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481 orders · Page 2 of 10
The Tribunal admitted the additional grounds as they were legal and jurisdictional issues. It held that the assessment orders were passed without proper jurisdiction, quashing the assessments.
The Tribunal held that the assessee's objects were charitable and not hit by the proviso to Section 2(15), allowing exemption under Section 11. It further ruled that the Rs. 150 Crores received was in the nature of a specific grant, capital in nature, and not taxable income.
The Tribunal held that assessment orders passed in the name of a non-existent entity are void ab initio and without jurisdiction. Following the Supreme Court's decision in PCIT vs. Maruthi Suzuki India Ltd., the assessment order was quashed.
The Tribunal held that the issue was squarely in favour of the assessee, who had utilized the rented properties for its business based on a nomination agreement with SISPL. The Tribunal noted that in a previous round, the matter was remitted back to verify if SISPL operated from other premises and if it claimed any part of the expenditure. The assessee had successfully demonstrated these points. However, the Tribunal found that the claimed expenditure required reconciliation and explanation, particularly regarding the space occupied during the first three months of the AY (25008 sq ft) versus the balance period (17448 sq ft), for which no plausible explanation was on record. The Tribunal also noted the assessee's obligation to get appropriate endorsements for change of premises under statutory laws. Therefore, while primarily concurring with the assessee's stand, the matter was remitted back to the AO with directions for the assessee to reconcile figures, provide a plausible explanation for space occupied, and submit documentary evidence. The AO was directed to recompute the total income accordingly. The appeal was allowed for statistical purposes.
The Tribunal held that the reopening of assessment was invalid as it was based on re-examination of existing material without any fresh tangible evidence. Furthermore, the AO made an addition on an issue for which no belief of escapement was formed, while ignoring the issue for which reopening was initiated.
The Tribunal held that the provision for leave encashment is an ascertained liability and should be reduced while computing book profit under Section 115JB. Similarly, provision for wealth tax cannot be added back for book profit computation under Section 115JB.
The Tribunal upheld the CIT(A)'s decision to delete the penalty. It was held that penalty cannot be imposed when income is determined on an estimation basis, as there is no conclusive proof of intent to evade tax.
The Tribunal held that the referral fees paid to the foreign company were not taxable in India as the services were rendered outside India and did not fall under the categories of managerial, technical, or consultancy services. Therefore, no TDS obligation was cast upon the assessee.
The Tribunal held that in cases of bogus purchases where sales are accepted, additions should be restricted to the difference in Gross Profit (GP) rates between genuine and bogus purchases. The AO was directed to re-calculate the addition accordingly.
The Tribunal upheld the CIT(A)'s decision to sustain only a 12.5% disallowance on bogus purchases. It reasoned that a 100% disallowance is not justified when sales are not doubted, but acknowledged that grey market purchases benefit the assessee at the exchequer's expense.
The Tribunal directed that the disallowance should be restricted to 12.5% minus the Gross Profit (GP) already declared by the assessee on such purchases, as the lower authorities had not examined the GP on these specific transactions.
The Tribunal held that disallowance under Section 14A cannot exceed the exempt income earned. Regarding the house property income, the Tribunal found that the assessee's arrangement with the tenant was akin to a business venture, not merely letting out property.
The Tribunal found that the bank statements of both the investor and the assessee showed deposits and withdrawals of identical amounts on the same dates, leaving negligible balances. Relying on the Supreme Court's decision in NRA Iron & Steel (P.) Ltd., the Tribunal held that the genuineness of the transaction needed further verification.
The Tribunal held that the forfeited advance should not be reduced from the WDV of assets for depreciation purposes, as Section 51 applies to capital gains computation and not WDV. The Tribunal also allowed expenses incurred for buy-back of shares as revenue expenditure, following a precedent.
The Tribunal noted that the assessee's quantum appeal for the same assessment year had been restored to the AO for fresh adjudication. Therefore, the penalty appeal, being intrinsically linked, was also restored to the AO for fresh adjudication.
