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4 orders · Page 1 of 1
The Tribunal held that the CIT(A) was justified in deleting the addition on account of sale proceeds of residential units, treating it as business receipt. It also upheld the deletion of addition on account of valuation of investment in Rupam Tower, finding the AO's valuation to be hypothetical.
The Tribunal held that the CIT(Appeals) erred by dismissing the appeal on technicalities without considering the merits. The CIT(Appeals) should have allowed the assessee to submit evidence to rectify the error.
The tribunal upheld the disallowance, stating that strict compliance with Section 36(1)(va) is mandatory for claiming deductions. The Supreme Court ruling in Checkmate Services (P.) Ltd. was followed, which held that delayed deposit of employee contributions to PF & ESI results in addition to income.
The Tribunal noted that the assessee was not given a fair opportunity to present their case due to the Covid pandemic and the ex-parte assessment. The estimation method used by the AO was also found to be flawed.