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459 orders · Page 5 of 10
The Tribunal found that the lower authorities had not properly examined the assessee's residential status or the cost of acquisition of shares. Therefore, the case was restored to the AO for de novo adjudication.
The Tribunal upheld the CIT(A)'s order, agreeing that only the profit element embedded in bogus purchases should be added. The Tribunal found the CIT(A)'s estimation of 12.5% profit to be a reasonable view, supported by High Court decisions.
The Tribunal held that the assessee had provided sufficient documentary evidence, including a milk distribution license and bank statements, to substantiate that the cash deposits were from the sale of milk. The CIT(A) failed to properly consider these documents.
The Tribunal held that the issue regarding the adjustment to the transfer price for marketing fees is covered by the assessee's own case for a prior assessment year. The Tribunal also referred to previous decisions concerning interest paid by an Indian branch to its head office, which were held not to be taxable in India.
The Tribunal held that the Supreme Court's decision in Checkmate Services Private Limited applies even when the assessment is made under Section 143(1). Disallowance under Section 36(1)(va) is mandatory if payments are made beyond the due date.
The Tribunal held that advertisement and marketing expenses are revenue in nature and cannot be capitalized, irrespective of the method of revenue recognition. The nature of expenditure determines its allowability, not the timing of income recognition.
The Tribunal admitted additional evidence filed by the assessee, including sponsorship confirmations. It held that the assessee should not suffer due to non-filing of material information and that these evidences are vital for decision-making.
The Tribunal held that the CIT(A) was correct in deleting the disallowance of commission expenses. The commission recipients were assessed on their income, and the nature of services rendered was sufficiently documented.
The Tribunal held that the AO's basis for computing excess raw material consumption lacked factual or scientific basis and that the Batch Manufacturing Records (BMR) provided by the assessee were crucial. Regarding sales promotion expenses, the Tribunal found that a fresh verification was necessary in light of the Supreme Court's judgment in Apex Laboratories, remitting the issue back to the AO. The Tribunal also directed the AO to consider enhanced profits for Section 80IB deduction based on any disallowance of sales promotion expenses.
The Tribunal held that the comparables selected by the TPO were not appropriate due to functional dissimilarity, and the adjustment for marketing service fee was not sustainable. The foreign exchange loss was allowed as deduction based on previous year's precedents.
The Tribunal allowed the claim for interest expenses based on a previous decision in the assessee's own case. The issue of ledger balance difference was restored to the AO for fresh adjudication on merits. The grounds related to interest levy and TDS adjustment were also restored to the AO for recalculation.
The Tribunal decided that the proceedings initiated under section 147 by issuing a notice under section 148 were invalid and bad in law. Consequently, the subsequent order passed under section 143(3) read with section 147 was also deemed invalid.
The Tribunal held that the allotment letter should be considered an 'Agreement to sell' and that the proviso to Section 56(2)(x)(b) applies if part of the consideration was paid before the sale agreement. The issue was restored to the AO for comparing stamp duty valuation on the allotment date with the transaction value.
The Tribunal held that the weighted deduction under Section 35(2AB) should be granted as claimed by the assessee, not restricted to the amount in Form 3CL. It also directed the AO to grant credit for advance tax and charge interest under Section 234C on returned income, and to delete the addition of Section 14A disallowance while computing book profit under Section 115JB.
The tribunal is issuing a corrigendum to correct the name of the assessee in the cause title of the order. The substantive decision of the tribunal remains unchanged.
The Tribunal held that the AO failed to specify how the additions fell under the instances of misreporting listed in Section 270A(9). Therefore, the penalty levied at 200% for misreporting could not be sustained.
The Tribunal found merit in the Revenue's submission that the jurisdictional issue under Section 153C was not adjudicated by the CIT(A) and that there were factual errors in the CIT(A)'s order. Therefore, the issues were remanded back to the CIT(A) for de novo adjudication.
The Tribunal condoned the delay, noting the ex-parte nature of the CIT(A)'s order. The Tribunal set aside the CIT(A)'s order and restored the issues to the CIT(A)'s file for fresh adjudication.
The Tribunal upheld the CIT(A)'s decision, finding that the assessee had provided sufficient documentation for the unsecured loans. The Tribunal also noted that the reassessment proceedings were initiated based on a change of opinion by the AO without contrary material.
The Tribunal condoned the delay in filing the appeal before the CIT(A), stating there was no malafide or deliberate inaction. The Tribunal directed the CIT(A) to admit the appeal on merits.
The Tribunal held that the fabrication charges received by the assessee were not taxable in India as fees for technical services. It found that the provisions of Article 12 of the India-Singapore Tax Treaty could not be invoked in this case.
The Tribunal held that the disallowance under Section 14A cannot exceed the amount of exempt income earned by the assessee. They also ruled that the explanation introduced to Section 14A by the Finance Act 2022 is prospective and does not apply retrospectively.
The Tribunal held that the assessee was entitled to the deduction under Section 54F as there was no material to show exclusive ownership of other properties. The Tribunal followed favorable precedents from non-jurisdictional High Courts.
The Tribunal held that the disallowance under Section 14A cannot exceed the amount of exempt income earned by the assessee. They also ruled that the explanation introduced to Section 14A by the Finance Act 2022 is prospective and does not apply retrospectively.
The Tribunal held that an appeal against a penalty order passed by the Assessing Officer under section 270A should be filed before the Commissioner of Income Tax (Appeals), not directly to the Tribunal. Therefore, the appeal was not admitted.