The Tribunal held that lease rentals are allowable expenses and that UPS and batteries are eligible for depreciation at 60% as they are integral to computer systems. The ground regarding UPS as an energy-saving device was not pressed.
The Tribunal held that while a disallowance of 12.5% of bogus purchases could be sustained to tax the profit earned, the GP already declared by the assessee should be reduced accordingly to avoid double jeopardy. Since the declared GP was higher than 12.5%, no further disallowance was warranted.
The Tribunal dismissed the revenue's appeal due to low tax effect. For the assessee's appeal, it held that the assessee failed to prove the nexus between the claimed expenses and the professional receipts or interest income, thus dismissing the appeal.
The Tribunal held that disallowing the entire purchase amount of Rs. 99,936/- was unjustified when the claim in the Profit & Loss Account was only for depreciation. The disallowance should be restricted to the depreciation claimed on the bogus purchases.
The Tribunal held that the CIT(A) was justified in deleting the disallowance made under Section 14A for AY 2010-11, as the assessee had not derived any exempt income during the year. This decision was supported by the Supreme Court's ruling in Maxopp Investments. Regarding the addition of share premium under Section 56(1), the Tribunal found no infirmity in the CIT(A)'s order deleting the addition. The Tribunal relied on judicial precedents, including a coordinate bench decision in Green Infra Ltd., which held that share premium received on issue of equity shares to a holding company, a non-resident entity, or the alleged short-fall between fair market price and issue price, cannot be considered income under the Act. The Tribunal dismissed the revenue's ground on this issue. For AY 2012-13, concerning interest disallowance under Section 36(1)(iii), the Tribunal noted that the assessee had advanced interest-free funds to its subsidiary companies out of commercial expediency. Although the CIT(A) had restricted the disallowance to Rs. 34,24,711/- based on own funds availability, and the assessee had not appealed this restriction, the Tribunal found no reason to interfere with the CIT(A)'s order, as commercial expediency was proven. The revenue's ground was dismissed.
The Tribunal upheld the CIT(A)'s decision to sustain only a 12.5% disallowance on bogus purchases. It reasoned that a 100% disallowance is not justified when sales are not doubted, but acknowledged that grey market purchases benefit the assessee at the exchequer's expense.
The Tribunal dismissed the Revenue's appeals due to low tax effect. The Tribunal condoned the delay in filing the assessee's cross objections and partly allowed them, directing recomputation of OP margins and exclusion of a specific comparable.
The Tribunal noted that the tax effect was less than Rs. 50 lacs as per CBDT Circular No. 17 of 2019. Therefore, the appeal was dismissed as not maintainable.
The Tribunal held that Section 10(38) exempts only the income, not the entire source. Therefore, LTCL from shares, even if the gains are exempt, can be set off against other capital gains. The assessee is entitled to set off the loss and carry forward the unutilized portion.
The Tribunal upheld the decision of the CIT(A) to delete the addition. It relied on earlier ITAT orders in the assessee's own case which held that TDS was not required on such payments.
The Tribunal held that operations in Mumbai and Chandigarh hotels qualified as 'specified business' under Section 35AD, allowing set-off of losses. However, hospitality services provided at IIM Ahmedabad and ISB Hyderabad were not considered 'specified business'.
The Tribunal restored the issue to the file of the CIT(A) for fresh adjudication. The assessee was to be given a fair and reasonable opportunity of hearing.
The Tribunal upheld the CIT(A)'s order, agreeing that the losses should be treated as capital losses. They noted the assessee's consistent treatment of shares as investments and prior tribunal rulings in favor of the assessee.
The Tribunal upheld the reopening of the assessment and confirmed the CIT(A)'s decision to restrict the addition to 3% of the questioned purchases, finding the assessee failed to establish the genuineness of the transactions.
The Tribunal held that the assessee should be given one more opportunity to explain the additional evidence, acknowledging negligence in not appearing before the AO. The appeal was allowed subject to payment of costs.
The Tribunal held that an assessee is not estopped from excluding a comparable company from its TP study if it can establish it's not a valid comparable. It directed the exclusion of Infosys BPO Ltd. as a comparable for benchmarking IT-enabled support services.
