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299 orders · Page 6 of 6
The Tribunal found a contradiction in the CIT(A)'s order regarding the admission of additional evidences and the pendency of remand proceedings. The Tribunal noted that the CIT(A) stated no remand report was available or additional evidences were filed, despite evidence to the contrary presented by the assessee.
The Tribunal observed that the assessee consistently recorded transactions net of GST. If sales are enhanced by GST, corresponding purchases should also be increased, making the exercise tax-neutral. The CPC's action of enhancing closing stock value without adjusting purchases was deemed unwarranted and a violation of Section 145A.
The Tribunal found that the CIT(A) had dismissed the appeal without considering the assessee's filed petition for condonation of delay. The Tribunal set aside the order of the CIT(A) and remanded the matter back for fresh consideration, directing the CIT(A) to decide the condonation petition and, if condoned, to decide the appeal on its merits after providing an opportunity of hearing to the assessee.
The Tribunal held that the CIT(A) had dismissed the appeal without deciding on the merits of the case, violating the provisions of Section 250(6) of the Act. The dismissal was based solely on the non-response to notices, which the assessee attributed to amalgamation and restructuring issues.
The Tribunal held that for Ground No. 2, the issue regarding the taxation of rental income was to be restored to the Assessing Officer for fresh verification of the lease agreement. For Ground No. 3, the claim for deduction under Section 80IB(10) was also remitted to the Assessing Officer for fresh examination based on evidence, following ITAT's prior decision. For Ground No. 4, the disallowance under Section 14A was directed to be restricted to the extent of exempt income earned, and this disallowance could not be added to the book profit under Section 115JB.
The Tribunal found that the CIT(A) had not considered the merits of the case, merely upholding the AO's order due to the assessee's failure to respond to notices. In the interest of natural justice, the matter was restored to the CIT(A) for a fresh adjudication.
The Tribunal acknowledges a clerical error in the assessment year. The assessment year for the appeal under consideration has been corrected from 2018-19 to 2013-14.
The Tribunal noted that the assessee contended that PF and gratuity were paid before the due date and the bonus/commission pertained to the relevant assessment year. An auditor's certificate was placed on record, which was allegedly not considered by the CIT(A). The Tribunal deemed it appropriate to restore the file to the Assessing Officer to examine the auditor's certificate and other supporting documents.
The Tribunal admitted the additional grounds raised by the assessee, holding that the issue of jurisdiction to pass an assessment order in the name of a non-existent entity is a legal issue that can be raised for the first time. The Tribunal found that the Assessing Officer was aware of the amalgamation but still passed the order in the name of the merged entity.
The Tribunal considered the assessee's plea for condonation of delay, citing unawareness of law and issues with a consultant. However, it noted the substantial delay of 451 days and the lack of sufficient cause, referencing Supreme Court judgments on condonation of delay.
The Tribunal restored the issue of written-back liabilities to the Assessing Officer for verification and granted relief to the extent amounts were written back. The Tribunal quashed the CIT(A)'s disallowance of current year depreciation as unwarranted and not emanating from the assessment order.
The Tribunal allowed the assessee's ground regarding the disallowance of interest cost towards investment in debentures, finding it was incorrectly disallowed by the AO. The Tribunal also restored the ground concerning discrepancies with Form 26AS to the AO for fresh decision after verification.
The Tribunal allowed the assessee's appeal regarding Section 14A disallowance, holding that no disallowance can be made when no exempt income was earned. For depreciation on rented property, the issue was restored to the AO for verification.
The Tribunal held that the reassessment proceedings were initiated on a change of opinion, as the Assessing Officer had already examined the relevant facts during the original assessment and accepted the assessee's claim. Since the assessee had made a full and true disclosure of primary facts, reassessment could not be initiated after the expiry of four years.
The Tribunal noted that the assessee's submissions and Vipul Bhatt's statement matched, indicating the assessee's entity was used for accommodation business for commission, not as a beneficiary. However, the assessee did not participate in the AO proceedings, and beneficiaries were unclear. Therefore, the matter was restored to the AO to verify the assessee's contentions, identify real beneficiaries, and determine the appropriate tax treatment.
The Tribunal condoned the delay in filing the appeal, citing the Supreme Court's order regarding COVID-19 pandemic. The Tribunal noted that the delay in uploading the audit reports was due to technical glitches during the newly introduced e-filing process, and the assessee should not be punished for it.
The ITAT dismissed the appeal regarding depreciation on goodwill, following a previous decision. However, the ITAT allowed the appeal regarding the disallowance of director's remuneration, finding that the AO had not properly applied Section 40A(2)(b) and had failed to consider the provided reconciliation.
