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630 orders · Page 3 of 13
The Tribunal condoned the delay in filing the appeal, recalled the ex-parte order, and allowed the Miscellaneous Application. The appeal was dismissed as withdrawn with liberty to pursue the VSVS 2024 settlement.
The Tribunal found that the CIT(A) had allowed the assessee's appeal without proper inquiry or confronting the assessee with the AO's information. The Tribunal set aside the CIT(A)'s order and remanded the matter back to the AO.
The Tribunal held that the order passed by the Principal Commissioner of Income Tax (PCIT) under Section 263 was justified. The PCIT's finding that the AO's order was erroneous and prejudicial to the interest of the revenue due to incorrect computation of book loss under Section 115JB was upheld.
The Tribunal condoned the delay in filing the appeal. On merits, it was held that the transaction was an assignment of a loan and not a sale of immovable property, and the information was available with the AO earlier. Therefore, the addition made by the AO was deleted.
The Tribunal held that the rejection was based on a technical error without granting the Assessee an opportunity to be heard, which violates principles of natural justice. The Tribunal set aside the order and restored the application.
The Tribunal held that the donations received by the assessee were taxable under Section 56(2)(x) of the Income Tax Act as they were not utilized for the intended charitable purpose and were parked in personal accounts. The Tribunal also noted violations of the Foreign Contribution Regulation Act.
The Tribunal considered the relevant facts and noted that the AO had resorted to an ex-parte assessment due to the assessee's non-compliance. While the CIT(A) had called for a remand report on additional evidence, it appeared that the assessee's replies were not examined and adjudicated properly. The Tribunal found that the CIT(A) ought to have appreciated the submissions, explanations, and evidence furnished by the assessee in the correct perspective. Following the principles of natural justice, the Tribunal decided to remand the entire issue back to the AO for a proper examination of the facts of the case in light of the assessee's replies. Both the Authorized Representative and the Departmental Representative did not oppose this proposal. The Tribunal directed the AO to consider the issue afresh after providing an adequate opportunity of hearing to the assessee, and the assessee was expected to make proper compliance. No specific finding was given on the merits of the addition or the alternative plea regarding peak credit.
The Tribunal allowed the assessee to withdraw the present appeal. Consequently, the appeal was dismissed as withdrawn.
The Tribunal held that joining and annual fees are not taxable in India due to the principle of mutuality. For classroom training courses, the issue was restored to the AO for verification and consequential relief.
The Tribunal held that penalty under Section 271(1)(c) cannot be levied on additions made on a protective basis, especially when the income was already taxed in the hands of the father. The CIT(A)'s deletion of the penalty was confirmed.
The Tribunal observed that the assessee had failed to deduct TDS under Section 194-O on payments to airline companies and had been non-compliant throughout the proceedings before the first appellate authority, failing to furnish explanations or supporting documents. The CIT(A) had also not decided the issue on merits due to this non-compliance. However, considering the assessee's plea for one more opportunity and the fact that the CIT(A) had not decided the issue on merits, the Tribunal decided to remand all issues back to the file of the CIT(A) for de novo adjudication. The assessee was directed to comply with the proceedings without delay, and the CIT(A) was directed to decide the issues on merits based on the assessee's submissions and in accordance with law. The appeal was allowed for statistical purposes.
The Tribunal held that penalty under Section 271(1)(c) cannot be levied on additions made on a protective basis, especially when the income was already taxed in the hands of the father. The CIT(A)'s deletion of the penalty was confirmed.
The Tribunal held that the Assessing Officer (AO) failed to provide an opportunity for cross-examination of the alleged suppliers and did not bring sufficient evidence to prove the purchases were bogus. Relying on High Court decisions, the Tribunal found that disallowance of purchases cannot be sustained when VAT authorities have accepted the transactions and the assessee has complied with all requirements.
The Tribunal noted that the assessee wished to withdraw the appeal to settle the dispute under the Vivad Se Vishwas Scheme. The revenue did not object to this request.
The Tribunal held that the donations received by the assessee were taxable under Section 56(2)(x) of the Income Tax Act as they were not utilized for the intended charitable purpose and were parked in personal accounts. The Tribunal also noted violations of the Foreign Contribution Regulation Act.
The Tribunal held that the donations received by the assessee were taxable under Section 56(2)(x) of the Income Tax Act as they were not utilized for the intended charitable purpose and were parked in personal accounts. The Tribunal also noted violations of the Foreign Contribution Regulation Act.
The Tribunal set aside the CIT(E)'s order and restored the matter back to the CIT(E). The CIT(E) is directed to re-adjudicate the applications after considering the amended MOA, which now clearly indicates the intention to carry out charitable activities within India. The Assessee is to provide necessary documentary evidence.
