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667 orders · Page 8 of 14
The Tribunal held that the assessee had fulfilled the conditions for deduction under Section 80IE, as evidenced by government registrations and licenses. The AO's objections were found to be based on generalized internet information and lacked specific documentary evidence of any arrangement violating the law.
The Tribunal held that if a cooperative bank is not functioning as a banking business as defined in the Banking Regulation Act, it should be considered a cooperative society for the purpose of Section 80P(2)(d) deduction. If it is functioning as a bank, the deduction is not allowable.
The Tribunal upheld the order of the CIT(A) on both issues. Regarding Product Registration Expenditure (PRE), the Tribunal noted that the ITAT Mumbai had consistently held PRE to be revenue in nature in the assessee's own cases for earlier assessment years on identical facts. Since the AO had not presented any distinguishable features for the current years, the Tribunal found no infirmity in the CIT(A)'s decision to allow PRE as revenue expenditure and consequently dismissed the Revenue's grounds related to PRE and depreciation. For the Section 80G claim concerning CSR expenses, the Tribunal observed that expenditure under Sections 30 to 36 are claimed while computing 'Income from Business and Profession', whereas Section 80G deductions are claimed while computing 'Total Taxable Income'. The Tribunal reasoned that denying the benefit under Chapter VI A for computing 'Total Taxable Income' merely because the payment forms part of CSR would lead to double disallowance, which is not the legislative intent. However, the Tribunal also noted that the authorities below had not verified the nature of payments qualifying for exemption under Section 80G and the quantum of eligibility. Therefore, the Tribunal remitted the issue back to the AO for verification of the conditions necessary to claim deduction under Section 80G, directing the assessee to file requisite details and the AO to grant deduction to the extent eligible. The Tribunal dismissed the Revenue's ground on this issue, allowing it for statistical purposes.
The Tribunal held that the imposition of cost is a disciplinary measure and the assessee had effectively complied with the direction, despite a minor delay. The appeals were restored to the CIT(A) for de novo adjudication on merits.
The Tribunal upheld the deletion of additions made by the AO. It found that the assessee had offered income from these transactions to tax and provided sufficient evidence to demonstrate the genuineness of the transactions and the use of its own funds.
The Tribunal upheld the deletion of additions made by the AO. It found that the assessee had offered income from these transactions to tax and provided sufficient evidence to demonstrate the genuineness of the transactions and the use of its own funds.
The Tribunal upheld the CIT(A)'s decision to delete the addition for unexplained investment in RIL shares, finding that the assessee had sufficient opening stock. It also directed the deletion of an addition based on Harshad Mehta's disclosure statement, following precedent, and ordered the AO to compute interest under Section 234B after deducting TDS.
The Tribunal held that the reassessment proceedings were not sustainable in law. The Tribunal noted that the reasons recorded by the AO for reopening did not refer to any information, either external or internal, that would form the basis for a belief that income had escaped assessment. Relying on Supreme Court judgments in Ganga Saran & Sons (P.) Ltd. and Raymond Woollen Mills Ltd., and Delhi High Court's decision in SMCC Construction v. ACIT, the Tribunal emphasized that reopening must be based on some prima facie material. The Tribunal found that the AO's action in the original assessment was an omission, which could have been subject to revision proceedings rather than reassessment. Therefore, the reassessment proceedings were quashed. Regarding grounds 5 and 6, concerning the principle of consistency with AY 2014-15, the Tribunal noted that the reassessment for AY 2014-15 was initiated beyond four years, requiring failure to disclose material facts, whereas the present reassessment was within four years. Thus, the facts of the two assessment years were different, and the principle of consistency could not be applied to delete the addition in AY 2013-14 on that basis. However, since the reassessment itself was held unsustainable, the adjudication of the addition on merit became academic. The appeal was partly allowed.
The Tribunal held that the PCIT erred in invoking Section 263 as the trade receivables in question belonged to a division that was not transferred to the assessee. The Assessing Officer had conducted a thorough inquiry and accepted the assessee's claim.