The ITAT admitted additional evidence filed by the assessee, citing the company's dispute among directors and being struck off from the register as a substantial cause for non-compliance. The Tribunal found a substantial cause for the assessee's failure to produce evidence earlier and restored the matter to the AO.
The Tribunal noted that while the Assessing Officer made an addition of Rs. 9,75,97,928/-, the CIT(A) deleted a significant portion of it. The Tribunal observed that the CIT(A)'s order was silent on the inquiry conducted and did not refer to the evidence provided by the assessee. The Tribunal granted another opportunity to the Assessee to furnish necessary documents and produce the lender.
The Tribunal held that the evidence seized from employees lacked evidentiary value as it was not corroborated by material found with the assessee. The statements of employees were retracted, and no direct evidence linked the alleged capitation fee collection to the assessee trust. Therefore, the additions made by the AO were deleted.
The Tribunal held that the information found in the pen drives and laptops of employees cannot be considered credible evidence unless corroborated by other evidence. Abstract entries in these devices were not given credence. Consequently, the AO could not have made additions based solely on this information. The Tribunal confirmed the CIT(A)'s decision to delete additions related to alleged unaccounted expenditure of Rs. 2.15 crores (AY 2014-15) and Rs. 609.91 lakhs (AY 2016-17). Regarding the Rs. 65.00 lakhs seized from Shri Bhagirath Patil, the Tribunal noted that the transaction was between Smt. Shivani Patil and Shri Bhagirath Patil, with no established connection to the assessee trust. The statements of Smt. Shivani Patil and Shri Bhagirath Patil were uncorroborated and later retracted. As Shri Bhagirath Patil had disclosed the cash through his return of income, and in the absence of material connecting the assessee with this cash balance, the Tribunal confirmed the relief granted by the CIT(A) in deleting the addition of Rs. 65.00 lakhs in AY 2017-18. Legal contentions raised by the assessee were not adjudicated as the Ld. A.R. did not advance arguments on them, leaving them open.
The Tribunal held that the evidence seized from employees' residences, such as pen drives and diaries, were not credible without corroboration. Therefore, additions based solely on this evidence were unsustainable.
The Tribunal held that the information found in the pen drives and laptops of employees cannot be considered credible evidence unless corroborated by other evidence. Abstract entries in these devices were not given credence. Consequently, the AO could not have made additions based solely on this information. The Tribunal confirmed the CIT(A)'s decision to delete additions related to alleged unaccounted expenditure of Rs. 2.15 crores (AY 2014-15) and Rs. 609.91 lakhs (AY 2016-17). Regarding the Rs. 65.00 lakhs seized from Shri Bhagirath Patil, the Tribunal noted that the transaction was between Smt. Shivani Patil and Shri Bhagirath Patil, with no established connection to the assessee trust. The statements of Smt. Shivani Patil and Shri Bhagirath Patil were uncorroborated and later retracted. As Shri Bhagirath Patil had disclosed the cash through his return of income, and in the absence of material connecting the assessee with this cash balance, the Tribunal confirmed the relief granted by the CIT(A) in deleting the addition of Rs. 65.00 lakhs in AY 2017-18. Legal contentions raised by the assessee were not adjudicated as the Ld. A.R. did not advance arguments on them, leaving them open.
The Tribunal held that the evidence seized from employees' residences, without corroboration from the assessee's records, was not sufficient to prove the collection of capitation fees. Consequently, the additions based on such evidence were deleted.
The Tribunal held that the information found in the pen drives and laptops of employees cannot be considered credible evidence unless corroborated by other evidence. Abstract entries in these devices were not given credence. Consequently, the AO could not have made additions based solely on this information. The Tribunal confirmed the CIT(A)'s decision to delete additions related to alleged unaccounted expenditure of Rs. 2.15 crores (AY 2014-15) and Rs. 609.91 lakhs (AY 2016-17). Regarding the Rs. 65.00 lakhs seized from Shri Bhagirath Patil, the Tribunal noted that the transaction was between Smt. Shivani Patil and Shri Bhagirath Patil, with no established connection to the assessee trust. The statements of Smt. Shivani Patil and Shri Bhagirath Patil were uncorroborated and later retracted. As Shri Bhagirath Patil had disclosed the cash through his return of income, and in the absence of material connecting the assessee with this cash balance, the Tribunal confirmed the relief granted by the CIT(A) in deleting the addition of Rs. 65.00 lakhs in AY 2017-18. Legal contentions raised by the assessee were not adjudicated as the Ld. A.R. did not advance arguments on them, leaving them open.