The Tribunal held that the disallowance of interest expenditure due to mixed funds was not justified without proper bifurcation. The loss on investment was considered a capital loss, not allowable as business loss. The addition for unrecognised sales was remanded.
The Tribunal held that the assessee failed to produce any documents to substantiate the claimed expenditure or loan. The legal ground regarding the Corporate Insolvency Resolution Process (CIRP) was also rejected based on previous findings.
The Tribunal condoned the delay in filing the appeal. It held that the rejection of the application based on a technical error without providing an opportunity to the assessee was incorrect.
The Tribunal held that the disallowance of interest expenditure due to mixed funds was not justified without proper bifurcation. The loss on investment was considered a capital loss, not allowable as business loss. The addition for unrecognised sales was remanded.
The Tribunal held that penalty under Section 271(1)(c) cannot be levied on additions made on a protective basis, especially when the income was already taxed in the hands of the father. The CIT(A)'s deletion of the penalty was upheld.
The Tribunal restored the appeal back to the file of the CIT(A) for fresh adjudication on merits, subject to a cost of Rs. 5000 imposed on the assessee for non-cooperation. The CIT(A) is to provide a fair opportunity of hearing.
The Tribunal held that the amendment to Section 43CA, introducing a tolerance band, is curative in nature and should be applied retrospectively. Since the difference between the DVO's valuation and the sale consideration was within the permissible tolerance limit, no addition under Section 43CA was warranted for the assessment year.
The Tribunal held that the disallowance of interest expenditure was not justified as the assessee had not failed to prove business expediency or utilization of own funds for advances. The Tribunal also held that the disallowance under Section 14A cannot be adjusted against book profit under Section 115JB.
The Tribunal held that the assessment proceedings under Section 153A were not validly initiated against the assessee company. The Panchnama and search warrant clearly indicated that the search was authorized in the names of individuals, not the assessee company. While the revenue argued that the search was initiated against the assessee company and executed at the directors' premises, the Tribunal found that no incriminating material was found and seized from the assessee's premises. The statements recorded from third parties were not at the assessee's premises or premises searched in relation to the assessee, and therefore, could not be treated as incriminating material found and seized from the assessee. The Tribunal also noted that reliance on documents seized from a third party's premises would necessitate proceedings under Section 153C, which was not followed. Consequently, the additions made towards unsecured loans and share application money for AY 2014-15 to 2018-19, without the aid of any incriminating material found and seized from the assessee's premises, were deleted, following the decision in Abhisar Buildwell (P.) Ltd. The disallowance of interest expenditure under Section 37(1) for AY 2019-20 and 2020-21, being consequent to the unsecured loans, was also deleted.
The Tribunal noted that the assessee was non-compliant throughout the appellate proceedings before the CIT(A), leading to an ex-parte order. However, to adhere to principles of natural justice, the Tribunal remanded the matter back to the CIT(A) for de novo adjudication, directing the assessee to comply diligently.
The Tribunal held that the addition made by the AO on account of purchases could not be sustained. The assessee had provided substantial documentary evidence, including ledger accounts, tax invoices with delivery challans, and proof of payments through account payee cheques, which were cleared. Crucially, the corresponding sales and gross profit were accepted by the AO, indicating that the purchases were reflected in the books and were necessary for the sales. The Tribunal noted that the AO's addition was based primarily on information from the Sales Tax Authorities identifying parties as Hawala Operators, without concrete evidence that these specific parties had admitted to providing accommodation bills to the assessee or were not engaged in genuine business. The AO had not disturbed the trading results or rejected the books of account, and the addition was made by applying the peak of purchases or GP on an ad-hoc basis. The Tribunal found that the AO had not adequately examined the documents and evidence filed by the assessee. Therefore, the entire addition made on account of purchases was deleted. The finding for AY 2009-10 was applied mutatis mutandis to AY 2010-11. The Tribunal expressly left no issue undecided.
The Tribunal held that the application for registration should not have been rejected merely because the assessee selected sub-clause (ii) instead of sub-clause (iii) of Section 12A(1)(ac). The CIT(E) had not provided an opportunity to the assessee to rectify the inadvertent mistake and had rejected the application on a technical ground without considering the merits. The Tribunal, respectfully following the decision of a coordinate bench in the case of Rotary Charity Trust v/s CIT, Exemptions (ITA No. 6133/Mum/2024), set aside the order of the CIT(E). The CIT(E) was directed to pass a fresh order on merits after allowing the assessee an opportunity to rectify the defect. The same reasoning was applied mutatis mutandis to the appeal concerning the rejection of the application for approval under Section 80G, where a wrong sub-clause was also mentioned. The CIT(E) was directed to pass a fresh order on merits after allowing the assessee to file a rectified application. No issue was expressly left undecided.