The Tribunal followed its own earlier decisions for the assessee's own case, allowing the taxability of consulting engineering services and management fees/cost recharge as FTS and Royalty. Consequently, the ground related to the rate of tax became infructuous, and the ground related to interest was considered consequential.
The Tribunal held that the receipts for borrowed services cannot be treated as FTS under Article 12 of the India-Singapore DTAA, following previous decisions in the assessee's own case and group entities. The Tribunal found the facts to be similar to earlier assessment years.
The Tribunal held that the AO's approach of enquiring with sales parties instead of commission agents was flawed. The assessee provided sufficient documentation and TDS deductions were made, indicating genuine business expenses.
The Tribunal held that the evidence demonstrated that the fit-out work was part of the agreement for the property and payments were made accordingly, even though the ownership was acquired later. Therefore, the cost of improvement should be allowed.
The Tribunal held that the DVO's report was not confronted with the assessee, and the assessee was not given an opportunity to controvert it. The AO also referred the matter to the DVO without finding fault with the registered valuer's report.
The Tribunal held that the AO's approach of enquiring with sales parties instead of commission agents was flawed. The assessee provided sufficient documentation and TDS deductions were made, indicating genuine business expenses.
The Tribunal condoned the delay in filing the appeal due to the assessee's medical emergency and financial distress. On merits, the Tribunal restored the matter to the AO for fresh examination, directing the assessee to provide documents and comply with the AO's directions.
The tribunal noted that the assessee had opted for settlement under the Vivad Se Vishwas Scheme, and Form No.4 was issued. Consequently, the assessee's appeal was dismissed as withdrawn, and the Revenue's cross-appeal also stood dismissed.
The Tribunal upheld the CIT(A)'s order on the first two grounds. For the disallowance under Section 36(1)(iii), the Tribunal noted that this was a recurring issue consistently decided in favour of the assessee by co-ordinate benches in earlier years. Following these precedents, the Tribunal held that the assessee's shareholder funds exceeded the advances made to sister concerns, and therefore, the presumption is that investments were made from interest-free funds. The addition was deleted. Regarding Section 35(2AB), the Tribunal, following the decision in ACIT Circle-1, Thane v/s Fermant Biotech Ltd., held that the certificate signed by Scientist-G instead of the Secretary, DSIR, would not be a reason to reject the claim. However, the Tribunal noted that the AO's order did not mention the submission of Form 3CL by the prescribed authority, nor was the quantification of the deduction examined. Therefore, the issue was restored to the AO for the limited purpose of verifying the eligible amount for deduction under Section 35(2AB), leading to this ground being partly allowed. For additions under Section 69C, the Tribunal found no infirmity in the CIT(A)'s order, which had examined the ledger accounts and supplier confirmations in detail. The CIT(A)'s reasoning for deleting additions related to parties who had closed their business, minor differences, or where parties showed higher balances was found to be valid. The Tribunal rejected the Revenue's ground of appeal concerning Section 69C.
The Tribunal held that the assessee had reasonably established the rendition of services and that the authorities below had not adequately considered the evidence provided. The Tribunal found that the TPO's adjustment was based on wrong premises and ad-hoc estimation.
The Tribunal noted that Ground 1 and additional grounds were withdrawn. For Ground 2, concerning the delayed payment of employees' PF contribution, the Tribunal held that this issue has been settled against the assessee by the Supreme Court in the Checkmate Services case. The Ld. AR conceded to the dismissal.
The tribunal noted that the assessee had opted for settlement under the Vivad Se Vishwas Scheme, and Form No.4 was issued. Consequently, the assessee's appeal was dismissed as withdrawn, and the Revenue's cross-appeal also stood dismissed.
The Tribunal held that the assessee had discharged its onus of proving the identity, creditworthiness, and genuineness of the loan transactions by providing necessary documentation and that the AO had failed to conduct proper verification. The Tribunal also noted that the loans were repaid and relied on judicial precedents.
The Tribunal held that Section 70(2) of the Income Tax Act does not prohibit the set-off of STCL against STCG, even if they are taxed at different rates. The computation of capital gains under Sections 48 to 55 is distinct from the rates of tax applicable under Sections 111A and 115AD.
