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187 orders · Page 2 of 4
The Tribunal allowed most of the assessee's grounds, holding that disallowance of interest for interest-free advances is not justified if the assessee has sufficient interest-free funds. It ruled that TDS provisions under Section 195 are not applicable for payments to non-residents without a Permanent Establishment (PE) in India, made in foreign currency, for work not carried out in India. The Tribunal also held that estimated disallowances without a proper basis, defect finding, or comparable analysis are unsustainable, especially when regular books of accounts are maintained.
The Tribunal found no basis for restricting the brought forward losses and directed the Ld. AO to allow the full amount of ₹8,35,902/- to be set off. It also ruled that the MAT credit claim of ₹12,94,923/- was valid as per the Act and available in assessment records, directing the Ld. AO to allow it.
The Tribunal upheld the CIT(A)'s order, finding that the assessee had provided sufficient documentary evidence to prove the identity and creditworthiness of the loan creditors. The Tribunal also noted that the loans had been repaid, and the AO had not conducted further verification in the hands of the creditors.
The Tribunal held that since the investments were accepted by the department in earlier scrutiny assessments, the sale proceeds could not be doubted. The Tribunal followed previous decisions where similar additions were deleted.
The Tribunal held that the assessment framed by the AO without issuing the jurisdictional notice under Section 143(2) is invalid and a nullity. Therefore, the assessment order cannot be sustained.
The Tribunal held that the addition of ₹25,55,776/- on account of unsubstantiated work-in-progress (WIP) was not sustainable. The AO disallowed 10% of the capital WIP without basis, overlooking the assessee's plea that these were expenses incurred on capital account and not charged to the Profit and Loss account. The Tribunal found no justification for disallowance from capital WIP when it was not debited to the P&L, and disallowances cannot be made on presumption. The addition of ₹63,16,231/- for unsubstantiated expenses was also set aside. The AO made an ad-hoc disallowance of 10% of total expenses due to a perceived increase and lack of details, despite the assessee requesting time to reply and the books of account being audited without adverse inference. The Tribunal held that such ad-hoc disallowance is not sustainable without rejecting the books of account. For the addition of ₹7,40,51,268/- on account of purchases from non-filer suppliers, the Tribunal held that the addition was made on an ad-hoc basis (12.5% of purchases) without rejecting the books of account or invoking Section 145(3). The Tribunal noted that the non-filing of returns by suppliers is not within the assessee's control and the department can proceed against them. The addition was deleted. The Tribunal directed the AO to delete the additions in all three grounds.
The Tribunal noted that the lower authorities decided the case ex parte without affording the assessee a proper opportunity to be heard. To ensure natural justice, the Tribunal restored the issue to the file of the learned AO. The AO was directed to re-decide the matter after providing the assessee a reasonable opportunity of being heard.
The Tribunal held that if a return filed beyond the due date is treated as non-est, its basis cannot be used for computation of income. The CIT(A)'s action was unsustainable. Following a Delhi High Court decision, the Tribunal held that if the AO considers the belated ROI, a notice under section 143(2) should have been issued.
The Tribunal held that the issue of allowability of provision for warranty is a debatable issue and falls outside the scope of Section 154 of the Act. Rectification under Section 154 is only for mistakes apparent from the record, not for issues requiring extensive reasoning or where two opinions are possible.
The Tribunal found that the addition under Section 56(2)(x) was indeed made without a DVO report. It restored the matter to the file of the AO with a direction to conduct a de novo assessment, obtain a valuation report from the DVO, and provide the assessee a fresh opportunity of hearing.
The ITAT condoned the assessee's delay and noted that the CIT(A) erred in dismissing the appeal in limine. Observing the AO's cryptic order and partial compliance by the assessee, the Tribunal restored the appeal to the AO for fresh adjudication after providing a reasonable opportunity of hearing.
The tribunal held that the quantum of loss on UIL shares was incorrectly calculated by the AO and directed a de novo examination due to procedural lapses. The penalty expenses were allowed as they were for breach of contract, not infraction of law. Income from carbon credits was held to be capital receipt and excluded from book profits.
