputed.
The Tribunal held that the addition for unreflected cash receipts was not sustainable due to lack of proper explanation during the survey. Regarding the stock difference, the Tribunal accepted the assessee's reconciliation and deleted the addition, finding no error in the submitted details.
The Tribunal held that the voluntary retirement compensation was paid and included in the assessee's income in AY 2010-11, making the exemption claim valid for that year. The absence of the exemption in Form 16 was not a basis for disallowance.
The Tribunal held that since the assessee filed its original return within the due date and the claim was made in a revised return filed before the assessment was completed, the deduction under Section 80IA was allowable. The Tribunal distinguished the case from precedents where the original return itself was filed late.
The Tribunal held that the assessee is not interested in prosecuting the appeal due to repeated non-appearance. Therefore, the appeal is dismissed for non-prosecution.
The Tribunal held that only the profit element of undisclosed purchases could be added to the income, not the entire purchase amount, as there was no evidence of sales of these purchases. For expenses, the disallowance of delivery charges was reversed, but disallowances for installation and tea/tiffin charges were upheld due to lack of evidence.
The Tribunal held that since the reassessment proceedings were initiated for suppressed sales, but additions were made for bogus purchases (which was not the original reason), the additions were invalid. The Tribunal relied on High Court judgments in Jet Airways and Ranbaxy Laboratories.
The Tribunal allowed the assessee's request to withdraw the appeal. Consequently, the appeal filed by the assessee was dismissed as withdrawn.
The Tribunal held that the reassessment was based on a mere change of opinion, as the Assessing Officer had already examined the issue, considered the relevant details, and consciously decided not to make any addition during the original assessment. Therefore, the reassessment was deemed invalid.
The Tribunal held that the Assessing Officer failed to provide evidence that the expenses were not genuine or not related to the business. The payments to TV channels inherently suggested they were for business purposes.
The Tribunal dismissed the Revenue's appeal, upholding the CIT(A)'s decision. It found that cess on green leaf was allowable based on jurisdictional High Court and Supreme Court precedents. Regarding Section 14A, the Tribunal held that the assessee had sufficient own funds for investments, negating the need for disallowance.