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612 orders · Page 10 of 13
The Tribunal found that the assessee claimed not to have received the hearing notice from the CIT(A), leading to an ex-parte order and prejudice. In the interest of substantial justice, the matter was set aside for de-novo adjudication.
The Tribunal held that renting out premises due to a temporary lull in business activities should be considered a business activity. Therefore, rental income and service charges should be assessed as business income. The Tribunal also directed that interest income earned on trade deposits should be assessed as business income and the entire interest expenditure should be allowed as business expenditure.
The Tribunal held that depreciation is allowable on assets even if their cost was previously allowed as application of income under Section 11. It followed the jurisdictional High Court's decisions on the matter.
The Tribunal dismissed the appeal in limine because the tax effect was below Rs. 10 lakhs, and the appeal did not fall under any exceptions specified in the CBDT Circular No. 21 of 2015. The circular was applicable retrospectively to pending appeals.
The Tribunal held that the loan advanced to the director for higher studies was for the business purposes of the assessee, as the director continued to assist the firm after education. It was also noted that the assessee had sufficient interest-free funds, making it unlikely that borrowed funds were used for the loan.
The Tribunal considered the selection and rejection of comparable companies by the Commissioner (Appeals). It upheld the exclusion of certain companies by the CIT(A) based on functional dissimilarity and factual findings, while also considering the Department's objections.
The Tribunal held that the limited right to use the software, without granting copyright or the right to use the copyright, does not constitute royalty under the Income Tax Act or the India-Netherlands DTAA.
The Tribunal held that the limited right to use the software, without granting copyright or the right to use the copyright, does not constitute royalty under the Income Tax Act or the India-Netherlands DTAA.
The Tribunal found that the assessee failed to provide sufficient evidence to prove that the cash payments made on Sundays were unavoidable and fell under the exceptions of Rule 6DD. The matter was set aside and restored to the AO for fresh adjudication.
The Tribunal held that the demolition charges were not substantiated as business expenses. However, the disallowance of Collector's charges was set aside and restored to the AO for verification of the computation.
The Tribunal held that the interest component received by the assessee was part of the sale consideration for the shares, not income from other sources. This decision followed previous judgments on identical facts.
The Tribunal upheld the disallowance of professional fees paid to BMR Advisors. It reasoned that these expenses were preparatory in nature for a new business venture that had not yet been set up, and thus not deductible as revenue expenditure.
The Tribunal held that the assessee was not liable to deduct TDS under section 195 at the time of making the payment, as the services were rendered outside India and the retrospective amendment to Section 9(1)(vii) was introduced later. Therefore, the law at the time of payment did not mandate withholding tax.
The tribunal held that strategic investments should be excluded from the calculation of disallowance under Rule 8D and remanded the matter for fresh examination. Depreciation on the membership card was disallowed, upholding the CIT(A)'s order. The tribunal allowed the carry forward of long-term capital losses, setting aside the CIT(A)'s finding.
The Tribunal held that the assessee had a bona fide belief for claiming the deduction at the time of filing the return, relying on judicial precedents available then. The Tribunal also noted that similar disallowances in earlier years were upheld only after a subsequent Supreme Court decision, and that the assessee had disclosed all particulars.
The Tribunal held that the principle of prudence mandates providing for all known liabilities and losses, even if estimated. Variations in estimates over time are normal and do not necessarily indicate unreliability, especially for long-term projects.
The Tribunal dismissed the application for condonation of delay because the affidavit filed was invalid and did not provide valid reasons for the delay. Consequently, the appeal itself was dismissed.
The tribunal held that strategic investments should be excluded from the calculation of disallowance under Rule 8D and remanded the matter for fresh examination. Depreciation on the membership card was disallowed, upholding the CIT(A)'s order. The tribunal allowed the carry forward of long-term capital losses, setting aside the CIT(A)'s finding.
The Tribunal held that the formation of the partnership firm and the transfer of shares as capital contribution were not doubted. It distinguished between legitimate tax planning and a colourable device, stating that every tax planning within the provisions of the Act cannot be considered a colourable device.
The Tribunal held that the CIT(A) did not examine the application on its merits and that the previous cancellation due to misappropriation should not automatically disqualify the current application, especially with new trustees. The order of the CIT(A) was set aside.
The Tribunal held that the assessee's claim for expenditure on unaccounted receipts was not substantiated with evidence. However, it allowed for estimation of profit on a global basis, considering the turnover and expenses for the relevant assessment years.
The Tribunal held that proportionate deduction under Section 80-IB(10) is allowable for residential units meeting the criteria, even if the project as a whole does not. It also held that bogus purchases should be treated as a disallowance under Section 37(1), leading to an increase in profit eligible for Section 80-IB(10) deduction.
The Tribunal held that the AO was not justified in rejecting the books of accounts based solely on a show cause notice from the Customs department and incorrect calculation of cash expenses. Similarly, additions under Section 69C were deleted due to lack of evidence of expenditure from unexplained sources. Issues regarding Section 80IB deduction and Customs duty deduction were remanded to the AO for fresh examination.
