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594 orders · Page 3 of 12
The Tribunal held that the learned Addl./Joint CIT(A) erred in dismissing the appeal ex-parte without granting the assessee an opportunity for a personal hearing. The impugned order was set aside, and the appeal was restored to the file of the CIT(A) for de novo adjudication after providing a personal hearing.
The Tribunal held that goodwill acquired on amalgamation constitutes an intangible asset eligible for depreciation. This is based on established High Court and Supreme Court judgments.
The Tribunal, in the interest of justice and fair play, decided to set aside the appellate order and remand the entire issue, including the legal grounds raised for the first time, back to the Assessing Officer (AO) for a fresh assessment (de novo). The Tribunal observed that most of the voluminous details submitted by the assessee, including financial statements for previous years, expense details, rent agreements, bank statements, and submissions made before the CIT(A), did not find adequate mention or discussion in the orders of the lower authorities. It appeared that both the AO and the CIT(A) had failed to apply their minds objectively and had jumped to adverse conclusions. The AO had made additions regarding opening capital without examining prior year financials, and conclusions regarding bank deposits seemed incomplete. The Tribunal noted the assessee's diligent compliance and submissions. Therefore, the AO was directed to frame the assessment afresh after allowing adequate opportunity of hearing to the assessee, ensuring proper and objective appreciation of the submitted details. No specific issue was left undecided, as the entire matter was remanded.
The Tribunal held that goodwill acquired on amalgamation constitutes an intangible asset eligible for depreciation. This decision was based on precedents from the Supreme Court and the jurisdictional High Court.
The Tribunal held that the addition of Rs. 11,00,000/- made under Section 69C of the Act was not sustainable. The Tribunal noted that the loose sheet containing the alleged expenditure was found from the residence of Shri Avish Atal, a third party, and not from the assessee's premises. The assessee denied any business connection with Shri Avish Atal, and the loose sheet did not contain the assessee's name. The Tribunal observed that the CIT(A) had confirmed the addition primarily based on the statements of Shri Ravindra Wadepalle and Shri Prashant Nilawar, which the assessee had retracted. The Tribunal also noted that the CIT(A) had deleted a similar addition for AY 2019-20, which was based on the same loose sheet, creating a contradiction. Furthermore, the Tribunal referred to its own decisions in the case of Prashant Prakash Nilawar and the assessee's own case for AY 2021-22, where additions based on documents found from third parties without corroborative evidence and proper certification under Section 65B of the Indian Evidence Act were deleted. The Tribunal concluded that in the absence of any corroborative evidence linking the document or image to the assessee's transactions, no addition could be made. The appeals filed by the assessee were allowed.
The Tribunal, relying on various coordinate bench decisions and the principle of `stare decisis`, held that the assessee is entitled to the full exemption claimed. It ruled that the enhanced monetary limit of Rs. 25 lakhs for leave encashment, as revised by Notification No. 31/2023, is applicable. The adjustment made by the lower authorities under Section 143(1) was deemed unsustainable in law as it pertained to a debatable issue.
The Tribunal held that penalty under section 271(1)(c) is not leviable when the addition to income is made on an estimation or ad-hoc basis. Following various precedents, the penalty was deleted.
The Tribunal held that the additions made by the AO and confirmed by the CIT(A) were unsustainable. The primary reasoning was that the additions were based on loose sheets of paper and statements that were either unauthenticated, lacked corroboration, or were retracted. For the addition of Rs. 11,00,000/- under Section 69C (AY 2018-19), the Tribunal noted the lack of business connection with Shri Avish Atal and the absence of the assessee's name on the document. The retraction of statements by Shri Ravindra Wadepalle and Shri Prashant Nilawar, supported by medical reports and police complaints, rendered them unreliable. Similarly, for the addition under Section 69A (other AYs), the Tribunal found that the loose sheet from Shri Lalit Mishra's premises had no reference to the assessee, and Shri Mishra's statement was self-contradictory and retracted. The Tribunal emphasized that mere loose papers and retracted statements, without independent corroboration, cannot form the basis for additions. The Tribunal also noted the CIT(A)'s contradictory approach to the same loose sheet in different assessment years. Consequently, the additions were deleted.
The Tribunal held that the addition made by the AO and confirmed by the CIT(A) was not sustainable. It noted that the seized documents did not mention the assessee's name and lacked any evidence to link the transactions to the assessee. The Tribunal also found that similar additions had been deleted in the assessee's own case and in the case of a related party.
