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433 orders · Page 7 of 9
The Tribunal held that since the assessee consistently treated shares as stock-in-trade and offered gains/losses as business income, the loss on valuation of closing stock should also be treated as a business loss. The Tribunal also upheld the deletion of disallowance under Section 14A as no exempt income was earned.
The Tribunal agreed that the tax effect was below the monetary limit specified by the CBDT. Consequently, the revenue's appeal was dismissed.
The Tribunal held that Section 14A disallowance was not applicable as no exempt income was derived. It also upheld the deletion of depreciation disallowance based on earlier years' orders. Finally, it allowed the write-off of advances as a business loss under Section 28.
The Tribunal held that three comparables previously accepted in the assessee's own case for an earlier assessment year should be included. The Tribunal directed the Assessing Officer/TPO to re-determine the Arm's Length Price (ALP) afresh by including these comparables.
The Tribunal held that the assessee had provided details of deductors and that the non-furnishing of TDS certificates was not a valid reason to deny credit, especially when the tax was deducted at source. The Tribunal followed the Bombay High Court's decision in Yashpal Sahni.
The Tribunal held that a 100% disallowance for bogus purchases is not justified when sales are not doubted, as sales are impossible without purchases. Following its own precedent in the assessee's own case for a prior year, the disallowance was restricted to 5% of the bogus purchases.
The Tribunal held that the CIT(A) should not dismiss an appeal for not being filed in electronic mode without considering the merits. The appeal was set aside to the CIT(A) for fresh adjudication.
The Tribunal held that when sales are not doubted, a 100% disallowance for bogus purchases is not justified. The profit element in such purchases should be limited to the gross profit rate of genuine purchases.
The Tribunal held that 100% disallowance for bogus purchases is not permissible when sales are not doubted. However, considering purchases were made from the grey market, a 12.5% disallowance was deemed just. The disallowance was further reduced by the gross profit rate already declared by the assessee to avoid double jeopardy.
The Tribunal held that the agent, Freight Connection India Pvt. Ltd., was an independent agent and did not constitute an agency PE. Furthermore, the assessee did not have a fixed place PE in India. Consequently, the business profits were not chargeable to Indian tax.
The Tribunal held that while the assessee failed to confirm the transactions, the addition should account for the profit element embedded in the purchases. The addition was rightly restricted to 12.5% of the disputed purchases.
The Tribunal held that while the assessee failed to substantiate purchases, the profit element embedded in these transactions should be accounted for. The method of estimating profit based on a subsequent year's GP rate was deemed incorrect.
The Tribunal dismissed the revenue's appeal due to low tax effect. For the assessee's appeal, it confirmed the disallowance of loan write-back and bad debts, but allowed the ground related to book profits under Section 115JB, directing the AO to recompute based on a Special Bench decision. Interest under Section 234B was consequential.
The Tribunal found that the tax effect in both appeals was below the monetary limit specified by CBDT Circular No. 17/2019. Therefore, the appeals were dismissed as not maintainable.
The Tribunal upheld the decision of the CIT(A) to restrict the addition to 12.5% of the bogus purchases, considering the assessee's business nature and the fact that payments were made through banking channels. The Tribunal distinguished the Apex Court decision relied upon by the Revenue.
The Tribunal held that the expenses incurred by the group company were not allowable as they were not booked in the relevant assessment years and were considered an afterthought. However, the disallowance of expenses related to the Talab Project was partly upheld, and the matter of calculating disallowance under Section 14A was restored to the AO.
The Tribunal held that the interest paid to related parties at 18% was not excessive or unreasonable, especially since interest paid to unrelated parties ranged between 15% to 18%. Therefore, the addition made on account of interest was deleted.
The Tribunal held that the expenses incurred were exclusively for the Future and Option business and not relatable to earning exempt income. Therefore, the disallowance made under Section 14A was not sustainable.
The Tribunal upheld the CIT(A)'s decision to delete the addition, finding that the assessee had provided sufficient evidence to prove the identity, creditworthiness, and genuineness of the investors. The AO had not conducted independent investigations to controvert the assessee's submissions.
The Tribunal agreed with the contentions of the Departmental Representative that the appeal should be dismissed as withdrawn due to the low tax effect. The Revenue was granted liberty to seek recall if exceptions applied.
The Tribunal held that the assessee had sufficiently complied with the requirements of Rule 10D and that the AO failed to point out specific missing documents. Therefore, penalty under Section 271G could not be levied.
The Tribunal upheld the CIT(A)'s decision to restrict the addition to 12.5% of the bogus purchases, considering it as the profit element. The Tribunal distinguished the Apex Court decision relied upon by the Revenue.
The Tribunal upheld the CIT(A)'s decision to restrict additions to the profit element (12.5%) of the bogus purchases, considering the assessee's business nature and banking transactions. The Tribunal distinguished the Apex Court decision relied upon by the Revenue.
The Tribunal upheld the CIT(A)'s decision to restrict the addition to 12.5% of the bogus purchases, considering the profit element embedded in such transactions. The Tribunal distinguished the case from the Apex Court decision relied upon by the Revenue.
The Tribunal upheld the reopening of assessment but reduced the addition on account of bogus purchases to 5% of the suspicious purchases, considering the low-margin nature of the assessee's business. The legal grounds challenging the reopening were dismissed.