The tribunal held that strategic investments should be excluded from the calculation of disallowance under Rule 8D and remanded the matter for fresh examination. Depreciation on the membership card was disallowed, upholding the CIT(A)'s order. The tribunal allowed the carry forward of long-term capital losses, setting aside the CIT(A)'s finding.
The Tribunal upheld the penalty, agreeing with the lower authorities that the assessee failed to substantiate their explanation regarding the cash component of the transaction. The seized documents were considered direct evidence against the assessee.
The Tribunal held that Section 54EC of the Income Tax Act does not restrict investment of Rs. 50 lakhs in two different financial years, provided the investments are made within six months of the capital gain realization. The CIT(A)'s deletion of the addition was upheld.
The Tribunal held that the non-compete fee paid for a limited period of two years was not for acquiring an advantage of enduring benefit. It was considered revenue expenditure incurred exclusively for the purpose of business to make it more viable and profitable.
The Tribunal held that the non-compete fee paid for a limited period of two years was not for an enduring benefit and was incurred to make the business more viable and profitable. Therefore, it was considered revenue expenditure.
The Tribunal held that interest paid on borrowed funds for property purchase is eligible for deduction under Section 24(b), irrespective of the source of the loan. The Tribunal followed its own previous decision in the assessee's own case for earlier assessment years.
The Tribunal held that the non-compete fee paid for a limited period of two years was not for an enduring benefit and was incurred to make the business more viable and profitable. Therefore, it was considered revenue expenditure.
The Tribunal held that the non-compete fee paid for a limited period of two years was not for acquiring an advantage of enduring benefit. It was considered revenue expenditure incurred exclusively for the purpose of business to make it more viable and profitable.
The Tribunal held that the disallowance under Rule 8D(2)(ii) was not justified as the assessee had sufficient own funds. The disallowance under Rule 8D(2)(iii) was also modified after considering strategic investments and investments in growth schemes of mutual funds.
The Tribunal held that the AO was not justified in comparing two different transactions that occurred at different times and involved distinct rights and liabilities. The assessee's decision to transfer rights to curtail losses was considered a valid commercial decision.
The Tribunal upheld the Commissioner's order, following its own previous decisions on identical facts. The expenditure was considered admissible under Section 35(1)(iv) as it was related to research and development.
The Tribunal upheld the CIT(A)'s direction, agreeing that the penalty for late filing of the TDS return should be calculated from the date of tax payment, as the return cannot be filed before such payment. The Revenue's appeals were found to have no merit.
The Tribunal found that while the assessee failed to furnish details, in the interest of natural justice, one more opportunity should be granted. This opportunity is conditional upon the assessee paying a cost of Rs. 5000.
The ITAT found the CIT(A)'s order to be non-speaking and set it aside. The Tribunal granted the assessee one more opportunity to present its case before the AO, considering the medical emergency as a reasonable cause for non-attendance.
The Tribunal held that non-compliance with Section 80G(5C) only disentitles donors from claiming deductions. The taxability of the unutilised balance should be examined under Section 10(23C)(iv) of the Act.
The Tribunal held that the tax effect of the disputed amount was below the monetary limit prescribed by a CBDT circular for filing appeals. Therefore, the appeal was not maintainable.
The Tribunal accepted the assessee's request to withdraw the appeal. The appeal was dismissed as withdrawn.
The Tribunal held that the revenue failed to provide material to prove the compensation paid was unreasonable compared to fair market value. Therefore, the addition made by the AO was unjustified.
The Tribunal decided to dismiss the appeal ex-parte due to the unrectified defects in the appeal memo. They also found no reason to interfere with the CIT(A)'s reasoned order as the assessee provided no material to controvert it.
The Tribunal dismissed the appeal filed by the Revenue. This was based on a CBDT circular which stipulated that appeals with a tax effect below Rs. 10,00,000/- are not maintainable, and the tax effect in this case fell below that threshold.
The Tribunal held that the revenue failed to provide material to prove the compensation paid was unreasonable compared to fair market value. Therefore, the addition made by the AO was unjustified.
The Tribunal upheld the CIT(A)'s decision, agreeing that tax on unrealized sale price cannot be demanded. Since some flats remained unsold, the income was correctly spread over two assessment years as per the declaration.
The Tribunal found that the explanations provided by the assessee regarding the sources of cash deposits and the brokerage income were not properly appreciated by the lower authorities. Therefore, the matter was restored to the AO for fresh adjudication.
The Tribunal found no defects in the assessee's books of accounts and noted the AO's assessment was half-hearted. The AO's rejection of books and assessment of gross receipts without deductions were deemed unjustified.
The Tribunal held that the lease rentals received for furniture and fixtures, which were in the nature of amenities attached to the building, should be assessed under the head 'Income from House Property'. This decision followed a previous ruling in the assessee's own case for the preceding assessment year.
The Tribunal found that the CIT(A) had passed a reasoned order on all issues. As the assessee failed to provide any material to contradict the CIT(A)'s findings, the Tribunal confirmed the order of the CIT(A).
The Tribunal dismissed grounds not pressed by the assessee. For prior period expenses, it followed a co-ordinate bench decision. The Revenue's grounds regarding foreign exchange gains were dismissed by following jurisdictional High Court orders. The issue of sundry credit balances written back was restored to the AO for fresh consideration.