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591 orders · Page 4 of 12
The Tribunal held that the assessment under Section 153A was unsustainable in law due to the absence of any incriminating material found during the search. Consequently, the additions made were deemed illegal and invalid.
The Tribunal held that the CIT(A) had correctly deleted the additions, noting that similar lender parties had been held to be genuine in previous ITAT decisions. The Tribunal found no reason to interfere with the CIT(A)'s findings.
The Tribunal held that the assessee had shown sufficient cause for the delay due to the unprecedented pandemic situation and the disruption it caused to normal functioning. The Tribunal condoned the delay and restored the matter to the CIT(A) for adjudication on merits.
The Tribunal held that the assessee was a regular investor and had discharged the initial onus with documentary evidence. The Revenue failed to rebut this evidence or prove the assessee's involvement in share manipulation.
The Tribunal held that the CIT(A) had correctly deleted the additions, noting that similar lender parties had been held to be genuine in previous ITAT decisions. The Tribunal found no reason to interfere with the CIT(A)'s findings.
The Tribunal condoned the delay of 541 days, finding sufficient cause for the delay. The matter was restored to the Assessing Officer for fresh adjudication, providing the assessee another opportunity to represent its case, considering it was ex-parte previously. A total cost of Rs. 10,000 was imposed on the assessee, to be deposited in the Prime Minister Relief Fund.
The Tribunal held that the assessee's claim for deduction under Section 35D should be examined afresh by the AO, allowing the assessee to furnish details. The Revenue's grounds of appeal were dismissed, following earlier decisions in the assessee's own case.
The Tribunal held that the assessment under Section 153A was unsustainable in law due to the absence of any incriminating material found during the search. Consequently, the additions made were deemed illegal and invalid.
The Tribunal admitted additional evidence, finding it relevant to the correctness of the books of accounts and the justification for their rejection. Consequently, the impugned order was set aside, and the matter was restored to the Assessing Officer for fresh adjudication.
The Tribunal held that the rejection of books of account and the estimation of commission income were rightly upheld by the CIT(A). The reasoning was that during the search, no documentary evidence supporting actual business activity was found, and statements from individuals like Shri Hemendra Kapadia and Shri Urvil Jani indicated that the business concerns were effectively controlled and managed by Shri Hemendra Kapadia, and that transactions were inflated. The assessee's contention regarding the commission rate was not specifically addressed in the provided text, but the principle of estimating commission income was upheld. Regarding the interest income, the Tribunal found no infirmity in the CIT(A)'s approach, noting the assessee's own disclosure of it as interest income. For the unsecured loans under section 68, the Tribunal acknowledged that if a credit pertains to a period preceding 01.04.2013, it cannot be taxed as an unexplained credit. However, since the assessee had not produced contemporaneous documentary evidence to substantiate the factum and timing of the loans, the issue was remitted to the Assessing Officer for fresh adjudication after the assessee furnished all necessary evidence, including bank statements and supporting records. This ground was allowed for statistical purposes. The remaining appeals for subsequent assessment years were decided mutatis mutandis.
The Tribunal noted that the CIT(A) failed to adjudicate several grounds raised by the assessee, which were fundamental to the case. Therefore, to ensure justice, the matter was restored to the CIT(A) for a fresh adjudication on all grounds.
The Tribunal restored the issue of unsecured loan addition to the Assessing Officer for fresh consideration after examining the evidence. Other grounds were decided mutatis mutandis based on the lead matter.
The Tribunal held that the assessment under Section 153A was unsustainable in law due to the absence of any incriminating material found during the search. Consequently, the addition made under Section 68 was also deemed illegal.
The Tribunal upheld the CIT(A)'s decision, finding no direct evidence connecting the assessee to price manipulation or dubious transactions. The assessee was a regular trader whose transactions were routed through banking channels and supported by broker notes.
The Tribunal held that the rejection of books of account under Section 145(3) and the estimation of commission income were rightly upheld by the Ld. CIT(A). The Tribunal found no error in the conclusions arrived at by the Ld. CIT(A) regarding grounds 1 to 4 for both assessees, dismissing these grounds. Regarding Ground No. 5 concerning the addition under Section 68 for unsecured loans, the Tribunal noted that if the credit pertains to a period preceding 01.04.2013, it cannot be taxed as an unexplained cash credit. However, the assessees had not produced contemporaneous documentary evidence to substantiate the factum and timing of the loans. Therefore, in the interests of justice, this issue was remitted to the file of the Assessing Officer for fresh adjudication after the assessee furnishes necessary evidence, including bank statements and supporting records, to establish that the loans were received prior to 01.04.2013. This ground was allowed for statistical purposes. The findings for assessment year 2014-15 were applied mutatis mutandis to the remaining assessment years for both assessees.
