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699 orders · Page 5 of 14
The Tribunal held that the PCIT erred in invoking Section 263. Since the original assessment for the year was finalized and not abated by the search, the PCIT could not revise it under Section 263 based on issues that were not part of the search or did not arise from incriminating material found during the search.
The Tribunal condoned the delay, finding sufficient cause for the assessee's inability to file the appeal on time. The matter was remitted back to the CIT(A) for a fresh decision on merits after granting the assessee a proper opportunity to be heard.
The Tribunal held that reopening under Section 147 was invalid when the foundation was a search action, and Section 153C read with 153A should have been invoked. It also found the reopening on capital gains to be a change of opinion.
The Tribunal condoned the delay in filing the appeal, considering the medical reasons provided and the supporting documents as bonafide. The Tribunal further decided to remand the case to the AO for a fresh decision.
The Tribunal noted that Kriya Impex Pvt. Ltd. was controlled by the same group that provided accommodation entries, as established in a previous Tribunal ruling. The assessee failed to produce the director of Kriya Impex Pvt. Ltd. for cross-examination, and the affidavit provided was insufficient to prove the genuineness of the loan. Therefore, the matter was remanded back to the Assessing Officer for fresh adjudication.
The Tribunal held that the AO issued the notice for reopening without proper application of mind, as the assessment records already contained all relevant details. The reasons recorded did not establish a bonafide belief that income had escaped assessment or that there was a lack of full disclosure.
The Tribunal allowed the assessee's appeal on the first issue. It held that for penalty under Section 271(1)(c) to be levied on disallowances of expenses, the conditions for undisclosed income under Section 271AAB must be satisfied. Specifically, the expenses must be found to be false and would not have been discovered had the search not been conducted. In this case, the AO made disallowances for salary, wages, and administrative expenses merely due to the lack of verification of cash payment vouchers, not because the expenses were held to be false or bogus. Furthermore, the non-availability of vouchers was noted during assessment proceedings, not as a discovery during the search action. Therefore, the conditions for undisclosed income were not met, and the penalty was not sustainable. The Tribunal also allowed the assessee's appeal on the second issue concerning penalties on interest and depreciation. It found that the AO did not record any finding that the disallowance of interest (Rs.16,43,363/-) under Section 36(1)(iii) or the depreciation disallowance constituted undisclosed income. The AO did not establish how the issue of depreciation was unearthed during the search. In the absence of clear findings satisfying the conditions for undisclosed income, the penalty could not be sustained. Consequently, the penalties levied were deleted.
The Tribunal condoned the delay in filing the appeals. Observing that the applications for registration were not properly processed due to lack of documents and time constraints, the Tribunal set aside the impugned orders.
The Tribunal condoned the delay in filing the appeal due to the peculiar circumstances of the directors' deaths. The Tribunal decided to remand the case back to the Commissioner for a fresh decision, providing the assessee an opportunity to be heard.
The Tribunal held that the notice issued under Section 148 by the ITO was invalid due to lack of pecuniary jurisdiction, as the assessee's income exceeded Rs. 20 lakhs (and for corporate assessees, Rs. 30 lakhs as per CBDT instructions). Consequently, the assessment order was quashed.
The Tribunal held that the assessee failed to produce details of the HSBC bank accounts and their source of deposits, even though such information could have been obtained. Relying on Section 114(g) of the Indian Evidence Act, 1872, the Tribunal presumed that the withheld information would be unfavorable to the assessee. Consequently, it was held that the information/details not furnished were unfavorable to the assessee, and the source of money deposited in the HSBC account was undisclosed and sourced from India, making it taxable in India. The Tribunal found no merit in the evidence filed by the assessee and concluded that the amounts deposited were unaccounted deposits sourced from India. The additions made by the AO were upheld based on this reasoning. The specific grounds regarding reopening validity, limitation, and genuineness of bank statements were implicitly rejected by upholding the AO's additions. The issue of interest under Sections 234A and 234B was not expressly decided but would follow from the additions made.
The Tribunal held that merely having an Indian address or property is insufficient to establish a business connection for taxing foreign income. There was no evidence of business activities in India that contributed to earning the foreign income.
The Tribunal held that the AO erred in reopening the assessment and making additions to the income of the assessees. The assessees were non-residents, and the income earned in foreign accounts was not taxable in India.
