ITAT Mumbai Judgments — January 2023

The Tribunal partly allowed the revenue's appeal by setting aside the CIT(A)'s order regarding the telescoping of gross profit additions against long-term capital gains. The Tribunal dismissed the assessee's grounds related to the confirmation of additions for unaccounted sales and business promotion expenses.

The Tribunal noted that the Supreme Court's decision in Checkmate Services Pvt. Ltd. overruled the basis on which the CIT(A) had allowed the appeal. Therefore, the matter was remanded back to the CIT(A) for fresh adjudication.

The Tribunal held that disallowance under Section 14A while computing book profit under Section 115JB is not sustainable. It also held that delayed payment of employee's contribution to PF and Labour Welfare Fund beyond the due date leads to disallowance, as per the Supreme Court's interpretation of Section 43B.

The Tribunal partly allowed the revenue's appeal by setting aside the CIT(A)'s order regarding the telescoping of gross profit additions against long-term capital gains. The Tribunal dismissed the assessee's grounds related to the confirmation of additions for unaccounted sales and business promotion expenses.

The Tribunal held that interest income earned by a co-operative society from investments in co-operative banks is eligible for deduction under Section 80P(2)(d). The Tribunal also allowed deduction under Section 80P(2)(c)(ii) for the society's activities.

The Tribunal held that disallowance under Section 14A while computing book profit under Section 115JB is not sustainable. It also held that delayed payment of employee's contribution to PF and Labour Welfare Fund beyond the due date leads to disallowance, as per the Supreme Court's interpretation of Section 43B.

The Tribunal partly allowed the revenue's appeal by setting aside the CIT(A)'s order regarding the telescoping of gross profit additions against long-term capital gains. The Tribunal dismissed the assessee's grounds related to the confirmation of additions for unaccounted sales and business promotion expenses.

Ground No. 4 of the assessee's appeal was dismissed as not pressed, as the assessee no longer wished to pursue it. The other grounds were disposed of by a previous order.

The Tribunal partly allowed the revenue's appeal by setting aside the CIT(A)'s order regarding the telescoping of gross profit additions against long-term capital gains. The Tribunal dismissed the assessee's grounds related to the confirmation of additions for unaccounted sales and business promotion expenses.

The Tribunal partly allowed the revenue's appeal by setting aside the CIT(A)'s order regarding the telescoping of gross profit additions against long-term capital gains. The Tribunal dismissed the assessee's grounds related to the confirmation of additions for unaccounted sales and business promotion expenses.

The Tribunal held that the Assessing Officer and CIT(A) failed to appreciate the previous Tribunal's directions. The previous order had concluded the income was capital gains and only required verification of contract notes.

The Tribunal partly allowed the revenue's appeal by setting aside the CIT(A)'s order regarding the telescoping of gross profit additions against long-term capital gains. The Tribunal dismissed the assessee's grounds related to the confirmation of additions for unaccounted sales and business promotion expenses.

The Tribunal partly allowed the revenue's appeal by setting aside the CIT(A)'s order regarding the telescoping of gross profit additions against long-term capital gains. The Tribunal dismissed the assessee's grounds related to the confirmation of additions for unaccounted sales and business promotion expenses.

The Tribunal partly allowed the revenue's appeal by setting aside the CIT(A)'s order regarding the telescoping of gross profit additions against long-term capital gains. The Tribunal dismissed the assessee's grounds related to the confirmation of additions for unaccounted sales and business promotion expenses.

The Tribunal partly allowed the revenue's appeal by setting aside the CIT(A)'s order regarding the telescoping of gross profit additions against long-term capital gains. The Tribunal dismissed the assessee's grounds related to the confirmation of additions for unaccounted sales and business promotion expenses.

The Tribunal partly allowed the revenue's appeal by setting aside the CIT(A)'s order regarding the telescoping of gross profit additions against long-term capital gains. The Tribunal dismissed the assessee's grounds related to the confirmation of additions for unaccounted sales and business promotion expenses.