The Tribunal upheld the CIT(A)'s decision allowing deductions for provisions for NPAs as bad debts, following High Court precedents. It also upheld the deductibility of interest on IPDI bonds under Section 36(1)(iii), citing previous ITAT rulings.
The Tribunal held that the assessee had discharged its onus under Section 68 by providing sufficient documentation for the identity, creditworthiness, and genuineness of the unsecured loans. The additions made by the AO were therefore unsustainable.
The Tribunal held that the assessee's claim for bad debt is allowable if it is written off in the books of accounts, as per the Supreme Court decision in TRF Ltd. and CBDT Circular No. 12/2016. The AO's reliance on a case related to speculation was found to be misplaced.
The Tribunal held that the assessee's claim for bad debt is allowable if it is written off in the books of accounts, as per the Supreme Court decision in TRF Ltd. and CBDT Circular No. 12/2016. The AO's reliance on a case related to speculation was found to be misplaced.
The Tribunal accepted the assessee's contention to withdraw the appeal as they had opted for the VSV Scheme. The appeal was dismissed as withdrawn, with liberty to revive it if the VSV application was not accepted.
The Tribunal held that the assessee's claim for bad debt is allowable if it is written off in the books of accounts, as per the Supreme Court decision in TRF Ltd. and CBDT Circular No. 12/2016. The AO's reliance on a case related to speculation was found to be misplaced.
The Tribunal held that rental income from leasing a property is to be assessed as 'income from house property' and not business income, especially when beneficiaries have included it in their individual returns. The denial of TDS credit was also found to be incorrect.
The Tribunal held that the CIT(A) had decided the matter without giving the assessee a proper opportunity to be heard, violating principles of natural justice. Therefore, the appeal was allowed for statistical purposes, and the case was remanded.
The Tribunal held that the assessee was not afforded a reasonable opportunity to present evidence before the revenue authorities, violating principles of natural justice. Therefore, the matter was remanded to the Ld. CIT(A) for fresh adjudication.
The Tribunal held that the MMR rate is in addition to the surcharge, not inclusive of it. However, it was found that the assessee's total income was below the Rs. 50 lakh threshold for levying surcharge. Therefore, the surcharge was not leviable.
The Tribunal decided to grant one more opportunity to the assessee, considering her age and the pendency of the main appeal regarding capital gains. The case was remitted to the CIT(A) to decide the main appeal first and then the penalty appeal.
The Tribunal noted that the assessee had opted for settlement under the Vivad se Viswas Scheme and that the Income-tax Department had accepted the application. The appeal was dismissed as withdrawn.
The Tribunal held that interest and penalties related to tax payments and advance license obligations are allowable as business expenditure. However, the loss on the sale of assets, classified as a short-term capital loss, cannot be set off against business income.
The Tribunal held that the AO made a hurried addition without realizing that the assessee had not booked any loss. The AO relied heavily on a SEBI order but ignored the SAT order stating required disclosure was made. The Tribunal also noted that the assessee and broker were not named in the investigation report and transactions were through banking channels.
The Tribunal held that the receipts for borrowed services cannot be treated as FTS under Article 12 of the India-Singapore DTAA, following previous decisions in the assessee's own case and group entities. The Tribunal found the facts to be similar to earlier assessment years.
The Tribunal held that the anonymous donations received by the assessee are not taxable under Section 115BBC of the Act. The Tribunal noted that Section 115BBC(2)(b) provides an exemption for anonymous donations received by a trust created or established wholly for religious and charitable purposes. Given the nature of the assessee as a temple complex dedicated to Shri Sai Baba, the Tribunal found it to be a trust existing wholly for religious and charitable purposes, thus exempting it from the provisions of Section 115BBC. Regarding the claim for accumulation of income under Section 11(2), the Tribunal found that the AO, while pointing out deficiencies in Form No. 10 and the Board resolution, had still allowed an initial deduction. The Tribunal relied on the Gujarat High Court's decision in CIT (E) vs. Bochasanswasi Shri Akshar Purshottam Public Charitable Trust, which held that inaccuracies in Form No. 10 are not fatal to the claim, and that the primary requirement is the statement of purpose. The Tribunal observed that the assessee had mentioned specific purposes and earmarked amounts in its resolution. Therefore, the Tribunal set aside the order of the CIT(A) and directed the AO to allow the enhanced deduction claimed under Section 11(2). The appeal filed by the assessee was allowed, and the appeal of the Revenue was dismissed.