The Tribunal condoned the delay, considering the principles of substantial justice over technicalities and the assessee's explanation for the delay. The case was restored to the Assessing Officer (AO) for fresh adjudication, providing the assessee another opportunity to present their case.
The Tribunal admitted the additional evidence filed by the assessee under Rule 29 of the ITAT Rules, consisting of loan confirmations from seven parties, as it was relevant to the issue under consideration. Given that these documents were filed for the first time before the Tribunal and had a direct bearing on the sole substantive issue of the addition of Rs. 2,80,23,430/- as unexplained investment under Section 69, the Tribunal deemed it appropriate to restore the matter to the jurisdictional Assessing Officer (AO) for a fresh decision on merits. The AO is to examine the newly filed evidences. The Tribunal did not decide the substantive issue on merits but remanded it for fresh adjudication.
The Tribunal held that the issues raised by the PCIT for revision had already been examined by the AO during the assessment proceedings with detailed replies and documentary evidence. The PCIT failed to demonstrate that the AO's order was erroneous and unsustainable in law.
The Tribunal found merit in the appellant's submission that sufficient opportunity was not granted. While noting that the assessment orders could not have been sustained, the Tribunal granted the assessee another opportunity to present their case on merits, subject to payment of costs.
The Tribunal found merit in the appellant's submission that sufficient opportunity was not granted. While noting that the assessment orders could not have been sustained, the Tribunal granted the assessee another opportunity to present their case on merits, subject to payment of costs.
The Tribunal held that Section 199 of the Income Tax Act provides for TDS credit in the year of income. Since the salary income was reported and TDS was deducted and deposited as per Form-16, the assessee is eligible for the credit. The discrepancy in Form 26AS was considered a technical issue that should not deny the rightful credit.
The Tribunal held that the addition of Rs. 11,00,000/- under Section 69C for AY 2018-19, based on a loose sheet found from Shri Avish Atal's residence, is not sustainable. The Tribunal noted that the loose sheet did not bear the assessee's name, and the assessee denied any business connection with Shri Avish Atal. The primary basis for the addition was the statements of Shri Ravindra Wadepalle and Shri Prashant Nilawar, which were subsequently retracted. The Tribunal found that the CIT(A) had also deleted a larger addition of Rs. 3,25,00,000/- from the same loose sheet in AY 2019-20, indicating contradictory reasoning. Furthermore, the Tribunal referred to its own decision in the case of Prashant Prakash Nilawar (a partner of the assessee) and the assessee's own case for AY 2021-22, where additions based on electronic records found from third parties without corroborative evidence linking them to the assessee were deleted. The Tribunal emphasized that presumptions under Section 132(4A) read with Section 292C are rebuttable and evidence found in the possession of a third party cannot be automatically saddled onto the assessee without linking evidence. The Tribunal also noted that the electronic record (image/sheet) relied upon by the AO was not properly certified as per Section 65B of the Indian Evidence Act. Therefore, the addition was deleted.
The Tribunal held that the receipts under the Regional Service Agreement represent consideration for services rendered, falling within the purview of business profits under Article 7 of the India-Singapore DTAA. The Tribunal affirmed the CIT(A)'s finding that the arrangement was one of provision of services, not a transfer of know-how or imparting of secret, proprietary, or reproducible information. The services were operational functions executed by the assessee's regional staff for ensuring uniformity, compliance, and efficiency, using their own facilities and infrastructure, without transferring any knowledge or confidential method to the Indian entity. The Tribunal reasoned that the cost-plus basis of remuneration, confined to actual costs with a nominal markup, demonstrates economic substance as service reimbursement, antithetical to royalty which is linked to revenue exploitation. The phrase 'imparting of information' under Section 9(1)(vi) should be strictly construed and was not attracted as the knowledge remained embedded with the service provider. The Tribunal noted that the Revenue had accepted similar arrangements as non-royalty service income in earlier years, and consistency principle obliged maintaining uniformity. The Revenue's argument regarding reliance on Van Oord was dismissed, as coordinate bench decisions bind the Tribunal and Van Oord was affirmed by subsequent rulings. The Tribunal found no nexus for taxation in India as no Permanent Establishment was alleged. The assessee's cross-objections regarding limitation and interest under Section 234D were rendered academic and dismissed as infructuous, as no tax liability was found taxable in India. The Revenue's appeals were dismissed.
