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591 orders · Page 11 of 12
The Tribunal held that the CIT(A) was not justified in treating the appeal as withdrawn. Section 4(2) of the DTVSV Act applies only to the disputed interest that was the subject matter of the appeal before the Tribunal or CIT(A), and not to other disputes arising from a rectification application.
The Tribunal held that the sanction for issuing notice u/s 148 was not obtained from the competent authority as required by Section 151(ii) of the Act. This violation renders the notice and subsequent assessment order void.
The Tribunal found that the appellate order of the CIT(A) was a mere repetition of the assessment order, lacking independent application of mind and failing to adjudicate the issues properly. The Tribunal noted that the CIT(A) had glossed over the grounds of appeal in an injudicious manner and had not decided the appeal on merits, which is contrary to the mandate of section 250(6) of the Act. The Tribunal emphasized that the CIT(A) is bound to dispose of appeals on merits and has the power to make further inquiries or direct the AO to do so, as per section 250(4). The Tribunal also referred to section 251(1)(a) and (b) which grant powers to confirm, reduce, enhance, or annul an assessment/penalty. Given the non-application of mind by the CIT(A), the Tribunal proposed to provide the assessee with another opportunity to advance arguments and submissions. The revenue's representative agreed to this proposal. Therefore, in the substantial interest of justice, the Tribunal set aside the appellate order and restored the matter to the CIT(A) for passing a de novo appellate order after allowing adequate opportunity of hearing to the assessee. All grounds of appeal were allowed for statistical purposes.
The Tribunal held that interest income earned by a cooperative society from investments in cooperative banks is eligible for deduction under Section 80P(2)(d). The exclusion under Section 80P(4) applies to cooperative banks claiming deduction, not to other cooperative societies investing in them.
The Tribunal upheld the CIT(A)'s decision, finding that the assessee had provided sufficient evidence to prove the genuineness of the share transactions. The Tribunal noted the lack of evidence of price rigging against the assessee and relied on jurisdictional High Court decisions.
The Tribunal held that the reopening of assessment under Section 147 was valid. It found that the AO had tangible material in the form of a report from the DGIT (Investigation) and the statement of Sri Gopal Bhattar, who admitted to providing bogus bills. The Tribunal relied on various judicial pronouncements, including Rajesh Jhaveri Share Brokers P.Ltd, Raymond Woolen Mills, Nikunj Exim Exports P.Ltd, and AGR Investments Ltd., to establish that there was a 'live link' between the material before the AO and his formation of belief that income had escaped assessment. The Tribunal emphasized that at the stage of issuing a notice under Section 148, the AO is only required to form a prima facie belief, and the sufficiency of the information cannot be questioned. Therefore, ground no. 1 of the appeal was dismissed. Regarding the merit of the addition, the Tribunal upheld the CIT(A)'s decision to restrict the addition to the profit element. While the AO had applied a 12.5% GP rate, the CIT(A) restricted it to 4.81% by considering the assessee's GP on genuine purchases and the GP of the preceding year. The Tribunal noted that the AO himself had made the addition only to the extent of the profit element. It also observed that the CIT(A)'s approach of considering the GP rate on genuine and non-genuine purchases was consistent with the ratio of the jurisdictional High Court in the case of Mohammad Haji Adam & Co. The Tribunal found no infirmity in the CIT(A)'s conclusion and dismissed the grounds related to the addition, thereby upholding the confirmed addition of Rs. 8,06,619/-.
The Tribunal held that the reassessment proceedings were valid as the Assessing Officer had sufficient 'reason to believe' based on tangible material received from the DGIT(Inv.). The grounds challenging the reopening were dismissed. The addition made on account of bogus purchases was restricted to the profit element, considering the gross profit rates of the preceding year, and confirmed to the extent of Rs 8,99,674/-.
The Tribunal held that a subsequent change in law cannot be a ground for exercising revision powers under Section 263. The assessment order was passed based on the law prevailing at that time, and the Assessing Officer was not erroneous in allowing the deduction.
The Tribunal held that the case was squarely covered by a jurisdictional High Court order, making the penalty liable to be set aside. The AO was directed to delete the penalty.
The Tribunal noted the assessee's submission of additional documents and varying stances. Due to the need for verification and examination of these new evidences, the Tribunal decided to remit the matter back to the Assessing Officer.
