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645 orders · Page 12 of 13
The Tribunal condoned the delay in filing the appeal and the uploading of Form 10B, holding that the assessee was prevented by sufficient cause due to technical glitches beyond their control. The claim for exemption of income under Section 11 of the Act was allowed.
The Tribunal found that the ld. CIT(E) had rejected the applications solely on grounds of alleged non-compliance without addressing the merits. It was noted that the assessee had indeed complied with the show cause notice. Therefore, the Tribunal remitted the matter back to the ld. CIT(E), directing them to grant the assessee a fresh opportunity to submit all supporting documents and to decide the applications for Section 12AB registration and Section 80G approval on merits.
The Tribunal condoned the delay in filing the appeal, finding sufficient cause. The Tribunal held that in the interest of justice, the matter should be remitted back to the CIT(A) for a fresh adjudication, ensuring the assessee is given a reasonable opportunity of being heard.
The Tribunal found that the ld. CIT(E) had rejected the applications solely on grounds of alleged non-compliance without addressing the merits. It was noted that the assessee had indeed complied with the show cause notice. Therefore, the Tribunal remitted the matter back to the ld. CIT(E), directing them to grant the assessee a fresh opportunity to submit all supporting documents and to decide the applications for Section 12AB registration and Section 80G approval on merits.
The Tribunal condoned the delay in filing the appeal and held that the assessee should be given one more opportunity to present its case before the CIT(A) following principles of natural justice. The matter was remanded to the CIT(A) for de novo adjudication.
The Tribunal dismissed the appeal as withdrawn. The assessee was granted liberty to revive the appeal if the settlement under the scheme was not successful.
The tribunal held that since more than four years had elapsed, the first proviso to Section 147 applied, requiring the AO to mention the assessee's failure to disclose material facts, which was absent. Relying on a Bombay High Court judgment, the tribunal found the reasons for reopening to be vague, not specific to the assessee, and lacking a proper 'reason to believe' for escapement of income. Consequently, the notice under Section 148 and the impugned assessment order were quashed.
The tribunal observed that the assessee intended to withdraw the duplicate appeal as the grounds for both appeals were identical. Therefore, the appeal was dismissed as infructuous.
The Tribunal noted that the assessee has opted for the Vivad Se Vishwas Scheme and the Ld. DR had no objection. Accordingly, the Tribunal found it appropriate to dismiss the appeals as withdrawn, with liberty to restore them if the VSV scheme application does not materialize.
The Tribunal noted that the assessee has opted for the Vivad Se Vishwas Scheme and the Ld. DR had no objection. Accordingly, the Tribunal found it appropriate to dismiss the appeals as withdrawn, with liberty to restore them if the VSV scheme application does not materialize.
The Tribunal held that the reopening of assessment under section 147 was invalid because the primary reason for reopening (non-filing of return) was found to be incorrect. Furthermore, no addition was made by the AO on the specific issue that formed the basis of the reopening.
The Tribunal held that the rejection of the assessee's books of accounts was not justified as the AO did not provide sufficient grounds. The Tribunal also found that the cash deposits and sales were duly accounted for and supported by stock records and VAT returns, and that the commission income estimation was based on unsubstantiated presumptions.
The Tribunal condoned the delay in filing the appeal due to sufficient cause. Subsequently, the Tribunal dismissed the appeal as withdrawn, as the assessee chose to settle the dispute under the Vivad Se Vishwas Scheme.
The Tribunal held that the reopening of assessment under Section 147 for AY 1999-00 was valid. It reasoned that the AO had reason to believe that income had escaped assessment, and the correctness of the material was not to be examined at the stage of recording reasons. Therefore, the ground challenging the validity of reopening was dismissed. Regarding the disallowance of expenses for AY 2002-03, the Tribunal accepted the assessee's offer of disallowance of INR 7,21,149 for administrative and other expenses as reasonable, considering the old assessment year and it being a second round of proceedings. The disallowance of depreciation and interest expenditure was upheld based on the assessee's AR not pressing these points. The appeal for AY 2002-03 was partly allowed. For AY 2003-04, following the decision for AY 2002-03, the disallowance of administrative and other expenses was restricted to INR 2,09,764, and disallowance of depreciation and interest was upheld. The appeal for AY 2003-04 was also partly allowed. The appeals for AY 1999-00 and 2000-01 were allowed, and those for AY 2002-03 and 2003-04 were partly allowed.
