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521 orders · Page 9 of 11
The Tribunal, proceeding ex-parte, dismissed the assessee's appeals. It relied on various High Court decisions regarding the estimation of income in cases of bogus purchases and found the Commissioner (Appeals)'s view justifiable.
The Tribunal, proceeding ex-parte, dismissed the assessee's appeals. It relied on various High Court decisions regarding the estimation of income in cases of bogus purchases and found the Commissioner (Appeals)'s view justifiable.
The Tribunal held that penalty under Section 271(1)(c) cannot be levied on additions made on an 'estimated basis' without concrete evidence of actual concealment. Additions based on estimation alone do not constitute concealment or furnishing of inaccurate particulars.
The Tribunal found no infirmity in the conclusion of the Commissioner of Income Tax (Appeal) who had reduced the addition to 9%. The Tribunal relied on various High Court decisions regarding estimation of income in cases of bogus purchases.
The Tribunal held that since the penalty proceedings arose from the assessment order which was set aside, the penalty order cannot be sustained. The AO was granted liberty to examine penalty imposition based on the outcome of the fresh adjudication.
The Tribunal upheld the order of the CIT(A) which computed the profit element on bogus purchases at 8%. The assessee failed to provide a plausible explanation or evidence to counter the findings.
The Tribunal held that while the purchases might be from bogus parties, the goods were indeed purchased and sold. Therefore, only the profit embedded in such purchases should be added to the income, not the entire amount.
The Tribunal held that the CIT(A) had not allowed a reasonable opportunity of being heard to the assessee and had passed ex-parte orders. Consequently, the orders of the CIT(A) were set aside.
The Tribunal found no infirmity in the conclusion of the CIT(A) who had reduced the addition to 8%. The Tribunal relied on various High Court decisions regarding the estimation of income in cases of bogus purchases.
The Tribunal partly allowed the appeal for AY 2009-10, restricting the addition for bogus purchases to the estimated profit element (12.5%). For AY 2011-12, the addition for commission expenditure was remitted to the AO for re-adjudication, and the addition under Section 28(iv) was also restored to the AO for adjudication with additional evidence.
The Tribunal held that the assessee had discharged its onus by providing loan confirmations, income tax returns, PAN details, balance sheets, and bank statements. The AO's reliance on statements without corroborative evidence and without allowing cross-examination violated principles of natural justice.
The Tribunal set aside the CIT(A)'s order and restored the appeal to the CIT(A) for fresh consideration on merits, subject to the assessee paying a cost of Rs. 20,000 and appearing without seeking adjournment.
The Tribunal noted that the appeals were dismissed on technical grounds for not being e-filed as mandated by rules. The assessee's argument for restoration based on a previous tribunal decision was not accepted as the manual filing was also delayed. Therefore, the appeals were not admitted.
The Tribunal held that since the addition on which the penalty was based was deleted by a higher authority, the penalty itself cannot survive. Therefore, the deletion of the penalty by the CIT(A) was upheld.
The Tribunal held that the AO's disallowance under Section 14A was not sustainable as the assessee had sufficient own funds for investments. Regarding interest-free loans, the Tribunal ruled that the assessee utilized its own interest-free funds, and the additions made by the AO were deleted.
The Tribunal, following its own previous decisions in the assessee's own case, held that the payments to the JV partners were genuine. Consequently, the interest expenses incurred on borrowings for these payments were also allowed as a deduction.
The Tribunal upheld the addition made by the Assessing Officer, finding that the assessee failed to conclusively prove the genuineness of the purchases. The re-opening of the assessment under Section 147 was also found to be valid based on information received from the Sales Tax Department.
The Tribunal allowed depreciation and related expenses, finding that the business had a temporary lull due to being declared a sick company. However, the addition on account of provision for sales tax was not explicitly ruled upon in the provided text, and the cessation of bank loan liability was treated as income.
The Tribunal held that the commission was effectively a reduction in sale proceeds, as the assessee realized only 98% of the invoice value. Following its own previous decisions on identical facts, the Tribunal deleted the disallowance.
The Tribunal upheld the CIT(A)'s order, stating that disallowance under Section 14A should only consider investments from which exempt income is earned. The Tribunal also upheld the CIT(A)'s deletion of interest disallowance, finding no justification for the AO's stand that interest-bearing loans were used for non-business purposes.
The Tribunal held that the assessee deserves an opportunity to explain her stand and furnish supporting evidence regarding the disputed additions. The issue was restored to the Assessing Officer for de novo adjudication.
The Tribunal held that gains arising from the cancellation of foreign exchange forward contracts, used to hedge Indian investments, should be treated as capital gains. Consequently, these gains are not taxable as income from other sources.
The Tribunal found that neither the assessee nor the AO had provided sufficient justification for their respective methods of allocating expenses. Consequently, the Tribunal directed the AO to allocate 25% of 'other expenses' to WIP.
The Tribunal held that the Assessing Officer failed to establish that the 15% interest paid to related parties was excessive or unreasonable compared to market rates. Since the assessee also paid 15% interest to unrelated parties, the disallowance was not justified.
The Tribunal held that the delay in filing TDS returns was due to practical difficulties and the initial challenges of e-filing, constituting a reasonable cause. The penalty was deleted as the assessee had deposited the TDS on time and showed improvement in subsequent periods.