The Tribunal held that the transaction was indeed a slump sale. The 'Business Sale and Purchase Agreement' clearly stipulated a lump sum consideration of INR 22.40 Crores and explicitly stated that no specific values were assigned to individual assets and liabilities. Clause 2.1.3 of the agreement confirmed the intention to constitute a slump sale of the business as an inseparable whole on an 'as is where is basis'. The Tribunal rejected the CIT(A)'s inference that liabilities were retained, noting that Clause 3.1 of the agreement clearly stated the buyer's assumption of all debts, liabilities, and obligations relating to the business up to the completion date. The Tribunal also clarified that the receivables of INR 22.40 Crores reflected in the balance sheet represented the purchase consideration receivable, not retained business receivables. Reliance on Form 3CEA was deemed misplaced, as it is a statutory requirement for net worth computation and does not negate a slump sale. Consequently, the addition made by the AO was not sustained, and the assessee was directed to be granted the benefit of Section 50B. Grounds 1-5 of the assessee were allowed, and Grounds 1-2 of the Revenue were dismissed. Grounds 6-7 regarding interest under Sections 234B and 234C were disposed of as consequential.
The Tribunal held that the assessee is a cooperative credit society and not a cooperative bank. It noted that Section 80P(4) excludes cooperative banks engaged in banking business from the deduction, but the assessee's activities, which are confined to its members, do not constitute banking business as per the RBI's definition. The Tribunal relied on the Supreme Court's decision in The Mavilayi Service Cooperative Bank Ltd. and others Vs. CIT, which clarified that Section 80P(4) is a proviso that specifically excludes cooperative societies engaged in banking business. The Tribunal found that the assessee's transactions with members, including accepting deposits and granting loans, fall within the scope of Section 80P(2)(a)(i). Therefore, the disallowance of deduction under Section 80P(2)(a)(i) was deleted. Regarding the commission paid under Section 40A(2)(b), the judgment does not explicitly state the finding or reasoning, but the grounds of appeal suggest it was disallowed. Similarly, the treatment of tower rent as 'Income from other sources' and the disallowance of related expenses are mentioned as grounds of appeal, but the judgment does not record the Tribunal's specific finding on these issues. The operative direction is the deletion of the disallowance under Section 80P(2)(a)(i).
The Tribunal found that the CIT(E) acted on an incorrect understanding of facts. The Assessing Officer had conducted necessary inquiries and verified the utilization of accumulated income in previous assessment years, accepting the assessee's stand. Therefore, the assessment order was neither erroneous nor prejudicial to the revenue.
The Tribunal held that the application should not have been rejected merely because the assessee selected sub-clause (ii) instead of (iii) of Section 12A(1)(ac). The CIT(E) had not provided an opportunity to the assessee to rectify the inadvertent mistake and had rejected the application on a technical ground without considering the merits. Following the decision of a coordinate bench in Rotary Charity Trust v/s CIT, Exemptions, the Tribunal set aside the order of the CIT(E) and directed him to pass a fresh order on merits after allowing the assessee an opportunity to rectify the defect. The same reasoning was applied mutatis mutandis to the appeal concerning Section 80G approval, directing the CIT(A) to pass a fresh order on merits after allowing the assessee to file a rectified application.
The Tribunal held that the transaction was indeed a slump sale under Section 2(42C) read with Section 50B of the Income Tax Act, 1961. The Tribunal found that the 'Business Sale and Purchase Agreement' clearly provided for a lump sum consideration of INR 22.40 Crores and explicitly stated that no specific values were assigned to individual assets and liabilities. Clause 2.1.3 of the agreement confirmed the intention to transfer the business as an inseparable whole on an 'as is where is basis', supporting the Assessee's claim of a slump sale. The Tribunal rejected the CIT(A)'s inference that liabilities were retained, finding Clause 2.1.4 to be a standard clause dealing with tax and statutory liabilities, while Clause 3.1 clearly mandated the buyer to assume all debts, liabilities, and obligations up to the completion date. The Tribunal also clarified that the receivables reflected in the balance sheet represented the purchase consideration, not retained business receivables, thus rectifying the AO's and CIT(A)'s factual error. The reliance on Form 3CEA by the CIT(A) was deemed misplaced, as it is a report for net worth computation and does not imply an itemized sale. Consequently, the addition made by the Assessing Officer was not sustained, and the benefit of Section 50B was directed to be granted. Grounds 1-5 of the Assessee were allowed, and Grounds 1-2 of the Revenue were dismissed. Grounds 6-7 concerning interest under Sections 234B and 234C were disposed of as consequential.
The Tribunal held that the assessee is a cooperative credit society, not a cooperative bank, and its transactions are confined to its members. Therefore, it is eligible for deduction under Section 80P(2)(a)(i).
The Tribunal noted that the assessee was non-compliant throughout the appellate proceedings and failed to furnish documentary evidence. To provide an opportunity, the issues were remanded to the CIT(A) for denova adjudication on merits.