The Tribunal held that the assessee failed to substantiate the source of funds in the HSBC Geneva account with documentary evidence. The additions made by the Assessing Officer were upheld as the assessee could not prove the funds were not from an Indian source.
The Tribunal held that merely having an Indian address or property is insufficient to establish a business connection for taxing foreign income. There was no evidence of business activities in India that contributed to earning the foreign income.
The Tribunal held that merely having an Indian address or property is insufficient to establish a business connection for taxing foreign income. There was no evidence of business activities in India that contributed to earning the foreign income.
The Tribunal held that merely having an Indian address or property is insufficient to establish a business connection for taxing foreign income. There was no evidence of business activities in India that contributed to earning the foreign income.
The Tribunal held that the AO erred in reopening the assessment and making additions to the income of the assessees. The Tribunal found that the assessees were non-residents and the income in question was earned outside India.
The Tribunal held that the reassessment proceedings were initiated mechanically without proper application of mind by the Assessing Officer, relying on generic information without verifying facts or considering the assessee's submissions.
The Tribunal held that the CIT(A)'s ex parte order violated principles of natural justice and the procedural requirements of Section 250(6) of the Income Tax Act. Therefore, the impugned order was set aside.
The Tribunal held that the CIT(A)'s ex parte order violated principles of natural justice and the procedural requirements of Section 250(6) of the Income Tax Act. Therefore, the impugned order was set aside.
The Tribunal held that the allowability of expenditure is not solely dependent on earning income, but on whether it was incurred for the purpose of business. It also directed deletion of addition on account of foreign exchange fluctuation gains and allowed set-off of brought forward business losses.
The Tribunal held that it has jurisdiction to examine a question of law that arises from the facts found by the authorities below. The Tribunal observed that the notice issued under Section 148 was not sanctioned by the Pr. CCIT as mandated by Section 151, thus violating statutory provisions.
The Tribunal held that the assessee sufficiently explained the genuineness of the transaction. The money was received from M/s Komal Exotic Spices Pvt. Ltd. and transferred through a journal entry to Mrs. Prerna Ahuja, acting as an escrow. The lower authorities doubted Mrs. Prerna Ahuja's creditworthiness without basis.
The Tribunal held that the disallowances made by the Assessing Officer lacked legal merit and factual foundation. It found that the disallowances for business promotion and goodwill amortization were based on consolidated financials and not the assessee's standalone account. Regarding interest disallowance, it was held that the assessee had sufficient interest-free funds, and the deposit was a business investment.
The Tribunal held that the addition of Rs. 51,02,120/- under section 69 is not sustainable. The Tribunal noted that the assessee's bank statement showed a withdrawal of Rs. 58,31,429 on 05-10-2018 for the purchase and transfer of Canadian Dollars, which was confirmed by the bank. The bank further clarified that the figure of Rs. 51,02,120/- related to the same transaction but was reported using a notional exchange rate for SFT purposes, resulting in a discrepancy with the actual remittance of Rs. 58,26,130/-. The source of these funds was explained as inheritance. The Tribunal found no basis to sustain the addition based solely on the initial Insight Portal information when the reporting bank confirmed a single transaction and the source of funds was explained. Therefore, the addition of Rs. 51,02,120/- was directed to be deleted. Regarding the interest income of Rs. 78,344/-, the Tribunal noted that it was below the basic exemption limit of Rs. 2,50,000/- and therefore not taxable. Consequently, no tax or interest liability arose. The appeal was allowed.
The Tribunal held that the Assessing Officer (AO) erred in making the disallowance of Rs. 1,55,056. The Tribunal found that the AO had not recorded any dissatisfaction with the assessee's working or computation of disallowance under Section 14A. The assessee had offered a disallowance of Rs. 1,96,644 based on a methodical working of monthly averages of investment, conforming to Rule 8D. The AO's action of invoking Rule 8D afresh and disallowing the entire exempt income of Rs. 3,51,700 was done without the mandatory recording of satisfaction as required under Section 14A(2). The Tribunal noted that the AO adopted the same average investment figure but arbitrarily used the exempt income as the ceiling for disallowance. The reliance by the AO and the CIT(A) on certain precedents was considered misplaced and irrelevant. Therefore, the Tribunal found no merit in the impugned disallowance of Rs. 1,55,056 and directed its deletion. The ratio decidendi is that a disallowance under Section 14A cannot be enhanced arbitrarily without rejecting the assessee's computation and recording cogent satisfaction.
