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604 orders · Page 6 of 13
The tribunal noted the submission of the assessee's counsel to withdraw the appeal. Considering the circumstances, the tribunal allowed the withdrawal.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal held that while the department had no evidence of undisclosed cash introduction, the assessee's explanation for cash withdrawals during the demonetization period was not satisfactory. The disallowance was restricted to the difference between cash deposited and the reduction in cash expenses.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal held that the disallowance of occupancy expenses under section 37(1) as depreciation under section 32 was incorrect, as it did not partake the character of depreciation. The Tribunal did not find merit in the additional disallowance directed by the DRP under section 36/37 of the Act. Regarding the benchmarking of interest on CCDs, the Tribunal noted that the assessee used the CUP method, but the TPO rejected it due to infirmities in the credit rating of comparables and used the 'Other Method'. The Tribunal observed that Rule 10AB defines 'Other Method' as one that considers prices in similar uncontrolled transactions between non-associated enterprises. The TPO did not search for such transactions. Since the Tribunal concluded that CCDs are debt instruments, the interest paid should be benchmarked appropriately. The issue was restored to the TPO/AO for de novo benchmarking, allowing the assessee to justify CUP or provide an alternative analysis. The addition of Rs.133,17,83,173/- under section 36/37 was deleted. The contentions regarding section 94B were kept open. Ground No. 4 was allowed for statistical purposes, and Ground No. 5 was allowed. For Ground No. 6 (TDS credit), the issue was restored to the AO for verification and credit as per law. For Ground No. 7 (interest under section 234A), the issue was restored to the AO to verify if the return was filed within time and levy interest accordingly. Ground No. 8 (interest under section 234B) was considered consequential and needed no separate adjudication. Ground No. 9 (penalty under section 270A) was dismissed as premature. The appeal was partly allowed for statistical purposes.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal held that the CIT(A) erred in dismissing the appeal without properly adjudicating the condonation issue and denying a reasonable opportunity of hearing. The order of the CIT(A) was set aside.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal held that the issues raised in the present appeal were identical to those considered in the assessee's own case for earlier assessment years (AY 2013-14 & 2014-15) and that the DRP had also relied on its own orders for earlier years. Therefore, the Tribunal found merit in the assessee's submission that the facts were identical and covered by the co-ordinate bench's decisions. For the AMP expenses, the Tribunal respectfully followed the co-ordinate bench's decision for AY 2013-14 & 2014-15, deleting the TP adjustment. For the allocation of expenditure at Baddi Units I & II, the Tribunal, following its earlier decision for AY 2011-12, deleted the disallowance made by the AO. Regarding the levy of interest under Section 234C, the Tribunal remitted the issue back to the AO to re-compute the interest as per the provisions of the said section. For the non-grant of MAT credit, the Tribunal, consistent with earlier decisions, remitted the issue back to the AO to examine the status of the assessment order for AY 2010-11 and grant credit for the carried forward MAT. The issues concerning royalty and service fees were not explicitly detailed in the provided excerpt but were implicitly covered by the general statement that all issues were identical to earlier years.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal decided that the disallowance made under Section 14A read with Rule 8D is deleted, allowing Ground No. 1A of the assessee's appeal. Ground 1B was rendered academic. The applicability of Section 115JB was decided in line with the findings for AY 2013-14, leading to Ground 2A being allowed. Grounds 2B were rendered academic. For the Revenue's appeal concerning AY 2015-16, the deletion of disallowance of broken period interest on securities was upheld, dismissing Grounds 1 and 2. The deletion of disallowance of provision for wage revision was allowed for statistical purposes, allowing Ground 3. The allowability of shifting loss was decided in line with AY 2013-14, dismissing Ground 4. The deletion of disallowance under Section 14A read with Rule 8D for book profit was rendered infructuous, dismissing Ground 5. Similar decisions were applied mutatis mutandis to other assessment years and appeals. The ratio is that issues decided in the lead case apply to subsequent years, and specific grounds are allowed, dismissed, or rendered academic based on those prior decisions.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal condoned the delay, set aside the CIT(A)'s order, and restored the matter for fresh adjudication. The assessee was granted a final opportunity to present evidence, subject to a cost of ₹25,000.