The Tribunal held that the reopening of the assessment under Section 147 was invalid because the Assessing Officer was aware that the assessee had filed its return of income. Furthermore, the Tribunal noted that the Assessing Officer did not make any additions related to the specific reason for which the assessment was reopened.
The Tribunal held that the amount received as share capital including premium during the previous years 2006-07 to 2008-09 cannot be considered as unexplained credit for the assessment year 2018-19. The Tribunal relied on the binding judgment of the jurisdictional Bombay High Court in Ivan Singh Vs. ACIT, which held that Section 68 of the Act cannot be invoked to assess amounts deposited in earlier previous years than the relevant previous year for assessment. Therefore, the addition made under Section 68 in AY 2018-19 was directed to be deleted. However, since the genuineness and creditworthiness of the share capital including premium of Rs. 48,11,820/- received from 350 Cambridge Partners LLC remained unproved, the Assessing Officer was permitted to consider taking appropriate action under Section 147/148 of the Act for the relevant assessment year(s) in which such sum was credited to the books of accounts, subject to the fulfilment of conditions under those sections. The grounds of appeal raised by the revenue were accordingly allowed in part, and the appeal was dismissed.
The Tribunal held that the reopening under Section 147 for AY 1999-00 was valid. The Tribunal reasoned that the AO had reason to believe that income had escaped assessment based on the non-filing of the return and the incorrect classification of license fees. The Tribunal found no infirmity in the reassessment proceedings, citing that the sufficiency or correctness of material is not considered at the stage of recording reasons. Therefore, ground no. 1 for AY 1999-00 was dismissed. Regarding ground no. 2 for AY 2002-03, concerning the disallowance of expenses, the Tribunal noted the assessee's offer for disallowance of INR 7,21,149 and the Revenue's agreement due to the old assessment year and second round of proceedings. The Tribunal directed the AO to restrict the disallowance to INR 7,21,149, partly allowing the ground. For AY 2003-04, following the decision for AY 2002-03, the disallowance was restricted to INR 2,09,764. The disallowance on depreciation and interest expenditure was upheld for both years based on the assessee's submissions. The appeals for AY 2002-03 and 2003-04 were partly allowed.
The Tribunal held that the appellant had not claimed any long-term capital gains or exempt long-term capital gains under Section 10(38) of the Act. The income from trading in the shares was offered as income by the appellant. Therefore, no addition could be made.
The Tribunal noted that Section 50C applies only to sale transactions and that Section 56(2)(x) regarding differences in consideration for buyers was introduced from AY 2017-18. Since the assessee's claim of purchase required verification and the AO acted ex-parte due to lack of evidence, the matter was restored to the AO for fresh examination.
The Tribunal held that the enhancement of Rs.33,61,390/- by the Ld. CIT(A) on account of unreconciled balances with Shri Harshad Mehta's books was uncalled for and deserved to be deleted. The Tribunal found that the reconciliation statement provided by the assessee explained the difference, and the balance in Harshad Mehta's books was considered with his own balance, not with Sudhir S. Mehta's. Therefore, Ground No. 6 (related to this enhancement) was allowed. Regarding interest under Section 234D, the Tribunal held it was not applicable as no refund was issued to the assessee, citing the Bombay High Court decision in Delta Airlines Inc. The AO was directed not to charge interest under Section 234D. For interest under Sections 234A and 234B, the Tribunal held these levies are mandatory but only up to the date of the original assessment order (20/03/1995), and the AO was directed accordingly. The assessee's appeal was allowed. For the revenue's appeal, the Tribunal held that additions deleted by the CIT(A) in the second round, which were not agitated by the revenue before the Tribunal, had attained finality. Therefore, these deleted additions could not be agitated in the present appeal, and the revenue's grievance to this extent was dismissed. Similarly, issues related to partial relief given by the CIT(A) on interest payments were also dismissed for the revenue. The revenue's appeal was dismissed.
The Tribunal allowed the assessee's application for withdrawal, thereby dismissing the appeal as withdrawn. The appellant was granted liberty to revive the appeal if they do not succeed under the 'Vivad-se-Vishwas, 2024 Scheme'.
