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477 orders · Page 9 of 10
The Tribunal held that since Shri Ravi S Bhandari, a director in the assessee company, had already owned up to the transactions and the ITSC had accepted his settlement application considering these documents, taxing the same amount in the hands of the assessee would amount to double addition. Therefore, the addition was deleted.
The Tribunal held that disallowance under Section 14A cannot exceed the exempt income earned by the assessee. It also ruled that subsidy received under the Focus Market Scheme is a capital receipt and not taxable.
The Tribunal held that since the assessee had offered the amount as income from other sources (donations) and the AO accepted the nature of receipt as donations, the expenditure was explained. Therefore, no addition under Section 69C was warranted.
The Tribunal held that the AO failed to inquire into the assessee's claim for reserve for doubtful debts, which was a statutory requirement. Therefore, the PCIT's invocation of Section 263 was justified as the assessment order was erroneous due to the lack of application of mind by the AO.
The Tribunal held that since the original assessment order was quashed, any subsequent proceedings, including the revision order under Section 263, were vitiated and unsustainable.
The Tribunal held that the delay was due to bonafide reasons beyond the assessee's control and that the Assessing Officer's initial acceptance of the loss carry forward was correct. The subsequent disallowance was deemed unwarranted.
The Tribunal held that the assessee failed to discharge the onus to satisfactorily explain the source of the cash balance. The large cash balance was disproportionate to the assessee's meagre income, and the gifts were not substantiated with the donors' income details.
The Tribunal allowed the assessee's claim regarding the capital loss by setting aside the orders of the lower authorities, accepting the assessee's contention that the property was long-term in nature. However, the Tribunal dismissed the grounds related to deemed dividends, finding that the conditions for Section 2(22)(e) were attracted.
The Tribunal held that the assessee had discharged the initial onus by providing gift deeds, bank statements, and other evidence. Following a coordinate bench decision, the Tribunal ruled that the Assessing Officer should not inquire into the 'source of source' when the assessee has provided sufficient information about the donors.
The Tribunal held that the delay in filing Form 67 does not preclude the assessee from claiming foreign tax credit, as the rules cannot override the Act and the provision is directory, not mandatory. The issue was remitted to the Assessing Officer for adjudication on merits.
The Tribunal held that the CIT(A) was justified in deleting the disallowance on ZCCB premium, as it was a settled issue in the assessee's own case. For Section 14A, the Tribunal found non-application of mind by the AO and a lack of proper dissatisfaction, thus upholding the CIT(A)'s deletion.
The Tribunal held that the PCIT cannot invoke revisionary powers under Section 263 when the AO has taken one of the possible views, especially when supported by a tribunal decision. The annual letting value of flats held as stock-in-trade cannot be taxed under 'house property'.
The Tribunal held that the penalty proceedings are vitiated because the AO failed to specify under which limb of Section 271(1)(c) the penalty was levied, by not striking off the irrelevant ground in the notice. This lack of clarity amounts to a non-application of mind by the AO.
The Tribunal held that the AO had made sufficient enquiries and considered the assessee's submissions and evidence. Since the AO took a plausible view on debatable issues, the PCIT's invocation of Section 263 was not justified.
The Tribunal held that the notice issued for penalty proceedings under Section 274 read with Section 271(1)(c) was void ab initio because it did not strike off the irrelevant charge (concealment or inaccurate particulars), violating principles of natural justice.
The Tribunal held that re-characterizing preference shares as loans is invalid, following previous decisions of the ITAT and Bombay High Court. However, the disallowance for delayed provident fund contribution was upheld based on a Supreme Court ruling.
The Tribunal allowed the disallowance under Section 14A, following the Supreme Court's decision that it cannot be made in the absence of exempt income. However, it dismissed the ground challenging the addition of Debenture Redemption Reserve to book profit, upholding the CIT(A)'s decision.
The tribunal held that disallowance under Section 14A is not applicable in the absence of exempt income, allowing the related grounds. However, the addition of debenture redemption reserve and disallowance of interest expenses under Section 43B were upheld.