The Tribunal held that the addition of ₹4,46,00,000/- under Section 68 was not sustainable. The assessee had filed all necessary documents, including the ITR, financial statements, bank statements, share application form, ROC filings, and a valuation report which valued the shares at ₹566, while they were issued at ₹600. The investor company, M/s Gajmurti Agency Pvt. Ltd., had replied to the Section 133(6) notice, explaining the source of funds. The Tribunal noted that the share issue price was within 10% of the valuation, aligning with CBDT notification GSR no. 685(3) and the decision in Ambarnuj Finance & Investment Pvt. Ltd. Consequently, the order of the CIT(A) was set aside, and the AO was directed to delete the addition. As ground no. 2 was consequential to ground no. 1, the addition of ₹8,92,000/- under Section 69C was also deleted. For ground no. 3, the Tribunal found that the receipt of ₹5,00,000/- from M/s Shree Shyam Trading Pvt. Ltd. was towards freight charges for clearing and forwarding services, supported by bills filed by the assessee. Therefore, the addition under Section 68 was deleted. Ground no. 4, being consequential to ground no. 3, was also allowed, and the addition of ₹35,000/- under Section 69C was deleted. The appeal was allowed.
The Tribunal held that the addition of ₹1,33,66,960/- made by the AO under Section 69A of the Income-tax Act, 1961, was not justified. The Tribunal noted that the assessee was engaged in business with a significant turnover, and the cash deposits were made into the assessee's bank accounts. The Tribunal observed that the assessee had duly accounted for cash receipts in its cash book, with narrations indicating sales or receipts from sundry debtors. Furthermore, the books of account were audited by a tax auditor, and no adverse inference was drawn. The Tribunal found that both the AO and CIT(A) failed to appreciate that the cash deposits were out of business receipts, which were already reflected in the books of account. The Tribunal reasoned that once cash is treated as sales, making an addition under Section 69A for unexplained money would constitute double taxation, which is not permissible. Therefore, the Tribunal set aside the order of the CIT(A) and directed the AO to delete the additions.
The Tribunal held that the Assessing Officer's action in passing a rectification order under Section 154 was unsustainable. Firstly, it was not a mistake apparent from the record, but rather a debatable issue that required a prolonged analysis of Section 43(5) of the Act, which cannot be rectified under Section 154. The Tribunal cited the Supreme Court decision in ITO vs. Volkart Brothers & Ors. and the Rajasthan High Court decision in CIT vs. United Mercantile Co. (P) Ltd. to support this view. Secondly, the Tribunal found that the transactions in derivatives did not fall within the ambit of Section 43(5) of the Act. The judgment specifically referred to proviso (d) and (e) of Section 43(5), which exclude eligible transactions in derivatives carried out on a recognized stock exchange, especially when commodity transaction tax has been paid. As the assessee had paid commodity transaction tax, these transactions were not speculative. Consequently, the Tribunal set aside the order of the CIT(A) and directed the AO to delete the addition. The issue of delay in filing the appeal before the CIT(A) was implicitly resolved by the Tribunal deciding the case on merits.
The ITAT condoned the 170-day delay, finding reasonable cause. Given the ex-parte disposal by CIT(A) and the assessment under Section 147 r.w.s. 144, the Tribunal restored the matter to the Assessing Officer for fresh examination and directed that proper opportunity be given to the assessee.
The tribunal noted that the trustee had already declared the amount under IDS and paid the applicable tax. Citing the principle that income cannot be assessed twice, the tribunal held that the addition made by the AO and upheld by the CIT(A) was unsustainable. Consequently, the tribunal directed the Ld. AO to delete the addition.
The tribunal, admitting the additional ground, found that the Section 143(2) notice was indeed issued in violation of mandatory CBDT instructions. Following precedents from co-ordinate benches, it ruled that such a defective notice makes the assessment invalid and quashed it.
The Tribunal observed that the assessee is not a dealer in diamonds and the purchased diamonds were not stock-in-trade, nor was the expenditure claimed. The CIT(A) had also passed an ex-parte order ignoring the assessee's submission. Relying on a coordinate bench's decision, the Tribunal found no merit in the addition.
The Tribunal held that the transfer to the special reserve under Section 45IC of the RBI Act is an appropriation of profit and not deductible. However, it ruled that CSR expenditure donated to eligible institutions is eligible for deduction under Section 80G, and a one-day delay in depositing ESI contributions due to a holiday should be condoned.