The Tribunal allowed the assessee's appeal concerning the addition of Rs. 11,00,000/- for AY 2018-19. The Tribunal noted that the addition was primarily based on a loose sheet found from the residence of Shri Avish Atal. The assessee had argued that there was no business connection with Shri Avish Atal, the document did not mention the assessee's name, and the statements relied upon were retracted. The Tribunal observed that the CIT(A) had confirmed the addition based on the statements of Shri Ravindra Wadepalle and Shri Prashant Nilawar, but these statements were retracted. The Tribunal found that the CIT(A) had not considered the retraction affidavits, which were supported by medical reports and police complaints. Furthermore, the Tribunal noted that the CIT(A) had deleted additions based on the same loose sheet in a subsequent AY, indicating contradictory reasoning. Given the lack of corroborative evidence linking the assessee to the alleged expenditure and the retracted statements, the Tribunal held that the addition was not sustainable. The AO's addition was directed to be deleted.
The Tribunal held that the additions made by the Assessing Officer were not sustainable as there was no incriminating material to corroborate them. The Tribunal also noted that payments made through banking channels were duly verified.
The Tribunal held that the receipts under the RSA represented consideration for services rendered, falling within the purview of business profits under Article 7 of the DTAA. As there was no permanent establishment in India, the income was not taxable in India.
The Tribunal held that the penalty notice was invalid because it did not specify whether the penalty was for concealment of income or furnishing inaccurate particulars. This ambiguity violates principles of natural justice.
The Tribunal held that the addition made by the AO and upheld by the CIT(A) under section 68 of the Act was not sustainable. The Tribunal referred to the Hon'ble High Court's decision which states that if the AO examines the truth behind credits and finds material that discredits the assessee's particulars and shows the amount was received as part of a premeditated plan conceived with the assessee's connivance, then the liability fastens on the assessee. However, the Tribunal also cited the case of CIT v. Nipun Builders and Developers P. Ltd., which held that the point at which the initial onus on the assessee is discharged depends on the facts and circumstances. The Tribunal noted that an assessee cannot simply furnish details and remain quiet, especially when summons to shareholders are unserved. The judgment implies that the AO's actions in this case did not meet the threshold for deeming the credits as unexplained in the hands of the assessee, particularly concerning the genuineness of the loans and the status of the lender company. The Tribunal did not expressly leave any issue undecided. The operative direction would be deletion of the addition.
The Tribunal held that the assessee's explanation for the delay, including being out of India and being a senior citizen, had some truth and should not be brushed aside. The appeal was therefore set aside, directing the First Appellate Authority to decide on merits after condoning the delay.
The Tribunal held that the principles of substantial justice should be preferred over technicalities, especially for non-deliberate delays. The assessee was entitled to the TDS credit already deducted by the employer. The matter was restored to the AO for verification of TDS deposit.
The Tribunal held that the AO made the addition without complete inquiry and examination of documents. The amounts received were declared as sales in subsequent years when sale deeds were registered and final payments were made.
The Tribunal held that the conditions for Section 80P(2)(d) are met if the co-operative society earns interest income from investments made with any other co-operative society. Therefore, the disallowance was incorrect.
The Tribunal held that section 80P(4) of the Act is a proviso to sections 80P(1) and 80P(2) and excludes Co-operative Banks that operate like commercial banks. However, for a Co-operative Society claiming deduction on interest income from investments with other Co-operative Societies (including Co-operative Banks), the deduction under section 80P(2)(d) is allowable.
The Tribunal held that the Assessee had discharged its onus under Section 68 of the Act for the loan from B. Chandan (Rs. 11,00,000) by providing ledger accounts, bank statements, ITR acknowledgments with PAN and address, establishing identity, creditworthiness, and genuineness. Therefore, the addition was deleted. Regarding the loan from Girdhai Jain Sanghvi/Girdhar Jaindrai Jaisinghani (Rs. 33,44,000), the Tribunal noted that while the lender had low income, this alone is not a ground for addition under Section 68. The Assessee had provided ledger, confirmation, and bank statements. The Tribunal cited "Commissioner of Income-tax Vs. Lovely Exports (P.) Ltd." and "PCIT Vs. High-tech Residency Pvt. Ltd." to support the view that once the Assessee discharges the onus, additions under Section 68 are not sustainable. The appeal of the Assessee was allowed subject to verification as directed in paragraphs 45 and 46. The appeal filed by the Revenue was dismissed, and the Assessee's appeal was allowed.