The Tribunal decided the issues by applying the findings from the lead case (AY 2013-14) mutatis mutandis to other assessment years. For Ground 1 (Section 14A disallowance), the Tribunal deleted the disallowance, allowing the assessee's appeal for statistical purposes in AY 2015-16 and AY 2016-17, and allowed the assessee's appeal in AY 2013-14. For Ground 2 (provision for wage revision), the Tribunal allowed the Revenue's appeal for statistical purposes in AY 2015-16, indicating a deletion of disallowance by the CIT(A) was being upheld. In AY 2016-17, the issue was restored to the AO for de novo adjudication. For Ground 3 (Section 115JB applicability), the Tribunal's findings in the lead case were applied, leading to the issue being rendered infructuous or dismissed in some appeals, and allowed in others. For Ground 4 (shifting of securities), the Revenue's appeal was dismissed in AY 2015-16 and AY 2016-17. For Ground 5 (enhancement of securities value), the issue was rendered infructuous in AY 2015-16. The Tribunal also addressed issues related to broken period interest on securities, which were dismissed in the Revenue's appeal for AY 2016-17. The overall result was a mix of allowed, partly allowed, and dismissed appeals.
The Tribunal restored the matter to the file of the CIT(Appeals) to decide the issue of condonation of delay and, if successful, to adjudicate the appeal on merits.
The Tribunal found that the CIT(A) relied on fresh evidence without following Rule 46A of the Income-tax Rules, 1962, and without giving the AO an opportunity to examine it. Therefore, the matter was remanded.
The Tribunal decided the issues based on its findings in the lead case for assessment year 2013-14, applying them mutatis mutandis to other assessment years. For Section 14A disallowances, the Tribunal deleted them, aligning with the assessee's appeal for AY 2013-14, rendering Ground 1B academic. Regarding the provision for wage revision, the Tribunal allowed the deletion of the disallowance for AY 2013-14 and confirmed the deletion for AY 2016-17, while restoring the issue for de novo adjudication for AY 2016-17. For Section 115JB, the Tribunal's findings on its applicability rendered the issue of disallowance of Section 14A while computing book profit infructuous. The Tribunal also addressed issues related to bad debts written off, securities valuation, and broken period interest, largely favoring the assessee or dismissing the revenue's appeals based on prior decisions. The ratio is that prior decisions on similar issues for the same assessee and assessment years are binding and will be applied mutatis mutandis. The operative direction was to delete disallowances, allow deductions, and in some cases, restore issues for fresh adjudication.
The Tribunal condoned the delay of 404 days in filing the appeal, adopting a justice-oriented and liberal approach, citing Supreme Court judgments in Vidya Shankar Jaiswal and Inder Singh. Regarding the addition of Rs. 16,00,000/-, the Tribunal found that the payments made by the assessee from his bank account were verifiable and sourced from explained means. These included refunds from a builder, personal loans, bank transfers from his father, cash deposits from his father (sourced from VRS funds), cash received from his mother (from sale of old gold jewellery), and salary income through ECS. The Tribunal noted that while a Rs. 6,00,000/- cash deposit on 30.08.2010 was initially doubtful, it was corroborated by the father's VRS receipts. In the absence of negative inferences or evidence from the revenue, the Tribunal concluded that the assessee had duly explained the source of the impugned addition. Therefore, the addition of Rs. 16,00,000/- was deleted. The consequential demand for tax, surcharge, and education cess was rendered infructuous.
The Tribunal held that even if the assessee did not respond, the CIT(A) should have decided the appeal on merits. Therefore, the case was restored to the CIT(A) for fresh adjudication after providing a reasonable opportunity of hearing.
The Tribunal directed the AO/TPO to re-examine certain comparables for inclusion and to grant working capital adjustments. It also directed the AO to re-compute the tax payable without levying interest under Section 234A.
The Tribunal decided the issues based on its findings in the lead assessment year 2013-14, applying them mutatis mutandis to other years. For AY 2015-16, the Revenue's appeal was partly allowed for statistical purposes. For AY 2016-17, the assessee's appeal was allowed for statistical purposes, with the disallowance under Section 14A read with Rule 8D deleted, and the applicability of Section 115JB confirmed. An additional ground regarding payment of wage revision was admitted and restored to the AO for de novo adjudication. The Revenue's appeal for AY 2016-17 was dismissed, with grounds related to broken period interest and book profit computation being dismissed. The Tribunal also noted that some issues were rendered infructuous or academic based on other findings.
The Tribunal held that the appeal was hopelessly barred by limitation and not maintainable due to several procedural defects and non-compliance. The appeal was dismissed in limine.