The Tribunal decided that the grounds raised in the appeals were identical to those in Rekha Manish Kapadia's case for AY 2014-15. Specifically, the issue of unsecured loans was restored to the Assessing Officer for fresh consideration after reviewing evidence.
The Tribunal held that the rejection of the books of account and the estimation of commission income were rightly upheld by the Ld. CIT(A). The Tribunal found no error in the lower authority's approach regarding the interest income, stating it was taxed according to its true character. Therefore, grounds 1 to 4 for both assessees were dismissed. Regarding Ground No. 5, concerning the addition under Section 68 for unsecured loans, the Tribunal noted that if the credit pertained to a period preceding 01.04.2013, it could not be taxed as an unexplained cash credit. However, the assessees had not produced contemporaneous documentary evidence to substantiate the factum and timing of the loan. In the interests of justice, the Tribunal remitted this issue to the Assessing Officer for fresh adjudication after the assessee furnished all necessary evidence, including bank statements and supporting records, to establish that the loan was received prior to 01.04.2013. This ground was allowed for statistical purposes. For the remaining assessment years, the issues were identical, and the findings for AY 2014-15 were applied mutatis mutandis. The operative direction for the Section 68 issue was to allow the assessee an opportunity to furnish evidence and for the AO to adjudicate afresh.
The Tribunal held that the rejection of the books of account and the estimation of commission income were rightly upheld by the Ld. CIT(A). The reasoning was based on the conspicuous absence of documentary evidence supporting actual business activity, such as stock, transportation, or delivery records, during the search. Statements recorded under section 132(4) from the assessee's husband and Shri Hemendra Kapadia confirmed that Shri Hemendra Kapadia effectively controlled and managed the business concerns. The Tribunal found no infirmity, factual or legal, in the approach adopted by the lower authorities regarding the estimation of commission income. Therefore, grounds related to the rejection of books and estimation of income were dismissed. Regarding the addition of unsecured loans under section 68, the Tribunal noted that if the credit pertained to a period preceding 01.04.2013, it could not be taxed. However, the assessee had not produced contemporaneous documentary evidence. Thus, this issue was remitted to the Assessing Officer for fresh adjudication after the assessee furnished necessary evidence, including bank statements, to establish the loan's timing. This ground was allowed for statistical purposes.
The Tribunal held that the filing of Form 10B is a procedural requirement and not a mandatory one for claiming exemption under Section 11. Following the Gujarat High Court's decision, the denial of exemption solely on the ground of a belatedly filed revised Form 10B, which corrected a procedural error, was set aside.
The Tribunal decided the issues as follows: Regarding Ground Nos. 1 to 4 (rejection of books, estimation of commission, and treating business as accommodation entries): The Tribunal dismissed these grounds. It noted that the assessee's proprietary concern and related concerns of her husband had substantial transactions with 'One World Group' entities. The statement of Shri Urvil Jani, Director of 'One World Group', admitted to artificially inflating turnover through paper transactions with entities controlled by Shri Hemendra Kapadia, including the assessee's concern. The Tribunal found no error in the CIT(A)'s decision to uphold the AO's action. The ratio is that when evidence suggests artificial inflation of turnover through paper transactions with related entities, the AO is justified in rejecting books and estimating income. Regarding Ground No. 5 (addition under Section 68 for unsecured loans): The Tribunal allowed this ground for statistical purposes and remitted the issue to the Assessing Officer. The principle is that if a credit pertains to a period preceding April 1, 2013, it cannot be taxed as an unexplained cash credit in the assessment year under consideration. However, the assessee failed to produce contemporaneous documentary evidence (bank statements, confirmations, ledger entries) to substantiate the factum and timing of the loan. The AO is directed to provide an opportunity to furnish all necessary evidence and adjudicate afresh. For the remaining assessment years (2015-16 to 2019-20), the issues were identical and were disposed of mutatis mutandis. The appeals for AY 2014-15 were allowed partly for statistical purposes, while other appeals were dismissed.