The Tribunal upheld the CIT(A)'s decision to restrict the addition to 12.5% of the bogus purchases, considering the assessee's business nature and the fact that sales turnover was not disputed. The Tribunal distinguished the N.K. Protein Ltd. case based on High Court decisions.
The Tribunal upheld the decision of the CIT(A) to restrict the addition to 12.5% of the bogus purchases, considering that the assessee had some primary purchase documents and made payments through banking channels, and the sales turnover was not disputed.
The Tribunal held that while the assessee failed to substantiate the purchases, the addition should be restricted to the profit element embedded in such transactions, as done by the lower appellate authority. The Tribunal concurred with the estimation based on the Gross Profit Rate.
The Tribunal held that the assessee had sufficiently complied with the requirements of Rule 10D and that the AO failed to point out specific missing documents. Therefore, penalty under Section 271G could not be levied.
The Tribunal upheld the reopening of assessment, finding it valid. However, it reduced the addition for the profit element on suspicious purchases from 12.5% to 5%, considering the nature of the assessee's business.
The Tribunal upheld the CIT(A)'s decision to restrict the addition to 12.5% of the bogus purchases, considering the profit element and the assessee's inability to produce suppliers. The Tribunal distinguished the Apex Court decision relied upon by the Revenue.
The Tribunal dismissed the Revenue's appeal as not maintainable. This decision was based on a CBDT circular directing withdrawal of appeals where the tax effect is below a certain threshold.
The Tribunal deleted the disallowance under Section 14A, presuming investments were made from own funds, but restricted it to Rs. 9,05,594/-. Regarding guarantee commission, the Tribunal directed the AO to determine the addition based on DRP's directions, implying the assessee succeeded on this aspect. For interest charges, the Tribunal upheld LIBOR + 2% for the AE in Dubai and directed the AO to follow the previous year's decision for the AE in China.
The Tribunal held that compensation received for premature termination of a lease agreement, arising from a property, cannot be taxed under 'income from other sources' if it doesn't fit under 'income from house property' or 'capital gains'. Following Supreme Court and Tribunal precedents, such receipts, where the computation mechanism fails under the specific head, are not taxable.
The Tribunal held that 100% disallowance for bogus purchases is not permissible when sales are not doubted, as sales are impossible without purchases. The addition should be limited to the profit element embedded in such purchases, aligning the gross profit rate with genuine purchases.
The Tribunal held that the AO erred in making additions as there was no incriminating material found during the search to prove the assessee was the owner or had beneficial interest in these accounts. The CIT(A) had rightly deleted the additions.
The Tribunal held that a 100% disallowance for bogus purchases is not justified when sales are not doubted, as sales are impossible without actual purchases. The addition for bogus purchases should be limited to the extent of bringing the gross profit rate on such purchases to the same level as other genuine purchases.
The Tribunal held that a 100% disallowance for bogus purchases is not justified when sales are not doubted. However, considering purchases were made from the grey market, a 12.5% disallowance is reasonable. This disallowance was further reduced by the gross profit rate already declared by the assessee on these transactions.
The Tribunal held that it is sufficient if bad debts are written off as irrecoverable in the assessee's books of accounts, relying on the Supreme Court decision in T.R.F Ltd. v. CIT. Therefore, the disallowance made by the lower authorities was not justified.
The Tribunal dismissed the Revenue's appeal as the tax effect was below the monetary limit prescribed by CBDT Circular No. 17/2019. Consequently, the assessee's cross-objection, which supported the CIT(A)'s order, became infructuous.
The Tribunal held that 100% disallowance of bogus purchases is not permissible when sales are not doubted, as sales are impossible without purchases. 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 held that the loss due to misappropriation by a director is an incidental business loss, and the arbitration award arose from the company's business activities. Therefore, both amounts should be allowed as business losses.
The Tribunal held that payments made for the purchase of poultry farming produce to the producer are covered under the exceptions of Rule 6DD(e) of the IT Rules. Therefore, no disallowance under Section 40A(3) was warranted.
The Tribunal held that share premium collected on issue of share capital is not part of 'capital employed' for the purpose of Section 35D, following the Supreme Court decision in Berger Paints India Ltd. The reopening of assessment was also upheld.
The Tribunal directed the AO to recompute the addition for bogus purchases, restricting it to the gross profit on such purchases, as per the Bombay High Court's decision. The entire addition was not to be made.
The Tribunal held that when sales are not doubted, 100% disallowance for bogus purchases is not justified. However, considering purchases were made from the grey market, a 12.5% disallowance was deemed appropriate. This disallowance was further reduced by the gross profit rate already declared by the assessee on these transactions to avoid double jeopardy.
The Tribunal held that the issue of whether payments for software constituted royalty required further examination with additional evidence, leading to a remand. The Tribunal allowed the claim for foreign exchange loss on restatement of trade receivables/payables.
The Tribunal held that when sales are not doubted, a 100% disallowance for bogus purchases is not justified. It modified the disallowance to 12.5% of the bogus purchases, reduced by the gross profit rate already declared by the assessee.
The Tribunal restored one ground of appeal concerning interest on deposits to the Assessing Officer for verification, directing relief if no fresh deposits were made and no disallowance was made in earlier years. Other grounds were either allowed, dismissed, or directed for consequential relief.
The Tribunal dismissed the revenue's appeal due to low tax effect. The assessee's appeal was allowed as the provision for foreseeable losses was written back as income in the subsequent year, adhering to accounting standards.