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229 orders · Page 4 of 5
The Tribunal held that since the quantum addition made in the assessment was deleted by the ITAT in a prior appeal, the penalty levied under Section 271(1)(c) for the same addition is also not sustainable. The Revenue's appeal against the deletion of penalty was dismissed.
The Tribunal directed the Assessing Officer to re-compute the arm's length price of the corporate guarantee fee by applying a rate of 0.5%, following a jurisdictional High Court decision.
The Tribunal, following its own decision in the preceding assessment year and the jurisdictional High Court's ruling, deleted the additions made by the Assessing Officer on both grounds. The Tribunal held that the issue of charging interest at LIBOR plus a margin was acceptable and that hedging loss should not be adjusted against interest charged to the AE.
The Tribunal upheld the CIT(A)'s decision, finding that the AO had not doubted the genuineness of sales. Therefore, disallowing the entire purchases would lead to absurd profits. The Tribunal agreed that only the profit element embedded in the purchases from bogus entities should be added.
The Tribunal held that since the income from the foreign bank account was already taxed in the hands of the assessee's husband, the initiation of reassessment proceedings under Section 147 was invalid. Consequently, the reassessment order was quashed.
The Tribunal held that the disallowance under Section 14A is applicable even to shares held as stock-in-trade, following a Supreme Court judgment. The matter was restored to the Assessing Officer for fresh adjudication.
The tribunal dismissed the first appeal as withdrawn by the assessee. The second appeal's ground regarding TDS credit was dismissed as not pressed by the assessee.
The tribunal dismissed the first appeal as withdrawn by the assessee. The second appeal's ground regarding TDS credit was dismissed as not pressed by the assessee.
The Tribunal set aside the order of the CIT(A) and remitted the matter back for fresh adjudication. The assessee was directed to appear before the CIT(A) when called for hearing.
The Tribunal found that the reassessment proceedings were validly initiated based on tangible material indicating escapement of income. However, due to the assessee's limited submissions and the short time taken for assessment, the matter was restored to the AO for re-appreciation of evidence on merits.
The Tribunal held that while the assessee failed to prove the genuineness of purchases, the entire amount could not be disallowed as the consumption of material and sales turnover were not doubted. The disallowance was restricted to 12.5% of the non-genuine purchases, considering the assessee's declared gross profit rate.
The Tribunal held that Section 40(a)(ia) is not applicable in cases of short deduction of tax, only in cases of non-deduction. The disallowance made by the AO was confirmed to be bad in law.
The Tribunal held that the stamp duty valuation as on the date of the agreement (02.10.2009) should be considered for computing capital gains, especially since substantial payments were received by account payee cheques before the registration date. The addition made by the AO was deleted.
The Tribunal held that the penalty proceedings were illegal as the Assessing Officer initiated proceedings for furnishing inaccurate particulars but imposed penalty for concealment of income. The notice issued under Section 274 also lacked a specific charge, rendering the penalty unsustainable.
The Tribunal held that procedural rules are subservient to justice and that technicalities should not defeat substantial justice. The CIT(A) erred in dismissing the appeal solely on the ground of manual filing instead of e-filing, especially during a transition period.
The Tribunal decided to estimate the income from the hawala business at 0.40% of the total turnover, aligning with a previous decision in the assessee's own case. This approach was adopted to bring finality to the dispute.
The Tribunal remitted the issues of Form 26AS reconciliation, Section 43B disallowance, and deemed rental value to the AO for fresh adjudication. The addition on account of bogus purchases was reduced from 12.5% to 8%.
The Tribunal held that unsold flats held as stock-in-trade by a builder cannot be treated as 'property' for the purpose of computing income under the head 'Income from house property'. Such income should be considered as business income.
The Tribunal held that unsold flats held as stock-in-trade by a builder cannot be taxed under 'Income from house property'. Following the Gujarat High Court's view, it was decided that any income from such stock would be business income.
The Tribunal held that the receipts from the supply of off-the-shelf software were not in the nature of royalty, following its own prior decision for an earlier assessment year and various High Court judgments. The Tribunal directed the Assessing Officer to rework the income accordingly.
The Tribunal held that statements made during survey proceedings, without corroborating evidence, have limited evidentiary value and cannot solely form the basis for additions. Since the transactions were reflected in the books and supported by banking channels, the addition was unsustainable.
The Tribunal held that the assessee had already disallowed a significant portion of administrative expenses and the remaining small amount was incurred exclusively for business purposes. Therefore, no disallowance under Section 14A was justified.
The Tribunal decided to estimate the income from the hawala business at 0.40% of the total turnover, aligning with a previous decision in the assessee's own case. This approach was adopted to bring finality to the dispute.
The Tribunal set aside the ex-parte order of the CIT(A) and remitted the matter back. The CIT(A) was directed to provide one more opportunity to the assessee to present their case on merits.
The assessee requested to withdraw the appeal as the subsequent assessment order made no additions. The Departmental Representative had no objection to the withdrawal.
The Tribunal held that the interest income earned on fixed deposits, which were linked to borrowings for the eligible business, and interest on security deposits for essential business utilities, are incidental to the business. Therefore, such income should be included for computing the deduction under Section 10A.