The Tribunal held that the primary issue revolves around whether the assessee collected capitation fees. It noted that no material was unearthed from the assessee's premises, and all evidence was seized from employees' residences. The Tribunal found that the pen drive and diary seized from Shri Pratap Patil, an accountant, contained details of capitation fees. Shri Pratap Patil's statement indicated that capitation fees were collected in cash, not accounted for, and approved by Shri Vijay Patil and Smt. Shivani Patil. However, the Tribunal also noted that the statements of Smt. Shivani Patil and Shri Bhagirath Patil regarding the Rs. 65.00 lakhs cash seizure were uncorroborated and retracted. The Tribunal ultimately held that information found in the pen drive/laptop of employees cannot be considered credible evidence unless corroborated. Therefore, no credence could be given to abstract entries, and additions based solely on this information were not sustainable. Consequently, the Tribunal confirmed the CIT(A)'s deletion of additions related to Rs. 2.15 crores and Rs. 609.91 lakhs. Regarding the Rs. 65.00 lakhs seized from Shri Bhagirath Patil, the Tribunal found no material establishing a connection between this amount and the assessee trust, confirming the CIT(A)'s relief. Legal contentions raised by the assessee were left undecided as no arguments were advanced. The assessee's appeals were allowed, and the revenue's appeals were dismissed.
The Tribunal noted that the assessee did not provide any material to demonstrate that the Assessing Officer had examined the vital issues, nor did the assessee show that the Assessing Officer had taken a possible view. The Tribunal found no infirmity in the PCIT's revision order and upheld it.
The Tribunal held that the presumption under Section 132(4A) cannot be invoked for materials seized from employees if no corroborating material is found from the assessee's premises. The revenue failed to establish a link between the seized documents and the assessee's income.
The Tribunal, upon perusing the record, found a typographical error in the cause title concerning the Income Tax Appeal Number. The Tribunal directed that the Income Tax Appeal Number should be read as "ITA No. 09/MUM/2023" instead of "ITA No. 09/MUM/2022".
The Tribunal noted that the tax effect in the appeal was below Rs. 50 lakhs and covered by CBDT Circular No. 17/2019. The Ld. DR accepted the low tax effect and applicability of the circular. The circular states that no appeal shall be filed by the revenue if the tax effect is below Rs 50 lakhs, and it is applicable to pending cases.
The ITAT noted that the CIT(A) passed an ex-parte order without delving into the merits of the case due to the assessee's failure to appear. The Tribunal decided to restore the matter back to the CIT(A) for a fresh hearing.
The Tribunal held that the assessee had demonstrated the genuineness of the transactions by repaying the loans through banking channels. For M/s. Frontline Diamond Pvt. Ltd., the loan of ₹34,00,000/- was repaid in installments within the same and subsequent assessment years. Similarly, for M/s. Rajat Diamond Exim Pvt. Ltd., a loan of ₹31,50,000/- was repaid in installments within the same and subsequent assessment years. For M/s. Dev Darshan Diamond Pvt. Ltd., a loan of ₹49,50,000/- was repaid in installments in subsequent assessment years. The Tribunal found that the AO's assessment of creditworthiness based solely on profit was inadequate, as it did not consider the availability of funds. Therefore, the additions made by the AO concerning these three parties were deleted. With regard to other parties, the assessee provided a schedule of repayment. The Tribunal concluded that the assessee had submitted all relevant documents and proved the genuineness of the transactions, and that additions should only be considered to the extent of loans taken during the current assessment year that remained outstanding. Consequently, the additions proposed by the AO were deemed improper and directed to be deleted. The ground relating to the disallowance of interest was consequential and also allowed. The appeals for A.Ys. 2015-16 and 2016-17 were decided mutatis mutandis, with additions restricted to outstanding advances.
The Tribunal held that the assessee had demonstrated the genuineness of the transactions by repaying the loans through banking channels. For M/s. Frontline Diamond Pvt. Ltd., the loan of ₹34,00,000/- was repaid in installments within the same and subsequent assessment years. Similarly, for M/s. Rajat Diamond Exim Pvt. Ltd., a loan of ₹31,50,000/- was repaid in installments within the same and subsequent assessment years. For M/s. Dev Darshan Diamond Pvt. Ltd., a loan of ₹49,50,000/- was repaid in installments in subsequent assessment years. The Tribunal found that the AO's assessment of creditworthiness based solely on profit was inadequate, as it did not consider the availability of funds. Therefore, the additions made by the AO concerning these three parties were deleted. With regard to other parties, the assessee provided a schedule of repayment. The Tribunal concluded that the assessee had submitted all relevant documents and proved the genuineness of the transactions, and that additions should only be considered to the extent of loans taken during the current assessment year that remained outstanding. Consequently, the additions proposed by the AO were deemed improper and directed to be deleted. The ground relating to the disallowance of interest was consequential and also allowed. The appeals for A.Ys. 2015-16 and 2016-17 were decided mutatis mutandis, with additions restricted to outstanding advances.