The Tribunal held that the receipts under the RSA represented consideration for services rendered, falling within the purview of business profits under Article 7 of the DTAA. As there was no permanent establishment in India, the income was not taxable in India.
The Tribunal held that the additions made by the Assessing Officer were not sustainable as there was no incriminating material to corroborate them. The Tribunal also noted that payments made through banking channels were duly verified.
The Tribunal held that the receipts under the RSA represented consideration for services rendered, falling within the purview of business profits under Article 7 of the DTAA. As there was no permanent establishment in India, the income was not taxable in India.
The Tribunal held that the additions made by the Assessing Officer were not sustainable as there was no incriminating material to corroborate them. The Tribunal also noted that payments made through banking channels were duly verified.
The Tribunal condoned the delay in filing the appeal, considering the principles of substantial justice over technicalities. The matter was restored to the file of the AO for deciding afresh, providing one more opportunity to the assessee to represent its case, subject to a cost of Rs. 2,000/-.
The Tribunal held that the additions made by the Assessing Officer were not sustainable as there was no incriminating material to corroborate them. The Tribunal also noted that payments made through banking channels were duly verified.
The Tribunal held that the additions made by the Assessing Officer were not sustainable as there was no incriminating material to corroborate them. The Tribunal also noted that payments made through banking channels were duly verified.
The Tribunal, considering the assessee's non-compliance and the ex parte assessment order, decided to grant one more opportunity to the assessee to present its case before the AO, adhering to the principles of natural justice.
The Tribunal held that the additions made by the Assessing Officer were not sustainable as there was no incriminating material to corroborate them. The Tribunal also noted that payments made through banking channels were duly verified.
The Tribunal held that the CIT(A) erred in admitting additional evidence without proper reasoning and without conducting independent verification, despite the Assessing Officer's objections. The CIT(A)'s order was set aside.
The Tribunal held that the additions made by the AO and confirmed by the CIT(A) were unsustainable. The primary reasoning was that the additions were based on loose sheets of paper and statements that were either unauthenticated, lacked corroboration, or were retracted. For the addition of Rs. 11,00,000/- under Section 69C (AY 2018-19), the Tribunal noted the lack of business connection with Shri Avish Atal and the absence of the assessee's name on the document. The retraction of statements by Shri Ravindra Wadepalle and Shri Prashant Nilawar, supported by medical reports and police complaints, rendered them unreliable. Similarly, for the addition under Section 69A (other AYs), the Tribunal found that the loose sheet from Shri Lalit Mishra's premises had no reference to the assessee, and Shri Mishra's statement was self-contradictory and retracted. The Tribunal emphasized that mere loose papers and retracted statements, without independent corroboration, cannot form the basis for additions. The Tribunal also noted the CIT(A)'s contradictory approach to the same loose sheet in different assessment years. Consequently, the additions were deleted.
The Tribunal held that penalty under section 271(1)(c) is not leviable when additions are made on an estimation or ad-hoc basis. Relying on various case laws, the Tribunal deleted the penalty.
The Tribunal noted that for AY 2019-20, the CIT(A) himself deleted an addition based on the same loose sheet concerning a balance amount of Rs. 3.25 Cr., indicating a contradiction in reasoning. The Tribunal found merit in the assessee's argument that there was no business relationship with Shri Avish Atal and the loose sheet did not mention the assessee's name. The Tribunal also considered the retraction of statements by Shri Ravindra Wadepalle and Shri Prashant Nilawar, noting that the retraction was supported by a medical report and police complaint, suggesting the statements were recorded under duress. The Tribunal held that such statements, especially when retracted with supporting evidence, cannot be the sole basis for making additions. Regarding the WhatsApp chat issue, the Tribunal observed that the chat was between two independent third parties and did not implicate the assessee. The Tribunal also noted the retraction of Shri Shailendra Rathi's statement. The Tribunal held that WhatsApp chats between third parties cannot be the basis for addition without further corroboration. The Tribunal further held that if a statement is partially accepted, it must also be accepted for its entirety, including the cancellation of transactions. Consequently, the Tribunal found no scope for making additions in the hands of the assessee based on the presented evidence. The Tribunal directed the deletion of the impugned additions.