The Tribunal held that the facts of the case were similar to previous decisions involving the same scrip and transaction pattern. The evidence provided by the assessee was unassailed, and the AO's addition was based on generalized suspicion rather than specific evidence.
The Tribunal held that since the transaction was settled under the Vivad Se Vishwas Scheme for AY 2015-16, it could not be taxed again for AY 2016-17. The addition made for AY 2016-17 was directed to be deleted.
The Tribunal held that since the entire investment and the difference in valuation were considered in the hands of the husband, there was no justification for making any additions in the hands of the assessee. Consequently, the penalty levied under Section 271AAC was also deleted.
The Tribunal held that the assessee's contention that the sale consideration agreed in 2010 is relevant is not tenable as the assessee himself declared the final sale consideration in 2019. The Tribunal also found inconsistencies in the property details and rejected the arguments regarding the timing of the agreement and the DVO's valuation.
The Tribunal held that for the call money received from Narois Impex Pvt. Ltd. and Empower India Ltd., the additions were deleted as the genuineness was established. However, for Duralloy Cutters Ltd. and Real Stone Exports Pvt. Ltd., the additions were sustained for AY 2018-19 due to insufficient evidence. The appeal regarding unsecured loan and interest from Golden Tobacco Ltd. was allowed in favor of the assessee.
The Tribunal held that for the call money received from Narois Impex Pvt. Ltd. and Empower India Ltd., the additions were deleted as the genuineness was established. However, for Duralloy Cutters Ltd. and Real Stone Exports Pvt. Ltd., the additions were sustained for AY 2018-19 due to insufficient evidence. The appeal regarding unsecured loan and interest from Golden Tobacco Ltd. was allowed in favor of the assessee.
The Tribunal held that for the call money received from Narois Impex Pvt. Ltd. and Empower India Ltd., the additions were deleted as the genuineness was established. However, for Duralloy Cutters Ltd. and Real Stone Exports Pvt. Ltd., the additions were sustained for AY 2018-19 due to insufficient evidence. The appeal regarding unsecured loan and interest from Golden Tobacco Ltd. was allowed in favor of the assessee.
The Tribunal found that the CIT(A) had passed the appellate order in a perfunctory manner, failing to consider the assessee's detailed submissions on the nature of its 'Bill Differ business' and ex-warehouse sales. The Tribunal noted that the AO and CIT(A) did not appreciate the exact nature of the business and lacked adverse findings on the assessee's purchases or books of account.
The Tribunal held that when incriminating material is found during a search on a third party, and that material pertains to the assessee, proceedings must be initiated under Section 153C, not Section 147. Therefore, the notice issued under Section 147 was without jurisdiction.
The Tribunal held that the Transfer Pricing Officer (TPO) was justified in segregating international transactions and analyzing them independently. However, the assessee was directed to substantiate five specific tests (need, rendition, benefit, duplicative, and shareholder activity) for the services received from AEs. The disallowance made in the intimation under section 143(1)(a) was deleted by the CIT(A) and the AO was directed to consider this.
The Tribunal held that the learned CIT(E) erred in rejecting the application for registration under Section 12AB. The Tribunal found that the assessee trust had repeatedly stated in its trust deed that its entire activity and beneficiaries were situated within the boundaries of India. While certain clauses might have suggested potential for activities abroad, these were ancillary and did not form the primary objectives. The Tribunal distinguished the case from Sila for Change Foundation (supra) where the trust deed explicitly stated activities both in India and outside India. The Tribunal reasoned that decisions must be based on actual conduct, not conjectures. Therefore, the order of the CIT(E) rejecting the Section 12AB registration was set aside, and the CIT(E) was directed to allow registration. Consequently, the denial of recognition under Section 80G was also set aside, and the CIT(E) was directed to allow the same. The Tribunal emphasized that the assessee should be provided with a proper opportunity of being heard. The ratio decidendi is that registration under Section 12AB and recognition under Section 80G cannot be denied based on hypothetical interpretations of general clauses in a trust deed when the trust explicitly confines its operations and beneficiaries within India.