The Tribunal agreed with the Ld. CIT(A) that the addition resulted from a genuine inadvertent mistake by the assessee in the tax audit report, which was correctly rectified. The Tribunal found no merit in the Revenue's appeal and upheld the order of the Ld. CIT(A).
The Tribunal held that the Section 143(2) notice was invalid as it failed to specify the type of scrutiny (limited, complete, or compulsory manual) as required by the CBDT instructions, which are binding on revenue authorities. Consequently, the assessment order framed under Section 143(3) was also deemed invalid and quashed.
The Tribunal held that the reassessment proceedings were invalid because the notice issued under Section 148 of the Income Tax Act was unsigned. Therefore, the Assessing Officer lacked jurisdiction to proceed with the assessment.
The Tribunal, relying on a co-ordinate bench decision, held that an unsigned assessment order is invalid and a nullity, not a curable procedural defect. The requirement of a signature by the Assessing Officer is mandatory, rendering the impugned assessment order unsustainable.
The Tribunal held that the Form 10BB was filed within the extended due dates notified by the CBDT. Therefore, the AO was directed to allow the application of income of Rs.1,25,18,776/- to the assessee trust as claimed.
Citing a Madras High Court judgment that found the CBDT's selective refusal to extend time limits for Section 80G registration arbitrary, the Tribunal restored the appeal to the CIT(E). The CIT(E) was directed to reconsider the Section 80G application, treating it as timely, given that the reasons for delay were identical to those accepted for Section 12A approval and pass order on merits.
Following the precedent set by the Gujarat High Court in 'Kartik Vijaysinh Sonavane vs DCIT' and other ITAT decisions, the Tribunal held that the department is precluded from denying TDS credit to the assessee if the tax was indeed deducted by the employer, even if not deposited with the government. The AO was directed to grant the full TDS credit, with the Revenue at liberty to pursue action against the employer for non-deposit.
The Tribunal held that the assessee had sufficient cause for the delay in filing the appeal before the CIT(A). The delay was condoned, and the appeals were restored to the CIT(A) for a decision on merits after providing an adequate opportunity of hearing.
The Tribunal restored the appeal to the CIT(A) for reconsideration on grounds 6, 7, and 8, directing an opportunity for hearing and perusal of documentary evidence.
The Tribunal held that disallowing expenses entirely was incorrect, as the assessee was established in the business and some expenses were necessary. However, a reasonable disallowance was warranted due to insufficient documentation for certain expenses.
The Tribunal held that the reopening of assessment cannot be made solely for the purpose of verification and quashed the assessment order as invalid.
The Tribunal held that the reopening of assessment was invalid because the Assessing Officer failed to record any satisfaction regarding escapement of income and did not provide valid reasons for reopening. The notice issued under Section 148 and the subsequent assessment order were quashed.
The Tribunal held that the assessee had sufficient cause for the delay in filing the appeal before the CIT(A). The delay was condoned, and the appeals were restored to the CIT(A) for a decision on merits after providing an adequate opportunity of hearing.
The Tribunal condoned the delay in filing the appeal. It was observed that both the Assessing Officer and the CIT(A) decided the issues ex-parte due to the assessee's failure to appear. Therefore, the Tribunal restored the appeal to the Assessing Officer for adjudication after providing a reasonable opportunity of hearing to the assessee.
The Tribunal found that the assessee provided sufficient evidence, including sales/purchase bills and bank statements, to prove the genuineness of the transactions related to sale of investments and refund of advance from two parties, and no money was received from the third. The AO failed to conduct proper verification. Citing a High Court judgment, the Tribunal held that the addition under Section 68 was unjustified and directed its deletion.
The Tribunal noted that the CIT(A) had not adjudicated Ground No. 1. Therefore, the Tribunal restored the appeal to the CIT(A) for a fresh consideration of the issue related to the contingent liability, keeping in view the revised audit report.
The Tribunal held that the notice issued u/s 143(2) was invalid as it did not conform to the format prescribed by the CBDT, rendering the subsequent assessment order void ab initio.
The Tribunal condoned the delay in filing the appeal. The Learned AR submitted that the missing bills and vouchers are now available and can be produced if the issue is restored to the AO for reassessment.