The Tribunal held that the enhanced tolerance limit of 10% under Section 50C(1) is retrospective, thus the addition made by the AO is unsustainable. It also held that stamp duty and registration charges borne by the assessee as per the sale agreement are allowable expenses for computing capital gains.
The Tribunal noted that the CIT(A)'s order was ex-parte and, in the interest of justice, restored the matter for fresh adjudication. The assessee was directed to be given an adequate opportunity and to make requisite compliance.
The Tribunal decided the issues as follows: Regarding the disallowance under Section 14A, the Tribunal noted that the Assessing Officer had not recorded any specific reasons for his dissatisfaction with the assessee's claim. The CIT(A) had confirmed the disallowance. The Tribunal, referencing the decision in 'D.E. Shaw India Private Limited vs. ACIT', held that the disallowance under Section 14A read with Rule 8D(2)(ii) was not sustainable as the Assessing Officer failed to record objective reasons for his dissatisfaction. Therefore, the disallowance of Rs. 7,77,69,000 was deleted. Concerning the provision for wage revision, the Tribunal found that the Assessing Officer had disallowed the provision of Rs. 100,00,00,000. The CIT(A) had also confirmed this disallowance. The Tribunal, following the decision in 'Western India Plywood Ltd. vs. CIT', held that a provision for wage revision, which is an ascertained liability, is an allowable deduction under Section 37(1). Therefore, the disallowance was deleted. On the applicability of Section 115JB and the related additions/disallowances, the Tribunal observed that the Assessing Officer had added back the provision for wage revision and disallowed bad debts written off while computing book profit. The CIT(A) had confirmed these actions. The Tribunal, in light of its findings on the provision for wage revision and bad debts, directed the deletion of the addition of the provision for wage revision and allowed the bad debts written off for computing book profit under Section 115JB. The specific amounts related to bad debts were to be re-examined based on the Tribunal's findings.
The Tribunal noted that the assessee's counsel produced a letter from the Director stating the assessee did not wish to pursue the appeal. Consequently, the Tribunal dismissed the appeal as withdrawn.
The Tribunal decided the issues based on its findings in the lead case for assessment year 2013-14, applying them mutatis mutandis to other assessment years. For Section 14A, the disallowance was deleted, and the corresponding ground in the assessee's appeal was allowed, while related grounds in the Revenue's appeal were dismissed. Regarding the provision for wage revision, the disallowance was deleted in the assessee's appeal, and the corresponding ground in the Revenue's appeal was allowed for statistical purposes with directions. The applicability of Section 115JB was a significant point; in some cases, it was held not applicable, leading to the deletion of additions made under it. In other instances, issues related to Section 115JB were rendered infructuous or dismissed based on prior findings. The issue of broken period interest on securities was dismissed in the Revenue's appeal. The Tribunal also restored the issue of payment of wage revision to the jurisdictional AO for de novo adjudication in one assessment year. The overall result was a mix of allowed, dismissed, and partly allowed appeals.
The Tribunal held that the notice issued under section 274 of the Income-tax Act, 1961, was defective. Citing the Bombay High Court's decision in Mohd. Farhan A. Shaikh vs. Deputy Commissioner of Income Tax, the Tribunal found that the Assessing Officer (AO) had not specified the limb under which the penalty was proposed to be levied, and the notice did not clearly state the charge of concealing or furnishing inaccurate particulars of income. The Tribunal emphasized that penalty proceedings are distinct from assessment proceedings and must stand on their own, with the assessee being informed of the grounds through a statutory notice. An omnibus notice suffers from vagueness, and penal provisions must be construed strictly. Consequently, the Tribunal set aside the notice under section 274 and quashed the resultant penalty order. Furthermore, even on merits, the Tribunal noted that the penalty was levied on the assessee's claim of bad debts amounting to Rs. 7,19,96,655/-. The Tribunal referred to its own co-ordinate bench's decision in ITA No. 5552/Mum/2017 for AY 2010-11, which had upheld the CIT(A)'s order allowing the carry forward of the said loss. Since the foundation of the penalty proceedings (the defective notice) was removed, and the merits also favored the assessee, the AO was directed to delete the impugned penalty. The appeal of the assessee was allowed.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal held that the CIT(A) denied the assessee adequate opportunity for hearing, violating principles of natural justice. The explanation for non-appearance, supported by contemporaneous material, showed a reasonable cause. Therefore, the CIT(A)'s order was set aside.