The Tribunal held that the Ld. Commissioner failed to consider the Hon'ble Apex Court's order regarding the exclusion of time due to Covid-19. The delay was re-computed to be 164 days, which was condoned, and the case was remanded.
The Tribunal upheld the order of the CIT(A) which had reduced the addition to 12.5% of the alleged bogus purchases. The Tribunal found no illegality or perversity in the CIT(A)'s decision, especially as the assessee failed to produce parties for examination to prove the genuineness of transactions.
The Tribunal held that the learned CIT(E) erred in rejecting the application for registration under Section 12AB. The Tribunal found that the assessee trust had repeatedly stated in its trust deed that its entire activity and beneficiaries were situated within the boundaries of India. While certain clauses might have suggested potential for activities abroad, these were ancillary and did not form the primary objectives. The Tribunal distinguished the case from Sila for Change Foundation (supra) where the trust deed explicitly stated activities both in India and outside India. The Tribunal reasoned that decisions must be based on actual conduct, not conjectures. Therefore, the order of the CIT(E) rejecting the Section 12AB registration was set aside, and the CIT(E) was directed to allow registration. Consequently, the denial of recognition under Section 80G was also set aside, and the CIT(E) was directed to allow the same. The Tribunal emphasized that the assessee should be provided with a proper opportunity of being heard. The ratio decidendi is that registration under Section 12AB and recognition under Section 80G cannot be denied based on hypothetical interpretations of general clauses in a trust deed when the trust explicitly confines its operations and beneficiaries within India.
The Tribunal held that the lower authorities made additions based on assumption and presumption without substantive material. The Tribunal noted that the AO did not doubt the genuineness of documents submitted by the assessee and did not establish any link of rigging or manipulation.
The Tribunal dismissed the assessee's grounds 1 and 2 as not pressed. Regarding ground 3 of the assessee and grounds 1 and 2 of the revenue, which concerned the addition on account of bogus purchases, the Tribunal upheld the order of the CIT(A). The Tribunal found no illegality or perversity in the CIT(A)'s decision to restrict the addition to 12.5% of the alleged bogus purchases. The reasoning was that the assessee failed to produce the parties for examination to prove the genuineness of the transactions. The Tribunal distinguished the case of PCIT vs. Kanak Impex (India) Ltd. on facts and circumstances, finding it not applicable. The Tribunal also did not agree with the assessee's plea to reduce the addition to 5%, considering the holistic view taken by the CIT(A) in restricting the addition from 18.5% to 12.5%. Therefore, the Tribunal upheld the CIT(A)'s order, dismissing both the assessee's and revenue's appeals on this issue.
The Tribunal held that interest income earned by a co-operative society from deposits made with co-operative banks is eligible for deduction under Section 80P(2)(d) of the Income Tax Act. The Tribunal followed a coordinate bench's decision in a similar case.
The Tribunal held that the payments received for IT support services were not taxable as 'Fee for Technical Services' or 'royalty' based on previous decisions in the assessee's own cases. The Tribunal also directed verification for TDS credit and re-computation of tax liability regarding a disputed refund.
The Tribunal held that the additions for Assessment Year 2013-2014 were consequential to the additions made for Assessment Year 2012-2013. The appeals were directed to be adjudicated afresh after considering the decision for the prior year.
The Tribunal found that the CIT(A) did not grant a fair opportunity to the assessee to be heard. Consequently, the CIT(A)'s order was set aside, and the case was restored to the CIT(A) for fresh adjudication after providing a reasonable opportunity.
The Tribunal held that there was a sufficient cause for the delay in filing the appeals, citing the Hon'ble Supreme Court's observations in Collector Land Acquisition Vs. Mst. Katiji & Ors. The Tribunal also noted that the assessee was not granted sufficient opportunity of being heard by the Ld. CIT(E), which violated the principle of natural justice. Consequently, the Ld. CIT(E) was directed to reconsider the application for registration.
The Tribunal held that items such as mirrors, curtains, tube lights, bulbs, and furniture cannot be considered integral or inseparable parts of the asset. However, other items were considered part of permanent fixtures necessary for making the raw house habitable. A portion of the disallowed amount was allowed as cost of improvement.