The Tribunal allowed the appeals of the Revenue. The issue in hand was found to be fully covered by the Tribunal's decision in a related matter (para 7.2 of the judgment, though not fully provided in the excerpt). The Tribunal stated that the decision in ITA No. 2166/Mum/25 applied mutatis mutandis to the instant appeal. Therefore, the grounds of appeal of the Revenue were allowed. The operative direction was that the appeals of the Revenue are allowed, implying that the addition made by the AO for the full amount of bogus purchases would stand, and the CIT(A)'s restriction to 8% was set aside. The Tribunal did not expressly leave any issue undecided.
The Tribunal allowed the appeal of the Revenue, finding that the issue was covered by a previous decision. The Tribunal's decision implies that the addition should not have been restricted by the CIT(A).
The Tribunal held that once the foundational revision order u/s 263 was quashed by the ITAT, the consequential assessment order passed u/s 143(3)/263 could not survive and was infructuous. Therefore, the CIT(A) was justified in dismissing the appeal as infructuous.
The Tribunal noted that the CIT(A)'s order was passed ex-parte due to the assessee's non-compliance with notices. The grounds of appeal involved issues that were adjudicated against the assessee based on the material on record. However, the assessee's Authorized Representative (AR) requested that the appeal be remitted back to the CIT(A) with an assurance of proper compliance. The CIT DR did not oppose this request. Considering the principles of natural justice and fair play, the Tribunal found it appropriate to set aside the appellate order and restore the matter to the CIT(A). The assessee is granted one final opportunity to present arguments and submissions before the CIT(A), who is directed to provide adequate opportunity of hearing. The assessee is also directed to attend proceedings without fail and cooperate. The appeal is allowed for statistical purposes.
The Tribunal held that the assessee had provided sufficient documentary evidence to show that the property was purchased by her husband from his own sources, and her name was added merely as a co-owner. Therefore, no addition could be sustained in the hands of the assessee.
The Tribunal held that the penalty was levied on account of an inadvertent error or a bonafide mistake. It noted that the assessee had not intended to conceal income or furnish inaccurate particulars, and the amounts were declared in the profit and loss schedule and the Tax Audit Report. The Tribunal relied on the Supreme Court decision in Price Water House Coopers (P) Ltd. v. CIT, which held that no penalty can be levied where there is a genuine omission and the entire details for the addition/disallowance are available in the return, and the tax has been duly paid. The Tribunal also cited CIT Vs. Reliance Petroproducts P. Ltd., stating that quantum and penalty are distinct proceedings and every disallowance does not automatically attract penalty. Consequently, the Tribunal set aside the appellate order and directed the AO to delete the penalty. Ground No. 3 was allowed. The legal grounds were rendered academic.
The Tribunal held that the Learned CIT(A) erred in dismissing the appeal in limine without affording any opportunity of hearing to the assessee. The Tribunal found that such a dismissal, without adjudicating the appeal on merits and examining the materials on record, is contrary to the principles of natural justice and settled law, which mandates appellate authorities to dispose of appeals on merits. Consequently, the Tribunal set aside the appellate order of the CIT(A) and restored the entire matter back to the file of the CIT(A). The CIT(A) is directed to pass a fresh appellate order after granting adequate opportunity of hearing to the assessee, allowing them to advance arguments and submissions on the merits of the case. The assessee is also directed to cooperate in the proceedings before the CIT(A). The issue regarding the statutory exclusion of time under the second proviso to Section 249(2) was not decided on merits by the Tribunal, as the matter was remanded.
The Tribunal held that the notice issued under section 148 of the Income-tax Act, 1961, dated 04.04.2022, is indeed barred by limitation. The Tribunal respectfully followed the binding decision of the Hon'ble Supreme Court in Rajiv Bansal (supra). The Court had held that for Assessment Year 2015-16, any notice issued on or after April 1, 2021, would be invalid as it would fall outside the prescribed period for completion under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA). Consequently, the notice dated 04.04.2022 was deemed invalid in law. As the impugned reassessment order was founded on this invalid notice, it lacked legal sanctity and was therefore quashed. The appeal of the assessee was allowed.
The Tribunal held that deemed rent on unsold stock-in-trade should be computed based on Municipal Rateable Value (MRV), not an ad-hoc estimate. It also deleted the addition on conversion of stock-in-trade to capital asset as the relevant section was not applicable.
The Tribunal held that as the tax effect was below the monetary limit specified in the CBDT Circular, the appeals filed by the Revenue were not maintainable and were liable to be withdrawn and dismissed.