The Tribunal upheld the CIT(A)'s decision to quash the reassessment proceedings. The Tribunal found that the AO's reasons for reopening were based on mere suspicion and lacked tangible material, constituting a change of opinion.
The Tribunal held that the penalty notice was bad in law because the irrelevant portion of the notice under Section 274 read with Section 271(1)(c) was not struck off. Consequently, the subsequent penalty proceedings were vitiated.
The Tribunal held that since the foundation for the penalty proceedings (the addition of Rs. 3.75 crores) was removed by the ITAT in the quantum appeal, the penalty levied consequently falls. The CIT(A) was correct in deleting the penalty.
The Tribunal allowed the claims for debit balances from various parties and miscellaneous expenses, considering them immaterial and not indicative of a false claim. However, the advance to M/s Sharp Edutech Pvt Ltd was disallowed as a sham transaction due to lack of supporting evidence and the company being under strike-off.
The Tribunal held that while firms cannot be partners, natural persons can be partners and represent their firms. The partnership deed clearly showed natural persons as partners, not firms themselves. Therefore, the disallowance proposed by the Principal CIT was not justified.
The Tribunal held that the assessee is engaged in charitable activities for the benefit of the public, not profit-making. Relying on its previous decisions on similar facts, the Tribunal allowed the assessee's claim for exemption under section 11.
The Tribunal held that the Assessing Officer failed to conduct proper verification and inquiry before making the addition. The AO did not collect information from the broker or the assessee regarding client code modifications, nor did they analyze the number of such modifications.
The Tribunal held that the restriction on interest deduction under the second proviso to Section 24(b) is applicable only to self-occupied residential properties, not commercial properties. Therefore, the full interest paid on the loan for the commercial property should be allowed as a deduction.
The Tribunal held that the AO failed to properly verify the assessee's submission regarding deemed rent, rendering the assessment order erroneous and prejudicial to revenue. Therefore, the Pr.CIT's action under Section 263 was upheld.
The Tribunal held that the employee's contribution to PF and ESI, if deposited after the statutory due dates, is not allowable as a deduction, even if deposited before the due date of filing the return of income. This is based on the Supreme Court's decision in Checkmate Services Pvt. Ltd.
The Tribunal held that 'Provisions for Doubtful Debts Write Back' cannot be included in total turnover as per accounting parlance and Supreme Court judgments. Consequently, the appellant's turnover for FY 2016-17 falls below INR 250 Crores.
The Tribunal held that the AO had not properly examined the claim of depreciation on goodwill and directed verification. However, it found no loss of revenue regarding prior period expenses and the treatment of income/expenses of an amalgamating company, as the assessee had made necessary disallowances and filed revised returns. The Tribunal also modified directions regarding depreciation on furniture and fittings.
The Tribunal held that the penalty notice was invalid because the Assessing Officer failed to strike off the irrelevant charge, either for concealment of income or for furnishing inaccurate particulars. Therefore, the penalty proceedings were vitiated.
The Tribunal noted that the partnership firm's appeal regarding similar additions was pending before the CIT(A). To ensure justice, the issue was restored to the CIT(A) for fresh adjudication with an opportunity for the assessee to present information.
The Tribunal held that while the principle of allowing deduction for expected losses is accepted, the specific claim requires examination on merits. The AO had not examined the factual aspects due to disallowing it as a contingent liability.
The Tribunal noted that the CIT(A) dismissed the appeal ex-parte due to non-appearance, possibly caused by the assessee's death and the subsequent legal heir process. To uphold principles of natural justice, the Tribunal set aside the CIT(A)'s order.
The Tribunal held that the lower authorities were not justified in denying the exemption for LTCG and making additions. Following judicial precedents, the Tribunal directed the AO to grant the exemption under Section 10(38).
The Tribunal held that the Assessing Officer was not justified in relying solely on the building completion certificate application and disregarding the assessee's books of account. Since expenses were incurred in subsequent years and most flats were sold later, the AO's estimation was inappropriate.