The Tribunal partly allowed the revenue's appeal by setting aside the CIT(A)'s order regarding the telescoping of gross profit additions against long-term capital gains. The Tribunal dismissed the assessee's grounds related to the confirmation of additions for unaccounted sales and business promotion expenses.

The Tribunal held that disallowance under Section 14A while computing book profit under Section 115JB is not sustainable. It also held that delayed payment of employee's contribution to PF and Labour Welfare Fund beyond the due date leads to disallowance, as per the Supreme Court's interpretation of Section 43B.

The Tribunal held that the CIT(A) correctly deleted the disallowance of business expenses and rightly directed the AO not to treat interest income as 'Income from Other Sources', following previous decisions in the assessee's own case.

The Tribunal partly allowed the revenue's appeal by setting aside the CIT(A)'s order regarding the telescoping of gross profit additions against long-term capital gains. The Tribunal dismissed the assessee's grounds related to the confirmation of additions for unaccounted sales and business promotion expenses.

The Tribunal held that employee's contributions to PF/ESIC must be deposited before the due date prescribed under the relevant Acts to be eligible for deduction. Since the assessee failed to meet this condition, the disallowance made by the AO was upheld.

The Tribunal held that employee's contributions to PF/ESIC must be deposited before the due date prescribed under the relevant Acts to be eligible for deduction. Since the assessee failed to meet this condition, the disallowance made by the AO was upheld.

The Tribunal partly allowed the revenue's appeal by setting aside the CIT(A)'s order regarding the telescoping of gross profit additions against long-term capital gains. The Tribunal dismissed the assessee's grounds related to the confirmation of additions for unaccounted sales and business promotion expenses.

The Tribunal partly allowed the revenue's appeal by setting aside the CIT(A)'s order regarding the telescoping of gross profit additions against long-term capital gains. The Tribunal dismissed the assessee's grounds related to the confirmation of additions for unaccounted sales and business promotion expenses.

The Tribunal held that the TPO did not conduct a thorough inquiry into the benchmarking of international transactions and did not provide the taxpayer an opportunity to present its case under the CPM. Therefore, the case was remanded back to the TPO for fresh examination.

The Tribunal held that appeals against penalty orders under Section 271FA, when passed by an officer of the rank of Commissioner, are maintainable before the Commissioner (Appeals) and not the ITAT. Therefore, the appeals filed before the ITAT were not maintainable.

The Tribunal partly allowed the revenue's appeal by setting aside the CIT(A)'s order regarding the telescoping of gross profit additions against long-term capital gains. The Tribunal dismissed the assessee's grounds related to the confirmation of additions for unaccounted sales and business promotion expenses.

The Tribunal partly allowed the revenue's appeal by setting aside the CIT(A)'s order regarding the telescoping of gross profit additions against long-term capital gains. The Tribunal dismissed the assessee's grounds related to the confirmation of additions for unaccounted sales and business promotion expenses.

The Tribunal partly allowed the revenue's appeal by setting aside the CIT(A)'s order regarding the telescoping of gross profit additions against long-term capital gains. The Tribunal dismissed the assessee's grounds related to the confirmation of additions for unaccounted sales and business promotion expenses.

The Tribunal partly allowed the revenue's appeal by setting aside the CIT(A)'s order regarding the telescoping of gross profit additions against long-term capital gains. The Tribunal dismissed the assessee's grounds related to the confirmation of additions for unaccounted sales and business promotion expenses.

The Tribunal upheld the CIT(A)'s decision to delete the addition. It found that the payments were compensatory in nature, not rent, and thus Section 194-I of the IT Act was not attracted. The Tribunal agreed that there was no lessor-lessee relationship.

The Tribunal held that the fee paid to MCA for increasing authorized share capital for the issuance of bonus shares is allowable as revenue expenditure. This is because issuing bonus shares does not result in an inflow of fresh funds or an increase in the capital employed, as per the Supreme Court's decision.

The Tribunal upheld the CIT(A)'s decision, finding no infirmity in the deletion of the disallowance. The Tribunal noted that a previous ITAT order had rendered the Assessing Officer's order void ab initio.