The Tribunal held that as the tax effect was below the monetary limit specified in the CBDT Circular, the appeals filed by the Revenue were not maintainable and were liable to be withdrawn and dismissed.
The Tribunal held that as the tax effect was below the monetary limit specified in the CBDT Circular, the appeals filed by the Revenue were not maintainable and were liable to be withdrawn and dismissed.
The Tribunal held that as the tax effect was below the monetary limit specified in the CBDT Circular, the appeals filed by the Revenue were not maintainable and were liable to be withdrawn and dismissed.
The Tribunal held that since the year-end provisions were made for accounting compliance and the payee was not identifiable at that stage, TDS provisions are not triggered until the liability crystallizes. Consequently, the matter was remanded to the AO for verification of TDS deduction and deposit in the subsequent year.
The Tribunal held that since the year-end provisions were made for accounting compliance and the payee was not identifiable at that stage, TDS provisions are not triggered until the liability crystallizes. Consequently, the matter was remanded to the AO for verification of TDS deduction and deposit in the subsequent year.
The Tribunal held that since the year-end provisions were made for accounting compliance and the payee was not identifiable at that stage, TDS provisions are not triggered until the liability crystallizes. Consequently, the matter was remanded to the AO for verification of TDS deduction and deposit in the subsequent year.
The Tribunal found the CIT(E)'s order to be cryptic and lacking detailed reasoning. It noted that the CIT(E) did not consider the amendments made in the Finance Acts of 2023 and 2024, nor the fact that the trust was old and engaged in charitable activities. The issue was remitted back to the CIT(E) for a detailed order.
The Tribunal held that since the year-end provisions were made for accounting compliance and the payee was not identifiable at that stage, TDS provisions are not triggered until the liability crystallizes. Consequently, the matter was remanded to the AO for verification of TDS deduction and deposit in the subsequent year.
The Tribunal condoned the delay in filing the appeal, citing bonafide reasons and the principle laid down in Collector, Land Acquisition v Mst. Katiji And Others, to avoid defeating the cause of justice. Regarding the addition, the Tribunal admitted the additional evidence submitted by the assessee, which was a confirmation letter from Airtel dated 06.09.2024, stating that the assessee received Rs 8,38,630/- as commission against a turnover of Rs 40,88,44,167/-. The Tribunal found this evidence crucial for adjudicating the dispute and fulfilling the conditions of Rule 29 of the ITAT Rules. However, since the CIT(A) had not considered this evidence, the Tribunal restored the issue to the CIT(A) for fresh adjudication. The CIT(A) was directed to provide an opportunity of hearing to the assessee and consider the additional evidence. The appeal was allowed for statistical purposes. The stay application was also disposed of, with the demand stayed until the fresh order by the CIT(A).
The Tribunal held that the 29% tax rate under the Finance Act, 2017, is applicable only to domestic companies that existed in the previous year (2014-15) and had a turnover not exceeding Rs. 5 crore. Since the assessee was incorporated in 2016-17, it could not have had any turnover in 2014-15, thus falling under the 30% tax rate.
The Tribunal dismissed the department's appeal as infructuous. It observed that the tax effect of Rs. 23,66,650/- was below the revised monetary limit of Rs. 60 lakhs for filing appeals before the ITAT, as per CBDT Circular No. 09/2024 dated 17.09.2024. The Tribunal further concluded that the case did not fall under the exceptions specified in clause 3.1(h) of CBDT Circular No. 5/2024.
The Tribunal held that the sale of shares constituted a capital gain and not business income. It noted that the assessee held a small percentage of shares and was not involved in the company's management, differentiating it from precedents where gains were treated as business income. The Tribunal also directed the AO to recalculate the sale consideration.
The Tribunal held that the penalty order was not legally tenable because the quantum addition, which was the sole basis for imposing the penalty, had been deleted by the ITAT in assessee's own case. The Tribunal followed the Supreme Court's decision in K. C. Builder & another vs. ACIT, which states that if additions forming the basis of a penalty are deleted or set aside, the penalty cannot survive. The Tribunal also noted that the Revenue had not placed any material on record to show that the ITAT's order in the quantum appeal was stayed or set aside by the High Court. Therefore, the Revenue was bound to follow the ITAT's order. The Tribunal further relied on the Allahabad High Court's decision in K. N. Agarwal vs. Commissioner of Income Tax, emphasizing that quasi-judicial authorities must follow the decisions of higher courts unless stayed or set aside. Accordingly, the Tribunal found no reason to interfere with the CIT(A)'s order deleting the penalty and dismissed the Revenue's appeal.