The Tribunal held that the assessment under Section 153A is unsustainable in law due to the absence of incriminating material found during the search. The Hon'ble Supreme Court in PCIT (Central)-3 v. Abhisar Buildwell Pvt. Ltd. (2023) 454 ITR 212 (SC) held that for unabated assessments, additions can only be made on the basis of incriminating material found during the search. In this case, the assessment year 2015-16 was unabated as the time limit for issuing notice under Section 143(2) had expired before the search. The Tribunal found that the suspicious nature of the transaction surfaced only when read in conjunction with the DGIT Investigation report, which did not originate from the search conducted on the assessee. Mere presence of statutory books reflecting recorded transactions cannot be treated as incriminating material per se. The SEBI order was also not found during the search. Therefore, the addition made under Section 68 in the proceedings under Section 153A is held to be unsustainable. The Tribunal also set aside the CIT(A)'s finding that the assessee failed to provide panchnamas and statements, noting that these documents were within the AO's possession. Since the primary legal ground was allowed, other grounds on merits and procedural issues were rendered academic. The appeal of the assessee is allowed on the legal ground.
The Tribunal held that the assessee failed to discharge its burden under Section 68 and did not establish the business purpose of various expenditures. The arguments presented did not sufficiently dislodge the findings of the lower authorities.
The Tribunal held that the assessee had discharged the statutory onus under Section 68 by providing documentary evidence establishing the identity, creditworthiness, and genuineness of the transactions. The Revenue failed to provide any cogent material to impeach these documents.
The Tribunal noted that the CIT(A) had failed to adjudicate all the grounds raised by the assessee, including a significant legal ground regarding the validity of the sanction order. The matter was restored to the CIT(A) for proper adjudication of all legal issues.
The Tribunal held that the delay in filing the audit report in Form 10BB was a procedural lapse and not fatal to the claim of exemption. The Tribunal condoned the delay and directed the AO to consider the audit report and decide the exemption claim.
The Tribunal held that depreciation on goodwill arising from amalgamation is allowable as per Supreme Court's decision in CIT v Smifs Securities Ltd. The contribution to TEPS was also held to be a revenue expenditure, not a capital investment, as it was a mandatory statutory liability for the continued operation of the assessee's manufacturing unit.
The Tribunal held that reopening an assessment based on the same material and issues already considered and decided in the original assessment is unsustainable. A mere change of opinion does not constitute valid reasons to believe that income has escaped assessment.
The Tribunal held that the assessee had successfully proved the source of the cash as past savings of family members and accumulated bank withdrawals and cash income. The cash book submitted by the assessee was not found to have any infirmity, and the assessee was not required to get it audited under Section 44AB.
The Tribunal, acknowledging the appellant as a Government-owned PSU Bank and its plea of lack of personnel expertise, granted one more opportunity to file details before the AO. The issue was remitted to the AO for a fresh assessment.
The Tribunal followed its earlier orders for similar assessment years and held that since the transactions were supported by bills, banking channels, and the Investigation Wing found no guilt, the addition made by the AO was not justified.
The Tribunal held that since the trust had not claimed the TDS credit and the assessee was the 100% beneficiary, the assessee was entitled to the credit. The Assessing Officer was directed to allow the TDS credit.
The Tribunal directed the Assessing Officer (AO) to pass a necessary rectification order and grant relief if the appellant's contentions were found correct.
The Tribunal remitted the first three issues regarding discounts, third-party receipts, and service tax liability back to the AO for fresh examination. However, the Tribunal confirmed the addition relating to the 15% disallowance of cash expenses, finding them unsupported by corroborative evidence and paid via self-made vouchers.
The Tribunal held that the penalty notice issued under Section 271(1)(c) was bad in law as it was a printed format without striking off the inapplicable clauses, making it vague. Following a previous identical decision for AY 2010-11, the penalty was cancelled.