The Tribunal held that the assessee had discharged its onus by providing evidence of identity, creditworthiness, and genuineness for the security deposits. It further noted that the balance deposit from Neelkanth Realty Pvt. Ltd. was repaid in the subsequent year. The Tribunal also found that the disallowed expenses formed part of the opening stock of inventory which was sold during the year.
The Tribunal held that the PCIT's revision order was not justified. The AO's view, that no disallowance under Section 14A is needed when no exempt income is earned, is a possible view supported by judicial precedents.
The Tribunal held that there is no prohibition in the Income Tax Act preventing the set-off of STCL against STCG when they are subject to different tax rates. The assessee is entitled to choose the mode of set-off that is most beneficial. The AO erred in denying this set-off.
The Tribunal held that the value considered for the addition under Section 56(2)(vii)(b) should be considered as the cost of acquisition for computing capital gains, as per Section 49(4) of the Act. The AO was directed to recompute the capital gain accordingly.
The Tribunal held that the CIT(A), Thrissur, did not have the proper jurisdiction to entertain the appeal, as indicated by the notice of demand which directed the appeal to CIT(A)-20. The matter was remitted back to the CIT(A) to decide on the admissibility of the appeal and adjudicate accordingly, potentially allowing the assessee to file a fresh appeal in the correct jurisdiction.
The Tribunal held that while the assessee did not file a revised return, it would be a genuine hardship not to consider the claim. Referring to a Supreme Court judgment, the Tribunal deemed it appropriate to remand the issue to the AO to consider the claim afresh.
The Tribunal considered the assessee's option under the Direct Tax Vivad Se Vishwas Scheme, 2024. The appeal was dismissed with a liberty to reinstate it if the scheme application is not accepted.
The Tribunal held that while the assessee did not file a revised return, it would be a genuine hardship not to consider the claim. Referring to a Supreme Court judgment, the Tribunal deemed it appropriate to remand the issue to the AO to consider the claim afresh.
The Tribunal held that the anonymous donations received by the assessee are not taxable under Section 115BBC of the Act. The Tribunal noted that Section 115BBC(2)(b) provides an exemption for anonymous donations received by a trust created or established wholly for religious and charitable purposes. Given the nature of the assessee as a temple complex dedicated to Shri Sai Baba, the Tribunal found it to be a trust existing wholly for religious and charitable purposes, thus exempting it from the provisions of Section 115BBC. Regarding the claim for accumulation of income under Section 11(2), the Tribunal found that the AO, while pointing out deficiencies in Form No. 10 and the Board resolution, had still allowed an initial deduction. The Tribunal relied on the Gujarat High Court's decision in CIT (E) vs. Bochasanswasi Shri Akshar Purshottam Public Charitable Trust, which held that inaccuracies in Form No. 10 are not fatal to the claim, and that the primary requirement is the statement of purpose. The Tribunal observed that the assessee had mentioned specific purposes and earmarked amounts in its resolution. Therefore, the Tribunal set aside the order of the CIT(A) and directed the AO to allow the enhanced deduction claimed under Section 11(2). The appeal filed by the assessee was allowed, and the appeal of the Revenue was dismissed.
The Tribunal held that since the High Court had already quashed the reassessment proceedings and the notice under Section 148, the assessment order had become non-existent. Therefore, the appeal by the Revenue was rendered infructuous.
The Tribunal noted that the CIT(A)'s order was passed in default and not on merits. Considering the interest of justice and fair play, the Tribunal restored the matter to the CIT(A) for adjudication on merits after giving the assessee an opportunity to be heard.