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457 orders · Page 6 of 10
The Tribunal held that the AMP expenditure incurred by the assessee for its own products manufactured and sold in India, paid to third parties in India, does not constitute an international transaction unless an arrangement with the AE for brand promotion is demonstrated. The Tribunal also noted that the BLT method for determining arm's length price of AMP expenditure is no longer considered valid.
The Tribunal upheld the CIT(A)'s order, restricting the disallowance under Section 14A to the extent of exempt income earned. This decision followed the precedent set by the Bombay High Court in a similar case.
The Tribunal upheld the CIT(A)'s direction to compute disallowance under Section 14A r/w Rule 8D(2)(iii) by considering only investments that yielded exempt income. The Revenue's appeal was also dismissed due to low tax effect.
The Tribunal held that the disallowance under Section 14A should be restricted to the extent of exempt income earned by the assessee. This decision was based on previous judgments of the Bombay High Court and the Tribunal itself.
The Tribunal held that Section 56(2)(v) of the Act, as it stood for AY 2006-07, taxed 'any sum of money' received without consideration, not the right to receive a property. The amendment to tax the value of property received without consideration was effective from a later date. Therefore, the AO's action was beyond jurisdiction.
The Tribunal held that the disallowance under Section 14A should be restricted to the extent of exempt income earned by the assessee. This decision was based on the Bombay High Court's ruling in the case of Balapur Industries.
The Tribunal held that the penalties paid by the assessee for carrying passengers without proper documentation were not deductible as business expenditure. The Tribunal followed its earlier decisions and confirmed the disallowance.
The Tribunal held that the development charges paid by the assessee were revenue in nature, as they facilitated the business operations without creating an enduring asset. Therefore, these charges were allowable as a deduction.
The Tribunal followed the jurisdictional High Court's decision in Pr. CIT vs. M/s Mohammad Haji Adam & Company, directing the AO to restrict the addition to the extent of bringing the Gross Profit (GP) rate on purchases to the same rate as other genuine purchases.
The Tribunal held that the exemption under Section 54EC is available even if the investment spans across two financial years, provided it is made within six months of the property transfer. The restriction of Rs. 50,00,000 per financial year was clarified by subsequent amendments effective from April 1, 2015.
The Tribunal upheld the CIT(A)'s decision, stating that the disallowances were subject to regular appeal and not rectification under Section 154. Therefore, the assessee's appeal was dismissed.
The Tribunal held that penalty cannot be levied solely on the basis of estimated additions to income, especially when the quantum additions themselves were disputed or deleted in prior proceedings. The Tribunal relied on its own previous orders and High Court judgments.
The Tribunal upheld the CIT(A)'s order, stating that disallowance under Section 14A can only be made to the extent of exempt income earned. Furthermore, the Tribunal held that Section 14A read with Rule 8D does not apply when computing book profit under Section 115JB.
The Tribunal noted that the CIT(A) had not gone into the merits of each party's reconciliation. Since the assessee provided complete details before the Tribunal, the issue was set aside to the CIT(A) for fresh adjudication.
The Tribunal held that the CIT(A) rightly adjudicated the issue in favor of the assessee. The income from composite letting out of furnished flats with services is chargeable to tax under the head 'Income from Business'.
The Tribunal held that the Assessing Officer had not made proper inquiries into the dubious high seas transactions and the substantial losses claimed by the assessee. The CIT's order setting aside the assessment and directing a fresh inquiry was upheld.
The Tribunal dismissed the issue of foreign travel expenses as not pressed. It upheld the disallowance of expenses incurred towards the transfer of office premises. However, it allowed the set-off of brought forward business losses against short-term capital gains.
The Tribunal held that the reopening of assessment was bad in law as it was based on a change of opinion and not on any new material. The AO's belief that income had escaped assessment was found to be extraneous.
The Tribunal held that the carry forward of deficit for charitable trusts is permissible, relying on jurisdictional High Court and Supreme Court decisions. The Tribunal found no merit in the Revenue's grounds of appeal.
The Tribunal held that the profit on the sale of shares should be treated as Short Term Capital Gain, following a coordinate bench's decision in the assessee's own case and the CBDT circular.
The Tribunal held that the penalties paid by the assessee for carrying passengers without proper documentation were not deductible as business expenditure. The Tribunal followed its earlier decisions and confirmed the disallowance.
The Tribunal restricted the disallowance of expenses related to exempt income to the extent of exempt income earned. It allowed the deduction for commission expenses, holding it was not hit by Section 37(1). However, the addition for unexplained gift was confirmed.
The Tribunal held that the disallowance under Section 14A read with Rule 8D should be restricted to the amount voluntarily disallowed by the assessee. This decision followed previous Tribunal rulings and High Court decisions on identical facts.
The Tribunal held that the sale of scrap was generated from an eligible project and should be treated as business income eligible for deduction under Section 80-IB(10). The AO's rejection of the claim was based on a mistake apparent from the record.
The Tribunal held that the reversal of regional office expenses should be considered when computing the profit margins for the subsequent assessment year. It also noted that the assessee had offered the recovered amount plus mark-up to tax in the earlier year. Therefore, the disallowance of the regional office expenses was deleted.