The Tribunal observed that the AO made an addition on the cash seized from the locker, which the assessee claimed was from the sale of jewellery bequeathed by his grandmother. The assessee's contention was that he received jewellery as per the will, sold it in FY 2019-20, and received cash of Rs. 3,25,00,000, which was seized. The assessee admitted he could not provide details of brokers due to various reasons. The first appellate authority upheld the addition due to the assessee's non-compliance and failure to substantiate his claim. The Tribunal noted that the CIT(A) did not decide the issue on merits due to the assessee's failure to comply with notices. To extend one more opportunity to the assessee and adhere to principles of natural justice, the Tribunal decided to remand the issue back to the file of the CIT(A). The assessee is strictly directed to comply with the proceedings, and the CIT(A) is to decide the issue on merits based on the assessee's submissions and in accordance with law. The issue of interest under Sections 234A, 234B, and 234C was not expressly decided on merits.
The Tribunal held that since the earnest money was paid in December 2017, the valuation should be determined as of December 2017 as per the proviso to Section 56(2)(x) of the Act. The matter was remitted back to the Assessing Officer for re-valuation.
The CIT(A) deleted the additions made by the AO, finding that the assessee had provided sufficient documentation for the purchase and sale of shares. The tribunal upheld the CIT(A)'s decision, noting the assessee was not part of any manipulation and had followed due process.
The Tribunal allowed the assessee's appeal. Regarding the first issue, the Tribunal found that the reconciliation statement, when read with the annexures, demonstrated that the balances between the assessee's and Shri Harshad Mehta's books were reconciled. The Tribunal noted a difference of Rs. 10,02,204, not the Rs. 33,61,390 enhanced by the CIT(A). Therefore, the enhancement was deemed uncalled for and deleted. The Tribunal held that Section 234D is not applicable as no refund was issued to the assessee, citing the Bombay High Court decision in Delta Airlines Inc. The Tribunal also held that interest under Sections 234A and 234B is mandatory but only up to the date of the original assessment order (20/03/1995), directing the AO to charge interest accordingly. The Revenue's appeal was dismissed. The Tribunal reiterated that additions deleted by the CIT(A) in the second round, which were not agitated by the Revenue before the Tribunal, had attained finality and could not be agitated in this appeal. Issues related to partial relief on interest payments were also dismissed as per the detailed discussion in the assessee's appeal.
The Tribunal held that under Article 7(3) of the India-UAE tax treaty, head office expenses allocated to the Indian branches are fully deductible without the restrictions of Section 44C. It also ruled that specific expenses incurred outside India exclusively for the Indian branches do not fall under the ambit of Section 44C and are allowable in full.
The Tribunal held that when the assessee's own capital is in excess of investments, there is a presumption that investments are made from own funds, and disallowance of proportionate interest expenditure is not justified.
The Tribunal held that the appeal is liable to be dismissed as withdrawn due to the Assessee's intention to settle through the Vivad Se Vishwas Scheme. Liberty was granted to seek recall if the settlement process fails.
The Tribunal held that the rejection of the assessee's books of accounts was not justified as the AO did not provide sufficient grounds. The Tribunal also found that the cash deposits and sales were duly accounted for and supported by stock records and VAT returns, and that the commission income estimation was based on unsubstantiated presumptions.
The Tribunal condoned the delay of 4 days in filing the appeal before the CIT(A) upon considering the affidavit filed by the assessee explaining the non-service of the order. The matter was restored to the CIT(A) for adjudication on merits.
The Tribunal held that the disallowance under Section 14A read with Rule 8D was not warranted, following its own previous decisions in similar cases. The Tribunal also upheld the CIT(A)'s decision regarding the interest on perpetual bonds, finding no reason to interfere with it.
The Income Tax Appellate Tribunal found that the CIT(A) had failed to pass a reasoned order as mandated by Section 250(6) of the Act, merely relying on the AO's findings without independent determination or reasons. Consequently, the Tribunal set aside the CIT(A)'s order and remanded the matter back to the CIT(A) for a fresh decision after providing the assessee with an effective hearing.
The Tribunal held that the CIT(A) did not provide an effective opportunity of hearing to the assessee, leading to a miscarriage of justice. The impugned order was set aside, and the matter was restored to the CIT(A).