The Tribunal held that the issue was identical to one previously considered in the assessee's own case by the Bangalore Bench of the Tribunal. Citing its order dated 27.03.2018 in ITA Nos.1834 & 1839/Bng/2018, which in turn relied on the Hon'ble Apex Court's decision in Vijaya Bank Vs. CIT (2010) 323 ITR 166 (SC), the Tribunal found that the assessee bank had debited bad debts written off to the 'Bad Debts Written Off Account' (GL Code 163301) which is part of the profit and loss account, and reduced write-offs from Gross Advances in the Balance Sheet. The Apex Court had held that debiting the P&L account and simultaneously reducing loans and advances or debtors at year-end amounts to a write-off, and it is not necessary to close each individual account for claiming deduction under Section 36(1)(vii). Therefore, the disallowance made by the AO was not justified. The deduction claimed by the assessee was allowed.
The Tribunal restored the matter to the Assessing Officer for verification of income declared under presumptive taxation u/s 44AD and taxes paid thereof, considering the cash deposits as part of business turnover.
The Tribunal acknowledged that the assessee had opted for the Vivad Se Vishwas Scheme and filed the necessary form. Therefore, the appeal was dismissed as withdrawn.
The Tribunal noted that while the assessee provided purchase bills and made payments via banking channels, they failed to prove the actual delivery of goods. The Tribunal, referencing a Supreme Court decision, presumed the assessee procured goods from the grey market and needed to explain the source of expenditure.
The Tribunal held that the assessee failed to produce any documents to substantiate the claimed expenditure or loan. The legal ground regarding the Corporate Insolvency Resolution Process (CIRP) was also rejected based on previous findings.
The Tribunal noted that the disputed issue was settled under 'The Direct Tax Vivad Se Vishwas Scheme, 2024' and a certificate had been issued to the Assessee.
The Tribunal noted multiple violations of natural justice by the CIT(A), including passing an ex-parte order without addressing an adjournment request and issuing notices with errors. As the merits of the case were not decided by the CIT(A), the ITAT remanded the matter back for de novo adjudication to provide the assessee a fair opportunity to present its case.
The Tribunal held that the disallowance of deduction under Section 80-IC was a recurring issue that had been settled in favour of the assessee by the ITAT in earlier years. The penalty was imposed mechanically and without a valid ground, as the assessee's claim was bona fide and based on previous favorable rulings.
The Tribunal condoned the delay in filing the present appeal, subject to a deposit. It then held that the Commissioner erred in deciding the appeal on merits after refusing to condone the delay, citing High Court precedents.
The Tribunal held that the disallowance of deduction under Section 80-IC was a recurring issue that had been settled in favour of the assessee by the ITAT in earlier years. The penalty was imposed mechanically and without a valid ground, as the assessee's claim was bona fide and based on previous favorable rulings.
The assessee's counsel informed the tribunal that the assessee did not wish to press the appeal. Consequently, the tribunal dismissed the appeal as not pressed.
The Tribunal condoned the delay in filing the appeal, noting the principles of natural justice. On merit, the Tribunal found that the AO and CIT(A) passed ex-parte orders without proper opportunity to the assessee.
The Tribunal condoned the delay in filing the appeals, citing the Supreme Court's decision in Collector, Land Acquisition v. Mst. Katiji And Others, stating that the assessee should not suffer due to the negligence of a key person. Regarding the merits, the Tribunal acknowledged that the assessee did not attend proceedings or furnish details, leading to a rejection without substantive hearing. However, it also noted the assessee's request for another opportunity, which was not objected to by the revenue. The Tribunal held that the scales of justice demanded the matter be revisited. Therefore, both appeals were remanded to the CIT(E) for de novo adjudication, with directions to afford sufficient opportunity of being heard and for the assessee to make proper compliance, treating it as a last opportunity. ITA No. 1522/Mum/2025 was allowed for statistical purposes, and ITA No. 1523/Mum/2025 was dismissed as infructuous due to the remand.
The Tribunal considered the fact that the assessee did not attend proceedings before the CIT(E) and failed to furnish required details, leading to a rejection without substantive hearing. It acknowledged the assessee's duty to diligently pursue its case and cooperate with authorities. However, noting the assessee's request for one more opportunity, which was not objected to by the revenue, the Tribunal decided that the scales of justice warranted a revisit of the matter. Therefore, the Tribunal remanded both appeals back to the CIT(E) for de novo adjudication. The CIT(E) is directed to apply the principles of natural justice, afford a sufficient opportunity of being heard to the assessee, and the assessee is directed to make proper compliance, treating this as a last opportunity. ITA No. 1522/Mum/2025 is allowed for statistical purposes, and ITA No. 1523/Mum/2025 is dismissed as infructuous.