The Tribunal held that the payments made to channel companies did not constitute royalty as defined under Section 9(1)(vi) and that the OECD commentary on DTAA could be relied upon for interpretation. It also held that advertisement revenues earned by SAS BV were not taxable in the hands of the assessee and that interest under Sections 234B and 234C was not leviable.
The Tribunal held that a mere disallowance of purchases on an ad-hoc, estimated basis does not amount to a deliberate attempt to furnish inaccurate particulars of income. Therefore, the penalty levied was not justified.
The Tribunal upheld the estimation of additions on bogus purchases, finding that the assessee failed to discharge the onus of proving the genuineness of the transactions. However, it agreed with the CIT(A) that the estimation at 3% was justified, reducing the addition from 8%.
The Tribunal held that the claimed expenses were identical in nature to those allowed in a prior assessment year and were directly relatable to the income earned. Therefore, the disallowance was deleted.
The Tribunal upheld the validity of reopening the assessment, finding that the Assessing Officer had received credible information about bogus purchases. The Tribunal directed that an addition of 6.5% of the bogus purchases be made for all assessment years, aligning with the relief granted by the CIT(A) for one year.
The Tribunal partly allowed the appeal for AY 2009-10, restricting the addition for bogus purchases to the estimated profit element (12.5%). For AY 2011-12, the addition for commission expenditure was remitted to the AO for re-adjudication, and the addition under Section 28(iv) was also restored to the AO for adjudication with additional evidence.
The Tribunal held that a Supreme Court interpretation of law constitutes a mistake apparent from the record, justifying rectification under Section 154. The assessee is entitled to deduction under Section 80HHC for the face value of DEPB.
The Tribunal held that the difference was indeed on account of the service tax component, which was not included in the Profit & Loss Account. The payment of service tax was evidenced by challans and should be allowed as a deduction.
The Tribunal held that the amortized amount of premium on debt securities is an allowable expenditure as there is no specific prohibition against it under Sections 30 to 43B of the Income Tax Act. The Tribunal followed its own earlier decision in the assessee's own case and the case of TATA AIG General Insurance.
The Tribunal held that letting out space on the terrace for mobile towers constitutes letting out a part of the house property. It further noted the lack of evidence for additional services provided and applied the rule of consistency, as this claim was not disturbed in other assessment years.
The Tribunal upheld the deletion of the addition. While agreeing that Section 50C might not apply to tenancy rights, the Tribunal found that the AO failed to provide corroborative evidence for any additional consideration paid by the assessee. The Tribunal also noted that the seller denied receiving any amount beyond the agreed consideration.
The Tribunal upheld the deletion of the addition. While agreeing that Section 50C might not apply to tenancy rights, the Tribunal found that the AO failed to provide corroborative evidence for any additional consideration paid by the assessee. The Tribunal also noted that the seller denied receiving any amount beyond the agreed consideration.
The Tribunal held that the assessee failed to demonstrate a sufficient and reasonable cause for the significant delay in filing the appeal before the CIT(A). The mere change of professional advice without further evidence was not considered adequate to condone the delay.
The Tribunal held that Section 2(22)(e) is not applicable because the assessee is not a shareholder of EIPL. Furthermore, transactions between group companies, when conducted through inter-banking accounts with both receipts and payments, cannot be considered loans or advances for the purpose of deemed dividend.
The Tribunal held that the housing loan was disbursed after the purchase of the new flat and therefore not utilized for its purchase. Even if it were, the deduction under Section 54 is allowed irrespective of the source of funds, as long as the new property is purchased within the stipulated period.
The Tribunal held that the addition should be limited to the cost portion of the goods returned, not the full sale value, as the CIT(A)'s reasoning of sales outside books was based on surmise. The addition for the second party was upheld as the transaction was not substantiated.
The Tribunal held that the levy of fees under Section 234E prior to June 1, 2015, through intimations under Section 200A, was without the authority of law. Consequently, such levies were directed to be deleted.
The Tribunal set aside the CIT(A)'s order and restored the issue to the AO for fresh examination, granting the assessee one more opportunity to provide explanations. This was done in the interest of natural justice, considering the assessee was not properly guided.
The Tribunal directed the AO to exclude investments that did not yield dividend income and investments in growth funds when computing the average value of investments. The voluntarily disallowed amount of Rs. 1,26,000 by the assessee was to be set off against the disallowance computed under Rule 8D(2)(iii).
The Tribunal held that while filing an appeal is a statutory right, a liberal approach should be adopted for condoning delays caused by bona fide reasons. Citing Supreme Court judgments, the Tribunal emphasized that substantial justice should be preferred over technical considerations.
The Tribunal found that the assessee claimed the deposit was out of earlier cash withdrawals and cash in hand. Considering the principle of natural justice, the appeal was remanded to the Assessing Officer for fresh examination.
The Tribunal upheld the reopening of assessment as it was based on credible information. It also confirmed the disallowance of 12.5% of alleged bogus purchases, considering the nature of the assessee's business and the lack of contrary evidence.
The Tribunal held that additions cannot be made solely on the basis of a retracted statement without corroborative evidence. The Tribunal followed its own previous decision in the assessee's own case for earlier assessment years.
The Tribunal held that penalty under Section 271(1)(c) cannot be levied with reference to additions made under normal provisions when the tax payable under normal provisions is less than the tax payable under MAT provisions (Section 115JB). This is in line with the Delhi High Court's decision in CIT v. Nalwa Sons Investments Ltd. and subsequent CBDT Circular.