The Tribunal held that the AO could not make additions based solely on a generalized investigation report without specific material linking the assessee to price rigging. The assessee had provided documentary evidence for genuine transactions, which the AO did not find deficient.
The CIT(A) deleted the addition, finding that share application money is a capital receipt and not a revenue receipt taxable under Section 28, and Section 41(1) was also inapplicable. The Tribunal affirmed the CIT(A)'s order, reiterating that Section 28(iv) does not apply to benefits received in cash and that share application money remains a capital receipt, unlike a trading advance.
The Tribunal noted that the assessee's representative presented Form 2 under the Vivad Se Vishwas Scheme and requested to withdraw the appeal. As the Revenue did not object, the Tribunal dismissed the appeal as withdrawn.
The Tribunal noted that Central agencies had examined the transactions. It directed the AO to verify the IP addresses of the transactions with the Central Agency and the bank. If it's found that all transactions were through P.P. Sethi's system, the addition should not be considered in the assessee's hands.
The Tribunal noted that the AO's addition was made without proper reasoning and the CIT(A) did not decide the case on merits. Therefore, the Tribunal set aside the order and remanded the matter back to the CIT(A) for adjudication on merits.
The Tribunal held that the transaction was a valid slump sale and that depreciation on goodwill is allowable under Section 32 of the Income Tax Act, overturning the disallowance made by the lower authorities.
The Tribunal found that the CIT(A) failed to consider the detailed submissions and material, thereby violating principles of natural justice. Exercising its co-terminus powers, the ITAT set aside the CIT(A)'s order and remanded the matter for de novo adjudication, directing the CIT(A) to provide a reasonable opportunity of hearing.
The Tribunal held that the learned CIT(A) failed to examine the assessee's submissions and the material on record. Therefore, the case was restored to the learned CIT(A) for de novo adjudication after examining all documents and providing an opportunity to both parties.
The Tribunal decided the appeals as follows: On the issue of disallowance under Section 14A (Ground 1 of assessee's appeal), the Tribunal followed its co-ordinate bench's decision in the assessee's own case for AY 2010-11 and 2013-14, which deleted the disallowance. The reasoning was that the assessee had sufficient interest-free funds to make investments, and the securities were held as stock-in-trade. Therefore, the disallowance made by the AO was deleted. On the issue of interest on perpetual bonds (Ground 3 of Revenue's appeal), the Tribunal followed its co-ordinate bench's decision in ACIT v. ICICI Bank Ltd. and the assessee's own case, holding that innovative perpetual debt instruments (IPDI) were in the nature of long-term borrowings, interest paid was debited to the profit and loss account, and these instruments were redeemed. Thus, the disallowance of interest was set aside. The Tribunal did not explicitly address Grounds 2, 3, 4, and 5 of the assessee's appeal in the provided extract, but the overall result indicates partial allowance for the assessee.
The Tribunal upheld the lower appellate authority's decision that the reopening of assessment was not valid. Furthermore, the loan received by the assessee was not considered a deemed dividend under Section 2(22)(e) as it was for the company's benefit, not the individual's.
The Tribunal noted that the CIT(A) had dismissed the appeal in limine without verifying the facts. Therefore, to ensure justice and fairplay, the Tribunal restored the issue to the CIT(A) for fresh consideration with a direction to examine documentary evidence and afford the assessee an adequate opportunity of being heard.
The Tribunal set aside the ex-parte order and restored the issues to the file of the Ld.CIT(A) for fresh examination, providing an opportunity to the assessee.
The Tribunal set aside the ex-parte order of the Ld CIT(A) and restored the issues to the file of the Ld CIT(A) to provide the assessee with another opportunity to present their case.
The Tribunal held that the AO did not reject the assessee's books of account and that the cash sales were duly reported and VAT was paid on them. The Tribunal found no reason to suspect the cash sales based on the available information and the AO's failure to conduct further investigation, thus setting aside the addition.
The Tribunal held that the reassessment proceedings were invalid as the AO had already applied his mind to the issue during the original assessment and there was no concealment of information. The Tribunal also found parity with previous decisions of coordinate benches on identical facts.
The Tribunal held that the reassessment proceedings were invalid as the AO had already applied his mind to the issue during the original assessment and there was no concealment of information. The Tribunal also found parity with previous decisions of coordinate benches on identical facts.