The Tribunal observed that the TPO did not propose any adjustment to the Arm's Length Price (ALP) and noted that the Ld. CIT(A) had deleted the penalty, relying on previous decisions where similar penalties were deleted. The Tribunal agreed that levying penalty under Section 271G was neither fair nor reasonable given the nature of the diamond trade, the assessee's substantial compliance, and the absence of any ALP adjustment.
The Tribunal held that disallowance under section 14A is only attracted when there is exempt income. Reliance was placed on the High Court's decision in CIT vs. Chettinad Logistic Pvt. Ltd. and the disallowance cannot be made for notional or anticipated income. The addition to book profit under section 115JB was also deleted.
The Tribunal noted that a subsequent CBDT circular (Circular No. 19/2023 dated 23-10-2023) provided for condonation of delay in filing Form 10-IC under certain conditions. The assessee had filed Form 10-IC on November 13, 2023, which was after the CIT(A)'s order but within the condonable period as per the circular.
The Tribunal held that the reopening of assessment was bad in law due to improper authorization. On merits, it found that the transactions were not sham, as the assessee acted on public notices and the conditions of Section 94(7) were not met.
The Tribunal held that the assessee had demonstrated the genuineness of the transactions by repaying the loans through banking channels. For M/s. Frontline Diamond Pvt. Ltd., the loan of ₹34,00,000/- was repaid in installments within the same and subsequent assessment years. Similarly, for M/s. Rajat Diamond Exim Pvt. Ltd., a loan of ₹31,50,000/- was repaid in installments within the same and subsequent assessment years. For M/s. Dev Darshan Diamond Pvt. Ltd., a loan of ₹49,50,000/- was repaid in installments in subsequent assessment years. The Tribunal found that the AO's assessment of creditworthiness based solely on profit was inadequate, as it did not consider the availability of funds. Therefore, the additions made by the AO concerning these three parties were deleted. With regard to other parties, the assessee provided a schedule of repayment. The Tribunal concluded that the assessee had submitted all relevant documents and proved the genuineness of the transactions, and that additions should only be considered to the extent of loans taken during the current assessment year that remained outstanding. Consequently, the additions proposed by the AO were deemed improper and directed to be deleted. The ground relating to the disallowance of interest was consequential and also allowed. The appeals for A.Ys. 2015-16 and 2016-17 were decided mutatis mutandis, with additions restricted to outstanding advances.
The Tribunal held that the notice under Section 148 was issued on March 31, 2017, and dispatched via speed post on the same date to the assessee's registered address. Despite the remark 'Left' by postal authorities, it was considered validly issued within the limitation period.
The Tribunal held that the assessee has a business connection in India. However, following precedents, it ruled that if Indian agents are compensated at arm's length, no further income is taxable in the hands of the foreign company.
The Tribunal held that AY 2007-08 should be treated as the first year for claiming merger expenses under Section 35DD, as the amalgamation became operative during that year. The issue of MAT credit was remitted back to the Assessing Officer for verification.
The Tribunal held that the assessee has a business connection in India. However, following a co-ordinate bench decision, it was held that if the Indian agents are remunerated at arm's length, no further income is taxable in the hands of the foreign company.
The Tribunal held that if an Indian agent is paid arm's length remuneration, no further income is taxable in the hands of the foreign company, aligning with DTAA provisions and CBDT circulars. The income attributable to operations in India should be taxed only to the extent reasonably attributable to those operations.
The Tribunal held that subscription income is business income and not royalty, as the distribution agreement did not involve transfer of copyright. It also upheld the CIT(A)'s decision to apply a global profitability rate to estimate Indian income.
The Tribunal held that joint ownership or part ownership of residential flats does not amount to absolute ownership and cannot be a bar to claiming exemption under Section 54F. The assessee is entitled to the exemption.
The Tribunal held that the CIT(A) did not adjudicate the appeal on merits but dismissed it for want of non-prosecution. Section 250(6) of the Income Tax Act, 1961, requires the CIT(A) to determine points in dispute and record reasons. The Tribunal restored the case to the CIT(A) for a de novo decision on merit after affording another opportunity to the assessee.
The Tribunal held that the CIT(A) should have addressed the adjournment application filed by the assessee rather than passing an ex-parte order. The matter was remanded back to the CIT(A) for adjudication on merits after providing a fair and reasonable opportunity to the assessee.
The Tribunal observed that the assessee's non-compliance was due to reasons such as the COVID-19 pandemic, outstation travel, and hospitalization of the authorized representative. Considering these circumstances, the Tribunal felt it appropriate to give the assessee another opportunity.
The Tribunal held that the CIT(A) passed an ex-parte order due to the assessee's failure to respond to notices. However, the assessee claimed notices were sent to an incorrect email address, supported by a screenshot. The Tribunal found merit in this claim.