The Tribunal noted the assessee's non-compliance throughout the proceedings, both before the AO and the CIT(A). However, to provide a final opportunity and in the interest of natural justice, the Tribunal decided to set aside the appellate order and restore the matter to the AO for a fresh assessment.
The Tribunal held that the addition under section 40A(3) could not be made in the hands of the assessee as the expenditure was incurred by M/s. SVC Industries Ltd. and not the assessee. Since the payments were made on behalf of SVC Industries Ltd. and not claimed as expenditure by the assessee, the disallowance was deleted.
The Tribunal held that since the year-end provisions were made for accounting compliance and the payee was not identifiable at that stage, TDS provisions are not triggered until the liability crystallizes. Consequently, the matter was remanded to the AO for verification of TDS deduction and deposit in the subsequent year.
The Tribunal held that the assessee was not served notices due to a non-functional email ID, thus denying an opportunity of being heard. Following the Gujarat High Court's decision, the matter was restored to the CIT(A).
The Tribunal set aside the CIT(A)'s order and restored the appeal to the CIT(A)'s file. This was done to provide the assessee another opportunity to present its case on merits, especially given the explanation for non-appearance at the previous hearing.
The Tribunal held that since the year-end provisions were made for accounting compliance and the payee was not identifiable at that stage, TDS provisions are not triggered until the liability crystallizes. Consequently, the matter was remanded to the AO for verification of TDS deduction and deposit in the subsequent year.
The Tribunal held that since the year-end provisions were made for accounting compliance and the payee was not identifiable at that stage, TDS provisions are not triggered until the liability crystallizes. Consequently, the matter was remanded to the AO for verification of TDS deduction and deposit in the subsequent year.
The Tribunal held that the Commissioner (Appeals) had wrongly applied facts from another case and failed to apply its mind to the present case. The Tribunal found that the assessee's claim for deduction under Section 80P(2)(d) on interest and dividend income from a co-operative bank was allowable.
The Tribunal held that an error in quoting a PAN is an irregularity and not void, but requires verification. The CIT(A) erred by accepting the surrender of PAN at face value without independent verification.
The ITAT condoned the 933-day delay in filing the appeal before it, finding sufficient cause based on the provided affidavit and judicial precedents. The tribunal restored the appeal to the file of the Ld. CIT(A) for a de novo adjudication, instructing the Ld. CIT(A) to adopt a lenient approach while considering the 635-day delay in the original appeal and to decide the matter on merits after providing the assessee an opportunity of hearing.
The CIT(A) restricted the profit estimation from 8% to 3%, finding that only the profit element embedded in the alleged non-genuine purchases, not the entire value, could be taxed. The Tribunal upheld this decision.
The Tribunal acknowledged the delay but noted that a part of it was covered by the Supreme Court's order on COVID-19 related limitation extensions. Emphasizing that procedural delays, if explained, should not impede substantive justice, the Tribunal remanded the case back to the CIT(A) to reconsider the condonation of delay with a lenient approach and adjudicate the appeal afresh on merits after providing the assessee a proper hearing.
The Tribunal held that filing of the audit report in Form 10CCB is directory and not mandatory. If the report is filed before the completion of assessment, it is considered substantial compliance.
The Tribunal found that the AO's conclusion was based on a comparison of the tax audit report with OLTAS, and the assessee had not submitted relevant details. To ensure fair play and natural justice, the appeal was remitted back to the AO for verification of the assessee's claim that all TDS payments were made.
The Tribunal held that the amount received was not taxable as capital gains because there was no transfer of a capital asset. The assessee's right to the property was undecided, and the payment was for clearing title and avoiding litigation.
The Tribunal found that the Ld. CIT(A) had correctly deleted the penalty, as the underlying addition was already set aside by the ITAT. However, the concluding remark of the Ld. CIT(A) stating the appeal was dismissed for statistical purposes was deemed inconsistent. The Tribunal directed a rectification to state the appeal was allowed for statistical purposes.
The Tribunal held that the addition made by the AO under Section 68 was not justified as the assessee had provided sufficient documentary evidence for the share transactions. The claim of long-term capital gains under Section 10(38) was allowed.