The Tribunal held that the expenditure incurred on the director's training was for the betterment of the company and thus incurred wholly and exclusively for business purposes. The Tribunal noted that a similar claim for a prior assessment year was allowed by the CIT(A).
The Tribunal did not entertain additional evidence filed by the assessee for the disallowed expenses. However, to avoid double taxation, it directed the Assessing Officer to remove the sum from the income of the subsequent assessment year.
The Tribunal found sufficient cause for the assessee's non-appearance before the CIT(A). The ex-parte order was set aside, and the matter was restored to the CIT(A)'s file for fresh adjudication after providing due opportunity to the assessee.
The Tribunal held that the interest income earned by the assessee is not taxable in India as the assessee is the beneficial owner as per Article 11(3)(c) of the India-Mauritius Tax Treaty, following its previous decisions in similar cases. The levy of interest under Section 234B was also deleted.
The Tribunal held that penalty cannot be levied when the income of the assessee is estimated. Therefore, the deletion of the penalty by the CIT(A) was justified.
The Tribunal held that the entire bogus purchases could not be added back as sales were not disputed. It further reduced the addition to 6% over and above the GP declared by the assessee on the alleged bogus purchases.
The Tribunal found the CIT(A)'s order restricting the addition to 4% of the alleged bogus purchases to be fair and reasonable. The assessee had accepted the CIT(A)'s order.
The Tribunal held that the subscription charges received by the assessee constitute royalty under the India-UK Tax Treaty. It also ruled that the unsigned draft assessment order did not vitiate the final assessment order as it was a curable defect and no prejudice was caused to the assessee.
The Tribunal held that penalty proceedings are independent of assessment proceedings and not every addition necessitates a penalty. The addition was based on estimation, and the assessee had provided documentary evidence for purchases and payments.
The Tribunal dismissed the Revenue's appeal, upholding the deletion of penalty for bonus provision, citing a previous decision in the assessee's own case. The Tribunal also allowed the assessee's appeal, deleting the penalty for Sri Lanka branch profits, deeming the issue debatable and not a case of furnishing inaccurate particulars.
The Tribunal upheld the CIT(A)'s order, which had restricted the addition to 8% of the alleged bogus purchases. The Tribunal found this estimation to be fair and reasonable.
The Tribunal upheld the CIT(A)'s order, finding it fair and justified. The Tribunal reasoned that since the assessee's sales were not disputed, the entire purchase could not be added back, and the partial addition was appropriate.
The Tribunal held that the AO and DRP failed to examine whether the contracts were inextricably connected with prospecting, extraction, or production of mineral oil, as per the Supreme Court's ruling in ONGC. The matter was restored to the AO for fresh assessment, considering the applicability of Section 44BB and the DTAA provisions.
The Tribunal dismissed the Revenue's appeals due to low tax effect. The Tribunal condoned the delay in filing the assessee's cross objections and partly allowed them, directing recomputation of OP margins and exclusion of a specific comparable.
The Tribunal held that the disallowance for Courtyard Kakkanad Phase-I was justified due to violations of Section 80IB(10)(c). However, it directed proportionate disallowance based on flats exceeding the area limit, remanding the matter for fresh computation.
The Tribunal held that the disallowance for Courtyard Kakkanad Phase-I was justified due to violations of Section 80IB(10)(c). However, it directed proportionate disallowance based on flats exceeding the area limit, remanding the matter for fresh computation.
The Tribunal upheld the CIT(A)'s decision that the reopening of assessment was invalid because the AO had not applied his own mind and had acted solely on audit objections, especially after having previously disagreed with them.
The Tribunal dismissed the Revenue's appeal as withdrawn. This was due to the tax effect being below the revised monetary limit of Rs. 50 lakhs for filing appeals, as per CBDT Circular No. 17/2019.
The Tribunal held that the disallowance under Section 14A should be restricted to the extent of exempt income earned by the assessee. This decision followed a consistent view taken by coordinate benches in the assessee's own cases for previous assessment years.