ITAT Mumbai Judgments — July 2019

The Tribunal condoned the one-day delay in filing the appeal. It accepted the assessee's explanation of miscommunication and found it to be a reasonable cause under Section 273B, leading to the deletion of the penalty.

The Tribunal held that when sales are not doubted, 100% disallowance for bogus purchases cannot be made. The addition should be limited to the extent of bringing the gross profit rate on such purchases to the same rate as other genuine purchases.

The Tribunal admitted additional evidence filed by the assessee and set aside the matter to the Assessing Officer for fresh adjudication. The AO was directed to consider the new evidence, make necessary inquiries, and provide an opportunity of hearing to the assessee.

The Tribunal held that for the purpose of computing interest under Section 201(1A)(ii) of the Income-tax Act, 1961, a 'month' should be interpreted as a period of 30 days, not a British calendar month. The matter was remanded to the AO for recomputation.

The Tribunal held that the assessee is a primary cooperative credit society and not a cooperative bank, hence Section 80P(4) is not applicable. The assessee is eligible for deduction under Section 80P(2)(a)(i).

The Tribunal allowed the deduction for unutilised Modvat credit, finding it does not impact profit. It partly allowed the appeal regarding Section 80HHC deduction, allowing income from services, property development, and scrap to be included in profits, but affirming the exclusion of royalty income.

The Tribunal held that the CIT(A) erred in dismissing the appeal for non-prosecution and should have decided the case on merits. The matter was remitted back to the CIT(A) for fresh consideration.