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362 orders · Page 8 of 8
The Tribunal set aside the impugned order and directed the CIT to re-examine the application de novo, providing the assessee with one more opportunity to present its case. This was done in the interest of natural justice.
The Tribunal upheld the CIT(A)'s decision, stating that earning income is not a prerequisite for allowing business expenditure if incurred wholly in the course of business. The Tribunal also confirmed the restriction of 'on-money' addition to 35% based on a previous year's identical ruling and a Settlement Commission order.
The Tribunal held that the CIT(A) was justified in confirming the AO's action in denying the exemption under Section 10(38) for LTCG on sale of shares and upholding the addition of estimated commission expenditure.
The Tribunal set aside the CIT's order and granted the assessee one more opportunity to present its case. The CIT was directed to re-examine the application de novo.
The Tribunal held that the CIT(A) was justified in confirming the AO's action in denying the exemption under Section 10(38) for LTCG on sale of shares and upholding the addition of estimated commission expenditure.
The Tribunal held that the penalty notice was vitiated because the Assessing Officer failed to strike off the irrelevant charge, i.e., whether the penalty was for concealment of income or furnishing inaccurate particulars. Following the Bombay High Court's decision, the penalty proceedings were quashed.
The Tribunal confirmed the deletion of disallowance under Section 14A as there was net interest income, following the Bombay High Court ruling. However, it directed the AO to recompute disallowance for book profit under Section 115JB based on annual accounts.
The Tribunal deleted the addition in respect of M/s Narayan Niryat India Private Limited, finding that the assessee had discharged the onus by filing an MOU. The issue concerning M/s Basant Reality was restored to the Assessing Officer for fresh adjudication. Identical issues concerning ad-hoc additions for motor car expenses and disallowance of interest were deleted, following findings from the prior assessment year.
The Tribunal deleted the addition related to trade advance from M/s Narayan Niryat India Private Limited, finding that the assessee had discharged their onus. The issue concerning M/s Basant Reality was restored to the Assessing Officer for fresh adjudication. Additions related to personal expenses and disallowance of interest were deleted, following similar findings in the prior assessment year.
The Tribunal allowed the assessee's request to withdraw the appeal. The appeal was dismissed as withdrawn, with the liberty to file a fresh appeal in the appropriate jurisdiction.
The tribunal held that the arm's length price computed by adopting the lending rate of banks in India was not sustainable. It directed that interest should be charged at LIBOR+200 bps for the first two types of advances, following jurisdictional High Court decisions.
The Tribunal held that the treatment of expenditure in the books of account is not conclusive for income tax proceedings. Relying on Supreme Court and its own coordinate bench decisions, the Tribunal found the revenue expenditure allowable.