The ITAT set aside the ex-parte order of the Ld. CIT(A) and restored the appeal to his file. The Ld. CIT(A) was directed to decide the appeal afresh on merits after providing the assessee a reasonable opportunity of being heard.
The Tribunal held that the assessee had inadvertently shown an incorrect figure for cash in hand due to a clerical error in filing the return. Upon reviewing bank statements, it was found that the figure was a clubbing of bank balance and actual cash in hand. The addition was not justified.
The Tribunal held that the case of the assessee is squarely covered by the decision of the Hon'ble Calcutta High Court in the assessee's own case for earlier assessment years. Following the principle of judicial discipline, the claim of deduction u/s 80IA(4) was allowed.
The Tribunal condoned the delay, finding reasonable cause. It held that the CIT(A)'s approach of partly deleting the addition was incorrect. Once the source of the funds (money received back after trip cancellation) was explained, the entire addition should have been deleted.
The Tribunal found that although Form 10ID was filed late, it was available before the Assessing Officer on the date of processing the return. Citing a decision of the Hon'ble Gujarat High Court, the Tribunal held that the action of the AO and Ld CIT(A) was incorrect and unsustainable. The AO was directed to accept Form 10ID and allow the new tax regime benefit.
The tribunal condoned the 349-day delay in filing the appeal, finding sufficient cause. The tribunal allowed the assessee's appeal, effectively overturning the addition made under Section 69C and accepting the income declared under Section 44AD.
The Tribunal condoned the delay in filing the appeal. Considering the request of the assessee's Authorized Representative (AR) that the additions were made without referring the matter to the Departmental Valuation Officer (DVO), the Tribunal set aside the order of the CIT(A).
The Tribunal held that there was no reason to interfere with the order of the CIT(A) who had set aside the assessment to be framed afresh. The Tribunal directed the AO to provide the assessee an opportunity to substantiate the receipt of share capital and prove the identity, creditworthiness, and genuineness of the transactions.
The Id Addl/JCIT(A) dismissed the assessee's appeal, affirming the AO's order. The Tribunal, in its observations, noted that the assessee was not confronted with the discrepancy and was not allowed cross-examination of the supplier, but the final decision of the Tribunal is not available on this page.
The Tribunal held that the CIT(A) had not specified the amount of advance tax payable or how Section 208 was applicable. The assessee contended that no advance tax was payable as income was below the taxable limit. The CIT(A) dismissed the appeal without deciding on merits and without exercising the discretion available under the proviso to Section 249(4)(b) to exempt the assessee from advance tax payment upon application. Since the CIT(A) did not determine the advance tax liability and the assessee had an option to seek exemption, which was not exercised, and the appeal was not decided on merits, the ITAT, in the interest of justice, set aside the CIT(A)'s order. The assessee was directed to file an application for exemption from advance tax payment before the CIT(A), which would be decided in accordance with law. The assessee was also permitted to file necessary evidence, and both parties were to be given a reasonable opportunity of being heard. The grounds taken by the assessee were partly allowed for statistical purposes.
The Tribunal decided to address only two issues: rental income and unsecured loans, as the assessee did not press the issue related to the sinking fund. For the issue of rental income, the Tribunal noted that the assessee had leased out its property for Rs. 2,16,172/- per month plus GST. The Memorandum of Association indicated that the company's primary activity was renting out property. Citing the Supreme Court's decisions in Chennai Properties & Investment Ltd. and Royla Corporation Pvt. Ltd., the Tribunal held that where the main business of the assessee is letting out property, the income derived therefrom should be treated as business income. The Tribunal found that the assessee had rightly disclosed the income under the head 'Income from Business' and set aside the PCIT's finding on this issue. Regarding unsecured loans, the Tribunal observed that the assessee had provided substantial documentary evidence, including source of funds, loan confirmations, bank statements, and audited financials. Furthermore, notices under Section 133(6) were issued and complied with, and the Assessing Officer had accepted the transactions after due verification. Consequently, the Tribunal concluded that the assessment order could not be considered erroneous or prejudicial to the revenue on this count. Therefore, the revision order passed by the PCIT under Section 263 was set aside.
The Tribunal noted that the letter for withdrawal was self-explanatory and the CIT-DR had no objection. Consequently, the Bench granted permission for the assessee to withdraw the appeal. The appeal filed by the assessee was therefore dismissed as withdrawn.