The Tribunal restored the issue of whether the transfer was revocable (Sections 61-63) to the AO for examination, as it was raised for the first time. Consequently, all other issues were also restored to the AO for fresh adjudication.
The Tribunal condoned the delay in filing the appeal and set aside the CIT(A)'s order. The issues were remitted back to the CIT(A) for fresh adjudication, providing the assessee an opportunity to present evidence.
The Tribunal held that the assessee is entitled to claim depreciation on the entire purchase cost of Rs. 846.19 crores, as the transfer was a slump sale where the transferor offered capital gains and specific provisions for restricting depreciation were not applicable. The Tribunal also deleted disallowances under Section 40(a)(ia) for security charges but confirmed them for other expenses.
The tribunal acknowledged the assessee's request to withdraw the appeal. Consequently, the appeal filed by the assessee was treated as withdrawn.
The Tribunal held that the PCIT was not justified in revising the order regarding depreciation on leased assets, as the AO had made necessary inquiries and the issue was settled in the assessee's favor in prior years. However, the Tribunal confirmed the PCIT's order on commission expenses, IT fees, and the foreign currency loan, finding that the AO had not properly examined these issues.
The Tribunal set aside the CIT(A)'s order and remanded the case back for fresh adjudication, citing principles of natural justice. The assessee was granted one more opportunity to present their case with evidence.
The Tribunal held that the appeal was filed within the time specified as there was no proof of service of the assessment order on the appellant. Consequently, the CIT(A)'s decision to dismiss the appeal on grounds of limitation was overturned.
The Tribunal dismissed both appeals filed by the Revenue. Regarding Ground No. 1 (Rs. 75 lakhs addition), the Tribunal agreed with the Ld. CIT(A)'s findings. The CIT(A) had sustained an addition of Rs. 30 lakhs but deleted Rs. 75 lakhs, observing that the Rs. 75 lakhs entries were approximate and the Assessing Officer made the addition without verifying the nature of the transactions. The Tribunal found no reason to differ from this view. Concerning Ground No. 2 (Rs. 1,37,68,229/- addition based on seized diary), the Tribunal upheld the Ld. CIT(A)'s decision to sustain only the peak negative balance. The Tribunal noted that the diary contained various advance payments (to employees, mobilization centers, suppliers). The assessee had offered a peak negative balance of Rs. 36,46,167/- as undisclosed income due to difficulties in correlating diary entries with books of account. The Assessing Officer had considered only receipts (Rs. 1,74,14,396/-) and ignored payments. The Tribunal held that the seized document's contents should be appreciated as they are, and since the Assessing Officer overlooked payments, the CIT(A)'s decision to sustain only the peak negative balance was accepted. No prejudice was caused to the Revenue. For the penalty appeal (IT(SS) No. 03/Mum/2019), since the quantum appeal was decided in favour of the assessee, the penalty appeal was also dismissed.
The Tribunal held that the Assessing Officer had conducted adequate inquiries and taken a possible view, which was not unsustainable in law. Therefore, the revision order passed by the PCIT was not justified.
The Tribunal admitted additional evidence submitted by the assessee, which was not filed before the lower authorities. Considering the importance of this evidence, the Tribunal set aside the CIT(A)'s order and restored the issue to the AO for fresh adjudication.
The Tribunal held that the loose sheets were 'dumb documents' lacking corroborative evidence. Furthermore, a repayment entry dated 27.5.2013 indicated the investment was made prior to May 2013, thus not assessable in AY 2015-16.
The Tribunal held that the CIT(A) should have taken a lenient view during the transition period and condoned the delay in uploading the appeal. The appeal was restored to the CIT(A) for a decision on merits.
The Tribunal held that the interest income pertained to AY 2011-12 as indicated by the loan confirmation on record, and therefore, could not be taxed on a receipt basis in AY 2012-13. The addition made by the Assessing Officer was deleted.
The Tribunal held that the assessee made a bona fide mistake in the initial computation of long-term capital loss, which was corrected during assessment proceedings. Since the corrected loss did not impact the taxable income for the year and the assessee readily revised the computation, the penalty was not leviable.