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal decided the issues as follows: Regarding Section 14A, the Tribunal noted that the assessee bank had not furnished any working for disallowance of expenditure. The Assessing Officer (AO) had disallowed Rs. 7,77,69,000 under Section 14A read with Rule 8D(2)(ii). The CIT(A) confirmed this disallowance. The Tribunal found that the assessee had not provided any working to justify its claim. Therefore, the disallowance made by the AO and confirmed by the CIT(A) was upheld. The alternative plea to restrict the disallowance to 2% of exempt income was not accepted as the primary disallowance was upheld. On the issue of provision for wage revision, the Tribunal observed that the assessee had made a provision of Rs. 100,00,00,000. The AO disallowed this, and the CIT(A) confirmed it. The Tribunal held that a provision for wage revision, which is an unascertained liability, cannot be allowed as a deduction under Section 37(1) of the Act. The liability had not crystallized during the year. Therefore, the disallowance was upheld. Concerning Section 115JB, the Tribunal noted that the assessee's contention that Section 115JB is not applicable was rejected by the AO and CIT(A). The Tribunal found that the assessee had not furnished any material to show that the provisions of Section 115JB were not applicable. Therefore, the invocation of Section 115JB was upheld. Regarding the addition of provision for wage revision while computing book profit, the Tribunal held that since it was an unascertained liability, it was rightly added back. For bad debts, the Tribunal noted that the assessee had debited Rs. 1930,20,40,959 as provision for bad and doubtful debts. The AO added this back, and the CIT(A) confirmed. The Tribunal held that this provision for diminution in value of assets should be added back while computing book profit under Section 115JB. The issue of bad debts written off of Rs. 728,10,48,511 was also discussed, but the specific finding on this is not fully detailed in the provided text, though it appears to be related to the treatment of bad debts under Section 115JB. The issue regarding securities shifted from AFS to HTM category and the reversal of valuation loss was not decided in the provided excerpt. The Tribunal also did not decide on the initiation of penalty proceedings under Section 271(1)(c) in the provided text. Operative Directions: The disallowance under Section 14A and the disallowance of provision for wage revision were upheld. The invocation of Section 115JB and the addition of provision for bad and doubtful debts were upheld. The specific outcome for the securities issue and penalty proceedings is not recorded.
The Tribunal noted that the appeals were consolidated due to common issues and a similar factual matrix. The decision for AY 2013-14 was to be applied mutatis mutandis to other appeals. The judgment excerpt provided does not contain the Tribunal's final decision or reasoning on any of the issues raised. It only outlines the grounds of appeal for the assessee. The provided text ends abruptly during the discussion of the assessee's claim regarding securities and the reliance on the Supreme Court case of Maxopp Investment Ltd. v. CIT. Therefore, the Tribunal's findings, reasoning, and operative directions are not available in the given extract.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal held that the addition was based on conjecture and lacked concrete evidence of cash transactions or cash trails. It also noted that the payer of the alleged excess consideration was not identified by the revenue.
The Tribunal upheld the order of the CIT(Appeals)/NFAC, restricting the addition to 3% of the bogus purchases. The Tribunal noted that the CIT(Appeals) had relied on various judicial pronouncements and had restricted the addition to 3% as against the AO's 100% addition. The Tribunal observed that the assessee's sales were accepted, and there was no rejection of stock or inventories recorded in the assessee's books. Crucially, in the assessee's own case for earlier assessment years (2008-09 and 2007-08), the CIT(A) had restricted the addition to 3% of bogus purchases, which was not disputed by the revenue. Therefore, in the absence of any fresh facts or evidence presented by the revenue to dislodge the CIT(A)'s findings, the Tribunal found it reasonable to retain the addition at 3%. The Tribunal dismissed the revenue's grounds of appeal. The issue of tax effect and organized tax evasion was not explicitly decided upon by the Tribunal, but the appeal was dismissed based on the CIT(A)'s findings.
The Tribunal held that the PCIT erred in invoking revisionary powers. It ruled that donations made from CSR funds can be eligible for deduction under Section 80G if the stipulated conditions are satisfied, and the PCIT's assumption of jurisdiction was based on a wrong premise.
The Tribunal held that the rectification order passed under Section 154 was bad in law as it was made without providing the assessee with a reasonable opportunity of being heard, violating principles of natural justice and statutory provisions.