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396 orders · Page 4 of 8
The Tribunal held that the issue and service of notice under Section 148 of the Income Tax Act, 1961, are jurisdictional requirements that must be mandatorily complied with, not mere procedural steps. For the Assessing Officer (AO) to exercise jurisdiction to reopen an assessment, notice under Section 148(1) must be issued and served upon the assessee in accordance with Section 282(1) read with relevant CPC provisions. The Tribunal found that the revenue failed to discharge the onus of proving proper service of notice. The mere participation in reassessment proceedings after becoming aware of them does not constitute a waiver of the requirement for proper service. Consequently, reassessment proceedings finalized without effecting proper service of notice are invalid and liable to be quashed. The Tribunal concluded that since no proper service of notice under Section 148(1) was effected on the assessee, the reassessment proceedings were liable to be quashed. The assessee's appeals were allowed, and the revenue's appeals were dismissed as infructuous.
The Tribunal held that the assessment order passed under Section 143(3) read with Section 153C was invalid because the AO failed to record the mandatory satisfaction note as required by law. This failure vitiates the entire assessment.
The Tribunal upheld the CIT(A)'s decision, agreeing that a provisional allotment letter is acceptable for claiming deduction under Section 54 and that completion of construction is not a prerequisite. The Tribunal also upheld the CIT(A)'s decision regarding the determination of Annual Letting Value (ALV) for house property income, stating the AO failed to provide contrary evidence.
The Tribunal held that the date of the allotment letter, where full consideration was paid and specific rights were acquired, should be considered the date of acquisition for capital gains. Consequently, the gain was treated as LTCG, and the exemption under Section 54F was allowed.
The Tribunal held that the VAT payments pertaining to earlier years, paid during the assessment year in question and not claimed in prior years, were allowable as business expenditure. The Tribunal also confirmed that payments made before the due date of filing the return of income for earlier years were allowable under Section 43B.
The Tribunal upheld the CIT(A)'s decision to delete the addition. The Tribunal noted that the assessee had offered the F&O profits for taxation and that the AO did not share the broker's reply or the Pr. DIT's information with the assessee, nor did it provide an opportunity to counter them.
The Tribunal restored both issues (ALV of unsold units and interest expenditure) back to the Assessing Officer for de novo assessment. This was due to the CIT(A) not providing sufficient findings and the need to re-examine facts and evidence in light of previous tribunal orders.
The Tribunal upheld the CIT(A)'s order, stating that the assessee's conduct in considering the date of obtaining NOC from the Ministry of Civil Aviation as the commencement of business was bona fide. It was held that a mere disallowance of expenditure does not automatically lead to a penalty for concealment or furnishing inaccurate particulars.
The Tribunal held that while the assessee failed to conclusively substantiate the delivery of material, the addition should account for the profit element. The Tribunal restricted the addition to 3% of the alleged bogus purchases, considering the net profit rate already declared by the assessee.
The Tribunal held that the management fee received by the assessee is in the nature of business profit, not fees for technical services. However, it directed the Assessing Officer to examine the assessee's claim of no PE in India before determining taxability.
The Tribunal held that the higher tax rate for foreign companies is not discriminatory due to an Explanation in Section 90 of the Income Tax Act. However, it ruled that data processing fees paid to the Singapore branch are not taxable in India, following previous decisions in the assessee's own case.
The Tribunal held that interest income from FDs should be treated as business income, not income from other sources, and allowed deduction of related interest expenses. It also held that advances to a sister concern were in the normal course of business and that rental income from property under development should be treated as business income.
The Tribunal reduced the addition for bogus purchases to 3% of the alleged amount, considering the low-margin nature of the business and the profit reflected. The ad-hoc disallowance of petty cash expenses was upheld.
The Tribunal dismissed the revenue's appeals as the tax effect was below the monetary limit. The Tribunal also dismissed the assessee's cross-objections as they were not pressed.
The Tribunal held that the balance 50% of additional depreciation disallowed in the preceding year due to use for less than 180 days should be allowed in the subsequent year. This decision was based on judicial precedents and the intent of the legislation.
The Tribunal held that the TPO failed to follow prescribed methods for determining the arm's length price and did not provide valid reasons to reject the assessee's benchmarking. The Tribunal also noted the consistency in accepting similar benchmarking in subsequent years.
The Tribunal held that the AO had made a complete inquiry and taken a possible view by disallowing only 3% of the impugned purchases. The PCIT's revision order was deemed invalid as the AO's decision was not legally unsustainable or incorrect.
The Tribunal held that determining whether these fees were capital or revenue required a detailed analysis of the bank's bye-laws, membership rights, and refund policies. The matter was restored to the Assessing Officer for fresh adjudication.
The Tribunal held that the issue of excess purchases needed verification by the AO. For unreconciled entries, the Tribunal noted the CIT(A) had dismissed the appeal, but the assessee argued it was an advance received for unexecuted work. The Tribunal also reversed the disallowance of rent paid for director-owned premises.
The Tribunal held that the denial of legitimate business expenditure solely based on the absence of business income is fallacious. It also noted that the assessee's argument regarding non-receipt of interest income was weakened by TDS deductions. Both issues were remitted back to the CIT(A) for re-adjudication.
The Tribunal upheld the CIT(A)'s order, finding that the additions for unexplained cash deposits and credits were justified. The penalty levied under Section 271(1)(c) for concealment of income was also confirmed.
The Tribunal held that the penalty notice under Section 274 read with Section 271(1)(c) was defective as it did not strike off the irrelevant limb, failing to specify the exact charge. This jurisdictional defect rendered the penalty order invalid.
The Tribunal held that no expenses should be allocated towards investment income if the investments are made out of own funds, following previous decisions. Similarly, contributions to the school and prior period expenses were allowed based on prior rulings in the assessee's own case.
