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401 orders · Page 7 of 9
The Tribunal held that while entire disallowance of purchases might not be justified, an estimation to account for the profit element in such transactions is appropriate. The estimation of 20% by the CIT(A) was considered fair and reasonable.
The Tribunal held that while the assessee had primary purchase documents and made payments through banking channels, the failure to substantiate delivery and produce suppliers meant the onus was not discharged. Therefore, an addition representing the profit element in the bogus purchases was justified.
The Tribunal held that while the assessee failed to substantiate the purchases, disallowing the entire amount was not justified. The CIT(A)'s approach of estimating the profit element was upheld, considering the sales were not disputed and payments were through banking channels.
The Tribunal held that disallowing the entire purchases was not justified as the assessee's sales turnover was not disputed. However, the assessee failed to provide evidence for the purchases, so a profit element was rightly estimated.
The Tribunal held that while the purchases were not genuine, the addition should be restricted to the profit element embedded in these transactions. The estimation of 12.5% of disputed purchases by the CIT(A) was considered fair and reasonable.
The Tribunal held that neither the assessee nor the AO had conclusively proved their case. Following judicial precedents, it directed the AO to estimate a profit element of 12.50% on the alleged bogus purchases instead of the full addition.
The Tribunal noted that the tax effect was below the monetary limit for filing appeals. The Revenue was granted liberty to point out exceptions, but the appeal was dismissed as withdrawn.
The Tribunal held that the assessee's claim for deduction of expenditure on facilities with ownership lying with others was capital in nature. It also confirmed additions made under Section 14A. However, the Tribunal allowed interest on self-assessment tax and interest on TDS from the beginning of the assessment year, affirming the CIT(A)'s order in these respects.
The Tribunal upheld the disallowance of interest expenses. It found the assessee's claim to be self-serving and not bonafide, noting a pattern of claiming lost documents due to fire. The Tribunal concluded that funds were diverted without benefit, making the interest expenditure not allowable as a business expense.
The Tribunal remanded the issue of head office expense allocation to the AO for fresh adjudication. It upheld the exclusion of certain companies as comparables and the grant of working capital adjustment, dismissing the Revenue's grounds.
The Tribunal held that the previous order contained a factual error in its concluding paragraph. The cross-objection of the assessee was allowed, not dismissed.
The Tribunal noted that the tax effect of the quantum additions contested by the Revenue was below the monetary limit prescribed by CBDT Circular No. 17/2019. Therefore, the appeal was not maintainable.
The Tribunal restored the issue of disallowance under Section 14A to the Assessing Officer for fresh adjudication, following its own previous orders. The issue of book profit computation under Section 115JB was also restored to the AO for fresh computation.
The Tribunal upheld the CIT(A)'s decision to restrict the disallowance to Rs. 6.21 Lacs, representing approximately 29% of the alleged bogus purchases. This was based on estimating the profit element embedded in the transactions by applying the Gross Profit Rate of a non-hawala year to the turnover.
The Tribunal held that the rate of interest paid to relatives at 18% was reasonable, considering the circumstances. The Tribunal set aside the orders of the lower authorities and deleted the addition.
The Tribunal directed the Assessing Officer to restrict the addition for bogus purchases to the extent of bringing the Gross Profit (GP) rate on such purchases to the same level as on other genuine purchases. This was in line with a jurisdictional High Court decision.
The Tribunal directed the Assessing Officer to restrict the disallowance of bogus purchases by ensuring the Gross Profit rate on such purchases matches the rate on genuine purchases. The revenue's appeal regarding the deletion of addition for purchases from C.R. Enterprises was dismissed.
The Tribunal dismissed the appeal filed by the Revenue. It held that the appeal was not maintainable in view of the CBDT circulars enhancing the monetary limits for filing appeals.
The Tribunal held that while the reopening was valid, the entire purchases could not be disallowed. They estimated the profit element embedded in the bogus purchases at 25% and allowed the balance addition to be deleted.
The Tribunal permitted the assessee to withdraw the appeals. The appeals were accordingly dismissed as withdrawn.
The Tribunal found that neither the Assessing Officer nor the CIT(A) had adequately examined the parameters for a payment to be considered a reimbursement. Crucial documents were also not fully filed by the assessee. Therefore, the matter was restored to the AO for a fresh assessment.
The Tribunal found that neither the Assessing Officer nor the CIT(A) had properly examined the details of expenses and advances. Therefore, the orders of the lower authorities were set aside.
The Tribunal found that neither the Assessing Officer nor the CIT(A) had properly examined the details of expenses and advances. Therefore, the orders of the lower authorities were set aside.
The Tribunal found that neither the Assessing Officer nor the CIT(A) had properly examined the details of expenses and advances. Therefore, the orders of the lower authorities were set aside.
The Tribunal held that since the purchased materials were consumed in the manufacturing process and the finished goods were sold, only the profit element of the alleged bogus purchases should be taxed. The Tribunal directed the AO to tax 12.5% profit on these purchases.
The Tribunal held that the AO had made inquiries into the transfer of shares and taken a possible view, thus the order was not erroneous. Therefore, the revision proceedings under Section 263 were not justified.