The Tribunal held that the disallowance of set off of loss of Rs. 47,68,944/- and the addition of Rs. 95,379/- on account of commission were not in accordance with the provisions of law and were directed to be deleted. The Tribunal noted that the AO had not conducted independent inquiries to establish the alleged reversal trades or the involvement of the assessee. The AO failed to prove how the assessee purchased and sold stock options to the alleged counterparty, Rector Investment P Limited, by misusing the online platform. The Tribunal emphasized that the AO did not issue any notice under Section 133(6) to Rector Investment P Limited, nor did they record its statement. The Tribunal found that the revenue failed to indicate or prove any intermediary between the assessee and the alleged counterparty. Furthermore, the Tribunal observed that the CIT(A) had ignored these aspects. Relying on judicial precedents, including decisions of the Delhi High Court in Sabh Infrastructure Limited, the Bombay High Court in Rita Rajkumar Singh, and the Gujarat High Court in Nila Infrastructures Ltd., the Tribunal stated that additions based on conjectures, surmises, suspicion, and unconfronted third-party statements without a proper cash trail are liable to be deleted. The Tribunal also noted that a Coordinate Bench of the ITAT in the case of Laurels Properties Pvt Ltd. had decided an identical issue in favor of the assessee. Consequently, the grounds raised by the assessee were allowed.
The Tribunal held that the Ld. CIT(A) erred by allowing the exemption without proper verification or allowing the Assessing Officer an opportunity to rebut new evidence. The case was remitted back to the Assessing Officer for fresh examination after the appellant provides all necessary details.
The Tribunal held that the penalty could not be sustained. Although the expenditure was recognized in a particular year, its genuineness was not doubted by the authorities. Furthermore, due to the company's substantial losses, the timing of the expenditure recognition did not result in any tax evasion or benefit.
The Tribunal dismissed the appeal as the appellant was non-cooperative, failed to appear for hearings, and did not provide any evidence to support their claims. Additionally, the appeal was filed with a significant delay without a condonation application.
The Tribunal held that interest earned from investments with co-operative banks is eligible for deduction under Section 80P(2)(d). The exclusionary provisions of Section 80P(4) are attracted only when the assessee itself is a co-operative bank.
The Tribunal held that interest earned from investments with co-operative banks is eligible for deduction under Section 80P(2)(d). The exclusionary provisions of Section 80P(4) are attracted only when the assessee itself is a co-operative bank.
The Tribunal held that interest earned from investments with co-operative banks is eligible for deduction under Section 80P(2)(d). The exclusionary provisions of Section 80P(4) are attracted only when the assessee itself is a co-operative bank.
The Tribunal held that the revision order passed by the PCIT under Section 263 was invalid. This was because the issue had already been addressed in the assessment order, and no error or prejudice to the revenue was found.
The Tribunal observed that the CIT(A) had not properly adjudicated the issues regarding the ownership of bank accounts and the adjudication of deposits and withdrawals. Therefore, the Tribunal remitted the issue back to the CIT(A) for fresh adjudication after giving the appellant an opportunity to present evidence.
The Tribunal noted that the addition was confirmed based on Form 26AS, and the assessee's contention was that TDS provisions are machinery ones. The Tribunal, relying on the Supreme Court decision in Godhra Electricity Co. Ltd., restored the matter to the AO to examine whether the income had truly accrued, emphasizing the principle of real income over hypothetical accrual.
The Tribunal noted that the issue of non-issuance of notice u/s 143(2) was raised for the first time before the Tribunal and required factual verification. Therefore, to meet the ends of justice, the matter was restored to the Assessing Officer (AO) to consider the issue and supporting documents.
The Tribunal held that the revision order passed by the PCIT was barred by limitation, as the issue sought to be revised emanated from the original assessment, not the reopened assessment. The limitation period for revision should be counted from the date of the original assessment order.
The Tribunal held that the Revenue failed to provide specific material or conduct independent inquiries to prove that the currency derivative transactions were non-genuine. The Tribunal relied on a coordinate bench's decision in a similar case.
The Tribunal directed the Assessing Officer (AO) to give effect to the Unilateral Advance Pricing Agreement (APA) and the modified return of income filed by the appellant. The disallowance of the Section 80G deduction was deleted, following High Court and Tribunal decisions. Other issues related to TDS, tax credit, and interest were remanded to the AO for verification and necessary action.
The Tribunal considered the assessee's application for withdrawal. The application was allowed, and consequently, the appeal filed by the assessee was dismissed as withdrawn.
The Tribunal held that the assessee had discharged the statutory onus under Section 68 by providing documentary evidence establishing the identity, creditworthiness, and genuineness of the transactions. The Revenue failed to provide any cogent material to impeach these documents.