The Tribunal held that sales tax incentives, excise duty exemptions, and profits on sale of fixed assets are capital receipts and should be excluded from book profit computation under Section 115JB. However, education cess on income tax and dividend distribution tax is an integral part of income tax and its disallowance by the CIT(A) was not sustainable.

The Tribunal held that since the PCIT's order under Section 263 was set aside by a coordinate bench, the subsequent assessment and appeal before the CIT(A) became infructuous. Therefore, no interference was needed with the CIT(A)'s order.

The Tribunal held that provision for doubtful debts should be considered an operating expense for comparable company CG-VAK Software and Exports Ltd. It also directed the exclusion of Nihilent Analytics Ltd. due to a significant difference in asset base.

The Tribunal held that sales tax incentives, excise duty exemptions, and profits on sale of fixed assets are capital receipts and should be excluded from book profit computation under Section 115JB. However, education cess on income tax and dividend distribution tax is an integral part of income tax and its disallowance by the CIT(A) was not sustainable.

The Tribunal, following a co-ordinate bench decision, restricted the disallowance to 3% of the disputed purchases, representing the profit element in diamond trading. The grounds challenging the initiation of proceedings under Section 147 were not pressed.

The Tribunal held that interest income earned by a cooperative society on its investments with a cooperative bank is eligible for deduction under Section 80P(2)(d) of the Income Tax Act. Consequently, the denial of this deduction by the lower authorities was incorrect.

The Tribunal upheld the CIT(A)'s decision, finding no infirmity in the deletion of the disallowance. The Tribunal noted that a previous ITAT order had rendered the Assessing Officer's order void ab initio.

The Tribunal found that the CIT(A)'s orders were likely passed without providing the assessee with an adequate opportunity to be heard. Therefore, the impugned orders were set aside.

The Tribunal held that the initiation of reopening proceedings under Section 147/148 was bad in law. The AO's reasons for reopening were based on specific allegations regarding 'RUTRON INT' shares, but the assessment order did not mention this. The Tribunal followed the Bombay High Court's decision in CIT vs. Jet Airways Ltd., stating that an AO cannot assess other income if the initial reason for reopening is not sustained.

The Tribunal held that subsidies received under schemes like FMS, FPS, and SHIS are capital receipts, not taxable income, aligning with Supreme Court decisions. However, it ruled that education cess is not allowable as revenue expenditure, following a Supreme Court judgment.

The Tribunal held that the 3rd proviso to Section 50C is retrospective, thus no addition was warranted under that section. The issue of cost of acquisition was remitted back to the AO for fresh consideration. The Tribunal found that acquiring perpetual tenancy rights for an unlimited period could be construed as purchase of property for Section 54F purposes, but due to lack of clarity, this issue was also remitted back to the AO for factual verification.

The Tribunal found that the CIT(A)'s orders were likely passed without providing the assessee with an adequate opportunity to be heard. Therefore, the impugned orders were set aside.

The Tribunal held that the assessee has provided sufficient documentary evidence, including contract notes and Demat account details, to substantiate the loss as a regular trading loss. The AO failed to conduct independent inquiry and did not establish any manipulative activities by the assessee.

The Tribunal condoned the delay in filing the appeal due to the assessee's age and lack of internet knowledge. It held that the cash deposit was explained as it was withdrawn from the assessee's bank account and redeposited within a reasonable period.

The Tribunal found that the CIT(A) had relied on incorrect facts and set aside the decision in one case, remanding it for fresh adjudication. In other cases, the Tribunal also set aside the CIT(A)'s decision due to perversity and restored the matters for fresh consideration.

The Tribunal found that the CIT(A) had relied on incorrect facts and set aside the decision in one case, remanding it for fresh adjudication. In other cases, the Tribunal also set aside the CIT(A)'s decision due to perversity and restored the matters for fresh consideration.

The Tribunal condoned the delay in filing the appeal, citing substantial justice over technical considerations. The Tribunal set aside the CIT(A)'s order and remanded the case back for a fresh decision.