The Tribunal held that determining whether these fees were capital or revenue required a detailed analysis of the bank's bye-laws, membership rights, and refund policies. The matter was restored to the Assessing Officer for fresh adjudication.
The Tribunal held that the notice issued under Section 274 of the Act, which did not strike off inappropriate clauses, and the subsequent penalty levied on different charges (concealment and inaccurate particulars) without clarity, rendered the penalty bad in law. The Tribunal followed the ratio of the Bombay High Court in the Samson Perinchery case.
The Tribunal held that the CIT(A) erred in deleting the additions without independent application of mind and without addressing the AO's comments. The matter was set aside to the AO for fresh assessment (denovo).
The Tribunal held that the source of funds for purchasing the new residential property is irrelevant for claiming deduction under Section 54, as long as the purchase is made within the stipulated period. The gift received from the husband and invested in the new property qualifies for the deduction.
The Tribunal held that the CIT(A) erred in deleting the additions without independent application of mind and without addressing the AO's comments. The matter was set aside to the AO for fresh assessment (denovo).
The Tribunal held that the Revenue's appeal was covered by the CBDT circular which stipulated a monetary limit of ₹ 20 lacs for filing appeals. As the tax effect was below this limit and no exception applied, the appeal was dismissed.
The Tribunal held that the AO's allowance of deduction for unrealized mark-to-market gains was incorrect, as per mandatory accounting standards and Supreme Court decisions. The CIT rightly invoked Section 263, and the assessment order was erroneous and prejudicial to revenue.
The Tribunal held that Section 14A of the Income Tax Act applies only when there is actual receipt of exempt income. Since the assessee had not earned any exempt income, no disallowance was warranted.
The Tribunal held that the CIT(A) erred in deleting the additions without independent application of mind and without addressing the AO's comments. The matter was set aside to the AO for fresh assessment (denovo).
The Tribunal found that the facts were not clear and the transaction was under litigation. Therefore, the matter was restored to the AO to ascertain the correct facts regarding the litigation status, the assessee's share, and the cost of acquisition for indexation.
The Tribunal set aside the order of the CIT(Exemption) and remanded the issue of registration back for fresh consideration. The CIT(Exemption) was directed to consider all material and evidence, including the latest ITR, and grant an adequate opportunity of being heard.
The Tribunal held that the period of vacation should be excluded and multiple counting of employee days is impermissible. Consequently, the aggregate stay of employees in India was found to be 87 days, thus no PE existed.
The Tribunal allowed the claim for gift and sales promotion expenses, holding that the prohibition on medical practitioners accepting gifts did not apply to pharmaceutical companies and the CBDT circular was not retrospective. It also allowed deduction on scrap sales, directing the AO to include the turnover of both 10B and 80IB units. The transfer pricing issue regarding corporate guarantee was partly allowed, directing the AO to determine ALP at 0.5%.
The Tribunal found that the CIT(A) had not recorded findings on whether notices were served and that the appeal was dismissed ex-parte without a proper hearing. The Tribunal set aside the CIT(A) order and restored the matter for a fresh hearing.
The Tribunal confirmed the order of the CIT(A) and dismissed the appeal of the Revenue. The disallowance deleted by the CIT(A) was not disputed by the AO, and the Tribunal found that the CIT(A) had rightly deleted the addition.
The Tribunal held that the subscription fee was for access to copyrighted material, not for the use of the copyright itself, and thus not royalty. It also found no evidence of technical services being provided.
The Tribunal held that the assessee had maintained sufficient information and explained the difficulties in providing segment-wise details for the CUP method. Since the TPO ultimately accepted the assessee's benchmarking and no adjustment was made, the penalty under Section 271G was unsustainable.
The Tribunal held that the land was indeed agricultural land and the assessee was eligible for deduction under Section 54B. The CIT(A)'s denial of the deduction was reversed.
The Tribunal directed the Assessing Officer to verify the receipt from Sociedade based on the new Form 26AS, which showed a lower amount. The assessee agreed to the addition for Prima Minerals, and interest income was already offered for taxation.
The Tribunal held that the Assessing Officer did not provide valid reasons to reject the assessee's disallowance computation. The additional disallowance made mechanically under Rule 8D(2) was unsustainable, especially in light of previous Tribunal decisions in the assessee's own case.
The Tribunal held that the AO had taken a permissible view regarding the provision for leave encashment, especially considering subsequent Supreme Court orders and ITAT/DRP precedents. Regarding income tax paid in Spain, the Tribunal found that only specific taxes listed in Explanation 2 to Section 115JB are to be added back, and foreign taxes are not included.
The Tribunal restored the issue to the file of the CIT(A) for de novo adjudication, granting the assessee one more opportunity to explain the difference in turnover with supporting evidence. The assessee was directed to cooperate with the proceedings.
The Tribunal held that the CIT wrongly exercised jurisdiction under Section 263 as the assessment order was neither erroneous nor prejudicial to the revenue. The Tribunal found that after excluding auxiliary assets, the value of plant and machinery did not exceed the limit for small-scale industry eligibility.
The Tribunal noted that the CIT(A)'s order was not a speaking order and that similar issues in later assessment years were set aside and remanded. Both parties agreed to restore the matter to the AO.
The Tribunal held that Section 14A cannot be invoked when no exempt income is earned. Since the dividend income from a cooperative bank was taxable, there was no exempt income, and thus no disallowance under Section 14A was warranted.
The Tribunal upheld the CIT(A)'s deletion of the addition, finding that the assessee had provided sufficient evidence of genuine purchases. The supplier had confirmed the transaction and receipt of payment, and the assessee had realized income from reselling the licenses.