The Tribunal held that the reassessment proceedings were bad in law as the AO reopened the assessment without proper application of mind and on vague grounds. The Tribunal also found that on merits, the AO failed to discharge the burden of proof regarding the unsecured loans.
The Tribunal noted the substantial delays in filing the appeals. The assessee provided submissions and an affidavit citing financial stress and ongoing legal proceedings as reasons for the delay.
The Tribunal restored the TDS disallowance issue to the AO for further substantiation by the assessee. It held that interest paid under Section 201(1A) for late TDS payment is not deductible as business expenditure. A portion of the purchase disallowance was deleted.
The Tribunal noted that the CIT(A)'s order was ex-parte and confirmed the additions without proper adjudication. The Departmental Representative agreed to remand the matter for fresh adjudication.
The Tribunal agreed with the assessee that the issue of availability of own funds versus tax-free investments needed examination. The matter was remitted back to the Assessing Officer for verification of these facts.
The Tribunal set aside the transfer pricing adjustment for corporate guarantee to the AO for fresh determination. It also set aside the disallowance under Section 14A for book profit computation to the AO for fresh computation as per Special Bench decision.
The Tribunal directed the deletion of disallowance under Rule 8D(2)(ii) as the assessee had sufficient own funds to cover investments. For disallowance under Rule 8D(2)(iii), the issue was remanded to the AO for fresh adjudication due to a non-speaking order from the CIT(A).
The Tribunal held that penalty proceedings are distinct from assessment proceedings and that the assessee's belief regarding the non-taxability of capital gains was bona fide. Therefore, the penalty was not leviable.
The Tribunal upheld the validity of the reassessment proceedings as tangible material was received from DGIT (Inv.). It also found no infirmity in the CIT(A)'s estimation of addition at 5%, aligning with previous decisions in the assessee's own case.
The Tribunal, following a coordinate bench's decision in the assessee's own case for AY 2012-13, restricted the disallowance on non-genuine purchases to 8%. The grounds challenging the reopening of assessment were dismissed as not pressed.
The tribunal confirmed the disallowance of expenses related to exempt income as the assessee failed to provide details. However, the disallowance of interest paid to the foreign bank was remanded back to the CIT(A) for verification of the no-deduction certificate.
The Tribunal held that the subcontracting arrangement was permissible and the profit aggregation showed no suppression of income. It also noted that the partners' returns were accepted, and disallowing expenses in the assessee's hands was incorrect.
The Tribunal held that the subcontracting arrangement was permissible and the profit aggregation showed no suppression of income. It also noted that the partners' returns were accepted, and disallowing expenses in the assessee's hands was incorrect.
The Tribunal held that the Pr. CIT's revisionary order was invalid. It followed a co-ordinate bench's decision on identical facts, stating the Assessing Officer had conducted due inquiry and the Supreme Court decision was not applicable as it was passed after the assessment.
The Tribunal condoned the delay, admitting the appeals. It held that interest income and sundry balances written back, arising from business transactions and necessary business arrangements, are eligible for deduction under Section 80IC.
The Tribunal found that the assessee had submitted additional evidence to justify the higher commission rate paid to Jayson. The issue was remitted back to the Assessing Officer for re-adjudication after considering this new evidence.
The Tribunal found the 12.5% profit rate to be on the higher side. Considering the business of trading in metals and the VAT paid on these purchases, the Tribunal directed the AO to recompute the income by applying a profit rate of 5%.
The Tribunal held that service tax cannot be treated as a trading receipt under Section 145A and that Section 43B is not applicable. It also held that commission paid to a non-resident agent for procuring orders was not subject to TDS under the relevant provisions.
The Tribunal found that the CIT(A) had not adjudicated the issue on merits and merely confirmed the penalty due to the assessee's non-cooperation. Therefore, the Tribunal remanded the issue back to the CIT(A) for adjudication on merits after providing a reasonable opportunity to the assessee.
The Tribunal found that the issue was not one of bogus purchases but rather non-response from suppliers to notices. The partial addition sustained by the CIT(A) was deemed arbitrary and unreasonable.
The Tribunal held that the computational error, which was admitted as a bona fide mistake, did not constitute furnishing of inaccurate particulars of income justifying penalty. The assessee benefited from Supreme Court judgments on similar issues.
The Tribunal held that the assessee was eligible for deduction under Section 54 for investment in multiple adjoining flats used as a single unit, as the amendment restricting it to one flat was not applicable for the assessment year in question. The deduction for Rs. 12,00,000 (municipal property tax) was denied, while the Rs. 21,00,000 expense was remitted back to the AO for re-adjudication.
The Tribunal held that the AO failed to record proper satisfaction before applying Rule 8D and that the additional disallowance could not be sustained as the assessee had already offered a significant suo motu disallowance.
The Tribunal held that the legal expenses were not part of the operating cost for benchmarking as they were incurred prior to the agreement with the associated enterprise and not directly related to the services rendered. Therefore, the expenses were allowed as a deduction under Section 37(1).