The Tribunal held that since the issue was debatable and the High Court had admitted the appeal, the assessee's claim was bona fide. Therefore, penalty under Section 271(1)(c) could not be levied.
The Tribunal set aside the CIT(A)'s order and restored the issue to the AO for fresh examination. This was based on a Supreme Court decision that remitted a similar issue for de novo examination.
The Tribunal noted that the CIT(A) followed a methodology upheld in a prior year's appeal. However, to address the Revenue's concern about auditor scrutiny of segmental results, the matter was remitted back to the TPO/AO for verification.
The Tribunal held that the assessee had disclosed all relevant facts and the claim was made in bonafide belief. Merely because a claim is not accepted by the AO does not automatically attract penalty.
The Tribunal condoned the delay for one appeal (ITA No. 2062/Mby/2017) but dismissed it as the assessee had withdrawn the earlier appeal before the CIT(A) on wrong advice. For the other appeal (ITA No. 2063/Mby/2017), the delay was condoned on payment of costs, and the matter was remanded to the CIT(A) for fresh adjudication.
The Tribunal condoned the delay for one appeal (ITA No. 2062/Mby/2017) but dismissed it as the assessee had withdrawn the earlier appeal before the CIT(A) on wrong advice. For the other appeal (ITA No. 2063/Mby/2017), the delay was condoned on payment of costs, and the matter was remanded to the CIT(A) for fresh adjudication.
The Tribunal held that the CIT(A) erred in dismissing the appeal without adjudicating on merits, as appellate authorities have the jurisdiction to consider additional claims. The matter was remanded to the Assessing Officer for fresh consideration on merits.
The Tribunal found merit in the assessee's contention that they were not provided with an opportunity to cross-examine the person whose statement formed the basis of the AO's decision. The order of the CIT(A) was set aside.
The Tribunal held that the assessee's activities of converting carcasses into meat and various by-products constitute manufacturing or production. Therefore, the assessee is entitled to deduction under Section 80IB and additional depreciation.
The Tribunal allowed credit for Rs. 4.00 lakhs towards the sale of jewellery, considering human probabilities and the discrepancy in the declared sale consideration of a flat. The remaining claims were rejected due to lack of evidence.
The Tribunal held that interest income earned by a cooperative society on its investments with cooperative banks is eligible for deduction under Section 80P(2)(a)(i) as it pertains to the business of providing credit facilities. The Pr. CIT wrongly exercised revisional jurisdiction.
The Tribunal held that the AO failed to substantiate the information received and wrongly placed the burden of proof on the assessee to prove a negative fact. Since both parties denied the transaction, the addition was not justified.
The Tribunal held that since the purchase and sale of shares were conducted through stock exchanges via different brokers, and the AO failed to establish the assessee's involvement in price rigging or fraudulent activities, the capital gains claim could not be doubted.
The Tribunal held that the assessee had discharged its onus by providing all necessary documents to establish the identity, creditworthiness, and genuineness of the transactions. Amendments to Section 68 and Section 56(vii) were prospective and not applicable to the assessment years in question.
The Tribunal found that the assessee needed a further opportunity to explain the sources of cash, deposits, and the claim of gifts. The case was restored to the Assessing Officer for fresh examination.
The Tribunal held that interest income earned by a cooperative society on its investments with cooperative banks is eligible for deduction under Section 80P(2)(a)(i) as it pertains to the business of providing credit facilities. The Pr. CIT wrongly exercised revisional jurisdiction.
The Tribunal held that the interest paid was deductible under Section 57(iii) of the Income Tax Act. Following the jurisdictional High Court's decision in Pruthvi Brokers & Shareholders, the Tribunal ruled that appellate authorities can entertain such claims even if not made through a valid revised return.
The Tribunal held that the assessee commenced operations within the eligible period and that the requirement to create a re-investment reserve applies from the 11th year onwards, not the 6th and 8th years in question. Compliance with conditions is presumed by the renewal of approval by the Development Commissioner.
The Tribunal held that the addition was not sustainable as the assessee was not provided with copies of the evidence and an opportunity to cross-examine the witness, violating the principles of natural justice. The Tribunal followed previous decisions of the Supreme Court and its own coordinate bench.
The Tribunal found merit in the assessees' contention that only the net gain from share transactions should be taxed, as payments and receipts were through banking channels. The AO was directed to assess the net gain as income from other sources.
The Tribunal found merit in the assessees' contention that only the net gain from share transactions should be taxed, as payments and receipts were through banking channels. The AO was directed to assess the net gain as income from other sources.
The Tribunal held that the tax effect of the disputed addition was below the threshold limit of Rs. 20 Lacs as per CBDT Circular No. 03/2018. Therefore, the appeal was not maintainable.
The Tribunal held that the CIT's revision order under Section 263 was invalid because the subject matter of the revision had already been considered and decided in the assessee's appeal before the CIT(A), leading to a merger of the assessment order with the appellate order.
The Tribunal upheld the CIT(A)'s decision to quash the reassessment proceedings. The Tribunal found that the reopening was based on incorrect facts, a change of opinion, and failed to meet the conditions for reopening beyond four years.