The Tribunal agreed in principle that lease charges paid to BPT are allowable against subletting rental income. However, due to lack of evidence regarding inheritance of lease rights and proof of payment of lease charges by the assessee, the matter was restored to the AO for fresh examination.
The Tribunal held that the CIT(A) erred in denying the accumulation claim. The resolutions passed by the trustees and Form 10 filed within the prescribed time clearly indicated the purpose of acquiring capital assets/building, and there was no requirement to share a concrete plan with the AO.
The Tribunal held that non-production of suppliers or non-payment of outstanding balances during the year are not grounds to disbelieve purchases when documentary evidence is not faulted. However, a 5% disallowance on expenses supported by self-made vouchers is considered reasonable.
The Tribunal held that while the AO had sufficient material to form a reason to believe for reopening the assessment, the addition made was not justified. The AO failed to conduct further inquiries or cross-examine the third party to corroborate the 'on-money' payment by the assessee.
The Tribunal found that the AO had misinterpreted the deduction, which was actually a write-back of a previously disallowed provision for doubtful assets. The matter was restored to the AO for fresh examination.
The Tribunal held that penalty under Section 271(1)(c) cannot be levied when the addition to income is made on an estimated basis. Therefore, the penalty levied by the Assessing Officer was deleted.
The Tribunal held that no disallowance under Section 14A can be made when there is no exempt income. Consequently, no adjustment can be made to the book profit under Section 115JB based on such disallowance.
The Tribunal held that the disallowance of employee contributions to PF & ESI deposited after the due date prescribed under the Act is correct, following the Supreme Court's decision in Checkmate Services P. Ltd. However, the Tribunal also noted that the disallowance included employer's share and administrative charges, which should be allowed, and directed the AO to verify and allow the correct employee share.
The Tribunal found that both the AO and CIT(A) passed cryptic orders without proper reasoning or considering all documents. The DVO's report was not obtained, which was necessary when invoking Section 50C.
The Tribunal condoned the delay in filing the appeal and found that the CIT(E) rejected the application on technical grounds. The Tribunal directed the assessee to file a fresh application and the CIT(E) to consider the merits.
The Tribunal upheld the CIT(A)'s decision to delete the disallowance. It found that the management fees were paid for services rendered as per an agreement, and the AO's disallowance was ad hoc without specific discrepancies.
The Tribunal condoned the delay in filing the appeal due to sufficient cause. It held that the assessee had reasonable cause for non-compliance, citing lack of manpower, resources, and awareness of e-notices, and therefore the penalty levied under Section 272A(1)(d) should be deleted.
The Tribunal held that the disallowance of employee contributions to PF and ESIC deposited after the due date prescribed under the relevant Act is correct, following the Supreme Court's decision in Checkmate Services Pvt. Ltd. However, the Tribunal found that the disallowance included employer's share and administrative charges, which should be allowed. The AO was directed to re-verify and disallow only the employee's share of PF and ESI contributions deposited late.
The Tribunal held that interest under section 234A is compensatory and should not be charged beyond the date of payment of self-assessment tax. The Assessing Officer was directed to delete the excess interest charged.
The Tribunal upheld the additions made by the AO and confirmed by the CIT(A). The assessee failed to provide any documentary evidence to substantiate his claims or rebut the additions made by the AO.
The Tribunal held that the reassessment proceedings were initiated on factually incorrect information and without proper application of mind by the Assessing Officer. Therefore, the reassessment proceedings were quashed.
The Tribunal held that the disallowance of deduction under Section 80IC merely for not uploading Form 10CCB with the return of income, when the form was obtained within time and uploaded later, was not justified. The CIT(A)'s order deleting the disallowance was upheld.
The Tribunal held that the CIT(A) erred in denying the accumulation claim. The resolutions passed by the trustees and Form 10 filed within the prescribed time clearly indicated the purpose of acquiring capital assets/building, and there was no requirement to share a concrete plan with the AO.
The Tribunal held that the show-cause notice for penalty was invalid as it did not specify whether the penalty was for concealment of income or furnishing inaccurate particulars, violating principles of natural justice. Therefore, the penalty was deleted.
The Tribunal admitted the additional evidence (2012 agreement) and other supporting documents, finding it necessary for a correct determination of the payment nature. The matter was restored to the Assessing Officer for a fresh examination.
The Tribunal condoned the delay subject to a deposit and decided to remand the case back to the Assessing Officer for a fresh decision. This was to provide the assessee an opportunity to establish its case, as the notices served by the lower authorities were not clearly established as having been received by the assessee.
The Tribunal upheld the CIT(A)'s decision to restrict the addition to 12.5% of the alleged bogus purchases. It relied on judicial precedents stating that when sales are accepted, corresponding purchases should also be accepted, with the addition representing the profit element.
The Tribunal held that since the property was let out in previous years and remained vacant during the year under appeal, its annual letting value should be determined as NIL as per Section 23(1)(c) of the Income Tax Act. The CIT(A)'s reliance on a case related to self-occupied properties was deemed incorrect.
The Tribunal held that expenses booked after the survey date cannot be treated as bogus solely because of the timing of their accounting. Considering the nature of the business and the trend of expenses in earlier and subsequent years, the disallowance was deleted.
The Tribunal held that IIBF's modified functioning, particularly earning royalty from publishing houses for its course material, indicated it was not existing solely for educational purposes. Therefore, the denial of exemption under Section 10(23C)(vi) was upheld.