The Tribunal held that LIBOR rates were appropriate for benchmarking interest on foreign currency loans to AEs, reversing the TPO's adjustment. It also ruled that Section 14A disallowances are not applicable when there is no exempt income and allowed deductions under Sections 10A/10AA without setting off losses from non-eligible units.
The Tribunal dismissed the revenue's appeal as not maintainable due to low tax effect. The assessee's appeal was also dismissed as the Tribunal found no reason to differ from the CIT(A)'s order.
The Tribunal held that the AO's disallowance was not justified. It noted that for most parties, the closing balance of advances was lower than the opening balance, and for one party, sufficient own funds were available. Furthermore, the Tribunal considered the consistency of treatment in previous years.
The Tribunal held that the AO and DRP erred in rejecting the books of account without proper consideration of evidence. The matter was remanded back to the AO for fresh adjudication based on the books of account.
The Tribunal upheld the CIT(A)'s decision, finding that the 7% profit addition was a uniform rate applied to group concerns and that the deletion of defect liability provisions was justified due to consistent accounting practices and lack of adverse findings in prior years.
The Tribunal held that since the sales declared by the assessee were accepted, only the profit element on the disputed purchases should be added. The Tribunal consistently holds that an addition of 12.5% profit on disputed purchases meets the ends of justice.
The Tribunal held that the AO and DRP erred in rejecting the books of account without proper consideration of evidence. The matter was remanded back to the AO for fresh adjudication based on the books of account.
The Tribunal held that the transaction did not attract Section 28(iv) of the Act as the assessee received money on transfer of business, not a benefit or perquisite other than money. The lower authorities' findings were reversed.
The Tribunal held that the same income cannot be taxed twice and that the revenue cannot benefit from an assessee's inadvertent mistake. It allowed the assessee to claim exclusion of the mistakenly included income from earlier years.
The Tribunal dismissed the appeal regarding the depreciation claim, agreeing that civil works in the hospitality business are not 'plant & machinery'. However, the Tribunal restored the issue of brought forward loss for book profit computation to the Assessing Officer for verification.
The Tribunal held that the revenue cannot disallow expenditure on one hand and tax the income from recoveries on the other, as this leads to double jeopardy. The assessee had recovered the expenses with a markup, and this was offered to tax.
The Tribunal found that the AO proceeded on incorrect assumptions of fact regarding the utilization of borrowed funds. The CIT(A) had accepted the investment in share application money as for business purposes.
The Tribunal noted that the difference in the Arm's Length Price (ALP) in the trading segment, as per the TPO's remand report, was within the +/- 5% safe harbor. Therefore, no transfer pricing adjustment was warranted for that segment.
The Tribunal held that no disallowance of interest under Rule 8D(2)(ii) could be made as the assessee had sufficient own funds. For administrative expenses under Rule 8D(2)(iii), only dividend-bearing investments should be considered, and the disallowance was less than the suo moto disallowance made by the assessee.
The Tribunal held that the disallowance under Section 14A cannot exceed the exempt income earned. Therefore, the disallowance was restricted to the actual exempt income.
The Tribunal held that the advances were in the nature of trade advances and commercial transactions, not loans or advances within the meaning of Section 2(22)(e). Therefore, the provisions of deemed dividend could not be invoked.
The Tribunal held that the assessee's appeal is partly allowed for statistical purposes. The Tribunal noted that for registration of a trust, only the genuineness of the trust needs to be examined. The Tribunal found that the Trust is genuine, having been registered for a long time. However, due to amendments in its objects on December 28, 2017, certain details were not filed before the CIT(Exemptions). Therefore, the Tribunal remanded the matter back to the file of the CIT(Exemptions) to re-examine the amended objects and verify them. If the amended clauses of the Trust are found to be genuine, the CIT(Exemptions) should register the trust. The Tribunal also clarified that any issue regarding exemption under Section 11 being hit by any provisions is a matter of assessment, not registration. The ratio decidendi is that when a trust has a long-standing registration and its activities are demonstrably charitable, even if there are procedural lapses in filing amended object details, the matter should be remanded for proper verification rather than outright rejection of registration, especially when the amended objects are genuine and align with charitable purposes.
The Tribunal held that the AO had made proper inquiries and taken a conscious decision based on the assessee's past and subsequent conduct, as well as the director's statement. The revisionary jurisdiction under Section 263 was not justified as the AO's order was not erroneous.
The Tribunal held that the AO had conducted proper inquiries and applied his mind to the facts, making the assessment order neither erroneous nor prejudicial to the interest of the revenue. Therefore, the revision order passed by the PCIT was quashed.
The Tribunal held that income accrues only when there is a corresponding liability of the other party to pay, and hypothetical income is not taxable. The CIT(A) rightly deleted the addition of the unreceived amount.
The Tribunal dismissed the grounds related to the disallowance of the write-off of advances to the subsidiary, finding no illegality in the lower authorities' orders. However, the grounds concerning the addition of interest income were allowed for statistical purposes, with a direction to the AO to verify if the income was offered in the subsequent year.
The Tribunal held that the TPO erred in determining the ALP at NIL without resorting to any prescribed methods under the Income Tax Act. The Tribunal noted that similar payments were accepted in preceding and subsequent assessment years.
The Tribunal found that the CIT(A) had granted multiple opportunities, but the assessee failed to appear. To ensure natural justice, the appeal was remanded to the CIT(A) for a fresh adjudication on merits.