The Tribunal decided that no addition can be made in the hands of the assessee based on the loose sheet found from the residence of Shri Avish Atal. The Tribunal noted that the CIT(A) had confirmed the addition primarily based on the statements of Shri Ravindra Wadepalle and Shri Prashant Nilawar. However, the assessee argued that these statements were retracted and that the CIT(A) had himself deleted a similar addition for AY 2019-20 based on the same document, creating a contradiction. The Tribunal also referred to its own previous decisions in the cases of Prashant Prakash Nilawar and the assessee's own case for AY 2021-22. In those cases, it was held that an image/sheet found from the mobile of a third party (Shri Shailendra Rathi, an independent consultant) cannot be used to saddle the assessee with responsibility, especially when the owner of the document could not clearly explain its contents. Furthermore, the Tribunal noted that electronic records used as evidence require necessary certification, which was absent. Therefore, the addition was deleted.
The Tribunal noted that the assessee failed to provide documentary evidence for claimed expenses and could not satisfactorily explain the source of cash deposits. Despite opportunities, the assessee was absent during the hearing and failed to produce credible material to rebut the revenue authorities' findings.
The Tribunal found that the assessee's grounds for delay might be reasonable and directed the assessee to file an affidavit with supporting evidence before the Ld. CIT(A). The matter was remanded to the Ld. CIT(A) for fresh adjudication after considering the evidence and affording a reasonable opportunity of being heard.
The Tribunal held that the additions made by the Assessing Officer were not sustainable as there was no incriminating material to corroborate them. The Tribunal also noted that payments made through banking channels were duly verified.
The Tribunal held that the receipts under the RSA represented consideration for services rendered, falling within the purview of business profits under Article 7 of the DTAA. As there was no permanent establishment in India, the income was not taxable in India.
The Tribunal held that the CIT(A) rightly deleted the addition of Rs. 1,47,99,790 made under Section 36(1)(iii). The CIT(A) observed that the assessee had substantial own capital (Rs. 43.35 Cr) and mixed funds. It was presumed that own capital was utilized first for investments. Even with the AO's assumed rates, the transaction was net positive for the assessee. The CIT(A) also found that expenses were incurred for the purpose of lending and advancing loans, and the deduction under 'Income from Other Sources' was justifiable, leading to a taxable income of Rs. 60.51 Lakhs. The Tribunal agreed that the AO's addition under Section 36(1)(iii) was not sustainable. Regarding the addition of Rs. 3,61,16,600 under Section 68, the Tribunal noted that while the assessee initially failed to provide requisite evidence, the CIT(A) admitted additional evidence. After examining these evidences, the CIT(A) concluded that the assessee had discharged the onus of proving the identity, creditworthiness of lenders, and genuineness of transactions. The Tribunal concurred with the CIT(A)'s finding that the addition under Section 68 was rightly deleted. The revenue did not raise a specific ground against the admission of additional evidence before the Tribunal. Therefore, the revenue's appeal was dismissed.
The Tribunal held that the assessee had discharged its primary onus under Section 68 by providing identity, genuineness, and creditworthiness of loan parties with supporting documents. The requirement to explain the 'source of source' was not applicable for the assessment year in question.
The Tribunal held that the receipts under the RSA represented consideration for services rendered, falling within the purview of business profits under Article 7 of the DTAA. As there was no permanent establishment in India, the income was not taxable in India.
The Tribunal held that the addition made by the AO and upheld by the CIT(A) under section 68 of the Act was not sustainable. The Tribunal referred to the Hon'ble High Court's decision which states that if the AO examines the truth behind credits and finds material that discredits the assessee's particulars and shows the amount was received as part of a premeditated plan conceived with the assessee's connivance, then the liability fastens on the assessee. However, the Tribunal also cited the case of CIT v. Nipun Builders and Developers P. Ltd., which held that the point at which the initial onus on the assessee is discharged depends on the facts and circumstances. The Tribunal noted that an assessee cannot simply furnish details and remain quiet, especially when summons to shareholders are unserved. The judgment implies that the AO's actions in this case did not meet the threshold for deeming the credits as unexplained in the hands of the assessee, particularly concerning the genuineness of the loans and the status of the lender company. The Tribunal did not expressly leave any issue undecided. The operative direction would be deletion of the addition.